Pensions Planning: The NUMBER

Cazz

beedeedee wrote: »

Yes, we do - but have NEVER broken into them in 13 years. This again is a matter of some pride, so as far as we are concerned we live totally on our early retirement income of £18000.

So it's just for rainy days?

Cazz

I like to learn from others experiences so I was comparing your £18k with my original £22k.

(sorry don't know how to do selective quotes)

Can I ask if this is based on a couple or single person only.

thanks
Cazz

beedeedee

Cazz wrote: »

So it's just for rainy days?

No, not at all. There just hasn't been anything we've particularly wanted lately. Got most things sorted years ago. Cars, houses etc...

beedeedee

Cazz wrote: »

I like to learn from others experiences so I was comparing your £18k with my original £22k.

(sorry don't know how to do selective quotes)

Can I ask if this is based on a couple or single person only.

thanks
Cazz

We're a couple - ( a couple of what's you might say)? but it works for us.....

I remember worrying like mad as to how we were going to survive - we were always great spenders in our previous life - but somehow we'd got ourselves organised to clear all our debts and that made a BIG difference to the money available to spend. Although we still have credit cards we do always pay them off each month now. Darned if we're paying anybody interest on anything.....

chris_m

beedeedee wrote: »

We're a couple - ( a couple of what's you might say)?

A couple of happy campers, by the sound of it - good on you.

Roll on another 7 years (less with luck) and, if my forecasts & plans come to fruition, so will I be

Gatser

Cazz wrote: »

I like to learn from others experiences so I was comparing your £18k with my original £22k.

(sorry don't know how to do selective quotes)

Can I ask if this is based on a couple or single person only.

thanks
Cazz

My £22k NUMBER is based on a couple.
I think 2 people can live on about the same as one actually...
(I just give my OH the scraps! )

Gatser

chris_m wrote: »

Roll on another 7 years (less with luck) and, if my forecasts & plans come to fruition, so will I be

We're with you on that sentiment, Chris.

just hoping that things like FREE bus rides are still going when we get there....

I think it will be fun hunting out all the bargains and freebies, especially with all that leisure/pleasure time.

For me...this makes knowing your NUMBER so useful.... as soon as we can afford to work less....we will join that great band of "Active Aged" !:T

Gatser

beedeedee wrote: »

Yes, I did notice your car costs at £5000........I doubt we'll ever replace the motorbike as we are getting older now - and it's just nice to go out for a ride occasionally, so we keep it serviced and MOT'd once a year. A good car will last at least 200,000 miles - (well ours do)! but I suppose a lot of people do not like to be seen driving an old car. We long ago, got over that barrier..........
Servicing costs are a matter of choice - some people prefer to do their own - but not us I'm afraid. We can't be doing with scrabbling round under cars, so a local garage gets our custom rather than a shiny main dealer.
As I said in an earlier post - we take far more care of our money now and it goes a lot further than it ever did!

Good feedback thanks...
but I think I will have to settle at something between £500 and £5000.

We also have no interest in shiny new cars on the drive.
Our No.1 car is 10 years old (60k) so if I follow your 200k view, we will be driving it in 2033! (or our descendents will... )

Car No.2 (Corsa) just had service/MOT. Cost £200
then developed windscreen wiper problems....another £120 bill on the way! ...and not a main dealer either.
Looks like we cannot even keep to your £500 on ONE car

Actually, I'd love the challenge of just having ONE car.(Provided FREE buses were still available)

marklv

Gatser wrote: »

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

Seems a bit arbitrary to me. I would say £22k a year for a couple is probably enough to live fairly comfortably on, but it all depends on one's needs/wants. £30k is really what you should aim for.

Car £5k? Seems a bit steep to me unless you are also calculating depreciation. Once you get to retirement you only need a modest car anyway, so that is almost certainly too high. Your holiday tastes also appear to be on the high side, but fair enough. I'd be a happy with a fortnight in a rented cottage on Exmoor.

marklv

zygurat789 wrote: »

What about the cost of your home. Rates, water, power, TV, phone, ins? Good for another £5k.

Council tax = £1,400
Water = £250
TV = c.£500 assuming you get a Sky basic package
House and contents insurance = £300
Landline phone = £300

I make that around £2,800 or so - make it £3,000 tops. The thread starter also earmarked £4,500 a year for utilities, which seems plenty to me, as gas and electricity would most likely not exceed £1,000 a year.