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Early Retirement

Discussion in 'Teaching abroad' started by frogusmaximus, Dec 21, 2019.

  1. frogusmaximus

    frogusmaximus Occasional commenter

    Anyone used their vast wealth accrued from working overseas and opted for a life of leisure in a country outside the UK?
  2. the hippo

    the hippo Lead commenter Community helper

    Bulgaria! I retired for about six months and then got a new job. Probably I will retire again in BG, one of these days. Even some modest savings and a less-than-full TPS pension will go a long way in this part of SE Europe. They will not go far in the UK!
  3. frogusmaximus

    frogusmaximus Occasional commenter

    Was you looking actively for work again or was you not quite ready to put your feet up?

    I've had a year off now and at 55 not missed the classroom one bit. Do a little tutoring but don't actively seek it.
    speaker2 likes this.
  4. dumbbells66

    dumbbells66 Lead commenter

    Not yet, but have plans in motion. 55 and im out.
  5. migratingbird

    migratingbird Occasional commenter

    What are people estimating in terms of savings for retirement? I've been advised I have a "shortfall" of GBP1,000,000 :D:confused: so this bird may still be on the scene in my 80s!
  6. dumbbells66

    dumbbells66 Lead commenter

    I have properties..... and i married someone 20 years younger than me. She's my pension plan ;)
    mermy and migratingbird like this.
  7. 576

    576 Established commenter

    I don't think I need that much...

    Attached Files:

  8. Helen-Back

    Helen-Back Occasional commenter

    I'd love to see the numbers they crunched to get those figures because they look totally whacko, unless the idea is to actually spend the capital until it runs out, in which case you may have to top yourself at some point.
  9. migratingbird

    migratingbird Occasional commenter

    I think it's cos I'm currently based in Singapore so they assume I'll retire here...as if...I think the number we're currently on track for matches much more reasonably with these figures -
    Thanks for that :)
  10. Helen-Back

    Helen-Back Occasional commenter

    I'm confused by this. The figure circled in pink shows an annuity that pays 13%. Nobody pays 13%. I don't know what annuities pay in the UK but I doubt it's much more than 5%. And in order to get that you are handing over your life savings and leaving nothing for your children (assuming you have them).

    I just copied this from Which?, "What is an annuity rate? Annuity rates determine the amount of regular income you will get in return for your pension savings. They are usually shown as how much money you’ll get per year for every £100,000 you pay in. For example, an annuity rate of 5% would mean you’ll get £5,000 for every £100,000 you invest – so if you paid an annuity provider £50,000, you’d get £2,500 a year."

    Now, I may be missing a big chunk of info here and I could end up looking stupid, but I'd rather that than someone sale up to retirement thinking 200,000 quid will last them for ever.
    clovispoint likes this.
  11. Helen-Back

    Helen-Back Occasional commenter

    This (from Which?) I understand, and although I wouldn't do it myself, the numbers looks reasonable,
    Case study: Brenda Jackson aged 65 is planning to retire
    Brenda has a SIPP worth £1m and no other retirement savings. She plans to retire in December 2018 and is keen to pay off her £200,000 mortgage and buy a new car when she retires.

    She decides to access her whole fund and takes £250,000 (25%) as a tax free lump sum which she uses to pay off her mortgage and buy a car, and puts the balance into flexi-access drawdown.

    Mrs Jackson’s earnings mean that she is paying higher rate tax in the tax year 2018/19. As she does not want to pay higher rate tax on her pension she decides to wait until April 2019 before taking any drawdown income.

    In April 2019 she decides to take an income of £35,000 a year so that she only pays basic rate tax – she also receives a state pension of £6,000 a year. Given the size of her drawdown fund (£750,000), Mrs Jackson hopes that this level of pension (under 5%) is sustainable, but she will have to review this on a regular basis, taking into account investment performance."

    Again, if I'm off base I apologise, something just doesn't look right.
    clovispoint likes this.
  12. stopwatch

    stopwatch Lead commenter

    I have used my overseas money to live a life of leisure - in the U.K.
    dumbbells66 likes this.
  13. migratingbird

    migratingbird Occasional commenter

    Love your research! Thank you :)
  14. frogusmaximus

    frogusmaximus Occasional commenter

    Well of course it very much depends on where you plan to live and your own individual spending habits. My present income would in no way allow me to retire in the UK.

    I have a home overseas and will stay overseas and live in it. Housing costs are small although of course you do upgrade your place now and again. I have investments that pay me 40% of my last salary and also a wife that earns something similar, and who will no doubt continue earning at that rate for the next ten years. It's a useful backup until my UK government pension kicks in. I had some shortfall years but paid a few grand to take that up to close to the maximum, as even with a RA of 67 it still offers excellent value when living overseas. That will add a further 33% to my income meaning I'll push the level to about 50% of my last salary in the future, which is quite a comfortable level.

