difference between UK retirees and US

[Big_Hitter]

The Main one being the cost of HealthCare, for some it can be devestating, so it is relevant.

definitely if you don't budget for it

I was looking at bronze plans and it appears my OP max (including premiums) for one would be about $13K a year.

 

[MRG]

definitely if you don't budget for it

I was looking at bronze plans and it appears my OP max (including premiums) for one would be about $13K a year.

+1

The unsubsidized cost for my individual premiums is 24k plus deductables of 13k. The thing that you can't judge is the nonsense the insurance companies do. For example I pay $200 a month for a prescription my insurance company requires a prior authorization that no one can pass. I'm considering paying for urinary surgery out of pocket because my insurance company is making it impossible to get a surgeon.

 

[Big_Hitter]

+1

The unsubsidized cost for my individual premiums is 24k plus deductables of 13k. The thing that you can't judge is the nonsense the insurance companies do. For example I pay $200 a month for a prescription my insurance company requires a prior authorization that no one can pass. I'm considering paying for urinary surgery out of pocket because my insurance company is making it impossible to get a surgeon.

is this for one or two persons?

 

[MRG]

is this for one or two persons?

One, DW enjoys Medicare.

 

[ShokWaveRider]

+1

The unsubsidized cost for my individual premiums is 24k plus deductables of 13k. The thing that you can't judge is the nonsense the insurance companies do. For example I pay $200 a month for a prescription my insurance company requires a prior authorization that no one can pass. I'm considering paying for urinary surgery out of pocket because my insurance company is making it impossible to get a surgeon.

Such a shame, where we are 90% of local docs and surgeons accept our ACA plans. I am now on Medicare, the premiums including Part G & D total $3,380 for one person (Me).

DW is on ACA, Pays $0 premium and MOOP of $1,100 per year. When I was on ACA our MOOP was $2250. In 5 years we NEVER paid more than $250 per year towards our MOOP and I had 2 Cataract surgeries and 2 Vitrectomy surgeries. All AFTER subsidies of course.

Medicare is expensive, go figure... (Tongue in Cheek)

 

[ivinsfan]

Such a shame, where we are 90% of local docs and surgeons accept our ACA plans. I am now on Medicare, the premiums including Part G & D total $3,380 for one person (Me).

DW is on ACA, Pays $0 premium and MOOP of $1,100 per year. When I was on ACA our MOOP was $2250. In 5 years we NEVER paid more than $250 per year towards our MOOP and I had 2 Cataract surgeries and 2 Vitrectomy surgeries. All AFTER subsidies of course.

Medicare is expensive, go figure... (Tongue in Cheek)

This is true...but doesn't cost 24K....anyway back too the original topic..

in this country retirees over 65 do pay something for medical care and in Britain they may or may not pay something for medical care depending on the coverage they feel comfortable with. Let's keep in mind it isn't "free" in Britain they paid something for it during all of their working years.

 

[Koogie]

For the OP, here is an early retirement blog in the UK that I have followed for a while: https://theescapeartist.me/about/

There are quite a few others. One often leads to another.

 

[ivinsfan]

Alan you mentioned retiring having a paid off house. I just did some reading and see that some lenders in Britain are now offering 40 years for the term. This will really change things for current house buyers could easily still have a house payment in their late 60"s.

 

[badatmath]

I don't think can compare how much you need to an American as prices are crazy different. But you can say I have this how long will it last if i spend that. How will I pay for something unexpected and how much should I set aside for those things?


Insurance (health, auto, home, LTC, umbrella) is one of my major expenses . . . yours does not sound like a major part of your budget. So you need to think what is the most significant for you and use that plus a cushion.

 

[Rhodestine]

thanks All for great response to my first post !!!

As someone pointed out, maybe there is also a vast amount of lower income US people who do not go on these types of forums. I was in Colorado recently and there were certainly older people I met who were not high earners , living simple lives.

