Affording retirement

24

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  • susiejq
    susiejq Posts: 154 Forumite
    PPI Party Pooper
    Thanks for the link, it's very useful and confirms that £24,000 is an acceptable income to retire on for a couple. That's comforting as I was getting in a bit of a panic that we weren't going to be able to retire as planned.

    OH has been working full time for 50 years this year and I have been working for 43 yrs (less 2 year gap with daughter). We feel like we've done enough!
    :T
    Nothing is truly lost until your mum can't find it!
  • missile
    missile Posts: 11,684 Forumite
    Name Dropper Photogenic First Post Combo Breaker
    Wishing you a long and happy retirement, sounds like you have earned it.
    "A nation's greatness is measured by how it treats its weakest members." ~ Mahatma Gandhi
    Ride hard or stay home :iloveyou:
  • badger09
    badger09 Posts: 11,201 Forumite
    First Post First Anniversary Name Dropper
    If I'm reading your figures correctly, your current annual net income is around £48000. You say you estimate your income after retirement to be around £24000 before tax.

    A couple of things strike me:

    Do you currently save £24000 a year? (£48k - £24k). If not, what do you spend it on, and can you manage without spending on those things?

    Almost half of your projected retirement income (£11k) is from rental income. Is that from one, or more than one property? If it is from just one property, you could lose almost half your income if that property was not let.
  • jennifernil
    jennifernil Posts: 5,580 Forumite
    First Post First Anniversary
    We retired in 2007 on just under half our previous gross income, including interest on savings and on OH's lump sum. 2 years later OH got an additional pension of about £4k, so we now have around £30k.

    We find we can live comfortably on £15k, including running our large car, paying band G council tax, and heating a large house.

    Above that, we give to charity, save money for our 2 grandchildren, help out our daughter, who was a student till 2011, and our son, just to keep things even!

    We also have a touring caravan and spend 3-4 months away every year, usually abroad, and still manage to save a bit to counter inflation.

    If you tour abroad, look at using the ACSI discount card.

    Not having NI to pay is a big saving, but we also do not have a mortgage, this finished in 2008. There are also savings to be made on clothes, but of course more time to spend on (expensive) hobbies!!

    You should manage fine on £24k, have you tried the budget planner to see how things work out?
  • Primrose
    Primrose Posts: 10,620 Forumite
    Name Dropper First Post First Anniversary I've been Money Tipped!
    I think your main increases in expenditure on retirement will be heating your home if it's normally unoccupied during the day (invest in thick sweaters and good thermals !) , and entertainment/leisure as you will have a lot of free time and that can involve spending money. Home cooking/baking/food processing/vegetable growing could help reduce your food grocery expenditure. Entertainment wise, joining your local U3A organisation (Google University of the Third Age if you're unfamiliar with it) will connect you with many people with all kinds of interests at minimal cost. Their annual subscription is very low, and normally varies by individual branch.
  • pollypenny
    pollypenny Posts: 29,393 Forumite
    Name Dropper Photogenic First Anniversary First Post
    I was worried about managing when we retired. However,it's great.

    We have a trip to the nearest city with our bus passes, eat in Bella Italia or Pizza Express using vouchers.

    We go to the cinema using Orange Wednesday, two for one, before 5.15 on senior rates, costing us about £5. We eat again on vouchers.

    I no longer need smart work clothes, so that's another saving.
    Member #14 of SKI-ers club

    Words, words, they're all we have to go by!.

    (Pity they are mangled by this autocorrect!)
  • Primrose
    Primrose Posts: 10,620 Forumite
    Name Dropper First Post First Anniversary I've been Money Tipped!
    Not sure anybody should bank on being able to use free bus passes for retired travelling going forward. I suspect the austerity cutback measures may well mean they end up being withdrawn.
  • Anyone know what the total cost of the bus pass is compared with the total cost of the fuel allowance?
  • pollypenny
    pollypenny Posts: 29,393 Forumite
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    Who said anything about 'banking' on bus passes?

    While we have them , we use them. Saving the cost of parking is as important as saving petrol.
    Member #14 of SKI-ers club

    Words, words, they're all we have to go by!.

    (Pity they are mangled by this autocorrect!)
  • susiejq
    susiejq Posts: 154 Forumite
    PPI Party Pooper
    Many thanks for all your ideas, suggestions and reassurance. We have spent a lot of money over the last three years. In a way getting ready for retirement. We bought our motor home which was £23,000 and also replaced our boat, £4,500 and car £9,000.
    We have also spent money on our house replacing the boiler and both of our power showers. All of these we paid cash for as we never buy anything we can't afford. Yes, I can probably save getting on for £20,000 a year and will do that to ensure I have enough money to cover the mortgage, pay OH's last year of income tax and have a bit of clear savings.
    Still feels a bit scary to go from an income of over £50,000 a year to around £24,000 but then 10 years ago we were living on working tax credit and barely had enough money for food so I know I can be very resourceful.
    And I do have my allotment which has saved me pounds over the years.
    Really looking forward it.
    Nothing is truly lost until your mum can't find it!
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