how much savings would you need to retire on at 56

[cris r]

We dont spend a lot and we have a fair amount put away ( because we dont spend alot) My husband lost his job at Christmas and thinks he will never work again ( he is full of doom and gloom ) he spends most of his day sitting over his accounts and saying it will all run out. We have no morgage we own our cars and our children have left home and are secure in thier jobs. We just need a living allowance I work part time and we rent a house out so we do have an income coming in. I think I need someone to reasure my husband that his saving will not drain away in the next ten years and we will not have to rent caravan somewhere when we reach retirement So my question is what do you think most people retire with in the bank. I know we are all different and some have private pensions. We dont have a private pension. But we do own two houses and a small house in Spain. Although when I listen to my husband you would thing we nothing.
sorry if this sounds like a big whinge but seriously he is driving me to distraction.

[Old_Geezer]

I can understand him. When I try to work out if I can stop work there never seems to be enough.

I think only you and your husband can work out what finance you can release and invest as an income generator. You'd need to sit down and honestly calculate the outgoings (no rose tinted glasses) and then know you need to account for future inflation.

It will all depend on what you are prepared to give up and how frugally you wish to live. Poorer in cash terms, richer in time. You may be able to get part time jobs for pocket money if needed, but best not to have to rely on it.

[factor-fiction]

Anything less than £100000 will probably disappear in less than ten years. If you add up your regular bills (utility, Sky, mobiles, rates, petrol, car tax, servicing and insurance, shopping, Christmas presents) you'll see how quickly it will go. If you have no pension you really need to put some aside for later years, because 20 years on a state pension will be hard going. Selling a property though could make things easier for you.
He can get 6 months' CB JSA as short term help

[VHG]

The key thing is if your savings are going up or down.

If at the end of each month or year your savings are the same (or maybe even higher) then you should be ok.

You should be concerned if your savings are going down each month or year.

But if you own two houses, and one in Spain, you do have some assets so can always sell them if you need money. And if you dont sell them you will get a regular income from rent.

Note you may need to replace your cars every so often so that will be a large capital outlay that you need to take into account.

p.s. bear in mind your husband has been the bread winner so he is bound to feel rather vulnerable if he has lost his job. He is bound to be worried and concerned that the money will run out if he is not getting a wage each month.

p.s. To answer your question I think a quiet retired couple should be able to live on £15,000 or so a year.

I am retired, and have a take home pension of just over £20,000 a year, and find I have plenty of money as I have paid off my mortgage.

[craft1948]

You really need to speak to a good, independent, financial consultant. It's not all about what savings you need, it's about what you do with those savings to generate a long term income.

[Brinjal]

My accountant did calculations for me a worked out that if I retire next year at 60 I would need £350000.00

[solvitquick]

You seem to want everything and need to rationlise the property situation. Get rid of all extra properties as quick as possible than wait till you have to do in a panic. If you concentrate on your main home you must take it's maintenance into account as well as essential out goings. Form joint account, to pay for services (elec,water, gas etc) approx £2000 per year(give yourselves £1000 start then pay £200 permonth). Consider how much you really are receiving of rental properties e.g insurance on these, cost of management company if use, community charges. If concentrating on own home should be OK with £100,000 to £200,000. Your tax-free National Pension kicks in at age 60 years, proportional to how many contributions you have paid. Eventually, if you have concentrated on one single home and then have more savings worries, could scale down to cheaper home. Don't understand why you own house in Spain - why not holiday where you wish in hotel or 2 wk rental of property? Considering your situation, you should be thankful compared with many. Sorry if huband is ill so cannot work, but he should sign-on seeking work in order to build up NH contributions. Best to have modest home and large savings rather than great home and low savings.

[solvitquick]

Note: Do not invest in anything which includes all or part equities - likely to dive cos' of Euro crisis etc. Do not take advice from bank-manager (he/she) is a salesperson of the bank's products. Use independant advisor as suggested earlier.