Pensions Planning: The NUMBER

BikingBud

Ibrahim5 said:

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

I'd splash out and buy 1/2 pt of shandy.

BarsOfMars

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.

Have you heard of this site? it's called guiide co uk. I can't post a link so you'll need to search for it.

Posthistoric19

Thanks for the feedback. I failed to proof-read my original post and should, instead of saying “and £3” I should have said “and £30k in cash”, so I’ll be able to get that half a shandy even in the south-east.  

I have plugged my numbers into guiide and it suggests that I am in a good place to retire in the next year or so if that’s what I decide to do. 

BogStandardBob

We had envisaged our number needing to be the same as current monthly expenditure as reckoned that any current child expenses would simply morph into visiting them, grandkids etc once they'd left. We have no mortgage or school fees, low commuting costs and don't spend on expensive work clothes or lunches etc, This made for a very easy calculation with no need for a spreadsheet.

Now the kids are teens, we feel we have much more outgoings than we will when we retire. I don't know if it's worth getting a separate credit card and doing all the child-related purchases on that? I'm really not someone who lives for spreadsheets!

One thing that worries me about early retirement is something novel and life-changing coming along that you haven't budgeted for, e.g. a superdrug that boosts longevity. That would be such a downer. I guess if it was that essential we could downsize but that is very much a last resort as our home has some hard to replicate qualities that we love. 

Sarahspangles

BogStandardBob said:

One thing that worries me about early retirement is something novel and life-changing coming along that you haven't budgeted for, e.g. a superdrug that boosts longevity. That would be such a downer. 

Are you sure your priorities aren’t skewed?!

swindiff

That's where the DB pension would really pay off lol

Nebulous2

BogStandardBob said:

One thing that worries me about early retirement is something novel and life-changing coming along that you haven't budgeted for, e.g. a superdrug that boosts longevity. That would be such a downer. I guess if it was that essential we could downsize but that is very much a last resort as our home has some hard to replicate qualities that we love. 

There are billionaires already spending tens of millions to boost longevity.

Can't you think of a prominent person with more than a passing likeness to Mr Burns from the Simpsons? 

There is a lot you can do yourself, and most of us know that, but still don't bother. 

Remember the old joke:- 

Stop drinking and smoking, exercise more and become a vegetarian. It doesn't mean you will live for ever, but it will certainly feel like it! 

bjorn_toby_wilde

I like the Horace Rumpole quote. 

When “she who must be obeyed” tried to get him to give up cigars he said “there’s no pleasure on earth that’s worth sacrificing for the sake of five extra years in the geriatric ward of the Sunset Old People’s Home, Weston Super Mare”

JackSprout

Hello, Pips, Wife and I, 51; she loves her job, and I'm still looking for one I like, but that's a side note.

I think my number is 24k for hobbies based on a good year I had with two adventure holidays, buying a new motorbike, attending the Edinburgh Fringe, and a couple of family holidays. Then, I will have an extra 5k for household bills, or at least 30k. I will probably have to retire at 57. At that point all 3 kids should be in or through Uny they all have about 40k in ISA, which they may have to use.

Cobbler_tone

My working class elderly folks have a combined income of just under £30k per year. They spend barely £12k a year and their house is like a sauna 365.

We will have a net income of £25k to retire at 55, house is paid for, so some nice holidays, hobbies and volunteer work...maybe the odd paid role for pocket money. That is a third of our current income. Clearly it is relative to lifestyle but the average (mortgage free) couple should survive with a decent lifestyle on nearly £500 a week and some savings.