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  • FIRST POST
    • Gatser
    • By Gatser 14th Dec 09, 1:44 PM
    • 576Posts
    • 207Thanks
    Gatser
    Pensions Planning: The NUMBER
    • #1
    • 14th Dec 09, 1:44 PM
    Pensions Planning: The NUMBER 14th Dec 09 at 1:44 PM
    The NUMBER is how much income you need to "live comfortably"
    So What's your number?
    Very important for pensions planning, to know what you are aiming for.

    My Number? (for a couple)
    I calculated: £22,000
    based on
    Food £5,000
    Car/transport £5,000
    Bills/Utilities £4,500
    Holidays/Leisure £4,500
    Clothing/Cash/Xmas/Other £2,000
    Repairs/replacements £1,000
Page 58
    • atush
    • By atush 10th Jan 18, 10:06 AM
    • 16,456 Posts
    • 10,200 Thanks
    atush
    I would expect a single person to be more than half a couple.

    Council tax single person discount is only 25% not 50%, lighting/heating a room costs the same if one or 2 people in it, cooking for one tends to be more than half of cooking for 2 (fuel), couples may share a car in retirement, etc.
    Originally posted by MallyGirl
    I agree- many costs for running a home are the same if not similar for one/2
    • MallyGirl
    • By MallyGirl 10th Jan 18, 10:30 AM
    • 2,293 Posts
    • 7,307 Thanks
    MallyGirl

    Monthly Outgoings
    Mortgage ................ £0
    TV Licence .................. £12
    House & Contents Ins... £15 £50
    Car Insurance ..............£25 £110
    Car Tax ...................... £25 £110
    Car MOT/Upkeep ..........£40
    Electric ..................... £50 £190 inc gas
    Phone & BB .............. £40 £50 BT Infinity
    Rates ....................... £80 council tax £230
    Mobiles .................... £30 £50
    Groceries, toiletries etc £260
    Christmas / Birthdays £80
    Oil for heating ............ £80
    Petrol ..................... £85
    Money for daily exp..... £500
    water......................... £38
    pet insurance & vet plan .... £145
    contact lenses & aftercare.......£16

    Total exp per month = £1322
    Total exp per year = £15864
    SP £155 x 2 x 52 = £16120
    Originally posted by BOBS
    I don't think you have missed anything major - I think you must just live in a cheaper part of the country than me (in a cheaper house and with less cars) with no expensive pets My equivalents are in red next to yours
    • Mnd
    • By Mnd 10th Jan 18, 10:45 AM
    • 339 Posts
    • 354 Thanks
    Mnd
    Mally, shop around for your house insurances..that seems a lot
    • Linton
    • By Linton 10th Jan 18, 10:47 AM
    • 8,853 Posts
    • 8,883 Thanks
    Linton
    Ive tried to do a rough budget of what money we will need to keep us going based on our current lifestyle and it doesnt look too bad ..... which makes me think I have missed something major !!

    Monthly Outgoings
    Mortgage ................ £0
    TV Licence .................. £12
    House & Contents Ins... £15
    Car Insurance ..............£25
    Car Tax ...................... £25
    Car MOT/Upkeep ..........£40
    Electric ..................... £50
    Phone & BB .............. £40
    Rates ....................... £80
    Mobiles .................... £30
    Groceries, toiletries etc £260
    Christmas / Birthdays £80
    Oil for heating ............ £80
    Petrol ..................... £85
    Money for daily exp..... £500

    Total exp per month = £1322
    Total exp per year = £15864
    SP £155 x 2 x 52 = £16120

    Have a bit of leeway here, then add on hopefully a decent amount of ISA savings (hopefully £150k) for repairs, emergencies, car upgrades etc., then group together the various pensions we have between us and all in all doesnt look too bad.
    We plan to hopefully not work right up to age 68 and will have a pot put aside to save a few years worth of spending before SP kicks in.
    Originally posted by BOBS
    Does this match the total averaged over a year you are actually spending now apart from things that definitely wont apply when you are retired? I strongly recommend that you keep track of your actual spending and use that as a basis for retirement planning, there are always costs that you wouldnt have included in a budget. You will have got used to a particular standard of living over many years and may not be happy cutting back for the final 1/4-1/3 of your life.
    • MallyGirl
    • By MallyGirl 10th Jan 18, 10:52 AM
    • 2,293 Posts
    • 7,307 Thanks
    MallyGirl
    Mally, shop around for your house insurances..that seems a lot
    Originally posted by Mnd
    not for unlimited buildings and contents on a £1m house. It is a bargain
    • AnotherJoe
    • By AnotherJoe 10th Jan 18, 11:11 AM
    • 7,899 Posts
    • 8,492 Thanks
    AnotherJoe
    I don't think you have missed anything major - I think you must just live in a cheaper part of the country than me (in a cheaper house and with less cars) with no expensive pets My equivalents are in red next to yours
    Originally posted by MallyGirl
    Mally, i think you have mixed up monthly and yearly figures. Unless you really spend
    £1300 on car insurance
    £1300 on car tax
    £600 on house insurance

