Pensions Planning: The NUMBER

gadgetmind

bigfreddiel wrote: »

and at least a couple of hundred k in an investment ISA.

What's the latter for if not to generate additional income?

As discussed previously, I'm targeting an initial (rising with inflation) post tax retirement income of £5k pcm, which is somewhat tricky as I don't have any DB pension and my wife has never really worked.

This may sound like a lot, but we like scuba diving and ideally in warm water with pretty coloured fish, our house swallows a fair bit of money in utilities and repairs, and we like nice cars and nice food+drink.

Yes, we could easily spend less, but I always said that I wanted to be able to retire without a drop in income and without being forced to downsize. We may *choose* to do both, but I didn't want us to be forced to.

blobby8

bigfreddiel wrote: »

That's not enough. To be comfortable you need £30k after tax joint income, no mortgage, and at least a couple of hundred k in an investment ISA.

fj

You mean its not enough for you.

Its plenty for us, I retired in 2006.

We have an infinitesimally small mortgage(3k) and £150k liquid(not in ISAs).

You just have higher expectations, as I always say if you want more money, keep working until you have got it. We wouldnt have £30k after tax if I was still working.

Triumph13

blobby8 wrote: »

You mean its not enough for you.

Its plenty for us.

I did find it somewhat startling that he was telling you that you needed considerably more than the UK median household income!

michaels

mforr64 wrote: »

I run a family of 4 - 2 adults and 2 teenagers on 25K net, have a small mortgage and still manage to save a substantial amount. We feel we live well on that money, I have worked out we need 16K to manage a similar lifestyle by 2024. We will have more than that from our pensions so by the time the SP's kick in in we will be living like royalty. We have been MSE's since 2007 when my husband became redundant (he is in work but doubt his wage will ever be as high as it was in 2007 by the time he retires in 2024) and have lived cautiously ever since, enjoy the challenge and our kids know the value of money & thankfully materialism just washes over them.

Triumph13 wrote: »

I took my boys to the new Star Wars movie today as a Xmas treat. We cycled in to the cinema and called in at a £1 shop for confectionery on the way there. When we got to the cinema you should have heard the outrage from my 11-year-old when he saw they wanted £13.90 for star-wars-themed popcorn and a soft drink! It gave me a definite "my work here is done" feeling.

So much kudos to both of you - My 3 DKs range from 12 to 7 and I don't think any of them realise the value of money despite (because of) me trying to make sure no money is wasted. Simple rules like 'take food and drink with you where possible because it costs quarter as much' and 'don't buy that here it is half the price in the other shop/online' seem to be beyond them. It is almost as if someone in our household of 5 (perhaps the one who doesn't work or study and doesn't seem to grasp the fact that money spent = hours worked?) is undermining all my efforts

JohnnyJet

Most people will be looking at far less than 30k combined income to retire on, in fact most people would not be able to afford the figure that fj suggests. I'm planning on a minimum combined income of £12,000 which will only pay for absolute basics and allow us to survive. I'm hoping for £15,000 - £20,000, but this will depend on job security and good luck. We could definitely live well on 20k as long a we budget properly.

I should also state that I plan to retire a few years before SP age so the figure isn't as easy to achieve as it first looks.

JohnnyJet

michaels wrote: »

It is almost as if someone in our household of 5 (perhaps the one who doesn't work or study and doesn't seem to grasp the fact that money spent = hours worked?) is undermining all my efforts

I know the feeling, my partner would rather spend today and let the future take care of itself. I no longer discuss my plans with her, will just tell her when we are closer to the goal.

westv

bigfreddiel wrote: »

That's not enough. To be comfortable you need £30k after tax joint income, no mortgage, and at least a couple of hundred k in an investment ISA.

fj

I thought the general consensus on this thread was around £2k net and £100k "spare"

AnotherJoe

I guess it depends on what you are used to. For me, bigfreddie1's number is more realistic as a minimum even though I'm sure i could manage on half that but i dont really want to be "managing".

blobby8

AnotherJoe wrote: »

I guess it depends on what you are used to. For me, bigfreddie1's number is more realistic as a minimum even though I'm sure i could manage on half that but i dont really want to be "managing".

Its a trade off. I couldnt stand the thought of working (and paying tax) any longer.
I suppose if"work" consists of a fulfilling, enjoyable few hours with intelligent like minded people the it aint too bad.
If (as in my case) it would consist of twelve hour nights and days covering 364 days a year, doing a boring, noisy job, then not so attractive.
Not everyone has a career - most of us have a "job".

I love getting up at five a.m. looking out of the window and then snuggling under the covers again.

AnotherJoe

blobby8 wrote: »

Its a trade off. I couldnt stand the thought of working (and paying tax) any longer.
I suppose if"work" consists of a fulfilling, enjoyable few hours with intelligent like minded people the it aint too bad.
If (as in my case) it would consist of twelve hour nights and days covering 364 days a year, doing a boring, noisy job, then not so attractive.
Not everyone has a career - most of us have a "job".
.

Yes, i am lucky in that i have a job thats a doddle, can work from home a lot, can be high pressured but not all the time, used to love it, now i am so-so, can do it eyes shut but the general company b******t level is rising all the time. I can only take that now as i dont care and know i wont be there this time next year.