Pensions Planning: The NUMBER

OldMusicGuy

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.

No effect on us but then foreign travel is only a minor part of our retirement plans. 

kev2009

Interesting thread, I myself am concentrating on getting my mortgage down, as I'm single, if any changes in income, it will have a direct impact and with the uncertain times we are in, I'm more keen to get what I can paid off the mortgage with a view that if worst case happens, I'd owe less on the mortgage and can then live off the money I have until I find something else.  I am also paying into a pension (total of 18% between myself and company) but my pension predictions are not overly great, my most recent pension prediction based on the pension online site would mean one of two things... IF take the TFLS, I'd end up with a bit less than moderate income, if I didn't take the TFLS, I'd end up with a bit over the moderate income.  I've still got a good 20 odd years to go so a lot could change but I'm trying to look at retiring around early 60s.  I haven't worked out My Number yet as I'm still a bit too far away from retirement and no one knows how much things will go up.. I was originally thinking 24k a year (2k a month) income as a bit of a rough guess but based on current values I'll be a bit short of that but at present I can't add anymore into pension.  I'm hoping in a few years to be able to pay a bit more in.
I also don't tend to spend anywhere near the value they mention on cloths/footwear, don't take exotic/European holidays, mainly visit UK locations so hoping to maybe do a few weekends here and there or perhaps a couple of 1 week holidays each year maybe, but most likely probably just days out here and there more, which I suspect will be offset by the money I'd not be using in clothes/footwear and big holidays   Do have a car and would like to replace every 4 or 5 years (once it starts needing more servicing costs etc) but I'm also thinking once I have a pension (I plan to get Annuity as I prefer the fixed income for life, with a built in increase each year) then I may not buy the car but do the PCP that seems very common as once I have guaranteed income, I'm hoping can afford that.
Kev

Anonymous101

Interesting point on how this year has influenced our thinking.
Our number hasn't changed directly, however, this years has tested our logic on what the lower end of our range might be. Enforced spending cuts to travel, socialising, eating out, commuting and other work related costs have proven where I thought our spending could go. Its been reassuring in that sense that. With our Financial Independence aim standing around £3k per month we've been pitching for an investment pot of around £900k-£1m. This year has shown us that to meet current basic essential costs we need around £2k per month which has given us much more comfort in our current position.

MallyGirl

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.

For us, this enforced lockdown and cancellation of our big family holiday to Africa has made us even more keen to get travelling when we can. We won't rush into it but we will be getting out there again as soon as it is safe and we can get full insurance. Our chosen destinations don't tend to have high populations - more 'great outdoors' - so I believe we will be able to keep ourselves safe. We also have a camper van that has been sadly underused this year.
We also had some terrible news recently with a close friend being diagnosed with an inoperable and aggressive brain tumour - she's 56 and is not expected to reach 60. It has focused our minds on what is important.
In the meantime we are spending our annual leave on doing some more significant maintenance/decoration around the house.

westv

On the bad news front sadly our mum passed away aged 84 on Saturday after a fall a week or so ago. It was unexpected as, apart from being frail, she wasn't unwell.
The thing I am feeling really guilty about though is the inheritance and what it might be (dad died in 2010). On the one hand it helps to make miserable situation seem a little better but on the other hand it doesn't seem right thinking of money so soon after she has died. I haven't mentioned anything to anybody else though - they are just my personal thoughts.

MallyGirl

so sorry for your loss. Sometimes just sticking to the purely practical for a bit helps to get through it all.

badger09

Condolences on your loss westv. Don't feel guilty, its a perfectly natural reaction.

When you're allowed, and are in the mood, do something mum would have enjoyed doing or even hearing you tell her about, and raise a toast to her.

kev2009

Sorry for your loss @westv.  I see your point, whenever I do inherit whatever maybe left, hopefully a long long way off, to me I think it will always seem like money that isn't mine.  I mean yes it's mine via inheritance etc but I've not actually earnt that money etc. so doesn't seem right then spending it on whatever I may decide.  On one had yes, maybe I could go on some hols, brand new car etc but I'd always be thinking "Am I wasting the money?".  I'm thinking maybe I'd keep it and use it for emergency purposes i.e. big ticket items that need repairing or replacing etc.  
Kev

Clive_Woody

westv said:

On the bad news front sadly our mum passed away aged 84 on Saturday after a fall a week or so ago. It was unexpected as, apart from being frail, she wasn't unwell.
The thing I am feeling really guilty about though is the inheritance and what it might be (dad died in 2010). On the one hand it helps to make miserable situation seem a little better but on the other hand it doesn't seem right thinking of money so soon after she has died. I haven't mentioned anything to anybody else though - they are just my personal thoughts.

Don’t feel bad, think of this as one final gift from your mum. Death is going to catch up with us all one day, a small comfort might be knowing you are leaving something behind for those who were precious to you. 

I don’t know your financial situation but some good advice a friend got when she received an inheritance was buy something special to remember the person by. She got herself an Omega watch that she had been wanting for years and had looked at every time she went past the jewellers window. It’s something she’s worn every day for the last 15 years and is a special reminder of someone special she lost.

badmemory

My condolences for your loss.  What I did after my mother died was to do something that would make her laugh & say "typical".  It was an upgrade to a car I already was going to get but got it with heated seats & wing mirrors.  When I eventually get my next one, as I keep them a lot of years, then I will do the same in her memory.  I am convinced many leave us an inheritance as this is the sort of thing they hope we will do & raise a glass to them when doing it.

When she died what got us through it was dealing with the practical, dealing with all that needed doing.  Some people deal by leaving everything & I don't think I could have coped with that.  I must say though that I am glad I didn't have to deal with things as they are at present!