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Retirement Advice

(123 Posts)
Plumcushion Thu 22-Aug-19 05:05:15

Hello everyone
My DH and I are returning to the UK, Yorkshire specifically, in 2020 after many years living and working overseas.
I’m completely at a loss to know how much money we would need on a monthly/annual basis to live our lives.
We have yet to buy a house, cars etc but all those things will be fully paid for-no mortgage or hp.
So, say we buy a 3 bedroom, detached house, run 2 cars locally with one car doing longer journeys for days out, holidays, eat well, hobbies, meals out, travel, entertainment etc, how much do we need?
I’m thinking £30,000-ish annually? Am I completely off the mark? More? Less?
I’d be really interested to hear your thoughts.
We will leave the Middle East with a lump sum, not a pension, so want to set ourselves a monthly budget.

PamelaJ1 Thu 22-Aug-19 07:52:22

That’s about what we have budgeted for. My sister andDH are returning this year too and we have been discussing this very question.
I think it should give us/you a comfortable life with a few treats.
I am still working part time so although DH has retired we can still have some extra extras.
Now, shall we run to the bunker and hide together?
There’s sure to be some missiles heading our way.😂

sodapop Thu 22-Aug-19 08:14:04

I would think you could live very comfortably for that annual income Plumcushion.
Many of us manage on much less than that and still enjoy life. You are fortunate to be able to afford two cars, large house etc.

ninathenana Thu 22-Aug-19 08:18:17

We have no mortgage or debts run one car and live quiet comfortably on less than that.
I don't know how true it is or relevant these days about the cost of living being less in the north but we live in Kent.

M0nica Thu 22-Aug-19 08:31:32

Is the £30,000 before or after tax?

Ellianne Thu 22-Aug-19 08:32:36

We have just embarked on early retirement so no pensions for a while yet. I would say the figure you quote is more than adequate. We are hoping to live on around half that amount and we are in an expensive area. We appreciate that luxuries, treats and unforeseen expenditure like vets' bills will have to come out of our savings, but we prefer to set a lower day to day budget and then top it up when necessary, or not. Good luck.

Plumcushion Thu 22-Aug-19 08:36:58

Thanks Pamela
Sounds like I’m on the right track.
Do we really need to duck for cover? And I’ll happily meet you in a bunker!!!! smile

Plumcushion Thu 22-Aug-19 08:39:09

After tax

Thanks all. I’m so out of touch with UK life. It seems to cost me a fortune whenever I visit.

Ellianne Thu 22-Aug-19 08:49:49

Plumcushion it will very much depend on what kind of lifestyle you choose in the UK. When we returned from overseas we chose London for the high life and it was expensive but great fun. Now, however, we want the simpler life so the budget will vary accordingly, without depriving ourselves of fun, just of a different kind.
Ignore the missiles, no need for the bunker, no one knows exactly other people's situations.

B9exchange Thu 22-Aug-19 08:50:44

We have no mortgage and own our own cars, but living close to London we would struggle a bit on that amount. We have to raid savings for holidays, but that's what savings are for I guess. Any care home fees, which are about £1500 a week in this area, would swallow the cost of the house in a few years, we cannot budget for those, so will make the most of the window we have! Maybe we should move to God's own country, but we would miss the family! grin

Maggiemaybe Thu 22-Aug-19 08:57:57

Why are you completely at a loss? It’d be easy enough to google the likely cost of your weekly shop, holidays, meals out, entertainment and hobbies and add them up. Without knowing what your travel plans are or what you enjoy doing, nobody on here can really have a clue how much they’ll all cost.

Many people live very happily on a fraction of your estimated budget, others would of course need a lot more. Only you can work out where you fit in.

Plumcushion Thu 22-Aug-19 10:30:23

Elliane and B9, thank you. That’s so helpful. I appreciate your responses.
And Maggiemay.....well, there would be no need for a forum if we all googled everything would there? I like ‘conversations’ and to hear from people with experience.

GabriellaG54 Thu 22-Aug-19 10:52:27

£30K pa should be quite enough.
It depends on how expensive each of your outgoings are
Price of house
Price of 2 cars plus associated costs
Insurance (house and cars)
Monthly food (housekeeping) and wine bill
Clothes and incidentals
House maintenance

It all adds up

GabriellaG54 Thu 22-Aug-19 10:56:02

You must live an extravagant lifestyle if £30k pa wouldn't service it.

Maggiemaybe Thu 22-Aug-19 11:06:38

Well, thanks for your comment, Plumcushion. I'll just guess then.

You won't have enough.

GabriellaG54 Thu 22-Aug-19 11:13:13

...and after Brexit, who knows what the cost of living will be.
You mention Yorkshire but house prices across any area vary from millions to less than £100k.
I own (with a son) a 2 bed house in N Yorks which cost us £76k in 1997 which is now valued at £395k and that's in a remote-ish area.
You've asked the impossible. It all depends on your personal choices. Mondeo or Mercedes cars, Dulux or Farrow&Ball paint, Primark or Prada clothes, Aldi or Waitrose food.
Your average may not be your neighbour's average.
You don't say whether you're bringing furniture or effects back with you or having to furnish from scratch.
Best wishes...
I'd pick an area after Googling info, then look at house prices in that area, shops, nearest doctors and amenities...all the things that everyone does when they move areas.

