At what point do you stop saving?

Paul_1977

Ok, interesting replies.

What if it was highly unlikely that you would reach the age of 65, (I am aware some on here will be over 65)?

When do you stop saving if you are going to die before you are old? If it was almost guaranteed you would not reach old age, not even reach 45?

atush

Obv those with terminal illness would no longer be working or saving?

Or those out of work with a chronic life limiting one?

These people would not be earning or saving either

Nocto

To answer your question slightly more seriously. I have always lived well within my means, as a result I’ve had money to invest.

Even if I knew I was going to die next year, I can’t see myself doing much different. Probably wouldn’t make any new investments though - have you seen the cost of hospital parking?!

Paul_1977

atush wrote: »

Obv those with terminal illness would no longer be working or saving?

Or those out of work with a chronic life limiting one?

These people would not be earning or saving either

Just as an example, if you were to get a serious illness and recover, but there was a decent chance it would come back, you would still work as you can, but would you save to a high level?, in my view there would not be a point, as you could be spending making life better or better for someone else rather than saving it all and then dying without it being spent on anything.

You would be earning but perhaps not saving, at least not to high levels.

geoffers4

Interesting thread. I'm another one saving towards early retirement - currently 52, mortgage paid off, 2 offspring nearing the end of uni. So it's relatively easy now to put a good amount away into savings.

But it is a good question: when will I have enough savings? There are some obvious things to factor into the calculation e.g.
* how much we expect to need to cover expenses as a 'healthy retired couple', and
* average life expectancy.

But how about the more difficult questions e.g.
* likelihood of needing long-term care in the later years (recent news article stated this could easily cost £120k, presumably per person)?

So I will probably play safe and aim to have a good buffer of savings before escaping from the world of work. What do others think?

talexuser

robotrobo wrote: »

My point is that even though you have money that you are going to get good treatment , not so .QUOTE]


Surely that depends on the care home? Read the CQC reports, ask local doctors (who know exactly which ones to avoid), do your research just as taking out an investment. Find a home where you have 24/7 access where they have nothing to hide etc.

gadgetmind

geoffers4 wrote: »

* how much we expect to need to cover expenses as a 'healthy retired couple'

Two rules of thumb -
1) £1k pcm = frugal, £2kpcm = OK, £3k pcm = easy life. Anything above that is heading into luxury.
2) Figure on at least 25x the annual sum investments, if doing all from investments. If you have state pension, FS pension, rental income, then throw into mix and model it.

Stubod

An interesting thread, (in a similar position), I guess the answer is to stop when you have enough...

..how much is enough?....depends on you your lifestyle

..probably 25k per year (from whatever you have saved + pensions etc.), rising by 3.5% per year ....for how long do you expect to live?

..best to set up a simple spreadsheet based on ideal income, how much too keep pace with inflation and how long you expect to live.

..thats the question

gadgetmind

Stubod wrote: »

..probably 25k per year

We'd have to sell house, cars, and daughter, to live on £25k pa, so it's all down to the individual. I've been saving 25%-50% of income for many a year, and hope to retire on at least 2x the sum you quote (after tax), so it's all each to their own.

nearlyrich

Stubod wrote: »

An interesting thread, (in a similar position), I guess the answer is to stop when you have enough...

..how much is enough?....depends on you your lifestyle

..probably 25k per year (from whatever you have saved + pensions etc.), rising by 3.5% per year ....for how long do you expect to live?

..best to set up a simple spreadsheet based on ideal income, how much too keep pace with inflation and how long you expect to live.

..thats the question

I currently save most of my income in pensions and ISAs so if I have enough to live well as we do now take holidays etc I can't see why I would need a lot more than I allocate to live on now. I will need to buy and run a car as I currently have a company car but my living costs should be similar to now..