Pensions Planning: The NUMBER

Definite

michaels said:

I know those in retirement don't need the planet to last for that many more years but would appreciate if they at least consciously considered the environmental impact of their travel plans and decided whether screwing things up for future generations was really fair.

That’s a really good point. Having said that, our idea of a brilliant holiday as a couple would be ferry, trains and exploring. My wife is determined that we can travel through Europe and Asia without flying at all. However, I am also beyond camping and cheap hotels, so what could be cheap holidays would include really nice hotels, trains etc so our holidays tend to be quite steep. We hate the idea of cruises and package holidays but love exploring. 

hugheskevi

Definite said:

My wife is determined that we can travel through Europe and Asia without flying at all.

It is very easy, with multiple different routes available between London and Thailand and most places in-between.

I've traveled London to Bangkok overland via the trans-Siberian express and down China by rail, which is fantastic. Summer is more popular, but I am glad I went in the middle of winter, amazing to see trains covered in ice going through -40 degree conditions.

I also went by road from London to Singapore via Iran, Pakistan and India - harder travel conditions that way though, especially with heat.

Going via the 'Stans would be great and something I might do in the future. This commercial trip might help with ideas for a few routes. Man on seat 61 is useful for research too.

Cypruseast

Some of the food costs are astonishing on here both the very low ones and the very high ones!! We have a strict budget of £80 a week or approx £345 a calendar month. There is 4.5 of us here (one of my daughters spends half her time with me and the other half with her mum). We have a 1.5yr old, 12 and an 11yr old. That food budget covers everything from food, to nappies and associates baby stuff, cleaning products and toiletries. Alcohol is usually covered too, but we probably only spend about £10 a week on drink. All meals are planned out and we shop between Lidl and Sainsbury’s. 

In terms of my number I am 45 and am looking to retire when I’m around 60. Ideally would like to go sooner but the baby will probably make that challenging. That being said I’ve planned hard on my pension. I have a DB pension that will be worth approx. 18k per annum, will have my state pension and my DC pension should be worth nearly the lifetime allowance with £400k in it at the moment and I’m putting away  £1100 a month growing to £1600 within the next 6 months ideally. That should give me a very comfortable level of income to retire on and hopefully the wife can join me at the tender age of about 55. 

Croeso69

Cypruseast said:

Some of the food costs are astonishing on here both the very low ones and the very high ones!! We have a strict budget of £80 a week or approx £345 a calendar month. There is 4.5 of us here (one of my daughters spends half her time with me and the other half with her mum). We have a 1.5yr old, 12 and an 11yr old. That food budget covers everything from food, to nappies and associates baby stuff, cleaning products and toiletries. Alcohol is usually covered too, but we probably only spend about £10 a week on drink. All meals are planned out and we shop between Lidl and Sainsbury’s. 

In terms of my number I am 45 and am looking to retire when I’m around 60. Ideally would like to go sooner but the baby will probably make that challenging. That being said I’ve planned hard on my pension. I have a DB pension that will be worth approx. 18k per annum, will have my state pension and my DC pension should be worth nearly the lifetime allowance with £400k in it at the moment and I’m putting away  £1100 a month growing to £1600 within the next 6 months ideally. That should give me a very comfortable level of income to retire on and hopefully the wife can join me at the tender age of about 55. 

Your pension access age is 57 (April 2028 onwards) so if going at 55 you need another source of income to cover those 2 years from 55 to 57, e.g. ISAs.

quirkydeptless

I'm retiring in 4 months time. Quick totalling up gives:

Food & Household                    £3900
Council Tax                               £1274
Energy (Gas & Elec)                 £ 674
Water                                        £ 294
Mobile                                       £ 180

Broadband                                £ 564

TV Licence                               £ 170

Heating Servicing                     £   40

Investment Fees                       £ 180

Phone Insurance                      £ 168 

House Insurance                      £ 120

Luxuries                                   £4800
Subscriptions                           £     0 

Comes to £12330

I could get some of the costs down however even without that  I will be able to pull a lot more than this from my savings and investments for a long retirement
Luxuries are an estimate of my holiday spending pre-Covid plus other treats. That can go up with more time available when not being in work.
I also don't subscribe to any of the streaming channels, hence the 0 for subscriptions, but that's also something I could increase if I want to.

SomeMadeUpName

Croeso69 said:

Cypruseast said:

Some of the food costs are astonishing on here both the very low ones and the very high ones!! We have a strict budget of £80 a week or approx £345 a calendar month. There is 4.5 of us here (one of my daughters spends half her time with me and the other half with her mum). We have a 1.5yr old, 12 and an 11yr old. That food budget covers everything from food, to nappies and associates baby stuff, cleaning products and toiletries. Alcohol is usually covered too, but we probably only spend about £10 a week on drink. All meals are planned out and we shop between Lidl and Sainsbury’s. 

