Age related money savings?

atush

PennyForThem wrote: »

So agree. I don't see where the savings occur unless you are spending a lot on commuting, office clothes, children, mortgage. I am really comfortable now, salary, widow's pensions which are 50% of what we would be getting as a couple (and grateful for that in the present climate) but I am loathe to retire on a substantially lower income where I have to think about every purchase and cannot save.

I really admire those that manage on an income that is free of tax. I also admire those who are a couple who can live on less than double that.

My failing.

I have pushed money into a SIPP so that I have a pension to fall back on when I am 75 + (long lived family so odds are I will live beyond and into my 90s) so I have extra income to draw on - if I die before I draw my relatives get it!

here's the thing-

many spend a lot on commuting, work clothes (ie the OH needs suits and formal shirts etc incl dry cleaning). Add in a second car, petrol for commuting- other costs (although I keep them down by packed lunches etc).

Expenditure will go down in general and yes you may spend more on one thing and less than another, but many of these things can be affected by personal choices.

We wont need full salary in retirement, but we'll need more than half I feel.

jackyann

There is a general rule - I am sure I read it on here several times - that 2/3 income will maintain your standard of living.
Obviously this is very generalised indeed and depends on all the factors mentioned above.
Personally I think that a huge factor is your own feeling about work. If you enjoy it, it keeps you active and engaged, you may find retirement boring and look to ways to fill the gap. If you are stressed, retiring may free you to feel better, and enjoy small, inexpensive pleasures.

It is also worth thinking about part-time or casual work. Some years ago on the over 50s board there was a thread about all the small, casual jobs that people do - often very interesting - to supplement their retirement income.
Some voluntary work carries an advantage as well. The National Trust offer free membership to people who volunteer a certain number of hours; some theatres or similar offer free shows to volunteers.