Pensions Planning: The NUMBER

Marine_life

enator wrote: »

Our number is around £80k a year - our average spend over the last 15 years has been £111k a year (I know, I know...) but with our first child off to uni with twins to follow in four years that should reduce to the £80k spend.

I would love to see a breakdown of that.

Are you including things like mortgage, car payments and other items (which should fall away later in life) or are you spending on holidays etc. etc.?

I know our annual spend was very high the last few years but that was because we were paying private school fees and maxxing out our mortgage payments.

Dooooo share:T

kidmugsy

Too much of this chat is about the early years of retirement. What about when both of you are frail enough that you need to pay for decorating, and help with cleaning, and some digging? When you may need to pay for some medical treatment yourself?


Or, whether early or late in retirement, when you might be astonished that you feel you need to subsidise children or grandchildren? Heavens, a friend funds his grandchildren because their drunken father isn't up to it. Stuff happens.

mgdavid

kidmugsy wrote: »

Too much of this chat is about the early years of retirement. What about when both of you are frail enough that........

I've concluded that when frail enough we will have downsized (no digging), won't be spending 5 to 10k p.a. on holidays and hobbies (I stop racing when I can no longer pass the medical) and will manage with one car instead of 2 plus the motorhome. I plan on DB plus drawdown to just below HRT level. The DD pot should be exhausted when I'm 77, and the DB plus deferred SP come to c. 30k which should be enough. Subsidising offspring has been going on for a while, mindful of the 7-year rule, so later on will need to be kept below £3k.
The elephant in the room is severe health breakdown or going batty.
We have discussed one-way tickets to Geneva (seriously).

kidmugsy

mgdavid wrote: »

The elephant in the room is severe health breakdown or going batty.
We have discussed one-way tickets to Geneva (seriously).

Yes; what if I have a stroke and then spend years in care? What happens when my widow becomes demented? Still, there's probably a loony somewhere prepared to explain how the government can help you avoid such things.

PennyForThem_2

kidmugsy wrote: »

Too much of this chat is about the early years of retirement. What about when both of you are frail enough that you need to pay for decorating, and help with cleaning, and some digging? When you may need to pay for some medical treatment yourself?


Or, whether early or late in retirement, when you might be astonished that you feel you need to subsidise children or grandchildren? Heavens, a friend funds his grandchildren because their drunken father isn't up to it. Stuff happens.

I have thought about that - when I get frailer I will need more rather than less to take care of house cleaning, increased gas bills, taxis etc.

So while I am working and got surplus, I delibrately started to pay into a private pension scheme (I am already paying excess into NHS pension and deferred sp). I will draw on this when I need to in my 70's. Yes, when I took it out then if I died it may have been 'lost' to my estate. However pension tax laws seem to be working in my favour on this so if not touched can pass to children, or can nominate children as beneficiary.

But I do believe likely need more than less when older ....

I do not do holidays - main expenditure is wine and food and house upkeep. So that is why thinking more as I get frailer...

greenglide

what if I have a stroke and then spend years in care?

What happens when my widow becomes demented? Still,

So your wife definitely will become demented but you only might have a stroke?

A slight imbalance.

kidmugsy

greenglide wrote: »

So your wife definitely will become demented but you only might have a stroke?

A slight imbalance.

Based on family medical history that's the way to bet. Facts come unbalanced.

greenglide

kidmugsy wrote: »

Based on family medical history that's the way to bet. Facts come unbalanced.

Very true. I am 35 years ahead of you and counting:(

kidmugsy

Found from that excellent blog Retirement Cafe:
http://corporate.morningstar.com/ib/documents/MethodologyDocuments/ResearchPapers/Blanchett_True-Cost-of-Retirement.pdf

Get coffee, get ice-pack, get studying!

paparossco

kidmugsy wrote: »

Based on family medical history that's the way to bet. Facts come unbalanced.

Father died at 83, Grandfather died at 83, Great-Grandfather died at 83...... I'm not planning in spending much on a 84th Birthday Party :rotfl: