Pensions Planning: The NUMBER

DairyQueen

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.

My condolences also. Such a sad time for you.

This month is the first anniversary of mum-in-law passing and OH and I have been reflecting on the months before and after she died. The immediate aftermath was a sad and confusing time but our grief was helped by the closure afforded by her funeral. We knew roughly how much he would inherit (a substantial sum) and, like you, we were very conflicted as 'benefiting' financially from the loss of a parent doesn't sit right with most of us.  

Probate took several months and the delay helped us reconcile to her loss without the distraction of what to do with the inheritance. By the time the estate was distributed we were free of guilt and viewed the money as a last, loving gift. How best to use it is a matter of personal and family circumstance but give yourself time to carefully consider the options.

I also recommend buying something in her memory. MiL loved her garden and, for us, a sundial or water feature will be a perfect memorial to her. We intend planting her favourite flowers close by.

A year on and we talk about her often. It's so true that nobody leaves this world until the last person who remembers them passes on.

saucer

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.

I think your thinking is very natural and I am sure would be there in most people's minds.  When my dad died, some 20 years ago now, and when me and Mrs Saucer were in our late 20's early 30's, we had a great round the world trip.  It was a blast after what had been a challenging few years and I don't think I regretted the spend for one second.  Nor did I think it in any way disrespectful to my dad.  

michaels

Hopefully we won't be in this situation for many years but if any money comes our way I see it as serving two purposes; the main one being that it will form part of our legacy.  The secondary one being that it will provide us with a safety blanket so we don't need to worry about drawing the short straw when it comes to sequence of return risk, which is somehow a comforting thought that my parents will still be looking out for me...

ifonlyian

I've just spent about a month reading this on & off & its been an experience, different people, different views, expectations, hopes, but all with the same goal of a nice retirement.
As for us, i've only just decided to start an expenditure spreadsheet, with interested results, i expect my OH & myself to work for appprox another 10 years due to her 1995 NHS pension retirement age & also we have a son halfway through uni & dd due to start a 4 or 5 year course next autumn, so we will need to keep working to support them anyway, before we can hopefully start to plan our futures with greater accuracy.
For now i am working on some figures i read elsewhere for a couple, ideally comfortable+ if everything works out:-
Basic £26pa
Comfortable £40pa
Luxury £60pa
Lightbulb moment was approx 16 months ago when i left the Permanent Paye world of work to setup my own Business & went contracting & took a real deep dive review of our finances, especially Pensions which i have had a major overhaul.
thanks to everyone who has contributed so far, its been very interesting.

frugal90

Of you own your own home then £26k per year as a couple is comfortable and £40k luxury imo!

barnstar2077

frugal90 said:

Of you own your own home then £26k per year as a couple is comfortable and £40k luxury imo!

The trouble with guessing needed amounts like this is that it depends so much on where you live too.  The cost of living varies a lot from north and south, and then city or town etc. 

westv

From what I remember, those figures aren't guessed but are based on a survey of several thousand people. Might have been a Which? survey I think.

Anonymous101

From what I recall they were based on the findings of a fairly extensive study and literature review. I've posted a link to it below. Its detailed and makes for interesting reading particularly with regards to age related drop off's in spending and different types of people spending habits.
Although I'm not yet retired I've tracked my spending for a decade or so and can certainly see my own spending falling in line with these findings.

https://ilcuk.org.uk/wp-content/uploads/2018/10/Understanding-Retirement-Journeys.pdf

rebuswad

To be fair although it's an extensive study it's still based on people's guesses, and there can be huge variances in circumstances as well as perceptions . Personally I only felt confident having tracked my own expenses for a few years which is an effort, but the confidence is invaluable. 

Anonymous101

rebuswad said:

To be fair although it's an extensive study it's still based on people's guesses, and there can be huge variances in circumstances as well as perceptions . Personally I only felt confident having tracked my own expenses for a few years which is an effort, but the confidence is invaluable. 

Yes I absolutely agree. As I said in my post I've tracked my spending in a detailed way for over a decade. I know what I spend on various categories and although I'm not retired I feel confident I can easily extrapolate my current spending if I were to have a change in circumstance.
I'd advise anyone to track their spending in a similar manor. It's both enlightening and a powerful forward planning tool.