What does the majority of people have at 60ish

dannymccann

property.advert wrote: »

paid for their kids to go to university

Erm...that's what a student loan is for? Or at least, that's what I was told! Which is why I owe the government over £20000

But then that is my choice to have that debt, in my close family/friends there is not a single one that could afford to put a child through such an expensive time!

de1amo

my parents have always been prudent and reached a comfort level in their 60s when they both retired- they are now in their 80s and my mother regrets having worried so much about money in her life!-sad thing i am going the same way!

ERICS_MUM

bigfreddiel wrote: »

What's the normal average 60ish person/couple have as regards to pension, savings, property?

fj

Hopefully good health, enough money for good food and able to pay winter fuel bills. Anything more is the cherry on the cake.

I'm not being flippant, I just think it's easy to get caught up in a "competition" as to who has the most.

vax2002

A sore back, aching knees and a strong feeling you have just been had over.

de1amo

it seems to me that this site is all about 'competition'-people are driven by the acheivement of having more money-

Someone said a ratio of 40 times spending requirement--does that include the property you live in which is of no cash value as its an essential?-

ERICS_MUM

de1amo wrote: »

it seems to me that this site is all about 'competition'-people are driven by the acheivement of having more money-

Someone said a ratio of 40 times spending requirement--does that include the property you live in which is of no cash value as its an essential?-

good point. Or does it mean "disposable income"

de1amo

also is the state pensioned put into the pot--plus what is the commercial value of it?

i have done my figures and i am sure i can live on 10k per annum which 40 times would mean a total of 400k -which would mean there are quite a few householders that could now retire but have absolutely no income as all that money is in their home!

Where did this 40 times ratio come from? is it a real financial fact or just a guess?

gadgetmind

de1amo wrote: »

Someone said a ratio of 40 times spending requirement--does that include the property you live in which is of no cash value as its an essential?-

It's generally best to not include your primary residence in your retirement plans.

Generally speaking, you need 25x whatever you need on top of pensions, plus whatever you're going to need to span the gap between retiring and pension age.

So if a couple need £28k pa, want to retire at 55, and expect £15k total in state pensions at age 66, they need (28-15)*25+28*11=£633k a little extra on top makes a lot of sense.

If they want £50kpa, then it's (50-15)*25+50*11=£1,425,000

The 25 multiplier comes from the assumption of drawing 4%pa from your investments.

Tax complicates things, as does the need to work in "today's" money, so you really need to use a spreadsheet.

grumpycrab

gadgetmind wrote: »

... [a couple would] expect £15k total in state pensions at age 66,

Not up on state pensions, but presumably that's not contracted out and with full NI contributions?

de1amo

can i mail you gadget?