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How much do you need to retire?

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  • Tobrex thanks for your posts & sorry, I was not trying to call you out- just fascinated by your approach and want to understand it better.

    For example, if you see something like council tax as something to be paid from capital rather than income (I have re-read your posts and I think this is it)- then how do you decide how much capital do you earmark for that? Are going to live another 30, 40 or 50 years and how much will council tax or its replacement be then?

    You mentioned a lump sum of £20,000- is that the full extent of the capital on which you will base your retirement plans, plus an income of £215 per month? Please, this is not a critical or suspicious post, I'd just like to better understand your admirably frugal approach.
  • brewerdave
    brewerdave Posts: 8,710 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    @Judi -you can save on quite a few of the items you list :-
    eg water meter rather than water rates -two of us in an "expensive" area for water are on £38 pm total; internet -I pay £6.50pm for unlimited: house insurance (inc contents) for 5 bed house less than yours @ £140 pa etc etc
  • torbrex wrote: »
    I have an income of £215/month, I have 2 seperate funds available to draw from for specific things, a holiday fund and a maintenance fund, if you had read my posts you would have seen this.
    Nowhere did I state that I lived off £215/month.

    Some might call it planning for the future.

    @torbrex, you are a greater man than I! ...Not sure I am disciplined enough for that. I never thought of having separate specific funds which sounds like a great idea...I guess it gives you a firm grip on how much certain things will cost.

    Thanks for all of the posts. My OP was really about what it takes to achieve a basic level of financial security. I realise this will be different for different people, and even different parts of the country, but reading the thread, there does seem to be a certain 'leveling out' in terms of how much you spend ... less transport costs from not working (free bus passes maybe) etc etc.

    It looks like my OP is about right then (assuming no final salary pension) you need approx £300K in pension/ISA/Savings etc to give yourself approx £20K per year.
  • System
    System Posts: 178,342 Community Admin
    10,000 Posts Photogenic Name Dropper
    I agree it sounds a good idea to have separate funds for specific purposes, but surely unless you are continuously replenishing them with current income, then the funds need to be invested so that the investment yield pays the outgoings?
    Otherwise the effects of inflation will inevitably mean that your fund runs out of money at some point. What will you do when the council tax fund, for example, runs out in say 20 years time? Live in a tent, or your car?
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • Cyberman60
    Cyberman60 Posts: 2,472 Forumite
    Hung up my suit!
    I agree it sounds a good idea to have separate funds for specific purposes, but surely unless you are continuously replenishing them with current income, then the funds need to be invested so that the investment yield pays the outgoings?
    Otherwise the effects of inflation will inevitably mean that your fund runs out of money at some point. What will you do when the council tax fund, for example, runs out in say 20 years time? Live in a tent, or your car?

    Spot on.. Capital can eventually run out and without a reasonable guaranteed income such as a pension the 'writing is on the wall'. :eek:
  • I'm 'sort of' retired - depending on what language teaching work I can muster together (anyone in Hampshire want to do Italian or EFL? ;-) ).

    Some of the figures for regular spends posted here seem are a bit high. Not many people want to do without a TV, but the saving still counts.:D My fuel costs probably work out at £20 a month, although I need to get my next bills to confirm a full year's usage. My approach was to spend a bit of capital (which was yielding virtually nothing) on solar panels and a wood stove burning mainly free wood. I go to the 'green gym' - sawing, chopping, hauling wood. Water is on a meter and around £15 a month, mobile is purchased sim free and budget is £20 a month including capital.

    If I didn't have such vices as watching professional football and going skiing I wouldn't need the work, but as it is...
  • atush
    atush Posts: 18,731 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    torbrex wrote: »
    I don't have any birthday or christmas expenses at all, clothes I wear out then replace when I am on holiday, it is much cheaper to fill my case when in America than it is here.
    My suitcase is already about half full of clothes that will get their last outing in Hawaii and I will then buy more new ones when there. (I am not a slave to fashion which helps)

    It must be a lonely life to have no friends and family. And if spending xmas on your own not buying bottle of tipple, and a bird to roast.
  • mgdavid
    mgdavid Posts: 6,710 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    it doesn't sound like a barrel of laughs, does it...
    The questions that get the best answers are the questions that give most detail....
  • jamesd
    jamesd Posts: 26,103 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    atush wrote: »
    It must be a lonely life to have no friends and family. And if spending xmas on your own not buying bottle of tipple, and a bird to roast.
    mgdavid wrote: »
    it doesn't sound like a barrel of laughs, does it...
    Holidays in Hawaii hardly sound boring. Traditions at Christmas and birthdays vary, as do means of providing for any gift-giving that may happen, if that tradition even exists for the individual or group concerned. It's not universal. People differ and it's already clear that the poster concerned has quite ascetic tastes in many ways.
  • torbrex
    torbrex Posts: 71,340 Forumite
    10,000 Posts Combo Breaker Rampant Recycler Hung up my suit!
    atush wrote: »
    It must be a lonely life to have no friends and family. And if spending xmas on your own not buying bottle of tipple, and a bird to roast.

    and who the !!!! are you to critisize how I live my life? I never said that I have no friends or family, just because I don't buy birthday or xmas crap doesn't mean a !!!!ing thing, not everyone in the world is a christian and submits to all that crap.
    Buying that crap is not compulsory and neither is drinking or buying a bird to roast so again I ask what give you the right?

    I posted on this thread to give the OP an alternate view to retirement and all I seem to have attracted is accusations, critisisms, and snide remarks just for being different well !!!! you all.

    I'm sorry to those that were interested in how I manage my finances, perhaps you can ask me again on a more civilised thread but this one has shot its bolt as far as I am concerned.
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