Hotscot

Is a Million GBP enough for a couple to retire on in the UK? No other income.

I'm aware that there are many variables but nevertheless I'd appreciate some thought.

not2old

I'll take a crack at this

On the basis that everything you have (all assets) have been converted to cash. You are homeless on the street & have the million & depending on your lifestyle needs & wants... lets begin

Basic living

1. Where in the UK do you want to live - because one-million can be spent outright on a house in certain parts of the UK.

2. Would you rent or buy - if you buy, what percentage of the cool million would go towards the outright buy of a house/accommodation?

3. Are you healthy & have no need to use the money for medical care?

4. On the basis that you use 25% of the money to buy a property - that'll leave you with 750k.

5. On the basis that you will live 25 more years - then that'd give you 30k/per or approx 575/week to live off & after 25 years its all gone

6. No worries about investing it, or if you did & could get an ISA paying 3-5% paying you 25k/yr - is that enough to live on or would you also draw down some of the capital?

7 The other consideration - are you planning on leaving any of that money to someone

Trust that helped you

Hotscot

Thanks. Great info.
Probably would buy, 250K, Scottish cottage.
Healthy.
30K, without a mortgage is not bad if we can keep up with inflation.
And I imagine keeping most invested will help. Can't do an ISA though, I think, being US citizens.

dunroving

That would leave you with 750k. Annuities yield about 5% at the moment so that would give you £37,500 income per year so yes, definitely enough to live on.

not2old

of course the next question from me would be - location, location, location - do you have a place in mind?

BTW, good luck with your plans

Hotscot

Trossachs area, or Perthshire I think.

theOAP

If you are a US citizen, you could do a true 'Cash ISA' without any reporting problems. You do have to declare the interest on the US return (with no UK tax credits available). They should be viewed the same as an ordinary savings account.

Only problem is right now, they're only paying roughly 2.0 to 2.5% tops. But in five years, who knows where they will be.

Hotscot

I think I'll keep my investments in the U.S anyway, 401k and Roth's

not2old

with the 401K's & Roths (need educating on this) how does the drawdown or withdrawals and any tax implications that would reduce the amount you mentioned in the OP, or have you already factored that in?

dunroving

Have you looked into annuities vs drawdown vs fixed interest (e.g., TIAA Traditional)?

Bud the Wiser

I'll follow this thread with interest ( no pun intended ). There are so may variables that a definitive answer is impossible, nonetheless, it'll be interesting to see what scenarios are suggested. My biggest fear, as I've mentioned before, is the government moving the goalposts and ruining best laid plans.

Trixie_b

Just a quick question, do you qualify to retire to the UK? ie, are you British?

Just a quick google search gave me this: http://www.webbimmigration.com/retirement_to_the_uk.htm

ADMISSION REQUIREMENTS

To enter the UK under this immigration category, the following requirements must be met:

. the applicant must be at least 60 years old; and

. have under his or her control (and disposable in the UK) an income of not less than £25, 000 per annum,

. be able to demonstrate a close connection with the UK,

. be able and willing to maintain and accommodate themselves (and any dependants) indefinitely without taking employment, and

. intend to make the UK their main home.

There are three points in particular which are of particular importance: the financial requirement; the close connection requirement; and the ability and willingness to maintain oneself indefinitely without working. These are discussed in more detail below.

Hotscot

Yup, an Airdrie boy me
But thanks!

In terms of strategies Nun over on the US section has lots of great advice. I really just wanted to get a feeling if, with good management, a million would provide a good retirement since I've been away from the UK for 15 years. hoping to return in four or five, to Scotland.

Trixie_b

Just checking! There has been a series of articles recently for the best places to retire that seem to completely miss the immigration issue.

Good luck.

chris955

The answer is a definite yes, unless your money management skills are worse than a Labour government it will be no problem at all.