How much is enough?

atush

I hope she is on LGPS

Suffolk_lass

I have not seen anyone mention taking into consideration National Insurance Contribution savings, alongside stopping pension contributions and hopefully being mortgage free.

For most employees (earning more than £153 a week and less than £805), this is likely to be 12% on all your earnings, which has taken quite a few of my former colleagues by surprise.

Also, if you don't have a full state pension projection it is worth considering whether you might enhance your record by voluntary contributions to "top up" your state pension entitlement.

As many wise contributors have said, this is a personal thing and you should consider your own circumstances (affordability, health and well-being, for example), but we have looked at this for my husband, who worked abroad for many years and whose private pension income is going to be rather low. We might yet use an expected lump sum to top it up, a bit closer to state retirement pension minimum age (67 for him, I think). Unlike a private pension top-up lump sum, it does not get more expensive, the closer you get.

SL

mlv-1967

bigfreddiel wrote: »

Often quoted is that a couple needs £15k household income for a comfortable retirement. Is that your experience?

fj

I would double that. £15k each after tax.

This is easily enough to live well, afford decent holidays and run 1 or even 2 cars. And this is all you need ultimately.

mlv-1967

dunstonh wrote: »

£15k will be enough for some but not enough for others. Its a very personal figure. Location can have a lot to do with it as well.

Meaning what? Some people are worth less than others?
Groceries from Tesco are the same price nationally, so I don't see how location matters and once retired the housing expense is no longer relevant.

mlv-1967

sandsy wrote: »

I wouldn't be happy with 15k for me, never mind me and my OH!
It all depends on what you're used to before retirement and what lifestyle you want in retirement.


Personally, I don't want to give up much at all - I want to retire early and travel overseas several times a year. I want to eat out regularly, occasionally in very good restaurants.


We're putting enough aside to provide the same net income, after losing housing and private school costs, as we have today. That will actually give us a very comfortable standard of living given that the kids will have left home and we won't have to cover their every day costs.

If you can afford to do this, fine, but you are expecting an awful lot. And once retired your health may not allow you to do all these things anyway. I wonder how realistic you are.

mlv-1967

ontrack wrote: »

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
Let's see who can !!!! the highest:rotfl:
Anyway with OPs assets unless he has the secret of eternal life he can retire now
( preferably somewhere where he dosnt have access to a computer):T

These forums seems to be frequented mainly by the very well off; they are not a reflection of the population at large.

mlv-1967

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.

Not really. Once retired you won't have a mortgage, so you can take that out of the equation. And even after that you shouldn't realistically be expecting to live at 65 like you do at 45. You will have to be prepared to sacrifice some luxuries. Too many people think that they can live like kings in retirement, which is fine if you can afford it, but it's not essential.

ognum

mlv-1967 wrote: »

Not really. Once retired you won't have a mortgage, so you can take that out of the equation. And even after that you shouldn't realistically be expecting to live at 65 like you do at 45. You will have to be prepared to sacrifice some luxuries. Too many people think that they can live like kings in retirement, which is fine if you can afford it, but it's not essential.

I am not a pensions expert but here are a few things that cost less after retirement.

No mortgage
DIY jobs done yourself as you have time
Eating lunch out not dinner, always cheaper
No need for work clothes, jeans are fine.
Traveling on the days he flights are cheap not the weekend
Being able to us the Avios as you can fly anytime and plan a year in advance if needed
Walk don't take car as have more time.
Cooking from scratch as more time.

We live well, no state pension yet but good living! We live better than at 45!

ognum

mlv-1967 wrote: »

Not really. Once retired you won't have a mortgage, so you can take that out of the equation. And even after that you shouldn't realistically be expecting to live at 65 like you do at 45. You will have to be prepared to sacrifice some luxuries. Too many people think that they can live like kings in retirement, which is fine if you can afford it, but it's not essential.

OH yes forgot the biggy, no children to support!

atush

Good luck with the Avios- I am having trouble even using them one year out lol. I have almost 400K lol