Pensions Planning: The NUMBER

bigfreddiel

Our number is £32k net, and we find we are living exactly the same as we were when working, with about £500 left over each month which I invest. fj

Marine_life

Gatser wrote: »

Good advice!
I have been semi retired since 2013 and it is proving that my NUMBER does add up...the reduced income is just a safety buffer and I get devious pleasure from seeing colleagues only 1 day each week
Not quite sure when to Fully Retire...now that is my dilemma... will not be getting my SP for another 8 years. I suppose whilst the workdays are not inconvenient just carry on....
ps. my NUMBER is currently £26k

I am curious to know how a 26k (or average 23k) budget breaks down across expense categories?

robin61

It helps that I have been putting away a good deal into the company AVC and also both of our SIPPs so have not been used to the larger disposable income we could have had over the last few years. I have found this to be a useful exercise in understanding how much we need to live off in practice not just in theory.

So, I know how much we've been managing to live off quite well over the last few years and I am aiming to have more than this in retirement. Plus access to a decent slush fund for larger occasional expenditure. So far so good I believe as soon as I am confident that this is comfortably the case I will be off like a shot.

atush

bigfreddiel wrote: »

Altho' a good idea, I think you should try this before your last year before you retire.

Why? Well what if you find you can't manage and it really is your last year, what will you do then? Keep on working I guess, but it may not be possible.

You can simulate living on your 'number' by deducting a few costs of working, like pension payment. Travel costs, clothing costs, fees to professional bodies or unions, and any other work related expenses. Subtract that from your 'number' and see if it works.

fj

It isnt too late, just dont give notice until you are sure.

bigfreddiel

atush wrote: »

It isnt too late, just dont give notice until you are sure.

Hopefully not, but if it was. You could be in for a bit of a problem, bit like a lot of women who are 60 right now expecting to pick up their state pension, but didn't know they had six more years to go before becoming eligible.

Cheers fj

gadgetmind

bigfreddiel wrote: »

a lot of women who are 60 right now expecting to pick up their state pension

An expectation that hasn't been true for 15+ years.

atush

And if they were willfully ignorant, that is their problem.

geoffers4

Marine_life wrote: »

I am curious to know how a 26k (or average 23k) budget breaks down across expense categories?

Ok M_L, no-one else immediately responding to this, so I'll have a go; these figures are broadly based on our (pretty frugal but very comfortable) expenses over recent years (mortgage paid off, kids grown-up);

Units are £1,000s

---

2 Groceries
3.5 Utilities & Home Maintenance
0.1 Health
2 Transportation
0.5 Animals & children
1 Entertainment
3 Holidays
1.5 Home improvements
1 Charity & gifts
5 My Personal items
5 Wife Personal items
1 Car replacement fund
TOTAL = 25.6k

DancingBadger

Just under £40pw for groceries.

Yep, no problem with that...but I doubt it would cover our weekly wine consumption. :cool:

maximumgardener

wow ....lessons to be learned from that "groceries budget" of 2k per year .
that seems very low indeed . what do you eat ?
home grown veg?

we are spending 3 to 4 times that.....can feel cutbacks in the air