Pensions Planning: The NUMBER

jimi_man

Hi


Was just looking at your 'number(s). What brought on the increases?


Start of thread.

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

Food £6,000
Car/Transport £5,500
Bills/Utilities £5,000
Hols/Leisure £5,000
Clothing/Cash £4,500
Repairs/Replace £2,000


Obviously cost of living increases have accounted for some of them, but I notice repairs/replacements have doubled, and clothing/cash has more than doubled. Just wondered what the rationale was, £22,000 to £28,000 is a big increase, over a 25% increase?

Gatser

jimi_man wrote: »

Hi
Was just looking at your 'number(s). What brought on the increases?
Now
Food £6,000
Car/Transport £5,500
Bills/Utilities £5,000
Hols/Leisure £5,000
Clothing/Cash £4,500
Repairs/Replace £2,000

Good point! I questioned my logic too....but....
We want to downsize house so I am building in some "upgrade" costs to a smaller property...funded by the sale of current house.
Cash ("Others") are at £4,500 because it covers all other expenses which I now foresee increasing with increased leisure time.
I am probably building in a decent safety margin as I would rather underspend than overspend.
I cannot afford another 25% increase on my NUMBER within 3 years!

marathonic

Gatser wrote: »

I am probably building in a decent safety margin as I would rather underspend than overspend.

Always better to have a safety margin. Let's say your retirement hobby is golf or fishing, you want to be able to buy the best clubs or rods without any worries about overrunning your budget for that particular year.

£28,000 is a large number and will mean that, if the time comes where you need to go into a retirement home, less than three years of your budget will cover the maximum amount a person has to pay towards their care (which was announced this week).

ognum

marathonic wrote: »

Always better to have a safety margin. Let's say your retirement hobby is golf or fishing, you want to be able to buy the best clubs or rods without any worries about overrunning your budget for that particular year.

£28,000 is a large number and will mean that, if the time comes where you need to go into a retirement home, less than three years of your budget will cover the maximum amount a person has to pay towards their care (which was announced this week).

I believe this is not true, the £75,000 announced does not cover food or lodging costs it simply cover care you have to find extra for that!!!

marathonic

ognum wrote: »

I believe this is not true, the £75,000 announced does not cover food or lodging costs it simply cover care you have to find extra for that!!!

Oh right!!!

Even so, the above figures seem to be high enough. I wonder what the average food/lodging cost is? I suppose the above figures are high enough to cover it but it's something that people with a lower "NUMBER" need to take into consideration.

ognum

marathonic wrote: »

Oh right!!!

Even so, the above figures seem to be high enough. I wonder what the average food/lodging cost is? I suppose the above figures are high enough to cover it but it's something that people with a lower "NUMBER" need to take into consideration.

Food and lodging are large facts in residential/nursing home costs, something like the daily cost of a small hotel or B and B!

I'm not sure many people take this into account when they decide on their number, they are mostly looking at the costs of new retirement/ hobbies and normal life I think.

sleepless_saver

ognum wrote: »

I believe this is not true, the £75,000 announced does not cover food or lodging costs it simply cover care you have to find extra for that!!!

Quite. In Scotland there has been free personal and nursing care for some time. The remaining costs of residental care, for food and lodgings, can be up to £700 a week.

Gatser

Thanks for all the encouraging comments on how much we will have to pay for Old Age Care (OAC).... But.... I am concentrating on converting from a long Term Saver into a Long Term Spender first....

OAC can wait.... to see if there is anything left in the kitty! :beer:

Spirit_2

This question may have been asked before, but is the number for the household or is it (if you are married etc) for each individual?

AlwaysLearnin

I would say household, although that is effectively made up of two 'numbers' combined, making the most of both individual tax allowances etc, plus a little thought for if only one of you is left.