Pensions Planning: The NUMBER

LL_USS

Ganga said:

Whilst i am not super fit i still do the gardening ,dont like painting but will do the DIY and decorating ,if my wife would let me i would clean the gutters ( i do the low levels ones at the moment ) and i am 74 next month ,i am one of those people who will not pay someone to do jobs i can do my self.

Fantastic Ganga. I plan to do what I can too and suppose I will keep on enjoying some DIY. Suitable work around home and garden is good for mental and phyiscal health as well as the purse :-)

DT2001

Everyones retirement spending patterns will be different however assuming you live to a ripe old age I think a shallow U is a reasonable presumption. My mother and MIL both travelled abroad until early 80’s. Thereafter their ‘holiday’ expenditure dropped dramatically. My mother downsized at 85 to a warden assisted property and the annual fees were more offset by lower maintenance, fuel, garden upkeep etc. She then gave up driving. Expenditure started increasing a few years later with carers at home and then dramatically with her final 15 months in a care home. Her sister is still living independently at 96 so who knows.
MIL has locally living family that tackle most of the DIY (son is an electrician and grandson a carpenter).
They have been lucky, I think but there are options to cope with the unknowns such as downsizing or equity release.

LL_USS

Exactly, who knows.... so we prepare for tomorrow but live for today too.
It's been sunny and seems to continue for the next few days. Euro championship is not great - but summer is here yay !! :-)

nicknameless

Ganga said:

Arthurian said:

I'm not so sure spending needs decrease in old age.  You have to pay people to do what you would once have done, like heavy gardening and DIY, painting the walls and cleaning the gutters, having ready-assembled furniture delivered rather than hauling flat-pack furniture home from IKEA, and eventually paying for carers.  Not to mention being ripped-off by predatory builders.

Whilst i am not super fit i still do the gardening ,dont like painting but will do the DIY and decorating ,if my wife would let me i would clean the gutters ( i do the low levels ones at the moment ) and i am 74 next month ,i am one of those people who will not pay someone to do jobs i can do my self.

Keep at it.  All activity is good activity.  Lack of activity is a spiral of doom in later years.

I fully plan to still be riding my mountain bikes at your age.  I hope I am not disappointed and am investing as much into my physical wellbeing as my financial as I approach retirement.  My in laws are late 70s and walking is a chore for them.  My parents rarely leave the house and only by car if they do.  Health willing that will not be me.

Not sure I'll be doing gutters though as don't like heights lol!

MallyGirl

Absolutely. My FIL still rides his collection of vintage motorbikes regularly at 86. They travel about Scotland and northern England in their motor home with their dog. They don't do 'Walks' as such anymore due to 2 new knees and a new hip between them but they still get around and about, go dancing etc. A fine example being set - they retired in their 50s and then did a bit of this and that. 

My own parents are a bit younger but still get out there and do the garden, redecorate walls, members of various clubs.

Ganga

nicknameless said:

Ganga said:

Arthurian said:

I'm not so sure spending needs decrease in old age.  You have to pay people to do what you would once have done, like heavy gardening and DIY, painting the walls and cleaning the gutters, having ready-assembled furniture delivered rather than hauling flat-pack furniture home from IKEA, and eventually paying for carers.  Not to mention being ripped-off by predatory builders.

Whilst i am not super fit i still do the gardening ,dont like painting but will do the DIY and decorating ,if my wife would let me i would clean the gutters ( i do the low levels ones at the moment ) and i am 74 next month ,i am one of those people who will not pay someone to do jobs i can do my self.

Keep at it.  All activity is good activity.  Lack of activity is a spiral of doom in later years.

I fully plan to still be riding my mountain bikes at your age.  I hope I am not disappointed and am investing as much into my physical wellbeing as my financial as I approach retirement.  My in laws are late 70s and walking is a chore for them.  My parents rarely leave the house and only by car if they do.  Health willing that will not be me.

Not sure I'll be doing gutters though as don't like heights lol!

Its not the height that is the problem ,its hitting the ground that causes the problem 

Posthistoric19

So what is the number?

I’m 55 and have got to £960k.  I’m looking for about £39k net, which is what I am effectively on now after pension contributions. 

We let out our old house and that generates about 12k, so 6k for me and then we have £100kin premium bounds and £60k in ISAs and £3
I think that I need a £1M pension pot so I am thinking that I should work out least until the end of year to secure my year end bonus, which I will pay into my pension. 

 Also don’t know what to do about my crystallisation / drawdown strategy.

nicknameless

Posthistoric19 said:

So what is the number?

I’m 55 and have got to £960k.  I’m looking for about £39k net, which is what I am effectively on now after pension contributions. 

We let out our old house and that generates about 12k, so 6k for me and then we have £100kin premium bounds and £60k in ISAs and £3
I think that I need a £1M pension pot so I am thinking that I should work out least until the end of year to secure my year end bonus, which I will pay into my pension. 

 Also don’t know what to do about my crystallisation / drawdown strategy.

Are you not easily there already?  You mention £1.1 million in assets and £6k income, and presumably a state pension or two (?) from state pension age?  Not much detail in your post but that looks good to me using the vague 4%.

Have you stuck it in some planning software?

Ibrahim5

Is the £3 held as cash? Could you deposit it in a savings account for extra interest?

michaels

Posthistoric19 said:

So what is the number?

I’m 55 and have got to £960k.  I’m looking for about £39k net, which is what I am effectively on now after pension contributions. 

We let out our old house and that generates about 12k, so 6k for me and then we have £100kin premium bounds and £60k in ISAs and £3
I think that I need a £1M pension pot so I am thinking that I should work out least until the end of year to secure my year end bonus, which I will pay into my pension. 

 Also don’t know what to do about my crystallisation / drawdown strategy.

With an swr of 3.25% you could retire today on 47k gross of which about 28k will be taxable at 20% so about 41.5k net.  Good to go