Retirement to Penang – could I afford not to? May 2013 update.


Research by Bacs Family Finance Tracker claims household bills in Britain have increased by 40 % since 2007. Well, I retired in mid-2007, and moved to Penang in May 2008. Just one more reason for my thinking below.


Living and working in London:

40% marginal income tax – perhaps comes to 25% of income; 20% VAT; council tax, petrol tax, energy taxes, water costing £70 per month, the cost of getting to and from work, cost of dressing for work, mortgage and interest… So the government takes most of the money, and then the banks and privatised money-gouging utilities get most of the rest…

…leaving just enough to live and have a holiday in the sun every year.

The only “saving” possible was paying the mortgage, but much of that was siphoned off by the bank as interest.

The cost of working was so high that it didn’t seem worth it. Basically I was working to survive in order to work. OK, I did enjoy my work, until near the end, but that is not the point.

Just the annual council tax alone in London can be the equivalent of three months living cost in Malaysia.

It’s almost as if it’s cheaper to retire abroad than to work and live in London. If you have equity in your property and you sell it, you can buy a nicer property abroad more cheaply, and then live on the difference for many years.

Well now I’ll be off to the cinema, where a ticket for the latest film will cost me £1.80.

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