Will I be able to retire in 12 years?
Posted: January 22nd, 2022, 10:44 am
Last year I posted here asking Will I be able to retire in 13 years? You can see that post here - https://www.lemonfool.co.uk/viewtopic.php?t=27701
I got some excellent advice. It has not quite been a year but as I just got my mortgage statement, I thought it would be interesting to see what has changed since the last time I posted.
Here's what the picture looked like in 2021. Sorry folks I tried to use a table but it didn't work!
Pension Pot £246K
ISA - £18K
Premium Bonds £15K
House Price Estimate £300K
Outstanding Mortgage £119K
Net Wealth including House Price minus Mortgage £460K
Salary £50K
Total Monthly Pension Contribution is £1400
Here's what things look like today.
Pension Pot £264,590
ISA - £28,086
Premium Bonds £3,000
House Price Estimate £315,000
Outstanding Mortgage £108,000
Net Wealth including House Price minus Mortgage £502,676
Salary £50K
Total Monthly Pension Contribution is £2100
According to my figures my net worth has gone up by £42,676. I am really not sure here if it’s a good plan including the house price in this figure, as you can see my house price has gone up by £15,000 but I really do not know how accurate this is.
To make things easier, a year ago my financial assets (Pension, ISA and premium bonds) were £279,000 and today they are £295,676 meaning that my financial assets have gone up by just £16,676. It currently feels that this has not gone up enough in value in the last year to allow me to be able to retire in 12 years. It was going to be tight but I don’t think the last year has helped that much.
The other things of note in the last year is that I moved most of my premium bonds to my Investment Trusts which are held in an ISA.
I also decided to focus on putting away most of my money through my pension plan to get the tax relief. I realise at some point I will need a lot more money outside my pension plan, but I figured the chancellor will sooner or later reduce the tax relief and I should make use of it whilst I can.
I also paid down the mortgage
I would be really interested in hearing anybody thoughts of how things have gone for me?
Thanks in advance.
Newguy
PS I am dyslexic so hopefully this post make sense!
I got some excellent advice. It has not quite been a year but as I just got my mortgage statement, I thought it would be interesting to see what has changed since the last time I posted.
Here's what the picture looked like in 2021. Sorry folks I tried to use a table but it didn't work!
Pension Pot £246K
ISA - £18K
Premium Bonds £15K
House Price Estimate £300K
Outstanding Mortgage £119K
Net Wealth including House Price minus Mortgage £460K
Salary £50K
Total Monthly Pension Contribution is £1400
Here's what things look like today.
Pension Pot £264,590
ISA - £28,086
Premium Bonds £3,000
House Price Estimate £315,000
Outstanding Mortgage £108,000
Net Wealth including House Price minus Mortgage £502,676
Salary £50K
Total Monthly Pension Contribution is £2100
According to my figures my net worth has gone up by £42,676. I am really not sure here if it’s a good plan including the house price in this figure, as you can see my house price has gone up by £15,000 but I really do not know how accurate this is.
To make things easier, a year ago my financial assets (Pension, ISA and premium bonds) were £279,000 and today they are £295,676 meaning that my financial assets have gone up by just £16,676. It currently feels that this has not gone up enough in value in the last year to allow me to be able to retire in 12 years. It was going to be tight but I don’t think the last year has helped that much.
The other things of note in the last year is that I moved most of my premium bonds to my Investment Trusts which are held in an ISA.
I also decided to focus on putting away most of my money through my pension plan to get the tax relief. I realise at some point I will need a lot more money outside my pension plan, but I figured the chancellor will sooner or later reduce the tax relief and I should make use of it whilst I can.
I also paid down the mortgage
I would be really interested in hearing anybody thoughts of how things have gone for me?
Thanks in advance.
Newguy
PS I am dyslexic so hopefully this post make sense!