Retirement income

Hi
What is a good amount of money to retire with,in the Philippines without any income.
I'm planning to retire at age 62.
Pension will kick in 5 years later from the UK.
-@lyndonjohnstone44

If you have to ask, you can't afford it.

Sincerely yours,

J.P. Morgan

Can u file for social security there in the UK at 62? If u can imo you would need the equivalent of min $1,000 a month US up to $2,000 a month esp if u live in a larger city in the PH.

Everyone has a different idea of a comfortable lifestyle - this is a frugal perspective. For 5 years you will need at least $120K (USD) for daily expenses, in my opinion. That's 60 mos times $2K/mo. That's not including the money you might need for large expenses -such as a car, a large medical bill for you, your partner or a family member,vacations to other countries, etc. You may even want to buy a home or condo. That money, if well invested, will also make some earnings (3-5%), but on the flip side, inflation is currently running in excess of that, which means it's not as much as you think.

You should not deplete all your savings of course, so I would recommend a minimum of $250K to start with. $3-500K would be a lot better and give more of a cushion. Whatever is leftover after those 5 years will become your nest egg/emergency fund once you start collecting your Social Security and of course it will generate earnings of 3-5% if conservatively invested, so you hopefully will not need to draw it down. Just spend from the interest and dividends if your social security is not enough.

Agreed. Unlike our American friends who can take their state pension early at age 62 (albeit less generous) this is not available in the UK. To take a slightly different perspective lets say you reach retirement age tomorrow. The state pension for a single person is £185 per week ($223) . This will rise to £204 in April. Frankly I think you will struggle to live on this unless you have a parsimonious lifestyle and you are living on your own. Filipinas are good at budgeting when paying their own bills but not when living with an expat.

The UK pension does not compare well measured up against other western countries BUT all healthcare including prescriptions are covered provided you are in the country to benefit which of course you won't be. Flying back and forth is expensive.

The UK pension is index linked to inflation in the Philippines because of a bilateral agreement between the two countries.

If you do make the move I would advise you to rent out your UK property which will gain in capital value and more than cover your rental expenses which are much cheaper in Phil.

Like Lotus Eater said - The UK State Pension does not amount to a great deal. However I am sure you must have a work place pension or a private pension or maybe both if you have worked in the UK up to now, so do the maths and work out what your combined pensions will give you per month.

If you do have other pension pots you can get free pension advise from Pension Wise - just visit the Government's Pension Wise Website where you can find out all the details. I did it a few years ago and all you need to do is make an appointment and take your pension documentation and photo ID with you.