With respect to UK health care, I deliberately did not state how "poor" is has become, because this was not my topic, but yes, I will make sure my savings/income is high enough to go private if so required (hence this forum is inspiring me to save and invest more before I retire).

I am actually a expat in SE Asia, looking to retire soon to be near the old mum and sibling in England, but as typical of expats, the life is good and savings are good so pulling the plug is not easy decision.

thanks to all for hearing me out. My next post will be on my retirement quandary!

 

[pb4uski]

One thing to remember is that US$1.30 is 1GBP so everything in the UK (or London anyway) is generally 30% more expensive.... or at least when I was working in London it seemed that most everything other than beer was priced similar to what it would be in NYC but was in pounds rather than in US$... of course, back then US$2 was 1GBP so everything seemed twice as expensive as NYC.

 

[Alan]

One thing to remember is that US$1.30 is 1GBP so everything in the UK (or London anyway) is generally 30% more expensive.... or at least when I was working in London it seemed that most everything other than beer was priced similar to what it would be in NYC but was in pounds rather than in US$... of course, back then US$2 was 1GBP so everything seemed twice as expensive as NYC.

Since 99% of our income comes from our pensions and investments in the USA the exchange rate very much favors us. Prior to 2016 we would get £60 for every $100, now we get closer to £80 for every $100. For US tourists visiting the UK they are doing great on the exchange rate.

 

[Alan]

Alan you mentioned retiring having a paid off house. I just did some reading and see that some lenders in Britain are now offering 40 years for the term. This will really change things for current house buyers could easily still have a house payment in their late 60"s.

The next generation of retirees may well have it harder than the current folks. The OP said he is approaching retirement and looking to returning to the the UK so my comments are relevant I think to him.

 

[joeea]

In most countries, when you hear 'state pension' you can think of it as their counterpart to Social Security.

Ah. I missed the word "state".

 

[StuckinCT]

This is a topic I have actually thought about as an American Anglophile. I think the cost of living is the big unknown to me in the UK. Obviously London is extremely expensive which I can appreciate living in a high cost area outside of NYC in Connecticut.

In the countryside in the UK, there are markets that have existed for centuries and the income and wealth statistics in the UK being far lower may be explained by this lower cost of living, the NHS and the fact that Brits do not invest in the stock market to the extent we do. Most Brits have their wealth in property.

I don’t know the answer, but i secretly have thought of living there for a few years as I am fascinated with British history as I have a lot of English ancestry.

If your state pension has an adequate cost of living adjustment and you own your home, I could see you being perfectly happy in retirement there.

 

[Alan]

This is a topic I have actually thought about as an American Anglophile. I think the cost of living is the big unknown to me in the UK. Obviously London is extremely expensive which I can appreciate living in a high cost area outside of NYC in Connecticut.

In the countryside in the UK, there are markets that have existed for centuries and the income and wealth statistics in the UK being far lower may be explained by this lower cost of living, the NHS and the fact that Brits do not invest in the stock market to the extent we do. Most Brits have their wealth in property.

I don’t know the answer, but i secretly have thought of living there for a few years as I am fascinated with British history as I have a lot of English ancestry.

If your state pension has an adequate cost of living adjustment and you own your home, I could see you being perfectly happy in retirement there.

Currently the UK State pension has the “triple lock”, it increases each year by either the CPI, wages growth index or 2.5%, whichever is largest.

 

[JoeWras]

In the countryside in the UK, there are markets that have existed for centuries and the income and wealth statistics in the UK being far lower may be explained by this lower cost of living,

This forum, aside from high earner bias, also has a large metro bias. There are participants here that live in "the countryside" equivalent of the USA and report very low costs of living. Sadly, however, those comments usually get followed up by a flood of comments on how that's not a reasonable way to live, etc.

 

[Walt34]

There are participants here that live in "the countryside" equivalent of the USA and report very low costs of living. Sadly, however, those comments usually get followed up by a flood of comments on how that's not a reasonable way to live, etc.