In terms of my number I am 45 and am looking to retire when I’m around 60. Ideally would like to go sooner but the baby will probably make that challenging. That being said I’ve planned hard on my pension. I have a DB pension that will be worth approx. 18k per annum, will have my state pension and my DC pension should be worth nearly the lifetime allowance with £400k in it at the moment and I’m putting away  £1100 a month growing to £1600 within the next 6 months ideally. That should give me a very comfortable level of income to retire on and hopefully the wife can join me at the tender age of about 55. 

Your pension access age is 57 (April 2028 onwards) so if going at 55 you need another source of income to cover those 2 years from 55 to 57, e.g. ISAs.

His OH will be 55, but he'll be 60 so able to access his pension (except SP clearly).

AlanP_2

Cypruseast said:

In terms of my number I am 45 and am looking to retire when I’m around 60. Ideally would like to go sooner but the baby will probably make that challenging. That being said I’ve planned hard on my pension. I have a DB pension that will be worth approx. 18k per annum, will have my state pension and my DC pension should be worth nearly the lifetime allowance with £400k in it at the moment and I’m putting away  £1100 a month growing to £1600 within the next 6 months ideally. That should give me a very comfortable level of income to retire on and hopefully the wife can join me at the tender age of about 55. 

Think about how you are going to manage your LTA tax liabilities.

20 * DB = 20 * 18K = £360k

DC at 400k gives you £760k already. If you are planning on an additional £500k in to your DC (£250k+ contributions plus growth over 15 years) then you potentially face a hefty bill.

lake888

quirkydeptless said:

I'm retiring in 4 months time. Quick totalling up gives:

Food & Household                    £3900
Council Tax                               £1274
Energy (Gas & Elec)                 £ 674
Water                                        £ 294
Mobile                                       £ 180

Broadband                                £ 564

TV Licence                               £ 170

Heating Servicing                     £   40

Investment Fees                       £ 180

Phone Insurance                      £ 168 

House Insurance                      £ 120

Luxuries                                   £4800
Subscriptions                           £     0 

Comes to £12330

I could get some of the costs down however even without that  I will be able to pull a lot more than this from my savings and investments for a long retirement
Luxuries are an estimate of my holiday spending pre-Covid plus other treats. That can go up with more time available when not being in work.
I also don't subscribe to any of the streaming channels, hence the 0 for subscriptions, but that's also something I could increase if I want to.

I have very similar number as yours but just wondering shall we include cost of running a car (insurance, petrol, road tax, service & MOT)?

cfw1994

lake888 said:

quirkydeptless said:

I'm retiring in 4 months time. Quick totalling up gives:

Food & Household                    £3900
Council Tax                               £1274
Energy (Gas & Elec)                 £ 674
Water                                        £ 294
Mobile                                       £ 180

Broadband                                £ 564

TV Licence                               £ 170

Heating Servicing                     £   40

Investment Fees                       £ 180

Phone Insurance                      £ 168 

House Insurance                      £ 120

Luxuries                                   £4800
Subscriptions                           £     0 

Comes to £12330

I could get some of the costs down however even without that  I will be able to pull a lot more than this from my savings and investments for a long retirement
Luxuries are an estimate of my holiday spending pre-Covid plus other treats. That can go up with more time available when not being in work.
I also don't subscribe to any of the streaming channels, hence the 0 for subscriptions, but that's also something I could increase if I want to.

I have very similar number as yours but just wondering shall we include cost of running a car (insurance, petrol, road tax, service & MOT)?

Only if you run a car
But seriously: Yes!
The point about The NUMBER is that whatever your number is, it should include enough for all your expectations in retirement: when you have funds that meet that (including any cars, bikes, planes and boats!), THEN you're ready to leap into it 
As we see all the time...everyone is different, this is just an ideas thread of the range of hopes & expectations!

quirkydeptless

lake888 said:

quirkydeptless said:

I'm retiring in 4 months time. Quick totalling up gives:

Food & Household                    £3900
Council Tax                               £1274
Energy (Gas & Elec)                 £ 674
Water                                        £ 294
Mobile                                       £ 180

Broadband                                £ 564

TV Licence                               £ 170

Heating Servicing                     £   40

Investment Fees                       £ 180

Phone Insurance                      £ 168 

House Insurance                      £ 120

Luxuries                                   £4800
Subscriptions                           £     0 

Comes to £12330

I could get some of the costs down however even without that  I will be able to pull a lot more than this from my savings and investments for a long retirement
Luxuries are an estimate of my holiday spending pre-Covid plus other treats. That can go up with more time available when not being in work.
I also don't subscribe to any of the streaming channels, hence the 0 for subscriptions, but that's also something I could increase if I want to.

I have very similar number as yours but just wondering shall we include cost of running a car (insurance, petrol, road tax, service & MOT)?

Yes, but I don't run a car. Travel costs included in 'luxuries'