What does the majority of people have at 60ish

bigfreddiel

gadgetmind wrote: »

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.

Hmmm.. interesting take - could you just add a bit more detail please, here goes:

Why the 25x multiplier?

You make no mention of occupational pensions so i think this is the formula:

£Savings_Required = (£Annual_Req - £All_Pensions)*25
+ £Annual_Req*(SP_Age-Age_Now)

Note: SP_Age = State Pension Age and
£All_Pensions = State Pensions + Occupational pensions

Cheers

fj

de1amo

dont you forget whether you own your own home!--if you rent the sums distort as rents go up!

gadgetmind

bigfreddiel wrote: »

Hmmm.. interesting take - could you just add a bit more detail please, here goes:

Why the 25x multiplier?

Because I reckon a sustainable drawdown from investments will be about 4% per annum. So if you want £10k in your pocket, the you'd better have £250k invested wisely.

You make no mention of occupational pensions so i think this is the formula:

I've never had such a beast, and never will, so they don't figure on my radar.

For any complex situation, with multiple income streams (pensions, drawdown, interest, dividends) between two spouses, then rules of thumb start to count for less and you need the old spreadsheet.

The original formula wasn't mine: I saw it, had a little laugh, ran my numbers, and found it tallied almost exactly with my 20 column and 50 row spreadsheet.

Uncanny!

DiggerUK

I would imagine that 20 years gross is between 25 and 30 years of past expenditure.
It is nice looking at such an ammount, that means we should last till the grave, the problem is accepting that we can retire and spend it.

In conversations with others, of a similar age and situation to ourselves, it seems to be problematic making the change from an interesting and thoughtful economic life style, to living a fulfilling retirement.
We still are finding it difficult to realise we have nearly made it, and that it is time to kick out and enjoy. :beer:

Failure is not an option however.

gadgetmind

DiggerUK wrote: »

In conversations with others, of a similar age and situation to ourselves, it seems to be problematic making the change from an interesting and thoughtful economic life style, to living a fulfilling retirement.

It doesn't worry me as I have loads of hobbies, most of which either earn me money or cause people to donate good quality bottles/cases of wines to my cellar. I also have hobbies that consume large amounts of the old disposable and give nothing back other than joy. It all balances out.

We still are finding it difficult to realise we have nearly made it, and that it is time to kick out and enjoy. :beer:

Good luck!

DiggerUK

gadgetmind wrote: »

.......or cause people to donate good quality bottles/cases of wines to my cellar.......
Good luck!

You have wine and hobbies!!!!
Now that sounds like a cool retirement.:)

gadgetmind

DiggerUK wrote: »

You have wine and hobbies!!!!
Now that sounds like a cool retirement.:)

I have hobbies that *earn* me wine, how cool is that!

For example, I do virus elimination and data recovery for friends, neighbours and sometimes total strangers. It's fun, I learn a lot, it helps people in their hour of need, and I *never* charge anything. But when they come to collect their computer/disk, along comes some good wine, sometimes very good wine, and sometimes a case of it.

OK, so the hourly rate is sometimes less than I'd earn picking cauliflowers in Lincolnshire, but that's not the point.

Loughton_Monkey

bigfreddiel wrote: »

I liked your final para - whats included in your asset base tho'?

Investments, ISAs, savings, valuables, house, car and so on i guess

fj

Asset base was (in round figures) 38% house, 38% pension pots, and 24% ISA's, cash, insurance policies (since matured)...

House is capable of 50% release upon downsizing.

The above was after buying 2 new cars (not counted as assets). Spending budget includes full depreciation costs so that replacement represents no 'jolt' at all to asset base.

bigfreddiel

gadgetmind wrote: »

Because I reckon a sustainable drawdown from investments will be about 4% per annum. So if you want £10k in your pocket, the you'd better have £250k invested wisely.

Ahh yes its obvious now

I've never had such a beast, and never will, so they don't figure on my radar.

But you agree my revised formula taking it into account is correct

For any complex situation, with multiple income streams (pensions, drawdown, interest, dividends) between two spouses, then rules of thumb start to count for less and you need the old spreadsheet.

The original formula wasn't mine: I saw it, had a little laugh, ran my numbers, and found it tallied almost exactly with my 20 column and 50 row spreadsheet.

sometimes simple is best

Uncanny!

cheers that was interesting

gadgetmind

Loughton_Monkey wrote: »

House is capable of 50% release upon downsizing.

Mine too, and some, but I can't bring myself to include it as part of my retirement asset pot. If I did, it would be about a third of my pot, but I don't want to be *forced* to downsize simply because I haven't accumulated sufficient liquid assets.