That was pretty much the reaction we got from friends and relatives when we announced that we were moving from near Washington, D.C. to West Virginia. We may as well have announced that we were moving to northern Siberia.

While WV does indeed have areas of dire poverty that is not the entire state, and where we are we do in fact have electricity, indoor plumbing, medical care and (obviously) internet access.

 

[REWahoo]

...we do in fact have electricity, indoor plumbing, medical care and (obviously) internet access.

And isn't all that piped-in sunlight nice!

 

[BigNick]

Brit here (but living in France)... In answer to the question in the OP, I have the impression that the members of this forum perhaps come from an above-average income section of the US population, but that's also partly to do with the "E" in "ER". Someone thinking of retiring at 50 probably has a total net worth close to 7 figures. I know people in the UK for whom "ER" would mean stopping work at 63, and as the OP notes, these people often don't even have 6 figures in the bank.

I think also that the modal Brit, especially in their 60s, probably makes do with a lower level of consumption than the modal American. Many Brits only had four or five TV channels available until a few years ago, and the majority do not have any form of private medical insurance -- they rely on the NHS. Homes tend to be modest in size, children of age living at home do not all have their own car, and the weather isn't good enough to justify an $800 grill.

 

[Rhodestine]

Yes Brits play the property game and many see this as their pension, but the government is closing rapidly many advantages to being a landlord.

UK state pension is low at about USD14,000 per year and many people rely on this!

Living away from London does not make a huge difference as your council taxes are high everywhere, prices of goods and services pretty much standard UK wide - everything generic. The government changes it's mind about diesel cars which it once promoted and fuel is expensive, while local bus services to remote areas is been cut.

To me the USA is the land of milk and honey - driving through Colorado and Utah in March was incredible - land of open space and freedom. As well as clean fresh air after living in mega Asian cities.

 

[Just_Steve]

That was pretty much the reaction we got from friends and relatives when we announced that we were moving from near Washington, D.C. to West Virginia. We may as well have announced that we were moving to northern Siberia.

While WV does indeed have areas of dire poverty that is not the entire state, and where we are we do in fact have electricity, indoor plumbing, medical care and (obviously) internet access.

Wait, what?
You mean your not all like "The Wild and Wonderful Whites of West Virginia"?

 

[TNBigfoot]

For me, US retirement is nothing but a crap shoot. We have no idea of the impact of SS funding shortfall as well as possible reductions in Medicare benefits or much higher premiums. Work pensions are a thing of the past. I can accept the fact of market volatility however for the most part, the only thing I can count on is what I’ve planned and saved for.

So when I retire in a year, I’ll gulp hard (twice) and take the leap of faith. Seems like our cousins across the pond have things mostly in line (except that Brexit thing)

 

[ivinsfan]

Wow! That's a huge chunk of cost that is significantly less than USA, especially insurance.

I thought the TV licence was OTA only. So it includes internet? That helps take away the sting. Is it BBC and ITV only though?

Don't forget the VAT tax, British government is like any other they need your money to provide services.

 

[StuckinCT]

Yes Brits play the property game and many see this as their pension, but the government is closing rapidly many advantages to being a landlord.

UK state pension is low at about USD14,000 per year and many people rely on this!

Living away from London does not make a huge difference as your council taxes are high everywhere, prices of goods and services pretty much standard UK wide - everything generic. The government changes it's mind about diesel cars which it once promoted and fuel is expensive, while local bus services to remote areas is been cut.

To me the USA is the land of milk and honey - driving through Colorado and Utah in March was incredible - land of open space and freedom. As well as clean fresh air after living in mega Asian cities.

That is beautiful country out there in Utah. One thing I was wondering was the property taxes, I know you usually pay a stamp tax when you purchase property but is it correct there are no annual property taxes of any significance in the U.K.?