Retirement options?

Depends on how much they need to live on.

So, say he has 94K and that has to last for 13 years and let's say he gets an average interest of 1.5%. That would mean he can spend around £8,500 a year plus his £5,000 pension.

Can he and his wife live on that?

Bear in mind that does not allow for any increase in spending for inflation but he might be able to get a better average interest rate than that, depending on how much be puts in short term savings and how much in longer term accounts.

is previous employer of around 5k a year.

), "retire" and live off of the savings and pension until he hits 67 when h e can start drawing the State Pension.

ond car, for example) and it'll work.

n the checkouts at B&Q a couple of afternoons a week.

o work......except, I can't quite quantify *why* it won't work.

Thanks both for the input.

From what he tells me, their outgoings in terms of council tax, gas, electr icity etc etc (i.e the non-avoidable outgoings) are £390 per month (le ss in Feb/Mar as no council tax is payable in those months).

On top of that, it's the weekly shop plus however much it costs them to run a Fiesta diesel for a year.

I suspect what he's forgetting to factor into his sums are unavoidable one- off hits to his savings (the fences all blow down and it costs £500 to replace, for example).

Or he needs a replacement car, for example.

I haven't done the calculations myself but he really should do, allowing a tidy sum for contingencies.

It is a fairly easy spreadsheet to set up and I have one for myself which is how I could work out the figures for the OP reasonably quickly.

I stopped working is similar circumstances, although my redundancy was not optional, a year and a half ago and hoped I too could afford to stop work completely. So I approached it by really pulling my horns in for year one and wrote down every single penny that went out and came in and from that I could see my minimum base expenditure.

And that have allowed me to see how much contingency I have in the pot for luxuries and one-off expenditure etc.

I still write down every penny as of course I now have a fairly strict budget, and that little bit of discipline allows you to keep a eye on things. My spreadsheet also handles inflation on my spending and interest on my savings, so I can see how the cash is holding out.

Yes similarly, in fact it is a 20yr spreadsheet as a fair amount of my OAP requirements come from money invested. Two factors, one for inflation, one for investment growth. Allowances for capital purchases every couple of years (car, washing m/c etc). Has worked well for the past 20yrs though I'm now toying with bringing it down to

10yrs - that's the main issue for me, should I spend it all today as I might die tomorrow or do I have another 20yrs left in me?

That in part depends on who you have to leave money too and if you happy to leave some to them. If you are childless for example, there is a bigger incentive to get it spent where as if you have kids, most will be happy for leftovers to head in that direction.

Thanks all for the advice, I will pass it on and advise him to pump the num bers into a spreadsheet.

He now tells me his 90k is sat solely in Premium Bonds (in his and wife's n ames, not sure if good or bad but he reckons he raked in 6 x £25 wins in December).

I'm still pushing the "what happens when your car fails its MOT five years down the line and you have to spend £5k on a new one" but he seems con vinced it's all rosy with his pension and savings.

I can but try......

Crumbs! That does not indicated the ability to financially plan at a time when certainty is probably more important that a lucky win.

To be fair, I have a few quid in premium bonds in the hope of picking up a decent win but generally do no better than average luck. The most I have ever won in a single prize being a £500 but that was 20 years ago now.

We all have to make our own decisions and all you can do is offer information.

I assume that is 6 x ?25 and not those funny numbers that non-text systems introduce. He should be averaging about ?1,000/yr though the

90k is eroding in value.

Worth a read of

I work on drawing about 3% on my investments which still allows them to grown at around the inflation rate. Nothing spectacular but seems to be working so far. My wife's ?90k invested (funds) has paid for the weekly shop for the two of us over the past 7 or 8 years.

drawing down 90K over 13 years to support a couple is just not enough

end of

tim

Also could they live of the state pension alone after the 13 years have elapsed?

Well he has a £5k pension from his previous employer so he wouldn't be relying solely on the state pension.

I agree with Tim, the weighting is all wrong.......90k savings with 10 year s to retirement is probably do-able, £120k savings with 13 years to re tirement likewise.

I think (and have told him) he's three years or 30k short of his goal.

But thanks for the input all.