Pensions Planning: The NUMBER

fatbeetle

justme111 wrote: »

Looking a very idealistic dream.
Although the number itself looks very reasonable.

A dream? Perhaps, but what is life without dreams?

fatbeetle

enthusiasticsaver

Nice one.

fatbeetle

GSP wrote: »

Each to their own but reckon fatbeetle will either be taking a lot of money to the grave, or passing on a load to kin if able to.

£2,300 pcm for us tax free.

£500 bills.
£500 shopping.
2 x £300 each to do socialising, anything we want to.
Leaves £700 to run cars, holidays, unforeseen expenditure, gifts.

That's the first year and we'll see how we go from here.

Edit: Would love to spend more time down in Cornwall, Perranporth.

Well we're reckoning on starting off modestly, and seeing how it goes. Better that than splurging initially, then having to scrimp when we're older.

We'll be living at Land's End.

BOBS

OK here goes my calculations -

TV lic, Electric, Phone, House ins, Rates £200/m
Car tax, Ins, MOT £100/m
Groceries £250/m
Mobile phone £30/m
Oil for heating £80/m
Petrol/Diesel £100/m
Birthday/Christmas presents £80/m
Pin money for going etc, hair, etc etc £500/m
TOTAL £1340/m
annual anticipated expenditure £16080

INCOME - state pension £155 x 2 x 52 = £16120
workplace pensions should add up to around £14000 annually

Plus substantial (for us) savings pot for large bills like replacing car , house repairs and holidays.

What have I missed ?

Mnd

Assuming no mortgage or rent. Council tax?

Mnd

Sorry I see rates now, is that water as well

BOBS

Mnd wrote: »

Assuming no mortgage or rent. Council tax?

No mortgage - we own house outright .
We live in Northern Ireland so we dont have council tax - we pay rates determined by what area we live in and size of house. - ours is around £800 per year for a 3 bed bungalow with garage in a small town

Mnd

That looks OK, our council tax is £1550 3 bedrooms and garage. Your number is fairly close to mine although I've never submitted it, just in my head. Perhaps I will load it for interest

Mnd

Here we go,
All our bills, housekeeping fuel etc work out at £1200 at the moment.

Where we could cut back.my wife clothes and shoes!, me sports on tv...at the moment these are included in above.So I'm using this as basically My Number


The only thing I would really think about adding is private health insurance, covered at the moment by my wife's employment.

Can I achieve this.
I'm 63 and retired works pension 600 a month
My wife is 57 and brings home 1400.and intends to work until 61.5 to qualify for full state pension
This gives us a nice buffer each month for holidays etc at the moment
We have savings around £80000 at the moment in pension funds and high interest accounts.
I intend to hold the savings at 80k until I get my state pension (forecast 180 a week) which will add to our savings until my wife stops working which should get us up to over 90k.
At that stage we will use this money as a bridge to get to my wife state pension, we will look at deferring.not all of it over 4 or 5 years
Then we should have state pension..180+155= 335×52 =17400+6000 pension now taxed 23400
Near as makes no difference to 2k a month.
We have no mortgage or debt and still a decent sum saved.
We will never look to downsize but I'm happy to consider equity release as well. Nobody we need to think about inheritance.
Does this look reasonable.

BOBS

MnD - looks pretty good to me - where do you get the state pension figures ? - thought it was £155 for all ?
Can I ask what high interest accounts you use - we have ISA's which are terrible and really need to get backside in gear and move somewhere decent.
We are like you no mortgage and have loosely talked about if push came to shove would we use equity release but then we have 3 kids. Though we have worked hard to get them to this stage so maybe if it all boils down equity release may be an option too.