Pensions Planning: The NUMBER

atush

Linton wrote: »

Agree with Gadget that the Bills are very high. We have a 4 bedroom detached and the Bills, including mobile phone, total about £2.5K/year. Apart from that and the extra cost of running our narrowboat the overall total isn't very different.

As to haircuts - mine is £7 every 5 weeks or so. Mrs L's costs rather more, though the total is a lot less than £100.

My bills are a lot higher actually, but I live in a large house heated by an oil fired rayburn. I will downsize to something cheaper at retirement.

AS for hair, I get mine colored plus other treatments and spend less than 1200. Even if you throw in some trips to the Barber for the OH. I guess because i dont have anything done monthly, i go 6 weekly.

blobby8

tony4147 wrote: »

Our number is approx £32k -

Food £100.00 x 52 = £5,200.00
Bills (Gas, Elec, Phone, Internet, Water, TV) £500.00 x 12 = £6,000.00
Ptax £250.00 x 10 = £2,500.00
House Insurance £30.00 x 12 = £360.00
Hairdressers £100.00 x 12 = £1,200.00
Hols (3) £1,500.00 x 3 = £4,500.00
Mobiles (2) £30.00 x 12 = £360.00
Car Insurance (3 Cars) £1,000.00 x 1 = £1,000.00
Car Service (3 Cars) £700.00 x 1 = £700.00
Car Tax (3 Cars) £600.00 x 1 = £600.00
New Car (Saving) £3,000.00 x 1 = £3,000.00
Meals Out (2/Mon)£80.00 x 24 = £1,920.00
Clothes £100.00 x 12 = £1,200.00
Theatre / Cinema (2/Mon) £25.00 x 12 = £300.00
Gliding (hobby) £1,000.00 x 1 = £1,000.00
House Maintenance £2,000.00 x 1 = £2,000.00
Total = 31,840.00


I think the above is acheivable for us, I'm hoping to have a DC pot of £500K, wife will have DB of £20/yr and then 2 x full state pensions.
I have another reduced senario where we would need £25k, get rid of a car, not save as much for a new car every year.
The only thing is I won't retire until 64, which in all honestly suits me at this time as I'm 53 and for me I don't feel that I want to retire.

Food £4000
Bills (Gas, Elec, Phone, Internet, Water, TV) £3000
Ptax £1600
House Insurance £160
Hairdressers £150
Hols £000
Mobiles (2) £30
Car Insurance (1 Cars) £180
Car Service £80
Car Tax £150
New Car £1500
Meals Out £1,000
Clothes £300.00
Theatre £300.00
Motorcycling (hobby) £1,000.00 (4k miles)
House Maintenance £500
Pubs £4500
Total = £18500

AnotherJoe

tony4147 wrote: »

Our number is approx £32k -

Food £100.00 x 52 = £5,200.00
Bills (Gas, Elec, Phone, Internet, Water, TV) £500.00 x 12 = £6,000.00
Ptax £250.00 x 10 = £2,500.00
House Insurance £30.00 x 12 = £360.00
Hairdressers £100.00 x 12 = £1,200.00
Hols (3) £1,500.00 x 3 = £4,500.00
Mobiles (2) £30.00 x 12 = £360.00
Car Insurance (3 Cars) £1,000.00 x 1 = £1,000.00
Car Service (3 Cars) £700.00 x 1 = £700.00
Car Tax (3 Cars) £600.00 x 1 = £600.00
New Car (Saving) £3,000.00 x 1 = £3,000.00
Meals Out (2/Mon)£80.00 x 24 = £1,920.00
Clothes £100.00 x 12 = £1,200.00
Theatre / Cinema (2/Mon) £25.00 x 12 = £300.00
Gliding (hobby) £1,000.00 x 1 = £1,000.00
House Maintenance £2,000.00 x 1 = £2,000.00
Total = 31,840.00


I think the above is acheivable for us, I'm hoping to have a DC pot of £500K, wife will have DB of £20/yr and then 2 x full state pensions.
I have another reduced scenario where we would need £25k, get rid of a car, not save as much for a new car every year.
The only thing is I won't retire until 64, which in all honestly suits me at this time as I'm 53 and for me I don't feel that I want to retire.

Interesting, I reckon mine is about 2/3 to 1/2 of yours apart from holidays but that would be cancelled out by my gliding spend of £0.00

Obvious question; Why are you paying for 3 cars between two of you? Surely you could easily have just two? I've been contemplating going from 2 to 1 but since the one that would go (a little Aygo) is paid for and costs little to run, for convenience sake I won't, but three seems mad especially if you are looking to always keep three, what with the main cost being saving to replace it.

If you were to divert that money into a pension starting now, that would literally mean you could easily afford to retire a whole year earlier !!

tony4147

The 3 cars, I have a sports car for summer use only, I may drop to 2 cars. The hair is probably more likely £80 (wife, I'm bald), I've over egged it but would rather be over the top than under, it's a target to aim for.

gadgetmind

Triumph13 wrote: »

seriously hard-core frugal women were making it perfectly clear that having their hair regularly coloured was NOT a negotiable item.

My wife has a lady who comes to the house and who charges £20 for a cut and around £40 for "the works" including colouring.

I have a 3mm buzz cut all over, head and chin, and that's free using a trimmer at home.

OTOH our tap water around here is so bad that we have to drink Prosecco instead and that adds up.

richbeth

blobby8 wrote: »

Pubs £4500

That sounds good to me :-) I expect our pub spend to increase when we stop working.

However, more seriously I do wonder if some people have included sufficent allowance for days out etc in their finances. For us spending more days walking means more money spent on coffee, lunches and/or beer that at present.

Marine_life

EURO
Household
Rates 282
Rubbish 84
Electricity 720
Heating 1.560
Sewage 140
Water 50
Gardener 700
Boiler Service 200
Bank Chgs 64
Maintenance 4.000

Insurance
Building 640
Health - Me 4.768
Health - her 1.203
Perscriptions) 600


TV, internet, communications
Satellite 60
TV Licence 302
TV subscription 396
Netflix / Amazon 144
Magazines 120
Music 240
Internet 450
Telephones 1,200

Car
Petrol 1.800
Ins & Tax 2.090
Service 600
AA 80

Personal spending
Food 6.000
Alcohol 1.200
Cleaning Products 600
Dog 600
Clothes 2.400
Skiing 1.500
Cash 2.400
Gifts 2.100

Total regular expenses 39.292

Discretionary / One time expenses
Overseas holiday 15.000
UK Trips 4.000
Other trips, meals
and days out 5.800
Gifts 2.100
Miscellaneous 2.400

Total expenses 66,492

jerrysimon

And add 25% = E83,115 for unexpected events

Jerry

Gatser

bigfreddiel wrote: »

Actually, when it comes down to the big day there is no NUMBER

You retire on whatever you think does it for you.

It's that simple, fj

Not totally correct... We all have our own NUMBER... and it will be different for each of us. That NUMBER can change, as our circumstances, outlook and opinions change over time.


Simples!

michaels

I thought this thread would be an interesting discussion about how people came up with their numbers so I read the first few pages....

Anyway I am now wondering if 'the number' makes sense as a concept. Surely in reality there is a trade off between:
- how much of current income you are willing to forgo,
- how many years you are willing to work and
- how much you are willing to live on in retirement (the number)

Suggesting the number is fixed and the other two will change in order to meet the number is surely artificially simplistic.