    ....
    • westv
    • By westv 10th Jan 18, 11:14 AM
    • 4,421 Posts
    • 2,044 Thanks
    westv
    Mally, i think you have mixed up monthly and yearly figures. Unless you really spend
    £1300 on car insurance
    £1300 on car tax
    £600 on house insurance

    ....
    Originally posted by AnotherJoe
    Perhaps they have multiple cars.
    • MallyGirl
    • By MallyGirl 10th Jan 18, 11:24 AM
    • 2,293 Posts
    • 7,307 Thanks
    MallyGirl
    I am afraid I do. 2 cars (£515 car tax each) and a van (£240 tax). Multicar policy £1100, van another £300 so I have under quoted there. House insurance really is that much (rebuild £450k at last quote so went for unlimited, contents in excess of £70k so ditto).
    Expensive lifestyle that I am planning on continuing (on the whole) once I retire in 10 years.
    • swindiff
    • By swindiff 10th Jan 18, 11:40 AM
    • 273 Posts
    • 112 Thanks
    swindiff
    I have 2 cars, annual tax £30 lol
    • MallyGirl
    • By MallyGirl 10th Jan 18, 11:50 AM
    • 2,293 Posts
    • 7,307 Thanks
    MallyGirl
    Maybe we'll go more 'eco' when we are older but at the moment we need big cars for big dogs and a teenager.

    It just demonstrates why it is important to work out your own 'Number' and not just use what other people are saying.
    • AnotherJoe
    • By AnotherJoe 10th Jan 18, 12:22 PM
    • 7,899 Posts
    • 8,492 Thanks
    AnotherJoe
    I am afraid I do. 2 cars (£515 car tax each) and a van (£240 tax). Multicar policy £1100, van another £300 so I have under quoted there. House insurance really is that much (rebuild £450k at last quote so went for unlimited, contents in excess of £70k so ditto).
    Expensive lifestyle that I am planning on continuing (on the whole) once I retire in 10 years.
    Originally posted by MallyGirl
    Fair enough but misleading to imply the posters numbers are in question on the basis of that?
    • MallyGirl
    • By MallyGirl 10th Jan 18, 12:29 PM
    • 2,293 Posts
    • 7,307 Thanks
    MallyGirl
    Fair enough but misleading to imply the posters numbers are in question on the basis of that?
    Originally posted by AnotherJoe
    I didn't think I did that - it certainly wasn't my intention. I was just trying to comment that everyone's numbers are different. The poster seemed worried that they had missed something when seeing people quoting figures much higher than theirs for target income. If their figures are a true representation of their spend then they will be in a good place on just the SP so further investment would cover luxuries, unexpected capital costs and possible care home fees.
    • BOBS
    • By BOBS 10th Jan 18, 2:42 PM
    • 2,759 Posts
    • 2,121 Thanks
    BOBS
    I don't think you have missed anything major - I think you must just live in a cheaper part of the country than me (in a cheaper house and with less cars) with no expensive pets My equivalents are in red next to yours
    Originally posted by MallyGirl
    Yes Northern Ireland in 3 bed bungalow in small village - house worth about £120k , no water rates here (yet!!) Your council tax is very high - eeeeek £230/m is a lot - is this like our rates and based on house size ?

    Does this match the total averaged over a year you are actually spending now apart from things that definitely wont apply when you are retired? I strongly recommend that you keep track of your actual spending and use that as a basis for retirement planning, there are always costs that you wouldnt have included in a budget. You will have got used to a particular standard of living over many years and may not be happy cutting back for the final 1/4-1/3 of your life.
    Originally posted by Linton
    Very hard top work out exact spending as we have three teenagers still at home.

    Maybe we'll go more 'eco' when we are older but at the moment we need big cars for big dogs and a teenager.

