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Pensions Planning: The NUMBER

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GatserGatser Forumite
607 posts
Part of the Furniture 500 Posts
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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
THE NUMBER is how much you need to live comfortably: very IMPORTANT as part 1 of Retirement Planning. (Average response to my thread is £26k pa)
My Other NUMBER: ZERO Working Days to SEMI-retirement: Achieved! :beer: :j :T ;)
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Replies

  • What about the cost of your home. Rates, water, power, TV, phone, ins? Good for another £5k.
    The only thing that is constant is change.
  • zygurat789 wrote: »
    What about the cost of your home. Rates, water, power, TV, phone, ins? Good for another £5k.

    Covered entirely by:
    Gatser wrote: »
    Bills/Utilities £4,500

    and:
    Gatser wrote: »
    Repairs/replacements £1,000

    You agree on the numbers though!

    For me, 2/3rds final salary would see no drop in standard of living, assuming mortgage paid off as pension begins/employment finishes. I guess there's a reason why mortgage payments being 1/3rd salary is a good rule of thumb.

    Whether it'll happen or not, I'll tell you in 35 years. We won't be typing into keyboards then I suspect!

    Regards.
  • GatserGatser Forumite
    607 posts
    Part of the Furniture 500 Posts
    ✭✭
    QUOTE "Whether it'll happen or not, I'll tell you in 35 years. We won't be typing into keyboards then I suspect!"

    PLEASE tell me now... my financial planning spreadsheet says I will not be here in 35 years time! (...and I follow it religiously:cool:)

    Pleased we all agree....so far....
    (Thanks for your reply on household costs...spot on!)
    THE NUMBER is how much you need to live comfortably: very IMPORTANT as part 1 of Retirement Planning. (Average response to my thread is £26k pa)
    My Other NUMBER: ZERO Working Days to SEMI-retirement: Achieved! :beer: :j :T ;)
  • Gatser wrote: »
    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

    Gatser now Ive picked myself off the floor can you perhaps explain where you came across So What's your number?

    Youve have hit the nail on the head- knowing what your aiming for is the single most important thing>:T
  • bendixbendix Forumite
    5.5K posts
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    Your number will be different depending on where you are in life.

    For me, the number is around £2700-£3000 per month after tax, and having my property paid for. It is also completely before my private pension plan becomes accessible in a few years later, hopefully adding another £1500 per month income to the pot.

    But, of course, for me this won't be about retiring in the UK. It will be in Thailand.
  • My figure tapers down from a larger income in the early years of retirement when I'm more active to the latter years when I'm slowing down. Given that I won't have a mortgage, pension payments and work related expenses but will have all the other expenses such as council tax, insurances, vehicle expenses, utilities (some of which will be more expensive if I'm at home more), I think the first 10 years of retirement would require 2/3rds of my current salary, tapering down to 50% of my current salary for the next 10 years and moving down to 25% on my current salary as I quietly approach death.
    "I can hear you whisperin', children, so I know you're down there. I can feel myself gettin' awful mad. I'm out of patience, children. I'm coming to find you now." - Harry Powell, Night of the Hunter, 1955.
  • bendixbendix Forumite
    5.5K posts
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    as I quietly approach death.

    This is where you and me differ Harry.

    I have no intentions of dying.
  • bendix wrote: »
    This is where you and me differ Harry.

    I have no intentions of dying.

    How could you not be looking forward to the quiet of the grave? :confused:
    "I can hear you whisperin', children, so I know you're down there. I can feel myself gettin' awful mad. I'm out of patience, children. I'm coming to find you now." - Harry Powell, Night of the Hunter, 1955.
  • That is a key question Gatser and one that I have been pondering for a while...now that we are debt free, mortgage free and dependant free it is time for us to give very serious attention to the Retirement Question. Pensions have never seemed so interesting!!!

    I have been keeping very detailed budgets and accounts for the last couple of years so I know that our current requirements for a comfortable lifestyle is £20k per annum. That sees us living our current property, running a small car, and motorhome (and associated holidays in it) plus pocket money, presents etc.

    I recently did a review of our finances and reckon that if I can carry on working and saving for another ten years we'll have enough to retire. Not sure I can stand it that long, so I'm aiming for a frugal five years of saving to make it even quicker - bit like those guys over on MFW and DFW. I did think of posting a "Retire 10 years early thread" but its a bit serious over here on the pensions board.......
    Downshifted once.....saved up, sold up and travelled Europe in our campervan. Then bought a house in France......

    Now need to pay off the debts and devise a plan to live there full time :cool:
  • jonnyb1978jonnyb1978 Forumite
    1.3K posts
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    Still have not got the foggiest. My current statement states as it stands when i retire in 29 years (though more likely 32) i will have a pension of £9500 a year plus a lump sum from my AVC of £20000 plus the state pension on top if that still exists in the year 2042 (I won't hold my breath). Mortgage should be paid off by then etc and aim to be debt free so who knows that maybe enough. Im just concentrating on as much as possible with realistic targets. My contributions should increase each year as should my AVC contributions. Im paying in £9 a week on my AVC and my first main target is to be paying £20 a week into it by the time im 35 in 4 years.
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