Pensions Planning: The NUMBER

WYSPECIAL

LHW99 said:

Did Vanguard consider that UK pensioners are going o have access to the SP, which means an ~£11k pa index-linked-ish income base, which would need quite a number of £000's to replace (and which therefore doesn't need to be included as part of the pot size)?

At the end of the day Vanguard make their profits by getting people to invest with them. A report they can quote which suggests you must save loads of money is like free advertising for them.

Nebulous2

kev2009 said:

I can't work out how people are meant to save these figures. I'm single and I can only dream of having 800k pension pot..... from recent predictions I'd be luck to have half that so not sure how I'd manger and I can't see the state pension going up to be a nice add on to private pensions.

Kev

In general people in the pension forum felt the PLSA lost any credibility they had with the recent update. A small sample size, big increases in the pension required and some major swings in lifestyle.  

An example is that they now see the comfortable couple as running one small car instead of two cars. I believe there needs to be a change in behaviour, and do see pensioners complaining about the cost of motoring, particularly insurance, but the retired people running round here in jags, BMWs, Mercs and Land Rovers with private plates haven't got the message from the PLSA. 

I'm lucky with a DB pension and with it and some part-time earnings we live comfortably on what we have, rather than being in the 'comfortable' group. 

Roger175

NoMore said:

The whole point of this thread (all 257 pages of it) is to work out your OWN number, the PLSA is irrelevant for that.

Totally agree. Will people stop talking about this PLSA publication, it's total rubbish. As NoMore says, it's your own NUMBER which is important and it's not exactly rocket science to work this out ... just monitor your own spending!

SouthCoastBoy

I think you need to take any published numbers with a pinch a salt. We have identified our number by living off it for the last 18 mths, its 2650 per mth after tax. This runs at a surplus even after spending quite highly on holidays e.g. 10k a year so plenty of room for manoeuvre if we need to.

There will be capital spends as well, e.g replacement cars etc.

LL_USS

It is nice to hear the conversation ongoing, and I can see many familiar names.

Yes it is just a very individual thing, how much one needs in retirement. I've been spending about £2k/m (no mortgage, two kids, generous holidays or anything I believe beneficial for kids, good food that I cook for all, but not spending ANY money on anything I don't need :-). I thought it was 2,5K/m bills and spending before but I should deduct the amount that I pay for the bills for an investment. Kids will take student loans as they go to university whilst I save for helping them with housing at later stage.

I don't compare with colleagues or others - people can achieve a lot more, now or in saving/ pension, but who knows what's behind their stories - they may not be as happy. I consider myself lucky enough and feel thankful and good  that I can work and maintain a fine living standard.

I only put enough volunteer contribution to my pension pot to be tax efficient - you are right, living for today when we are still healthy (touch wood) is more important than the unknown future (I just know I am prepared enough for it and make sure to always have some buffering)

If things go to plan, I'll have just over 25K/year for my DB from work at 65 years old (this updated figure is not bad considering that having given priority to family, I've been on the same salary scale for 8-9 years , which is only adjusted at 2.5% a year for inflation). I am happy and can live with that pension (especially if I could top up a bit more from saving till the state pension kicks in, if the government can still maintain SP then - but if not, we still live). I have tried (without unnecessary suffering) to pull together saving pots here and there, and enough to help children as they need and within what I can afford. 

I am happy that I have some okay understanding of pension and financial planning (thanks to the forum here).

All is well!

Ibrahim5

I think major changes in technology are something that I never really planned for. I never budgeted to change my house to a heat pump for example. It would cost a fortune. I don't think anyone really planned for the insurance cost of electric cars. Just have to be flexible. I could live without a car, but would probably be able to keep some sort of ICE car running.

rjmachin

Ibrahim5 said:

I think major changes in technology are something that I never really planned for. I never budgeted to change my house to a heat pump for example. It would cost a fortune. I don't think anyone really planned for the insurance cost of electric cars. Just have to be flexible. I could live without a car, but would probably be able to keep some sort of ICE car running.

For standard installs, the £7.5k government grant is making a real dent.

Octopus Energy are offering heat pumps from as little as £500.  I have just had a heat pump installed for £1360 by Octopus Energy.  While this is more than the cheapest install, it is still considerably lower than the cost of a replacement gas boiler.

Of course, if you current gas boiler is working fine, it is an unnecessary expense, but the grant is set to run until 2028, unless it gets cut short, so you need to consider the pros and cons of upgrading before then vs not having a grant

MarzipanCrumble

Yes Octopus is wonderful for standard houses.  But I asked for installing solar panels on a slate roof in Wales - and the answer was no- don't have the equipment to do that ( something about pegs which need to stand the panels above the slates).

michaels

Ibrahim5 said:

I think major changes in technology are something that I never really planned for. I never budgeted to change my house to a heat pump for example. It would cost a fortune. I don't think anyone really planned for the insurance cost of electric cars. Just have to be flexible. I could live without a car, but would probably be able to keep some sort of ICE car running.

Our 2 EVs both cost less than £250 to insure

MallyGirl

MarzipanCrumble said:

Yes Octopus is wonderful for standard houses.  But I asked for installing solar panels on a slate roof in Wales - and the answer was no- don't have the equipment to do that ( something about pegs which need to stand the panels above the slates).

Octopus are sticking to the low hanging fruit and leaving the more complex installs to others. I got solar in March as part of a list of pre-retirement capital spends while we are still earning. Slate roof meant not Octopus