    Investment returns are very high where I am based, but changes to those rates would see me take a hit on my income. On the positive side, I have a healthy contracted out cash fund in the UK which covers me for trips to Europe for the next decade, and may well inherit a percentage of a London property from my elderly parents. I also pick up small sums offering tutoring - lets call it pocket money - and could always look to promote that if needed. I think some elements of flexibility are required to cover the variability of your income stream.

    I live a comfortable life but the biggest hit to my finances are overseas travel to visit family and private medical insurance, which can range from the modest to the extreme. I've accepted that the care i can afford will be lower than that provided free in the UK, but it is more than overcome by me avoiding a further ten years of work and the stress free exotic lifestyle I enjoy.
    Helen-Back likes this.
  15. the hippo

    the hippo Lead commenter Community helper

    As regular readers of the pachyderm's online ramblings will already know, this smelly old hippo has already retired once and probably I will do it again, one of these days. Helen-Back's post really focusses on only one side of the equation, namely savings, investments and income. It really does not say anything about the other side of the coin: downsizing and living more cheaply.

    Now I do not want to go on (and on) about a certain country in SE Europe, but I want to say that international teachers should seriously consider retiring overseas, not in the UK. After all, if you have enjoyed living and working overseas, why not carry on your life in foreign parts after retirement? If you sit down and down the sums, you will see that financially it makes a lot of sense to stay overseas. Let me give you a few examples (and yes, they are from Bulgaria). Lots of people in the UK pay between 150 and 200 pounds a month for their Council Tax, but we pay 40 leva a year (that is about 15 pounds!) for the equivalent tax in BG. Whereas many retired people in the UK worry about heating bills, I get out my chainsaw and chop up some more firewood (it is either free or very cheap). A three-litre box of very drinkable Bulgarian plonk cost 14 leva (that is about 5 pounds). While train fares in the UK are even more outrageous than ever, a round trip from Dragoman to Sofia (120km there and back) and will cost about 3 pounds. Even in Sofia, you can have quite a pleasant meal with drinks for two people for 50 leva (that is about 20 pounds) and a Metro ticket for 1.60 lev will take you from one side of the city to the other. In the summer, a two-hour drive gets you to the Greek border. From the UK, getting to Greece might be a bit more expensive.

    Of course, there might be those who will say, "Yes, but I would miss my family, if I were to retire overseas." Well, seeing your family might also be a big problem if you live in Cornwall and they live in Yorkshire. Just because you are a bit closer on the map does not actually mean that you are closer in terms of travelling time. The M25 is still the biggest car park in Europe. Retiring overseas might mean that you could afford a bigger house, so it would be much easier and more enjoyable when your friends and family do come and visit you.
  16. T0nyGT

    T0nyGT Lead commenter

    I'm not sure how much 'leisure' I could endure in the UK. Surely there's only so much Corrie you can watch while it rains outside for 364 days a year.

    I'd personally rather work until 70 in my current country than retire at 50 and move back to the UK. It really is a miserable place.
    mermy and dumbbells66 like this.
  17. dumbbells66

    dumbbells66 Lead commenter

    I just spent 5 days there, and it was at least 3 days to long.
  18. stopwatch

    stopwatch Lead commenter

    I hear what you (and some others) say about UK, but I believe that it is dependent on a) your circumstances b) your frame of mind and c) your life experiences.

    If you retire in UK and all you do is watch Corrie, then you must be nuts. It rains a lot, but not 364 days of the year - and their are raincoats you can buy these days.
    There is so much to do it you plan ahead and are creative in your approach.
    I could just as easily say 'there are only so many afternoons you can get p**sed in a bar in Spain etc etc', but I won't because it is each to their own.
    576 likes this.
  19. 576

    576 Established commenter

    I intend to retire in the UK.
    Main reason is the NHS.
    Say what you like about it but most countries do not give that level of care free to the patient.
    I will probably adopt a rescue dog and work my way through the contents of the local library.
    The dog and I will enjoy daily walks along the beach.
    My current Asian and previous African locations both had higher annual rainfall figures than my UK base!
  20. the hippo

    the hippo Lead commenter Community helper

    The NHS? Does it still exist, 576? And have they found any beds yet? The last time I was in the UK, I heard on the news that there was a chronic shortage of NHS beds. (Why doesn't someone go to a shop a buy some more?)

    Far more important than the availability of health care is the availability of good marmalade. This was a very serious disadantage when living in Bulgaria. Sometimes a dear friend would bring me a few jars of Frank Cooper's. Now, however, Mrs Hippopotamus has discovered the joys of homemade marmalade making. Hooray! The last obstacle to our retirement in Bulgaria has been removed.

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