How much £ is enough?
Jan 11th 2016, 1:41 pm
#31
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 52,439
Re: How much £ is enough?
Travel by rail still looks expensive to me.
A one way (single) ticket from Hemel Hempstead to London (26 miles) as a typical suburban commute is £13.70. Where I live in the U.S., a similar suburban rail trip is $5 (£3.43).
But this is without any discounts. I may be wrong, but from a U.S. perspective it seems much less expensive here. So unless one is a senior, I'm not completely understanding the cheap UK public transportation thoughts. The state does subsidize rail fare a bit here, however.
A one way (single) ticket from Hemel Hempstead to London (26 miles) as a typical suburban commute is £13.70. Where I live in the U.S., a similar suburban rail trip is $5 (£3.43).
But this is without any discounts. I may be wrong, but from a U.S. perspective it seems much less expensive here. So unless one is a senior, I'm not completely understanding the cheap UK public transportation thoughts. The state does subsidize rail fare a bit here, however.
Jan 11th 2016, 1:53 pm
#32
Heading for Poppyland
Joined: Jul 2007
Location: North Norfolk and northern New York State
Posts: 14,533
Re: How much £ is enough?
Travel by rail still looks expensive to me.
A one way (single) ticket from Hemel Hempstead to London (26 miles) as a typical suburban commute is £13.70. Where I live in the U.S., a similar suburban rail trip is $5 (£3.43).
But this is without any discounts. I may be wrong, but from a U.S. perspective it seems much less expensive here. So unless one is a senior, I'm not completely understanding the cheap UK public transportation thoughts. The state does subsidize rail fare a bit here, however.
A one way (single) ticket from Hemel Hempstead to London (26 miles) as a typical suburban commute is £13.70. Where I live in the U.S., a similar suburban rail trip is $5 (£3.43).
But this is without any discounts. I may be wrong, but from a U.S. perspective it seems much less expensive here. So unless one is a senior, I'm not completely understanding the cheap UK public transportation thoughts. The state does subsidize rail fare a bit here, however.
But also, I don't think anyone in earlier posts was comparing UK with another country. Living in rural New York State, I have no buses or trains available to me. ( I have one bus a day to Albany, eight hour journey time. It's only four hours by car.) Chicago, I agree, has very good buses, subways and trains.
Jan 11th 2016, 1:55 pm
#33
Heading for Poppyland
Joined: Jul 2007
Location: North Norfolk and northern New York State
Posts: 14,533
Jan 11th 2016, 1:59 pm
#34
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Joined: Aug 2004
Posts: 4,754
Re: How much £ is enough?
The assumption is that the standard of living of the median income household in the UK and the US are similar. You might have to make some adjustments for things like medical costs. Still, if you currently spend $30k to live in CA where the median income is $61k that means you are ok on about 50% of the median income. In the UK the median household income is 24kGBP so a first estimate would be that you'd be ok on 24k *0.5 = 12k GBP. If you are moving to London you'd want to use the median income in London...which is about double the UK median income.
If pensions plus SS plus 0.04*(401k and other fund investments) is greater than 12k GBP you are probably set to retire.
If pensions plus SS plus 0.04*(401k and other fund investments) is greater than 12k GBP you are probably set to retire.
Last edited by nun; Jan 11th 2016 at 2:02 pm.
Jan 11th 2016, 2:02 pm
#35
Heading for Poppyland
Joined: Jul 2007
Location: North Norfolk and northern New York State
Posts: 14,533
Re: How much £ is enough?
The assumption is that the standard of living of the median income household in the UK and the US are similar. You might have to make some adjustments for things like medical costs. Still, if you currently spend $30k to live in CA where the median income is $61k that means you are ok on about 50% of the median income. In the UK the median household income is 24kGBP so a first estimate would be that you'd be ok on 24k *0.5 = 12k GBP
If pensions plus SS plus 0.04*(401k and other fund investments) is greater than 12k GBP you are probably set to retire.
