Retiring Back Question

Hello All,

This is my first post to this wonderful forum and I am hoping to get some opinions.

My wife (US Citizen) and I (UK Citizen) plan on retiring to the UK in the next few years and wondered if 30,000 GBP per year would be enough to enjoy a reasonably comfortable retirement (couple of European getaways and a few domestic mini-breaks each year) once we have settled

We would have enough money from the sale of our home in the US to buy a home so the housing costs (rent or mortgage) would not be a factor in the per annum stipend we have in mind.

We would base ourselves in the Southwest or North Yorkshire with one small car (electric) and one dog.  Aside from the holidays previously mentioned our simple pleasures are walking and nice coffee shops.

Appreciate any feedback from your experiences of currently living in the UK and hope my questions haven’t been too obtuse.

Assuming you are in Oregon? From SW Washington myself and now live in N Yorkshire.

My wife and I can live on £30K very easily. We own our house and we don't travel. Other than golf and occasional larger expenses (just put in new driveway and bought a new car) a typical months expenses are around £1500,  and even get closer to £1,000 a few months. We just get the occasional large months when we (usually me) buy a new toy (mandolin, golf club etc). It really just depends on what your lifestyle is like. One of my wife's son's just can't save any money even though both he and his wife work......they are pretty loose with their money spending. Even though I don't need to, I still keep track of how much money we spend just to keep us from getting carried away spending too much. 

Hi Oregon, welcome to the forum! 

Don't forget to factor in the cost of visas for your wife over the next 5 years.

Make sure you consider long term medical needs too. There have been huge cuts to social care, so if a person ends up in a residential care home or needing carers at home often the costs come from selling a home or savings. It's still so much less than in the US, but just something to have in the back of your mind. Your wife also won't qualify for public funds until she has ILR 5 years after moving.

You'll also probably be starting over with zero credit. If you plan to own a vehicle, the first year the insurance will be very expensive due to the lack of credit history and UK license. And you'll have to factor in moving & setting up a new home costs. In many parts of the country I'm sure £30k can go far. Also remember some of the income may be taxable by the UK.

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For some, £30k a year would mean living like kings.  For some it would be living like a pauper.  Really varies from individual to individual and their choice of lifestyle.

Welcome to the site Oregon, I think £30,000 per year in your circumstances will be just fine, especially if you are living "up north" in N. Yorkshire or the like. End of 2017 our son bought a good size 3 bed semi up here for £145,000, and he lives well  on £24,000 / year after tax, no mortgage, easy going lifestyle.

Depending on how your income is sourced and split up you may pay very little tax as you are taxed as individuals here. e.g. if you each have a pension of £15,000 then since the personal tax free allowance is £12,500 you will each have £2,500 taxed at 20%, so £500 each.

Welcome to UKY!

I hate to not be helpful, but it really does depend on your lifestyle and spending habits.  I know someone who is retired, outright owns her home and car, and through various pension plans has a slightly higher budget than you (of actual take home pay).  She is always complaining she is very tight on money at the end of each month and usually can't afford holidays out of the UK. 

If DH and myself had £30k/year and didn't need to pay rent or mortgage, we would be quite comfortable with our spending habits, even in London.

Also, some very good points were raised earlier about visa costs, taxes, and high car insurance.

Thank you all for your prompt responses and sage advice. Many good points raised which give us plenty to think about and prepare for us as we weigh up whether to retire to the UK or Portugal. 

My heart wants us to find a nice little cottage on the edge of a village with fields nearby for long walks with the dog, but my head tells me we’ll get more for our money and a quieter, slower pace of life in Portugal. 

Much to mull over in the months ahead and I’m sure I’ll be back with more questions.

Portugal certainly sounds interesting. Presumably you’ve spent sone time there. What are the visa and financial requirements for a USC retiring there?

Sadly, if the USC is married to a UK citizen and the UK was still in the EU, the USC could settle in Portugal under EU family member rules, no problem. With the UK leaving the EU, the  rules are going to be very different. This website may be of use  https://www.vistos.mne.pt/en/


Portugal is a very appealing place. With extremely friendly taxation.