How much is enough?

saver861

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.

Indeed - and it is a learning process. It is a good place to start though as any comments on here can be taken or discarded at will - and at no cost I find quite a lot of useful info on these forums.

The reality is the majority of people on here will be of layman knowledge - I don't come on here to find out anything about my own profession!!! I'm only on here to find out information on other professions that I'm a layman in.

doshunta

Thanks for responding guys (apologies for 'jumping in' on the thread, but there is a few folks that seem to welcome a change of direction.:beer:

Basically my thinking about keeping the UK home is simply to keep on the property ladder and retain a safety net in case we needed to downsize later on (if funds get tight etc.)

Thanks for flagging the PA issue with rental, which I'd not clocked. I am a bit wary of renting for the risk reasons mentioned, especially rental lull periods... also considered selling and buying a rental in somewhere in the right location (e.g. London), but same HMRC challenge I guess.:(

I'd also thought of investing in a property-based portfolio as an alternative option that kept me in line with UK property value (so that we can afford to buy a place when we came back later on), but haven't got my head round this yet...

Thanks Linton, but even if I look at current expenditure net of largish mortgage and pension payments it would be over-estimating our needs as we've still 2 adult kids at home right now, so all bills are inflated. Flight and car costs are also higher than they would be as we have to go at peak holiday periods and often take our kids (telling ourselves this will probably be for the last time!:rotfl:)

To enable us to do this and pay mortgage and pension when in the UK we actually live quite simply, hardly ever going out for meals etc. Our weekly household spend around £170, excluding petrol for one car, but including virtually everything else.

I've done a cost projection net of these variation, having trawled the number thread for a while etc. It shows that I'd need about £30k-ish. This allows for a small maintenance budget, but not any big unforseens. As yet we've not penny of other savings (currently overdrawn!) for emergencies etc.

I changed our lifestyle to put more cash into my fund having spent time on here many years ago (the number thread etc);) Unfortunately I lost a chunk of my fund with a poor IFA who I've subsequently dumped. I've found many folks on here far more knowledgeable that many of the IFA's I've come across!

My wife works part time in school admin so gets good holidays and spends about 10 weeks a year over there - I get 4 weeks. To do this now we've learned to live almost as inexpensively as the locals so the savings we make on wine every week help out there!)

Any ideas or comments will be gratefully received folks! :T

System

I totally concur with comments of dunroving. I too find the posts concerning the stories and needs of everyday folk like myself with average amounts of money, be it to do with salaries, pensions or savings more interesting and relevant.
When I read about those concerned about surviving 0n "£25000, £30000 or more in retirement I am bemused. Most people manage on far less and still have a good retirement. Likewise concerns about retiring about pots of only £400000 or several buy to lets I find incredible. It is really so first world!!
Of course I appreciate this is a forum for giving advice about pensions and how to make the best of your resources whatever they may be. However some posters do need to keep a balance.
How much you have is not everything, although I totally accept there will be a minimum level for real needs in retirement. For me the most precious thing is time and no pension pot however big is going to buy me more of that! Large pot or small pot when you are dead you are dead.
Likewise I do worry that some people miss out on living their lives to the full by becoming too fixated on money for the future. Of course make provision, but please keep a balance.
I do enjoy reading all these forums but I do have to ensure that I do not compare myself unfavourably with those seemingly better off and get depressed!! Far more interested in those with a few thousand and typical pensions.
Just my view of course.

MrAndMrs

I found this thread really interesting as I am approaching retirement. I don't have time to read all of it right now but plan to come back later.

doshunta wrote: »

I'd also thought of investing in a property-based portfolio as an alternative option that kept me in line with UK property value (so that we can afford to buy a place when we came back later on), but haven't got my head round this yet...

doshunta - I'm in the same position as you right now. Cleared my mortgage not long ago. And considering getting my first buy-to-let property. It's a headache isn't it?! Be interested to pick your brains on the subject (probably out of this thread to avoid upsetting anyone)

dunroving

MrAndMrs wrote: »

I found this thread really interesting as I am approaching retirement. I don't have time to read all of it right now but plan to come back later.


doshunta - I'm in the same position as you right now. Cleared my mortgage not long ago. And considering getting my first buy-to-let property. It's a headache isn't it?! Be interested to pick your brains on the subject (probably out of this thread to avoid upsetting anyone)

Personally, I wouldn't touch property rental in retirement. I tried BTL (one small terraced) as an investment between 2004 and 2011. I used a small-ish deposit, during the days when they'd give anyone a mortgage!

It was the biggest financial and personal source of misery I have ever known! 6 years of Hell dealing with bad tenants, bad agents, and a final loss of about £30k overall. Never, ever, again! Stuffing my money in a mattress for the 7 years would have been a better investment and wouldn't have given me a permanent headache!

[Relevance to the OP: Especially if you are looking at a low income in retirement, don't touch BTL unless you want to live off a "negative income"]

gallygirl

Really interesting discussions here :T.

I remember a friend telling me about the difference between her parents and her in-laws retirement. Her parents had reasonable pensions but they struggled as they weren't prepared to downshift from M&S and Waitrose, new cars and 4* star hotels. Her in-laws had always had poorly paid jobs and retired on small pensions but because they'd lived frugally those habits continued and they felt well off. They used their bus passes for days out, taking picnics, grew their own veg and went abroad for 6 weeks in the winter - self catering, ate in most of the time and it worked out cheaper than heating their UK home. They had less money but a far 'richer' retirement.

edinburgher

What a pointless thread. The OP asks a reasonable question then tells us he actually has 25 k income and 700 k in investments.. Presumably he is feeling very smug and is desperate to tell everyone how much money he has.. These threads usually become a !!!!ing contest

Yeah, you give someone the benefit of the doubt that they're asking a reasonable question, and out comes the epenis :rotfl:

doshunta

OK guys, let's be clear here... this is a forum for discussion and advice, however much we've saved or haven't.

I've worked bloody hard to work my way slowly up the ladder from a council house in deepest Glasgow, to the point where I can look at the amount I'VE saved (no final salary safety net) and now start to plan what I need to do next. I've actually lost over £80k from my fund on the back of advice, so know how things can go bad very quickly and need to think all the angles.

I also wanted to share my strategy for using one UK property to fund an overseas lifestyle, so that others may see they don't need the capital for two homes (with all the expenses this brings) as I can't afford to run or fund two properties. Maybe my strategy is flawed, but it seemed like a good idea at the time.

I certainly don't want to make anyone feel annoyed...:)

edinburgher

I've worked bloody hard to work my way slowly up the ladder from a council house in deepest Glasgow, to the point where I can look at the amount I'VE saved (no final salary safety net) and now start to plan what I need to do next

Greetings from darkest Glasgow

Don't take the hump, we're referring to the OP, who felt the need to drop in a wee revelation about £750k of investments, meaning that the original question was meaningless and made it look like he just wanted an opportunity to show off.

It's not about you

System

doshunta
I agree with edinburgher. Your post was thoughtful and reasonable.
I have considered living abroad for a while after I retire in a couple of years time. However I am more wary of buying abroad and may try a long term rent in Cyprus to see if it is something I just need to get out of my system!! Some very reasonable villas about in Cyprus with pools for about £450 a month for 12 months! Will suit me!
All the best with your plans.
As I said my comments were just my point of view.