Pensions Planning: The NUMBER
Comments
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OldMusicGuy wrote: »Reading about FIRE and
Hi - Whats FIRE - I feel I'm missing out on a blog somewhere having already read MMM and the escape artist ?0 -
FIRE stands for Financial Independence and Retiring Early0
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OldMusicGuy wrote: »I should have been clearer - the frugal lifestyle will happen when we retire. I'm stocking up now on all hobby related items so that I will not need to spend much at all once retired. We'll be living a much simpler lifestyle. Holidays will be pootling around in the classic car, we'll be renovating our downsized house and my wife is into breadmaking, food preserving, gardening and growing veg. Can't wait to ditch the high tech world. I told you we bought into the "MMM" philosophy....:)0
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I would very much agree with the others about switching to that Frugal lifestyle now whilst you still have the opportunity to change your mind if you find it doesn't suit. That doesn't mean only spending now what you expect to spend then, but it does require some detailed budgeting and discipline to separately identify 'living costs' from 'getting things ready for retirement costs' such as stocking up on tools that will see you out.You need to be very honest with yourself about a) whether a cost really is a one-off that won't need to be repeated; and b) whether the fun of buying all these toys isn't something you are really going to miss when you can't afford to do it any more.0
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OldMusicGuy wrote: »Like the MMM blog and similar espouse, for us the first rule of retirement will be to reduce expenditure on (what we view as) unnecessary consumer goods to allow us to make the best use of the assets we have.
Why do you feel the need to buy 'unnecessary consumer goods' now ? I don't really understand why, if you feel this way, you aren't making these lifestyle changes now, rather than waiting for retirement.0 -
AnotherJoe wrote: »Ditto. £10k would be well below survival, unless you are counting on benefits rescuing you. And I wouldn't count £30k as luxury in any sense of the word. Or even £10k on top.
Wasn't what I was planning I would be the first to admit. Average desired amount quoted on this thread by early retirees is about £25k though. Presumably, they think that will do nicely for them or they wouldn't be retiring early. My own number is about £32k plus a largish buffer of savings to cover big holidays, new car and contingency. I am retiring in August this year at age 59. Not expecting to spend too much time travelling by private jet but do plan a couple of major holidays.
I suppose that would be peanuts to some and 'luxury' to others.0 -
p00hsticks wrote: »Why do you feel the need to buy 'unnecessary consumer goods' now ? I don't really understand why, if you feel this way, you aren't making these lifestyle changes now, rather than waiting for retirement.
Like many people I've been guilty of indulging myself (like buying expensive guitars for example) because I "think" I need them and I can justify it because I work so hard (it's a reward for me, right?). I haven't bought anything like that in the last year and I don't plan to. So I guess we are on the way but not fully there yet.....0 -
Northamptonblue wrote: »Wasn't what I was planning I would be the first to admit. Average desired amount quoted on this thread by early retirees is about £25k though. Presumably, they think that will do nicely for them or they wouldn't be retiring early. My own number is about £32k plus a largish buffer of savings to cover big holidays, new car and contingency. I am retiring in August this year at age 59. Not expecting to spend too much time travelling by private jet but do plan a couple of major holidays.
I suppose that would be peanuts to some and 'luxury' to others.0 -
Since it started, there does seem a general trend on this thread for an increase in "the NUMBER".
Seems like the old mantra figures have gained £5-10k each, £25k has now become +£30k, etc.
Which makes sense, as this country seems a very expensive one to live in on a day to day basis (I put this down to the large number of indirect taxes and their trickle down effect).
The cheapest coffee shop coffee these days is over £2, nearer £2.50.
Although I did discover yesterday that you can get a Waitrose sit in coffee for the price of a banana (25p) and you get to keep the banana.0 -
AnotherJoe wrote: »Ditto. £10k would be well below survival, unless you are counting on benefits rescuing you. And I wouldn't count £30k as luxury in any sense of the word. Or even £10k on top.
Median household income for 2 according to google is £24000 , median salary £28000. I suppose discrepancy in numbers is due to non working, part time working people and already retired households being included in the first one. If you take into account taxes, NI, mortgage, children related expenses that will go with retirement it leaves the number close to £10 000 so for majority of people retirement on it will not mean any reduction in disposable income let alone make it "below survival".The word "dilemma" comes from Greek where "di" means two and "lemma" means premise. Refers usually to difficult choice between two undesirable options.
Often people seem to use this word mistakenly where "quandary" would fit better.0
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