    It just demonstrates why it is important to work out your own 'Number' and not just use what other people are saying.
    Originally posted by MallyGirl
    and of course near impossible to spend - teenagers are expensive to keep lol
    • MallyGirl
    • By MallyGirl 10th Jan 18, 3:12 PM
    • 2,293 Posts
    • 7,307 Thanks
    MallyGirl
    Yes Northern Ireland in 3 bed bungalow in small village - house worth about £120k , no water rates here (yet!!) Your council tax is very high - eeeeek £230/m is a lot - is this like our rates and based on house size ?
    Originally posted by BOBS
    it is based on house value (using the price the house would have sold for in April 1991 apparently).

    Yes teens are expensive. We have 2.5 years till ours goes to Uni which will also be expensive.
    • westv
    • By westv 10th Jan 18, 3:14 PM
    • 4,421 Posts
    • 2,044 Thanks
    westv
    Don't those in NI pay for water as part of their house rates - so a lot of people could potentially be paying more than they would with a meter??
    • BOBS
    • By BOBS 10th Jan 18, 3:19 PM
    • 2,759 Posts
    • 2,121 Thanks
    BOBS
    it is based on house value (using the price the house would have sold for in April 1991 apparently).

    Yes teens are expensive. We have 2.5 years till ours goes to Uni which will also be expensive.
    Originally posted by MallyGirl
    bit longer here - they are 13 -16 & 18, but the mortgage is finished around the same time so that will top up the savings pot, and should have more spare cash to squirrel away.
    • BOBS
    • By BOBS 10th Jan 18, 3:21 PM
    • 2,759 Posts
    • 2,121 Thanks
    BOBS
    Don't those in NI pay for water as part of their house rates - so a lot of people could potentially be paying more than they would with a meter??
    Originally posted by westv
    I think we do, there has been different attempts to charge separate water bill. £83/month on a decent size bungalow is probably ok compared to mainland prices for council tax and water.
    • Terron
    • By Terron 10th Jan 18, 3:48 PM
    • 134 Posts
    • 161 Thanks
    Terron
    Believe me, it could be a lot worse. My teeth have cost me almost £16000 since 2012. It's this kind of expense that should be factored into retirement plans but s rarely considered. I have also been involved in a costly planning dispute that hit me from nowhere at the end of 2016. I won't even mention how much that has cost (ouch!)
    Originally posted by DairyQueen
    I spent £18,000 on my teeth between 1997 and 1999, though I got £2000 back as my employer started a dental scheme just before my last treatment.

    I had been told for years that I had a funny bite but it was only after moving to an area with no NHS dentist available that I found a private dentist who addressed the cause of my problems. Unfortunately most of my teeth had to be crowned.

    When I tripped I broke some f those crowns and yesterday the broken ones were removed - which is why I was feeling sad.

    I agree that such things seem to be rarely considered. when calculating someones number. I thin £2,000 a yesr for unexpected things like this and the MOT bill I got last year is needed.
    • BOBS
    • By BOBS 10th Jan 18, 6:23 PM
    • 2,759 Posts
    • 2,121 Thanks
    BOBS
    DairyQueen and Terron I had no idea that you could get a bill that high for teeth !!
    Hubby lost his front top row in an accident - and to rebuild, make new teeth put in bridge etc was in the region of £1400 but visa NHS treatment the amount we paid was capped at around the £500 mark.
    • DairyQueen
    • By DairyQueen 10th Jan 18, 7:31 PM
    • 116 Posts
    • 176 Thanks
    DairyQueen
    only after moving to an area with no NHS dentist available
    Originally posted by Terron
    i sympathise. I wouldn't have dental treatment under the NHS ever again. I had the same NHS dentist for 7 years - 6 monthly check-ups and never any alarm bells raised. I moved to the US (gold-plated dental insurance). US dentist took one look and tut-tutted big time. Embarrassing? You bet.

    Returned to live in the UK and visited previous NHS dentist. This time I was referred as a private patient and saw a consultant dentist. Then I was diagnosed as requiring at least £9k of dental treatment.

    Dumped this dentist and visited another. The £9k was very optimistic.

    NHS dentist must have known that I needed extensive remedial work but never raised even a warning flag when I was a NHS patient. Result of delay = massive tooth loss. I now have a bone graft, two implants, two bridges and several crowns. The bone graft/implants are not available on the NHS.

    Conclusion: NHS dentist didn't receive anything like the income from NHS patients as from private patients. Dentist therefore had zero incentive to treat NHS patient. Why bother fitting an NHS denture for customer a) when customer b) is paying for implants and bone grafts at a cost several times greater.

    NHS dentistry is a complete farce.
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