How much is enough?
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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!
Precisely. And many retired people also earn some pin money by occasional work or maybe two days a week, so it all depends on your health at the end of the day.
I think the future is that people will never fully retire. The government is determined to increase the state pension age endlessly, so there will be many more semi-retired than fully retired in the future, I guess. I don't see myself as 'fully retired' until 75.0 -
Meaning what? Some people are worth less than others?
Meaning that someone who earned £60k is going to find it more difficult to drop down to £15 than someone who earned £25k.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.
Groceries may be about the only thing that you could say used national pricing - at least according to Tesco!
For most other things like petrol, cost of heating and travel it matters a great deal whether you are living in Scotland (even worse if it's the north) or the south of England.0 -
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
Too many people live like kings at 45 without giving thought to how they will live at 65. If you sacrifice some of your luxuries at 45 and put the money in your pension then you can plan to have a constant standard of living throughout. That's the whole idea behind pensions.0 -
....... 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.
Why not? Its a matter of balance - if your plans show your retirement lifestyle to be significantly lower than at 45 then cut your expenditure at 45 in order to save to live better at 65. If you say you cant live more frugally at 45 how do you expect to enjoy life later?0 -
Not if they've lived the same lifestyle. It's not just what you earn that matters - it's what you spend.Meaning that someone who earned £60k is going to find it more difficult to drop down to £15 than someone who earned £25k.A positive attitude may not solve all your problems, but it will annoy enough people to make it worth the effort
Mortgage Balance = £0
"Do what others won't early in life so you can do what others can't later in life"0 -
There is a very wide national variation in costs. The JRF has a paper on this and reported: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.
Council tax band A: £3.80 - £12.90 (197.60 - 670.80)
Council tax band
£5.67 - £19.35 (294.84 - 1006.20)
Water: £2.06 - £6.33 (107.12 - 329.16)
Electricity: £3.04 - £5.99 (158.08 - 311.48)
Council rents weekly: £19.46 - £82.84
Private rents weekly: £60 - £175
Mortgage payments FTB: £40.74 - £93
Ignoring the rent and mortgage part the difference between highest for everything and lowest for everything is £1,086.80 a year for band D.
Housing costs matter in retirement not just for those who don't own their own home and pay rent but also because higher costs reduce the potential amount that could be invested for retirement while still working. When retiring higher housing costs increase the scope for downsizing and/or relocating to free up money for living costs. A person relocating from a high housing cost area to a low cost area who owns could free up a large amount of money, potentially half a million to a million Pounds for a move from London to a very low cost area.
It's not quite that simple. They are frequented by those who are more interested in money and using it efficiently. That in turn means that they are more likely to do well and be well off.These forums seems to be frequented mainly by the very well off; they are not a reflection of the population at large.
The retirement section has people who pay attention to pensions and that tends to be people who aren't in the early years of working, when there's more potential earning than accumulated wealth. Those who post most also tend to have been living their planning for a while, like me. I've been here for almost ten years, starting from approximately zero net worth in 2005 then saving and investing more than 60% of my income for ten years.0 -
Meaning that someone who earned £60k is going to find it more difficult to drop down to £15 than someone who earned £25k.
Not necessarily. If the £60k a year earner was paying £££ in mortgage, pension contributions and looking after the kids, his/her net income after paying all these would not be as high as you might think.Groceries may be about the only thing that you could say used national pricing - at least according to Tesco!
For most other things like petrol, cost of heating and travel it matters a great deal whether you are living in Scotland (even worse if it's the north) or the south of England.
This is arguable. It all depends on how much you spend on all these things - the basic essentials are food, housing and utilities. Everything else is a matter of choice.0 -
Why not? Its a matter of balance - if your plans show your retirement lifestyle to be significantly lower than at 45 then cut your expenditure at 45 in order to save to live better at 65. If you say you cant live more frugally at 45 how do you expect to enjoy life later?
Why not? Because at 65 you have different needs and priorities. You are unlikely to want to live life in the fast lane like you did when you were younger; it's natural to slow down and take it easy as you get older. Enjoying life is not just about having tons of cash to spend, it's about peace of mind and keeping the stress level down.0 -
Why not? Because at 65 you have different needs and priorities. You are unlikely to want to live life in the fast lane like you did when you were younger; it's natural to slow down and take it easy as you get older. Enjoying life is not just about having tons of cash to spend, it's about peace of mind and keeping the stress level down.
Are you talking from experience?
I am retired: Yes you have different needs and priorities, but they arent necessarily cheaper. Also, being retired you have a lot more time to enjoy them. Pre retirement, in a stressful job, one's enjoyments were limited by the time available and one's state of mind. I was too tired and couldnt be bothered to live in the fast lane. Once retired the only limitation is money.
You are right having cash isnt everything, but its a lot better than not having any after spending it all in one's 40's.0 -
There is a very wide national variation in costs. The JRF has a paper on this and reported:
Council tax band A: £3.80 - £12.90 (197.60 - 670.80)
Council tax band £5.67 - £19.35 (294.84 - 1006.20)
Water: £2.06 - £6.33 (107.12 - 329.16)
Electricity: £3.04 - £5.99 (158.08 - 311.48)
Council rents weekly: £19.46 - £82.84
Private rents weekly: £60 - £175
Mortgage payments FTB: £40.74 - £93
Ignoring the rent and mortgage part the difference between highest for everything and lowest for everything is £1,086.80 a year for band D.
Interesting point. I currently pay £1,700 a year for a band E in Berkshire plus a £90 estate management fee. Far too much I think.
However, once you retire you are no longer bound to live somewhere because of work - you can move to another part of the country. This is certainly my intention once I retire.Housing costs matter in retirement not just for those who don't own their own home and pay rent but also because higher costs reduce the potential amount that could be invested for retirement while still working. When retiring higher housing costs increase the scope for downsizing and/or relocating to free up money for living costs. A person relocating from a high housing cost area to a low cost area who owns could free up a large amount of money, potentially half a million to a million Pounds for a move from London to a very low cost area.
Hmmm. Horses for courses in my view. People in the south-east pay a lot more for housing but they generally earn more as well. I know for a fact that I would not get my current salary in, say, Yorkshire. Probably £10k a year less, or even more. If I had spent my life up north I would probably be asset poorer but most likely cash richer. In many ways your house is part of your savings - it's an asset that can be liquidated if necessary, either by moving somewhere cheaper or by taking a 'lifetime' mortgage and accessing some of the equity upon retirement.It's not quite that simple. They are frequented by those who are more interested in money and using it efficiently. That in turn means that they are more likely to do well and be well off.
The retirement section has people who pay attention to pensions and that tends to be people who aren't in the early years of working, when there's more potential earning than accumulated wealth. Those who post most also tend to have been living their planning for a while, like me. I've been here for almost ten years, starting from approximately zero net worth in 2005 then saving and investing more than 60% of my income for ten years.
Not everyone can save as much as 60% of their income. Maybe if you don't have a mortgage or kids to maintain, otherwise it's extremely hard. Moreover, excessive saving might help you in the future but it does nothing for you in the here and now. Most people have regular expenses they need to think about and a lifestyle to maintain (eg, hobbies, cars, holidays). If you wish to deprive yourself for decades in order to be wealthy in old age that is your choice, but I would question the wisdom of this when you simply do not know what the future holds for you. You might live to 95 or drop dead at 70. The best thing is have a balance - saving enough to avoid the poorhouse without causing yourself too much pain earlier in your life.0
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