Pensions Planning: The NUMBER

HedgehogRulez

https://forums.moneysavingexpert.com/discussion/comment/82004653#Comment_82004653

crazy that we have at least another 5 years of tax band freezes to go…

WillC999

I think the threshold would have been up to 16k or so by now if left alone; it impacts lower income people disproportionately which feels pretty poor.

Cobbler_tone

I think raising the tax bands before 2031 will be a key manifesto point before the next GE. Easing the 20%, even modestly, will be expensive but make a tangible difference to the masses.

mrklaw

interesting to see the three bands for budgeting. We’ve done basic essential/discretionary but not gone more detailed than that. Is there value in doing so?

based on our current budget which we track closely and have for 15 years, applying some basic changes like no university costs, 1 car, more leisure spending and no train fare - I’m working on

• essentials but more than just minimum - would be pretty much our current living standards : £28k.
• Discretionary- literally holiday fund : 12k
  

we’re hoping to do 3 months in Japan each year with some of that 12k and some of the savings from essentials by not being at home; plus a couple of smaller city break type things

MallyGirl

https://forums.moneysavingexpert.com/discussion/comment/82016204#Comment_82016204

it sounds like you have all the info you need. Most people haven't tracked as diligently as you have

QrizB

https://forums.moneysavingexpert.com/discussion/comment/80561078#Comment_80561078

Quoting myself from two years (and fifty pages of this thread) ago, when my "number" was about £30k (in 2023 pounds) once the kids had finished education. It seems time for an update?

Well, the first one finishes this month but there's still two or three years to go for t'other (depending on taking a sandwich year, or not).

I've reduced my hours to ~1/4 time and am probably retiring in spring 2027, by which time I'll have enough full NI years for a full SP (yes I've checked my forecast).

My number is still around £30k, which my pensions look to have enough headroom to service without too much drama.

NormalNorman

Dunno what my number is. Mapped out our monthly retirement income beginning with current income for comparison. Obvs I removed all the sources of income. The figures are gross and normalised i.e. That's our salaries taking off account heavy sal sac/ni so compares with retirement income sources of which there are many. 2030 to 2035 needs to be bolstered more from higher DC drawdown but we will also have ISA [cash and S&S] in the background for extras. Over the next few years we will have saved/pensioned a ton more also filing the 2030 to 2035 dip. The line is mandatory outgoings which will drop significantly leaving more disposable income.

mrklaw

you can’t have a graph with some of the years having 11 sources of income and not give us an idea of what they are. I think I’d go crazy tracking that number of spinning plates. Do you plan to simplify in later life

NormalNorman

Here you go, cheers

Typical GenX, income from all over the place.

PS Should probably add the S&S ISA income too which will grow as I add to it. The capital also grows. I also need to increase drawdown from my DC 2030 to 2035 but need do some calculations.

michaels

Mandatory outgoings of £600 per month seem remarkably low?