Pensions Planning: The NUMBER

Gatser

kidmugsy wrote: »

Your house must be in perfect nick and your car immortal.

Its not an old house so occasional carpets and paint cost little.

I have got £5500 for car.... it covers all costs including replacements now and then. We tend to buy used cars at circa £12k

Our NUMBER needs are reasonable (I believe)... but others may disagree?

Gatser

Wilkins wrote: »

I reckon ours will be around £25k, once the kids have left HE in 2-4 years and allowing for inflation. Income from pensions and investments ought to be around £32k by then.

Hopefully, that margin of safety will remain. If not, downsizing or staying employed are options.

Interesting thanks... but any general breakdown.... I like to check that I am not being reckless! .... or careless.... our NUMBER is £28k but it could easily be £33k without some restraint.

Wilkins

Gatser wrote: »

Interesting thanks... but any general breakdown.... I like to check that I am not being reckless! .... or careless.... our NUMBER is £28k but it could easily be £33k without some restraint.

Something like:

£6000 Food
£4000 Housing
£4000 Utilities
£2000 Transport
£1000 Clothing
£2000 Holidays
£2000 Maintenance/Replacement
£1000 Leisure
£2000 Saving
£1000 Unforeseen

£25000 Total

Probably an overestimate, but better that way than not.

Gatser

I saw a new post this month asking "How much money do I really need to retire, comfortably?"


Sounds familiar...


Answer: THE NUMBER (YOUR number, whatever you feel it needs to be)


I certainly agree with all the advice from my retired friends, particularly that you need only a fraction of your working income to have a full, active and happy retirement. Many costs associated with a working life disappear once you retire!

gadgetmind

Gatser wrote: »

Many costs associated with a working life disappear once you retire!

Lots of people say that, and then list a few things, but none of them really apply to me.

I commute by bicycle, wear jeans and t-shirts in the office, don't have a mortgage, and don't generally have a lot of work-related expenses. OTOH, my work pays for health insurance, critical illness and life insurance, etc., all of which will come out of my pocket after retiring.

Yes, we don't be paying into pensions, but I just concern myself with the post-tax monthly income we'll need, and I can only see that going upwards!

AlwaysLearnin

gadgetmind wrote: »

OTOH, my work pays for health insurance, critical illness and life insurance, etc., all of which will come out of my pocket after retiring.

Why would you need life insurance? Pension pots can be passed on, along with assets. Unless it's to cover IHT and the like, in which case I have less symapthy for your 'struggles'

gadgetmind

I guess life insurance isn't too critical, but either of us would have tax issues if retirement income wasn't spread around. Health and critical illness would seem to be worthwhile at least for the first decade or so.

Daniel54

Gatser wrote: »

I saw a new post this month asking "How much money do I really need to retire, comfortably?"


Sounds familiar...


Answer: THE NUMBER (YOUR number, whatever you feel it needs to be)


I certainly agree with all the advice from my retired friends, particularly that you need only a fraction of your working income to have a full, active and happy retirement. Many costs associated with a working life disappear once you retire!

Pertinent thread,as I will be 60 this week which is the NRD for my deferred ( private sector) DB schemes.although somewhat to my surprise I'm going to carry on working a reduced number of days per annum for a year or two.Have other savings/investments in addition.

I have all the figures ( last ones received last week) so I know my number,which is 1k per week

I know I don't need the amount I will have in retirement,but I wanted to have more than I need,appreciating that I have been lucky to avoid misfortunes such as illness or redundancy and have somehow managed to make more good decisions than bad.

atush

Gatser wrote: »

I saw a new post this month asking "How much money do I really need to retire, comfortably?"


Sounds familiar...


Answer: THE NUMBER (YOUR number, whatever you feel it needs to be)


I certainly agree with all the advice from my retired friends, particularly that you need only a fraction of your working income to have a full, active and happy retirement. Many costs associated with a working life disappear once you retire!

Yep I referenced this thread and told them to go find it and read it- don't think they did though lol

AlwaysLearnin

gadgetmind wrote: »

I guess life insurance isn't too critical, but either of us would have tax issues if retirement income wasn't spread around. Health and critical illness would seem to be worthwhile at least for the first decade or so.

You could argue against critical illness too, as the main things that would cover is loss of income and/or care. The former isn't relevant in retirement and the latter is presumably a reasonable factor of retirement plans anyway.