Pensions Planning: The NUMBER

collinsca

@Gatser

Would be great to see how your NUMBER has changed since 2009 (The original post on this massive thread)!
Might give some insights over the last 15 years!

The NUMBER is how much income you need to "live comfortably"
So What's your number?
Very important for pensions planning, to know what you are aiming for.

My Number? (for a couple)
I calculated: £22,000
based on
Food £5,000
Car/transport £5,000
Bills/Utilities £4,500
Holidays/Leisure £4,500
Clothing/Cash/Xmas/Other £2,000
Repairs/replacements £1,000


You may have done this recently - in which case apologies!

Thanks

kimwp

collinsca said:

@Gatser

Would be great to see how your NUMBER has changed since 2009 (The original post on this massive thread)!
Might give some insights over the last 15 years!

The NUMBER is how much income you need to "live comfortably"
So What's your number?
Very important for pensions planning, to know what you are aiming for.

My Number? (for a couple)
I calculated: £22,000
based on
Food £5,000
Car/transport £5,000
Bills/Utilities £4,500
Holidays/Leisure £4,500
Clothing/Cash/Xmas/Other £2,000
Repairs/replacements £1,000


You may have done this recently - in which case apologies!

Thanks

Hiya, how have you accounted for larger, less regular spends, eg white goods breaking down, car break down, new roof etc?

michaels

Not the OP and not yet retired but I have an 'accrual' for this sort of spending - so my 'repairs/replacements' line would not just be typical spend but would say include 1/30th of the price of a new roof, 1/10th the price of a new bathroom, 1/15th the price of a new kitchen etc etc.

I don't actually do a physical accrual into a 'pot' so most years it seems like we spend well under budget.

Phossy

For home maintenance I've used a 'rule of thumb' I've seen stated in a few places and that  is to budget at least 1% / annum of your homes value.

For white goods, tv, computers etc I use a number based on full replacement every 5 years (so 20% of their current cost per year)

michaels

Phossy said:

For home maintenance I've used a 'rule of thumb' I've seen stated in a few places and that  is to budget at least 1% / annum of your homes value.

For white goods, tv, computers etc I use a number based on full replacement every 5 years (so 20% of their current cost per year)

Not sure the 1% is that valid, the identical house can vary in value by 5x or more depending where it is in the UK, whereas maintenance costs probably only vary by up to about 50%.

Also the idea that 'white goods' and electronics only last 5 years is a really sad indictment that we live in a 'throw away' economy with built in obsolescence/design life.  Was just checking, our 'bedroom TV, demoted from the lounge, is 16 years old

Silvertabby

Don't forget to factor in the cost of paying someone to do the jobs that you happily do now, but won't be able to do or will enjoy doing in the future.  Cleaning, DIY and gardening in our case. 

michaels

Silvertabby said:

Don't forget to factor in the cost of paying someone to do the jobs that you happily do now, but won't be able to do or will enjoy doing in the future.  Cleaning, DIY and gardening in our case. 

Not sure 'happily' is quite the right word but I get your point

barnstar2077

I'm hoping to have a £30k/£40k pot of money set aside in an ISA, only to be used to generate the money for house repairs and a new TV/washing machine every decade.

That way my self decided monthly allowance should see me ticking along nicely, and stress free! (fingers crossed!)

kempiejon

michaels said:

Silvertabby said:

Don't forget to factor in the cost of paying someone to do the jobs that you happily do now, but won't be able to do or will enjoy doing in the future.  Cleaning, DIY and gardening in our case. 

Not sure 'happily' is quite the right word but I get your point

I'll be saving some of my maintenance spend when ending full time employment as I am time rich so can take on some of the jobs I farmed out. The longer I am retired my expectation is there'll be more disposable income so adding those bought-in skills back shouldn't reduce disposable income. However guestimating those hired in services to support us when less active is a finger in the air exercise.

pterri

kempiejon said:

michaels said:

Silvertabby said:

Don't forget to factor in the cost of paying someone to do the jobs that you happily do now, but won't be able to do or will enjoy doing in the future.  Cleaning, DIY and gardening in our case. 

Not sure 'happily' is quite the right word but I get your point

I'll be saving some of my maintenance spend when ending full time employment as I am time rich so can take on some of the jobs I farmed out. The longer I am retired my expectation is there'll be more disposable income so adding those bought-in skills back shouldn't reduce disposable income. However guestimating those hired in services to support us when less active is a finger in the air exercise.

Agree. I don’t love DIY (simple stuff like painting and minor electrics/plumbing) but hate using free time and holidays so farm it out. I’ve got decorating I need doing which I’ll do when I’ve jacked it in. I’ve just had my kitchen done, I could have saved a couple of hundred quid by painting myself but knew I’d never get round to it so paid for that.