Pensions Planning: The NUMBER

Bootsox

I have found this thread to be revealing in that some people are forecasting much higher pension requirements than I had previously considered "normal" (I was thinking of a net pension of £24k would be enough (single person) but that number just doesn't stack up with my current spending levels).

I am currently in employment, for reasons I cannot fully fathom*, my net cash burn is a whopping £46k/annum. Of this £46k, I could buy a house (eliminates present rental costs) and a student offspring will be off my hands in three year's time.

These reductions will bring down my number to £33k/annum which will mean a gross pension income of circa £40k/annum (with current pension provisions, this will be achieved by the age of 55).

*I consider myself to live a fairly modest existence, freesat, vfm dining, inexpensive clothes, cheap mobile, 10 year old car, no hobbies, etc. My only vices are a few beers at the weekend, one main holiday a year and a modest treat-weekend very 3/4 months or so. Hard to nail down but the cost of day-to-day living just seems to have gone out of the window. How families with 2/3 kids manage is beyond me (they must manage by either subbing from grandparents/family and/or hocking up more debt).

Gatser

Bootsox wrote: »

I have found this thread to be revealing in that some people are forecasting much higher pension requirements than I had previously considered "normal"

Yes... I continue to be surprised at some folks "comfort" level
I am pleased to be relatively humble! (but still very confortable thanks)

Bootsox wrote: »

These reductions will bring down my number to £33k/annum which will mean a gross pension income of circa £40k/annum (with current pension provisions, this will be achieved by the age of 55).

Which highlights the need to plan tax carefully in retirement too!
The government must be counting on a healthy tax-take from the over 70's in the coming years!

gadgetmind

Bootsox wrote: »

I have found this thread to be revealing in that some people are forecasting much higher pension requirements than I had previously considered "normal"

I can't speak for others, but I want to be able to ride nice bicycles, buy decent cars, take good holidays, enjoy the sports I like, eat out without guilt, go to concerts, and generally enjoy life without having to watch the pennies all the time.

If this isn't "normal" then I'm perfectly happy to be abnormal, which is pretty much status quo anyway.

AlwaysLearnin

gadgetmind wrote: »

... without having to watch the pennies all the time.

Something tells me you'll still keep an eye out for them...

gadgetmind

AlwaysLearnin wrote: »

Something tells me you'll still keep an eye out for them...

Yes, that's because I'm wired like that and not because I have to.

(Though I'm actually watching the yen this week as I'm in Yokohama.)

AlwaysLearnin

Tanoshimu.

kangoora

AlwaysLearnin wrote: »

Tanoshimu.

Gesundheit

MrsFingersCrossed

BUMP! I hate it when the NUMBER thread disappears, I find it very reassuring.


A bit concerned that £2,000 per month (24K net a year) won't be enough for early retirement. Hope that by downsizing our bills won't be as much as they are now but guess we'll spend more on leisure / trips etc - though our tastes are simple and a walk in the park is free, so still optimistic.:)

Gatser

MrsFingersCrossed wrote: »

BUMP! I hate it when the NUMBER thread disappears, I find it very reassuring.

Hope that by downsizing our bills won't be as much as they are now but guess we'll spend more on leisure / trips etc - though our tastes are simple and a walk in the park is free, so still optimistic.:)

Pleased that you are constantly reviewing your NUMBER ...just like us!
We have found that with a realistic NUMBER and adequate pensions/savings.... semi-retirement is the dream existence :j
Especially if there is no desire for the exotic (=expensive) things in life...easily pleased us!

richbeth

gadgetmind wrote: »

I can't speak for others, but I want to be able to ride nice bicycles, buy decent cars, take good holidays, enjoy the sports I like, eat out without guilt, go to concerts, and generally enjoy life without having to watch the pennies all the time.

If this isn't "normal" then I'm perfectly happy to be abnormal, which is pretty much status quo anyway.

I'm with this and actually have 2 numbers. The amount which will give me all of the above which is ca £4.5k pm net and the amount I need to get by which is half of this. For me it's important to understand both as during my 30+ years of retirement there will be some tough times and you need to be prepared to cut back for a year or two. You therefore need to know what you can cut back to
R