Pensions Planning: The NUMBER

gadgetmind

Rob_192 wrote: »

(replace car, house maintenance etc)

For cars, I know roughly what we spend on them, roughly how long we keep them, and roughly what they're worth at the end. A simple divide tells me how much depreciation we suffer per year.

gadgetmind

Rainmaker_uk wrote: »

If it does one area that may get hit is the universality of the State Pension for those that have worked. It may become means tested and people who have another income source may be hit.

Agreed 100%.

I haven't included state pensions because, 1) they don't kick in until 11 years after I plan to retire, 2) HMG are a bunch of thieving scumbags who regard private pensions as they personal piggy bank and state pension as something they can fiddle with on a whim.

Gatser

James3333 asks the question.

As we have seen here, it's not a quick answer.
There is no correct answer.

Only what YOU think you need/desire/want at 55.
That comes with experience and changing aspirations over a number of years... best start monitoring now James!

Good luck...;)

atush

I am having a hard time with my Number. I have 3 kids at home (well one at Uni) 3 cars (will be 4 soon when Uni boy comes back and goes to work and claims car 3 so car 4 for twins)and teenagers to feed and send to Uni.

Having a hard time estimating my food and car bills which (I assume) will plummet when it is just the two of us. But will get practice when they go off next Oct so will revisit my number then at least food wise (as will still be paying for 3 cars- hopefully son1 will be paying all car bills for his by then). I may be operating from Cloud cuckoo land ;-)

Gatser

atush wrote: »

I am having a hard time with my Number. I have 3 kids at home (well one at Uni) 3 cars (will be 4 soon when Uni boy comes back and goes to work and claims car 3 so car 4 for twins)and teenagers to feed and send to Uni.

Having a hard time estimating my food and car bills which (I assume) will plummet when it is just the two of us. But will get practice when they go off next Oct so will revisit my number then at least food wise (as will still be paying for 3 cars- hopefully son1 will be paying all car bills for his by then). I may be operating from Cloud cuckoo land ;-)

Good Luck ... Sounds like your NUMBER is seriously challenged by your parental automobile generosity!
Our "little" ones will have cars when they decide to spend THEIR money on one.
The NUMBER will certainly change (downwards) for you though, something to look forward to.

I suppose with prices changing so much recently, I will need to review our NUMBER very soon!

Gatser

Back in 2009 I said:

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

Now, I am 2 years old/wiser(?) and....

My Number, I calculate: £31,500
based on
Food £6,000
Car/transport £6,000
Bills/Utilities £5,500
Holidays/Leisure £4,000
Clothing/Cash/Xmas/Other £9,000
Repairs/replacements £1,000

But NO PANIC.... that includes one daughter at University!
It will reduce (to circa £26,000 now)

Always interested to hear your views and compare...

zygurat789

Gatser wrote: »

Back in 2009 I said:

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

Now, I am 2 years old/wiser(?) and....

My Number, I calculate: £31,500
based on
Food £6,000
Car/transport £6,000
Bills/Utilities £5,500
Holidays/Leisure £4,000
Clothing/Cash/Xmas/Other £9,000
Repairs/replacements £1,000

But NO PANIC.... that includes one daughter at University!
It will reduce (to circa £26,000 now)

Always interested to hear your views and compare...

So that's 20% inflation, apart from repairs. You do know that you get clumsier as you get older?

I think you need to investigate that £7K increase in "other". You really should know what it is.

Marine_life

When I add up current expenses it gets very, very scary.

Anyway here goes the discretionary piece.

Regular mortgage (monthly) €2,200
Mortgage overpayments (monthly) €1,600
Additional allowable annual overpayment €25,000

Annual mortgage cost €70,600

Other annual costs
School fees - Child 1 (age 16) - €20,000
University costs Child 2 (age 20) - c. €10,000 (including accomodation)
Regular savings plan - €24,000.

Which is a total cost of around €125,000 :eek: the good news being this will all fall away within the next 3 years.

My regular take home pay is just around €200,000 which means that assuming we did nothing else we would need to maintain an annual income around €75,000. However, without going bottom up I am assuming we can reduce that by 15-20% (less children costs and work expenses etc.) which puts us in a target range of around €60k. That's the number I am working towards.

MoneyGeoff

Jeez what car do you own Gatser? You can buy a brand new car every year for £6K per year!

Edit: Actually even if you did buy a new car every year you'd get money back from the sale of the old car.

Gatser

MoneyGeoff wrote: »

..... You can buy a brand new car every year for £6K per year!

The £6k is Car/Transport so thats TWO cars, all associated costs including running costs. Not excessive, especially as one car is 2000 and the other 2004! Frugal driving... :T