Pensions Planning: The NUMBER

Organgrinder

I have no idea where these figures come from!!! £34,000 for a moderate lifestyle?

Using our bills and the figures for moderate lifestyle on food and clothing, with 2 mobile phone contracts, netflix, internet, a 2 week all inclusive holiday abroad, a subscription to zwift, running costs for one car, and £1,700 in discretionary spend and I'm still under the minimum for a couple.

Ok there's nothing in here for house maintenance or purchase of a new car say but even if i added £6k a year  I'm still under £26,000! Think I'll spend the remaining £8,000 on a few more holidays!

Ridiculous figures like those the PLSA quote serve only to frighten people. You'd think they had a vested interest in getting people to save into a pension fund wouldn't you. No wait...... ;-)

SouthCoastBoy

These figures don't reflect our spending, last year comfortably lived off 2500 per mth, which included australia trip for 3 people, and paying 8500 uni accommodation costs. 

frugal90

We have £41k net from two db pensions.
We don't spend it all, although we are trying, but are naturally frugal.
Probably spend £30k last year, or just under.

We make homebrew as well, just for fun and the kits are so much better than when I was a student!!

bigfer

frugal90 said:

We have £41k net from two db pensions.
We don't spend it all, although we are trying, but are naturally frugal.
Probably spend £30k last year, or just under.

We make homebrew as well, just for fun and the kits are so much better than when I was a student!!

Dead right about the kits been better now.
 Never had a dud one and in 95% of the time it tastes miles better than John Smith's Smooth, albeit that's a pretty low bar

westv

I find it amusing when some people seem to get so heated when average figures don't agree with what they spend themselves. 

DairyQueen

westv said:

I find it amusing when some people seem to get so heated when average figures don't agree with what they spend themselves. 

Indeed. I think some people are missing the point of the PLSA figures. Others seem so terrified by them that they are reduced to profanity. Go figure.

bluenose1

Daffodil1234 said:

In case anyone hasn't seen this - latest update from the (PLSA)

https://www.theguardian.com/money/2023/apr/15/uk-pensions-how-much-retire-cost-of-living-inflation-income

"In 2022 the minimum required to survive as a single pensioner jumped by 18% to £12,800 a year. Meanwhile, a retired couple now need a minimum of £19,900 a year – up £3,200, an even bigger rise of 19%"

I really like looking at this type of data. Pretty certain it is based on the average spend of "real" retirees and in their actual report it drills down into detail of the spend on loads of different categories. Some we will spend more on some less, especially with our penchant for foreign holiday several times a year. In Turkey at moment enjoying the sunshine and the best food we have ever had on holiday. 

NoMore

DairyQueen said:

westv said:

I find it amusing when some people seem to get so heated when average figures don't agree with what they spend themselves. 

Indeed. I think some people are missing the point of the PLSA figures. Others seem so terrified by them that they are reduced to profanity. Go figure.

I’m not missing point and I’m not terrified of them in relation to this thread they are useless. As I said the whole point of the thread is to encourage people to think about their own number. The plsa numbers are the opposite of that and encourage people to think they need the average. 

MarriedWithKids89

NoMore said:

DairyQueen said:

westv said:

I find it amusing when some people seem to get so heated when average figures don't agree with what they spend themselves. 

Indeed. I think some people are missing the point of the PLSA figures. Others seem so terrified by them that they are reduced to profanity. Go figure.

I’m not missing point and I’m not terrified of them in relation to this thread they are useless. As I said the whole point of the thread is to encourage people to think about their own number. The plsa numbers are the opposite of that and encourage people to think they need the average. 

I concur. I did find it useful however to check that we hadn't omitted (in our own calculations) any potential sources of costs.

DairyQueen

NoMore said:

DairyQueen said:

westv said:

I find it amusing when some people seem to get so heated when average figures don't agree with what they spend themselves. 

Indeed. I think some people are missing the point of the PLSA figures. Others seem so terrified by them that they are reduced to profanity. Go figure.

I’m not missing point and I’m not terrified of them in relation to this thread they are useless. As I said the whole point of the thread is to encourage people to think about their own number. The plsa numbers are the opposite of that and encourage people to think they need the average. 

No, the PLSA numbers are based on interviews with actual retirees. They are designed to provoke the thinking that this thread supports. Have you looked at the detail on the PLSA spreadsheets? They are very detailed. So many people on this site ignore a myriad of expenses when they calculate their number. The basics (housing, utilities, food) will make up a smaller percentage of costs in retirement than for those still working.

Also, why the profanity? Unnecessary and offensive.