How much is enough?

Linton

Enough in retirement is probably something like the amount you are living on now, perhaps minus mortgage though not much else. This is a much better guide in my view than trying to budget by adding everything up.

Much less than your current expenditure will seem like poverty to you, and you dont want to live in poverty for perhaps 30 years.

MoneyWorry

As most people have stated, it is a matter of personal choice and what you want in retirement rather than need.


I have to smile though at those that intimate you would have a life of poverty on a retirement income of £15K. I live on my own and my net salary is exactly £15K pa and out of this I pay both a mortgage and personal pension. I have meals out, go abroad on holiday and run a car. All perfectly possible to manage successfully.


I even wish to retire a couple of years before State Pension Age but have always held back from posting numbers, because they are too small for anyone to comment on.


I think despite all the good these boards do that there are still a great many people whose expectations and projected retirement income are still poles apart.

dunroving

Linton wrote: »

Enough in retirement is probably something like the amount you are living on now, perhaps minus mortgage though not much else. This is a much better guide in my view than trying to budget by adding everything up.

Much less than your current expenditure will seem like poverty to you, and you dont want to live in poverty for perhaps 30 years.

Also minus pension payments, presumably? For many people, this is much higher than mortgage payments and in retirement you wouldn't be paying into a pension surely (except for a semi-retirement situation, where you might be still building up retirement benefits)?

dunroving

MoneyWorry wrote: »

As most people have stated, it is a matter of personal choice and what you want in retirement rather than need.


I have to smile though at those that intimate you would have a life of poverty on a retirement income of £15K. I live on my own and my net salary is exactly £15K pa and out of this I pay both a mortgage and personal pension. I have meals out, go abroad on holiday and run a car. All perfectly possible to manage successfully.


I even wish to retire a couple of years before State Pension Age but have always held back from posting numbers, because they are too small for anyone to comment on.


I think despite all the good these boards do that there are still a great many people whose expectations and projected retirement income are still poles apart.

I'd say people like yourself are even more relevant because the margin for error is so much smaller.

Someone planning to retire on £50k who has to take a "drop" due to poor planning is still going to be all right (Jack) on £40k, whereas someone whose planned pension of £15k drops to £10k due to poor planning or bad luck is in a much harder situation.

MoneyWorry

dunroving wrote: »

I'd say people like yourself are even more relevant because the margin for error is so much smaller.

Someone planning to retire on £50k who has to take a "drop" due to poor planning is still going to be all right (Jack) on £40k, whereas someone whose planned pension of £15k drops to £10k due to poor planning or bad luck is in a much harder situation.

I'm very aware of this, but you have to admit the majority of people who post on this board seemingly don't need help planning (such as the OP) rather than people on lesser means who do.

saver861

MoneyWorry wrote: »

I'm very aware of this, but you have to admit the majority of people who post on this board seemingly don't need help planning (such as the OP) rather than people on lesser means who do.

I think there will a lot of people on here reading (lurkers) but not posting for whatever reason. So its likely the ones that post give a disproportional representation.

However, I think the OP on this thread seemed to be acting outside the 'spirit' of the forum. However, I would still give him the benefit of the doubt - it might have been a typo that he meant £70k rather than £700k investments. He may come back to clarify the point but at face value the contributions of the OP would seem be different to the norm of people looking for genuine guidance.

So I would say the majority on here are here for general guidance and advice.

Goldiegirl

MoneyWorry wrote: »

I'm very aware of this, but you have to admit the majority of people who post on this board seemingly don't need help planning (such as the OP) rather than people on lesser means who do.

saver861 wrote: »

I think there will a lot of people on here reading (lurkers) but not posting for whatever reason. So its likely the ones that post give a disproportional representation.

.

There can be a lot of jargon on this board, and there are a lot of large figures bandied around.

I think many people who do not already have a working knowledge of pensions and are of more moderate means would find it quite difficult to post about their own situation.

MoneyWorry

Goldiegirl wrote: »

There can be a lot of jargon on this board, and there are a lot of large figures bandied around.

I think many people who do not already have a working knowledge of pensions and are of more moderate means would find it quite difficult to post about their own situation.

Summed up beautifully

gallygirl

Linton wrote: »

Enough in retirement is probably something like the amount you are living on now, perhaps minus mortgage though not much else. This is a much better guide in my view than trying to budget by adding everything up.

Much less than your current expenditure will seem like poverty to you, and you dont want to live in poverty for perhaps 30 years.

No mortgage
No pension payments
1/2 normal monthly savings put away for a replacement car (do over 20,000 miles at present, this would half)
1/2 diesel bill
No smart work clothes
Cheaper holidays as can go midweek etc, but maybe offset by having more of them!

dunroving

MoneyWorry wrote: »

I'm very aware of this, but you have to admit the majority of people who post on this board seemingly don't need help planning (such as the OP) rather than people on lesser means who do.

It's a bit like Location, Location, Location. I'm much more interested in the people on that show who are trying to find a house for £120k than those (who seem to be in the majority) who have a budget of £400k. For goodness, sake, if you can't find a nice house for £400k, you're not trying! Much more challenge (and more interesting) in finding a nice place on a small budget.

Similarly, I find the "minnows" stories on here far more interesting than "How can I turn my £700k portfolio into £900k within 5 years?".

Personally, I'd be more than happy to retire on £15k a year.