Pensions Planning: The NUMBER

westv

k6chris wrote: »

Is that a gross or net figure? Are they assuming a couple with the mortgage paid off? Would be interested to know more about their thoughts on this.

http://www.which.co.uk/money/pensions-and-retirement/starting-to-plan-your-retirement/guides/how-much-will-you-need-to-retire

£39,000 net including State pensions = "luxurious" apparently.

50Twuncle

I took early retirement at age 47 with a largish lump sum and we live, comfortably on £13k pa - with a new car every 3 years (from invested lump sum) - so this figure of £39k is a joke !!

Deneb

50Twuncle wrote: »

I took early retirement at age 47 with a largish lump sum and we live, comfortably on £13k pa - with a new car every 3 years (from invested lump sum) - so this figure of £39k is a joke !!

Have you read the article? £39K a year is quoted for a luxurious (not comfortable) retirement and assumes that you are spending almost £12K a year on long haul flights and foreign holidays, so that's most of your £13K gone already.

It was averaged from a survey of 1,590 retired couples (Which readers) in February this year.

CFrog

http://www.which.co.uk/money/pensions-and-retirement/starting-to-plan-your-retirement/guides/how-much-will-you-need-to-retire

I thought the first guy interviewed in the article's video clip was a little irresponsible / misleading in suggesting a 10% annual drawdown of his (pension) fund was his recommended figure to live on each year.

k6chris

Interesting that although the make up of the Which 'comfortable' numbers is slightly different, the overall figure they arrive at is within a few percent of our number - which is similar to 'The Number' in this thread. Our number includes some funding for vacations and running cars, but big trips and replacement cars will come from other savings, as available.

Wenlock

Deneb wrote: »

Have you read the article? £39K a year is quoted for a luxurious (not comfortable) retirement and assumes that you are spending almost £12K a year on long haul flights and foreign holidays, so that's most of your £13K gone already.

It was averaged from a survey of 1,590 retired couples (Which readers) in February this year.

Wow! If I add up the cost of every holiday I have ever had in my 52 years of life I wouldn't get anywhere near 12K.

As a single person I am comfortable on my annual income of £7k. In fact my savings & investments have increased by about £5k in the last 12 months (including interest etc).

Obviously we all have different needs and desires.

jamesd

CFrog wrote: »

I thought the first guy interviewed in the article's video clip was a little irresponsible / misleading in suggesting a 10% annual drawdown of his (pension) fund was his recommended figure to live on each year.

Yes, he should really have been taking more than that. He specified that by taking ten percent he wasn't drawing on capital at all and that implies taking too little. Others may not make ten percent without capital drain and might need to use lower numbers than that. Ten percent is above likely lifetime safe withdrawal rates but it could also be very sensible as a percentage of pot to take in years before the state pension starts, with a plan to reduce then.

At the moment I wouldn't find it challenging to get ten percent or more from non-pension investing in P2P so there's nothing fundamentally wrong with that sort of number today, if investments which can deliver it are being used.

Linton

How does a retired couple spend nearly £2500 on insurance? Say £300 each for 2 cars and house/contents which is under £1000. Utilities looks low if you include mobile phone, telephone and broadband. Otherwise the main costs dont look that different to ours, except the long haul flights are replaced by running a narrowboat.

atush

Our insurance is more than that, but we have 4 cars.

TBC15

atush wrote: »

Our insurance is more than that, but we have 4 cars.

I’m sorry this is not a pop but how do you spend more than 2.5K on car insurance?