Pensions Planning: The NUMBER

fred246

DairyQueen said:

atush said:

We have no intention of falling victim to that particular NHS postcode lottery.

It's Tory government policy that we have longer NHS waiting lists. They may not say it but their actions show that it is their intention 100%. Labour bring in waiting list targets and funding and the waits come down. Torys come in and abolish them. I am not a labour supporter by the way. Just telling the truth.

fred246

DairyQueen said:

Albermarle said:

 Just shows what having a reasonably well paid job and no great urge to splash the cash can result in. When  I see  some friends /relatives  approaching retirement still with mortgages , no pensions, or in one case bankrupt , then all that working/saving seems worthwhile in the end. 

This may seem a dumb question but have you found that the disparity between your's and others' pension provision has caused any tensions with family/friends? 

I think it depends on your family/friends. I think there will always be a bit of envy/jealousy from workmates who have to carry on working while you have a life of leisure. I think it sort of puts the noses of alpha males out of joint. They have been driving round in flashy cars splashing the cash while you have quietly squirreled it away. Then suddenly you have something they want but can't get.

VoucherMan

A good selection of replies to keep me thinking for a while, thanks. In particular

cobson said:

If you haven't already, you might like to have a look at the Mr Money Mustache site, as they 'get' frugal living much more than the folks here at MSE:
https://forum.mrmoneymustache.com/uk-tax-discussion/

I'll certainly have to check it out.

Of all the points raised,

Food at about £3.50/day or £1.20 per meal seems unbelievably frugal.

is one of the easiest to check on the spreadsheets. Over the last 4 years I’ve actually averaged just under £750 for my annual grocery spend. This will include non-food items such as (liquid) cleaning items & loo rolls too. Batteries, lightbulbs, and some other non-food items I tend to buy from online sellers, so would need to check, but there won’t be much additional cost. To answer one other, Aldi is now my shop of choice. Tesco I visit occasionally if they have something that I can’t get at Aldi.
I enjoy home cooking, often from scratch, and rarely eat out, which are probably both major factors in the total.

Your car insurance figure seems quite high

If anything, most of the figures will be OTT, but I didn’t mind as it just meant I would actually have more money than expected. The rates figures were pulled from actual payment figures, but I get 2 months ‘free’ every year, so the totals will be 20% higher than I pay. I’ve always allowed £500 for both car insurance & servicing, but rarely come close for either. This year car insurance has dropped to £185 (fully comp, with protected NCD)
I've had another quick check of last year's spreadsheet, and ignoring the ''future savings' items, I actually spent £4192 on the items I listed, compared to my listed 'budget' of £5954.

As further evidence of my apparent frugality, in answer to the question about actual spending, in 2018 my total expenditure (excluding mortgage payments) was just over £6800. I had too much one off building & decorating related costs last year to do a simple check.

One thing that will affect the cost is that I live in the North West, so the general cost of living is much cheaper than a lot of places.

While I chew over some of the other stuff, just to comment on the living/existing bit. Though I get through a lot less, I don't consider that I cut corners on enjoyment. What I lack most is the time to enjoy, which is what brought me here. I fully intend to 'live', at least to my expectations. If I was happy just existing, I may as well keep working until they kick me out.

As to future costs, I rarely conform to 'typical'. I think I take after my parents in regard to decorating. Do it well & do it once. Except for another coat of paint in some rooms, I'm more or less done with it. Similarly with household items. I know some can fail regardless of cost prices, but for most of my stuff, especially the non-electricals, I'm expecting them to outlast me. I'll go back to the spreadsheets now & see if I can produce some more meaningful figures.

kinger101

fred246 said:

DairyQueen said:

atush said:

We have no intention of falling victim to that particular NHS postcode lottery.

It's Tory government policy that we have longer NHS waiting lists. They may not say it but their actions show that it is their intention 100%. Labour bring in waiting list targets and funding and the waits come down. Torys come in and abolish them. I am not a labour supporter by the way. Just telling the truth.

It's clearly not a Tory policy. More a consequence of funding levels, but you have to balance in the fact the Tories have traditionally had so sort out the perilous state Labour leaves the economy in.

While NHS is a funding does need increasing, the problem with targets like all metrics is that they're gamed.  Put them in place and at the hospital will do everything they can to meet them. Including employer lots of overpaid beancounters to make sure all the right boxes are ticked.  The targets are met expensive of all the departments in the hospital which haven't had targets applied to them.  So you'll be seen within 1 hour of arriving at A&E with a nasty scratch.  But turn up there with severe depression and you'll find mental health provision non-existent.  
 

crv1963

DairyQueen said:

Albermarle said:

 Just shows what having a reasonably well paid job and no great urge to splash the cash can result in. When  I see  some friends /relatives  approaching retirement still with mortgages , no pensions, or in one case bankrupt , then all that working/saving seems worthwhile in the end. 