If pensions plus SS plus 0.04*(401k and other fund investments) is greater than 12k GBP you are probably set to retire.
Jan 11th 2016, 2:14 pm
#37
BE Enthusiast
Joined: Feb 2013
Location: Chicago
Posts: 470
Re: How much £ is enough?
Well, one is a senior. Free buses, discounted trains (based on a £30 per year pass.)
But also, I don't think anyone in earlier posts was comparing UK with another country. Living in rural New York State, I have no buses or trains available to me. ( I have one bus a day to Albany, eight hour journey time. It's only four hours by car.) Chicago, I agree, has very good buses, subways and trains.
But also, I don't think anyone in earlier posts was comparing UK with another country. Living in rural New York State, I have no buses or trains available to me. ( I have one bus a day to Albany, eight hour journey time. It's only four hours by car.) Chicago, I agree, has very good buses, subways and trains.
Rural Maine wisdom. Now if someone could explain that!
Jan 11th 2016, 4:23 pm
#38
Was in Canada, now home.
Joined: Aug 2011
Location: Devon
Posts: 3,388
Re: How much £ is enough?
On the median income thing. Wow! OK, if it works for you. It seems complicated to me. For one thing, if you are working in Country A and retiring in Country B, then you are not only changing countries but lifestyles, with very different expenses. Also the assumption that standards of living on median incomes in both countries are comparable seems a very big assumption.
But if it works it works, I guess.
But if it works it works, I guess.
Jan 11th 2016, 4:32 pm
#39
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 52,439
Re: How much £ is enough?
On the median income thing. Wow! OK, if it works for you. It seems complicated to me. For one thing, if you are working in Country A and retiring in Country B, then you are not only changing countries but lifestyles, with very different expenses. Also the assumption that standards of living on median incomes in both countries are comparable seems a very big assumption.
But if it works it works, I guess.
But if it works it works, I guess.
I guess people who retire to Thailand or the Philippines are seeking to move their fixed income higher up the national curve of income levels.
Jan 11th 2016, 5:30 pm
#40
Dichotomus tinker
Joined: Aug 2013
Location: Ontario, Canada
Posts: 6,678
Re: How much £ is enough?
Jan 11th 2016, 6:33 pm
#41
Forum Regular
Thread Starter
Joined: Jan 2016
Posts: 42
Re: How much £ is enough?
Jan 11th 2016, 6:35 pm
#42
Forum Regular
Thread Starter
Joined: Jan 2016
Posts: 42
Re: How much £ is enough?
It only works if the two countries are broadly similar, and I would say that the UK and the US meet that condition, more or less, though there is the usual caveat that there are massive disparities between places within the two countries. In other words if you are living in San Francisco and retire to Cumbria then you'll be very comfortably off, whereas if you're living in Mississippi and are thinking of retiring to London you're likely to get a rude awakening.
I guess people who retire to Thailand or the Philippines are seeking to move their fixed income higher up the national curve of income levels.
I guess people who retire to Thailand or the Philippines are seeking to move their fixed income higher up the national curve of income levels.
Jan 11th 2016, 7:00 pm
#43
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Joined: Jul 2008
Posts: 1,477
Re: How much £ is enough?
Nun, are you saying that 12k pounds per year is enough to live on in UK?
Jan 11th 2016, 8:21 pm
#44
Was in Canada, now home.
Joined: Aug 2011
Location: Devon
Posts: 3,388
Re: How much £ is enough?
12k is low for a couple. It's the level of pension credit - the means tested benefit for pensioners on low incomes. So, in the long term (after you've been resident for long enough to qualify) you are not going to get less, but you are not going to have much of a life on that sum either.
Jan 11th 2016, 8:24 pm
#45
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 52,439
Re: How much £ is enough?
12k is low for a couple. It's the level of pension credit - the means tested benefit for pensioners on low incomes. So, in the long term (after you've been resident for long enough to qualify) you are not going to get less, but you are not going to have much of a life on that sum either.