Pensions Planning: The NUMBER

Gatser

AlanP_2 said:

My wife hasn't found anything I can do better than her yet - apparently.

... I am covered... I have drafted the Ad in readiness: WANTED: Fit & healthy, Caring, Multi Tasking Cook, Cleaner, DIYer,  chauffeur, with warm witty nature for desperate pensioner with reasonable NUMBER. 

Anonymous101

Spot on. I think that's the point in discussing how others have arrived at their number. Their answer isn't important, its the process they go through to calculate it and how that may or may not be or use to you in thinking about what provisions you need.

MallyGirl

Once you have the constituent parts of your number you can refine them over time. I have a tab in a spreadsheet that breaks down into fixed and variable costs and then produces an overall figure. When bills change (pet insurance is soaring up now the dogs are getting old) I just update the figures and it all flushes through.
OH is a bit of a petrol head and has always had a nice car - I have the workhorse family car (which is also very nice to be fair). Throw in a campervan and our vehicle related costs are high. OH made the momentous decision this week to look at selling his car as it is just sitting on the drive with us both working from home. We have access to use daughter's car while she is away at uni too so we really don't need them all. It will be easy to adjust the figures as it is all broken out already - tax, MOT, breakdown etc.

tigerspill

Gatser said:

As you say LULULU1, we all have different views on the best way to plan forward... I can appreciate the financial wisdom of keeping a low interest mortgage in place.  However, for us, we just wanted to clear that debt to minimise liabilities and having a debt free balance sheet... so whatever income is available, is all ours!  

For many it is not about the money side, but the enormous physiological impact.  There can be a huge difference for some between knowing you ARE debt free and knowing you CAN be debt free.

DT2001

tigerspill said:

Gatser said:

As you say LULULU1, we all have different views on the best way to plan forward... I can appreciate the financial wisdom of keeping a low interest mortgage in place.  However, for us, we just wanted to clear that debt to minimise liabilities and having a debt free balance sheet... so whatever income is available, is all ours!  

For many it is not about the money side, but the enormous physiological impact.  There can be a huge difference for some between knowing you ARE debt free and knowing you CAN be debt free.

I have a fully offset mortgage. Psychologically that is good for me, as I know if I need funds at short notice they’re available without having to apply for a loan and at a very low interest rate. I consider myself debt free even though there is an actual mortgage outstanding.

harlequinnyc

I wonder how 2020 has adjusted everyone's idea of their number? I always felt I would still like foreign holidays, nights out, etc in retirement (which I planning to be "early", therefore being young enough to enjoy it) but not so much now ... (for the foreseeable anyway) so my number is greatly reduced to what it was.

Stubod

..well under spent and over earned this year....we were planning to start traveling this year, but don't see us getting on a ship or 'plane anytime soon....may end up spending the money on a camper van instead, although I think that's quite a popular idea at the mo looking at the prices!

rebuswad

harlequinnyc said:

I wonder how 2020 has adjusted everyone's idea of their number? I always felt I would still like foreign holidays, nights out, etc in retirement (which I planning to be "early", therefore being young enough to enjoy it) but not so much now ... (for the foreseeable anyway) so my number is greatly reduced to what it was.

Hasn't changed our number as the issues of 2020 should be short term and spending should return to previous rates longer term. However, it has increased confidence in the lower, essential spend figure if it ever came to that. Would be happy living on less if had to and 2020 has demonstrated that.

IAMIAM

I'm 35 wanting to retire at 58 and hoping for £2.5-3k a month from my defined benefit scheme. 

Retireinten

IAMIAM said:

I'm 35 wanting to retire at 58 and hoping for £2.5-3k a month from my defined benefit scheme. 

That's a very, very healthy income at 58 from just a DB scheme and no other savings.  Not doubting your estimate but it would be worth double checking your figures to make sure you have taken into account the correct  actuarial reductions when you access your pension early.