This may seem a dumb question but have you found that the disparity between your's and others' pension provision has caused any tensions with family/friends? 

Not really with family, although there is a little element of jealousy about retiring before SPA. With colleagues an element of "how can you go so early with so much?", when in reality we have shunned lease cars, flash personally owned cars in favour of reliable, economic workhorses, and kept spending down to within our means, working towards our goals quietly.

Thrugelmir

fred246 said:

DairyQueen said:

atush said:

We have no intention of falling victim to that particular NHS postcode lottery.

It's Tory government policy that we have longer NHS waiting lists. They may not say it but their actions show that it is their intention 100%. Labour bring in waiting list targets and funding and the waits come down. Torys come in and abolish them. I am not a labour supporter by the way. Just telling the truth.

Perhaps it's more to do with a population that's ageing and living longer. Coupled with a lack of capacity that's the real issues. Politics these days is just point scoring rhetoric. Our local hospital has an intake of 124 patients a day requiring a bed. Hospital is same size as it was when it opened. When built under Brown's PFI scheme. Unfortunately one of those that is tied into an onerous service contract. A few years until it's free to make choices. 

Albermarle

DairyQueen said:

Albermarle said:

 Just shows what having a reasonably well paid job and no great urge to splash the cash can result in. When  I see  some friends /relatives  approaching retirement still with mortgages , no pensions, or in one case bankrupt , then all that working/saving seems worthwhile in the end. 

This may seem a dumb question but have you found that the disparity between your's and others' pension provision has caused any tensions with family/friends? 

In fact my own small circle of friends and family on my side are themselves generally financially OK , or younger /far away from retirement. Finances are  more problematic with my wife's friends and family but that could just be they are more numerous .
There does not seem to be any jealousy . Partly because they are only vaguely aware what our position is, and partly because we have a difficult family situation so they probably don't begrudge us at least not to have to worry about money.
Also we have helped out in a couple of cases and I am the go to person if anyone wants any info about money matters  (having learnt so much on here !) 

Gin_and_Milk

This is a fascinating thread, which I have dipped in and out of over the years, then spent most of yesterday reading it from start to finish!  I'm trying to plan for early retirement, and whilst I would love to go at 55 (in ten years time), 60 is more realistic.
Unfortunately, as my circumstances are different to pretty much everyone else's here, it's difficult for me to make firm plans.  OH is 59 soon and had to retire on ill health a number of years ago.  Even though 59 isn't old, there is still a very good chance that I will be a widow by the time I'm 60 
I have a DB pension, and my forecast from last year gives me a projected income of £10600 p/a, at 60, however I have since started a new job which pays £11k more, so this will increase, although I've no idea by how much.
I would receive a DB spousal pension of £6k.
Last year I started paying £100 p/m into a VLS 80:20 (accumulation), and I also pay the equivalent of £100 into my LGPS AVC.
Currently, OH pays most of the bills, whereas I pay some, but I'm in charge of savings, which have been for getting the house done up from top to bottom.  The house would have been finished by now, were it not for the fact that we've had some pretty large, unexpected bills, but that's partly what savings are for, right?
So I think it's a while before I can start on the spreadsheets yet, but a great thread nevertheless.

crv1963

Gin_and_Milk said:

This is a fascinating thread, which I have dipped in and out of over the years, then spent most of yesterday reading it from start to finish!  I'm trying to plan for early retirement, and whilst I would love to go at 55 (in ten years time), 60 is more realistic.
So I think it's a while before I can start on the spreadsheets yet, but a great thread nevertheless.

Hi, I too read it from start to finish when I had sometime off and before it grew as large as it is now! I found it and the opinions/ contribution of others invaluable. Good luck on your journey, and as Mrs CRV likes to remind me in my more enthusiastic times- it's a goal and not a race! 

Gin_and_Milk

crv1963 said:

It's a goal and not a race! 

And she is absolutely right!  Thing is, my brain doesn't always see it that way.  I would go now if I could, but unless I win millions on the lottery (I don't play), or I discover I am the benefactor of a multi millionaire who I never knew in the first place, it's not going to happen!
I also struggle to think of a firm plan.  I did consider a SIPP before I started VLS, but choosing a multitude of investments is a scary thought for me.  That said, Vanguard are launching their SIPP within the next few months, so if I can transfer it to a SIPP I might do that.  
I have about 4k in a S&S ISA, not much I know, but hopefully in years to come I might have enough to pay the mortgage off early.
All subject to change, but at least I'm not frittering it away on stuff I don't need!