Charleygirl5 Thu 22-Aug-19 11:19:14

Please make sure wherever you are moving to has decent public transport that is unlikely to wither and die within the next few years because there will come a time when you cannot drive a car.

As Gabriella has said, make sure you are reasonably close to GP surgery and also a hospital. A friend of mine moved and it is 120 miles round trip to a large district general.

H1954 Thu 22-Aug-19 11:25:36

Cost of 2 cars, utilities plus food and clothing aside I think I would be tempted to rent a furnished property for a while to get the feel of a location; your first choice might end up being the wrong choice.

Plumcushion Thu 22-Aug-19 11:46:22

To reiterate- the house, furnishings, decor, cars, etc would all be paid for and in no way will be part of our annual income.
But I see what many of you mean about different lifestyles.
Thanks for all of your comments. I think I know what we need now.
The area we will live in is familiar to us so we know house prices and the infrastructure.
I think £30/35K a year will give us a lovely lifestyle and happy retirement.
Thanks again all.

GillT57 Thu 22-Aug-19 12:03:07

That should be enough for a comfortable lifestyle, especially if you buy a house with most things done that you want, and it is a good idea to buy one that is future proofed ie efficient heating, good quality windows, manageable garden. We budget around £600 per month for DD such as council tax, heating, water, insurances and about the same for food and housekeeping, petrol, etc., this leaves plenty for one offs such as holidays, vet bills, replacement kitchen appliances, but we are all different and I am sure someone will be along in a minute to tell me they manage on far less. Also, remember you will both as UK taxpayers have around £12k tax allowance, and if you stick the balance of your capital in an ISA ( poor rates though), you can draw the interest as income tax free. Good luck with the next exciting chapter in your lives!

Plumcushion Thu 22-Aug-19 12:48:51

Many thanks Gill. That’s exactly the kind of info I need.

M0nica Thu 22-Aug-19 16:07:23

Most of us have tailored our lifestyle to our expenditure. Plumcushion is used to a certain lifestyle that has gone well with her income in another country and is now trying to find out how much she needs to continue that lifestyle in the UK.

To all those sniping, do you know what income you would need to live your current life style in France, USA, South Africa or China?

I very much doubt if the information she requires is on google in a meaningful way. She could no doubt find out what the price of the 'average' weekly shop, but her shopping basket may be different, she could spend less on food over here or much more. She may love cinema or theatre, or cruising all sorts of different things that can make kife more or less exensive.

Asking on GN where we have a large variety of people with a wide range of incomes and lifestyles strikes me as the best and most sensible way to go about it.

Plumcushion Thu 22-Aug-19 17:51:19

Many thanks. You said perfectly what I was trying to ask.
As for people sniping.....well, thank you again, MOnica, as I thought I was being a bit over sensitive about some of the replies. Pamela has it right in the first reply that I should run for the bunker!
Coming back home after 2 plus decades living as an expat is daunting, but exciting. Especially as it’s for retirement, not a job. Where I live now there are constantly people asking on forums about the cost of living-everyone who replies is helpful and informative and understanding.
So, for those of you that have been lovely and kind thank you from this slightly struggling old expats heart.
For the snipers, may karma snipe back at you at a vulnerable time in your life.

Washerwoman Thu 22-Aug-19 18:15:00

We live where you are moving to and our mortgage and cars are paid for.DH still works -self employed- so income can fluctuate. We hope to be living off slightly less than your amount but think we will have enough to be comfortable ,eat well and have a couple of holidays a year.We don't eat out much,but don't hold back if we want to .Plus we enjoy a lunch at one of the lovely farm shops as much as fancy,fine dining.We have a large garden which incurs some costs but it's our hobby.Plus pets.We feel fortunate.Not as well off as some of our friends but I can live without luxury cruises.And certainly in a better position than others.
We have some savings as a back up ,or for large one off purchases .There are loads of bargains to be had if you look for them too.Enjoy your retirement !

Mapleleaf Thu 22-Aug-19 18:17:22

The figure you quote sounds plenty for a decent standard of living, but of course, costs can vary depending where you choose to live - even in Yorkshire, house prices vary considerably depending where it is. I'm assuming from what you say, though, that the £30,000 is what you would have left per annum once house and cars are bought. We don't know what sort of hobbies/interests/pass times you are interested in, as obviously some hobbies and travel are expensive, others less so, but even so, the income you mention should allow you to live a comfortable life, especially as you say it's after tax. It's the obvious things you will have to factor into your calculations:
Council tax, food bills, house and contents & buildings insurance, car tax, MOT and car insurance, clothing, travel costs, petrol, hobbies, utility bills, tv licence, telephone & broadband, etc.
Most of these, you will be able to shop around for to get the best deal, Council tax will depend on location and house size, car tax will depend on the cars you choose, car insurance will vary according to the type of car.
Then, of course, there will be occasional spends, e.g. you might need a new boiler at some point, or new double glazing/doors, that kind of thing.
Hope this helps, and welcome back!