Retiring early

Jessiebelle

By rough it I mean how in my 50s I expect to maybe hve a few aches and pains so not being able to afford a new orthopaedic mattress becomes a major pain whereas now I'd easily suck it up. I'd also expect to be less able to carry heavy groceries home etc just generally feel the need for a car more, if going on holidays not feel up to multiple stop offs to get cheaper flights etc.
I would imagine things like beds would need to be replaced every 20 years so if retiring at 55 yous need to buy a new one at some stage. Similarly all white goods would need replacing multiple times over the course of an early retirement, carpets and car too.
I'm not trying to argue but would like to hear how people factor all that in.
To answer pollycat I'm interested in the net household income of people on this thread as they seem to be living my idea of a normal life-holidays etc I realise people can exist on very little but 30 years of that would get very wearing imo so I'm interested in finding out the amount needed for a normal yet modest retirement.

Pollycat

Jessiebelle wrote: »

To answer pollycat I'm interested in the net household income of people on this thread as they seem to be living my idea of a normal life-holidays etc I realise people can exist on very little but 30 years of that would get very wearing imo so I'm interested in finding out the amount needed for a normal yet modest retirement.

OK, I guess we're atypical as I've been retired for over 13 years, my OH for over 10.
I'm 64 at the end of this year so have another 18 months before my state pension kicks in
He's 62 soon.

We have saved and invested over our time together and I have a very good occupational pension, his (several) pensions are reasonable.

We holiday abroad at least 3 times a year.

I wouldn't be comfortable sharing our net household income on a public forum but I'd guess it's probably more than some working couples.
My pension alone is more than my friend earns in a full time job.

Re holidays - the advantage o being retired is that you can often pick up last minute deals.
We've had some very cheap deals in the past but as we've found a couple of places that we really love we now tend to book early to get the accommodation we want.

moneyistooshorttomention

I certainly take into account the fact that some possessions will probably need replacing during retirement. So I think, for instance, that my bed is probably about 5 years old - so I'll need to replace that once. Boiler in this house is 3 years old - so I "shouldnt have to" replace it (as some boilers last over 30 years) - but think I might have to do so once and so on.

I've managed to arrange that my retirement pension is fairly much around the level of salary I was earning. Unfortunately - that salary was low - so the pension is correspondingly low:(. But that should mean it's not a problem to replace a major household item - as long as I have a bit of savings by me in case.

What I do too is keep a certain amount of money I call "cash flow money" in my bank account. There's been some problems keeping that up during the gap between my retirement age and my revised State Pension Age. So I was "winging it" a bit during that gap and thinking that all my stuff was new enough that it shouldnt break down on me during that time. Thankfully it didnt.

I've got my cash flow money back again now I'm through that gap. So - I keep £1,000 permanently in the bank account and that allows for an instant purchase of a replacement bed or washing machine or the like if need be (without having to touch my savings).

You may have personal circumstances that dictate keeping more than that in the bank account. For instance, I'm not living in my home area, so I keep a further £1,000 in there for Home Visits. That way I know that, if I have to make an emergency visit back there at any point, I could get there even if the trains werent running (ie take a long-distance taxi - eek! at the thought of around £300). But I have the ability to do it at the drop of a hat if I need to.

I need some new clothes (when I've finally got my figure back) and I'm now working on putting that to one side in the bank account as well (ready to hand for the second I'm back to "me" again and I'm somewhere with a decent amount of shops).

Bear in mind the NHS is steadily getting worse all the time. They are already lying to avoid giving people 2nd cataract operations. :eek:They are now trying to ration things like hip and knee replacements:eek:. Looks like they are trying to put us all into a situation where we have to find some way somehow of covering the NHS' bill for them - if they refuse to cover it themselves:eek:. So - factor in that you've either got to figure out a way to do that (just in case) or decide whether you are going to "wing it and cross your fingers" and tell yourself "They wouldnt really treat me like that would they?!" or you reckon you personally should be okay for not needing any of those things ever.

Jessiebelle

Thanks for sharing pollycat. Its useful to know who not to compare with - we certainly won't have your level of pension!
I agree about health insurance moneyistoo but don't know if it will be feasible as even now in my healthy 30s our workplace-subsidised health insurance is 100 quid a month for family of 4.

MallyGirl

Jessiebelle wrote: »

By rough it I mean how in my 50s I expect to maybe hve a few aches and pains so not being able to afford a new orthopaedic mattress becomes a major pain whereas now I'd easily suck it up. I'd also expect to be less able to carry heavy groceries home etc just generally feel the need for a car more, if going on holidays not feel up to multiple stop offs to get cheaper flights etc.

Your view of crumbling away in your 50s is a bit depressing!
I have to say that, with my 50th birthday in the next 3 months, I have never been stronger or fitter in my life. I am certainly planning on this continuing for some years to come. I hope to retire early - but with my state pension age 60 would count as early. For now I am enjoying life and trying to build up as much pension pot / savings as possible - striking a balance between the 2 as I could get run over by a bus tomorrow, although where I live it is more likely to be a cyclist using the pavement that does me in!

moneyistooshorttomention

Though what is called self-insurance is another possibility too. That being - keeping enough savings to one side (if possible) to cover some health care bills.

I do appreciate that's a sight more difficult for working age people - just down to the low level of savings allowed (think it's still only £6,000??) before the DWP starts cutting unemployment benefit if that becomes applicable. It really used to annoy me when I was in that agegroup knowing that, if I got much in the way of savings, they were at risk if I became unemployed ever again. I'd have had a lot more savings by the time I hit retirement age if I'd dared to do anything with my money other than just spend it the second it hit my bank account:cool: - so I made sure I kept my money myself iyswim. Gawdknows I wasn't wealthy - so didn't want to lose any of my "hard-earned"...

bouicca21

I'm in my mid 60s and I'm not crumbling yet. I know I am going to need cataracts done but according to optician not for many years, so I'll have money put aside for doing that privately if NHS won't do both.

My pension is enough to live on - and I have nice holidays and various (to me) luxuries. Frugal without being miserly, if you see what I mean. I don't see any problem about replacing stuff, but most of the expensive things are relatively new so I'd rather not do so for a long time. This is actually the first time in my life that I haven't felt the need to pinch and scrape.

moneyistooshorttomention

Bouicca - cataract cost = approx £2,000 to £2,500 per eye (dependant on what part of the country one lives in - ie what the local private hospital charges).

How can you tell that I've got parents that have had cataract operations on both eyes?:cool:

Me - I'm a dedicated sunglasses wearer whenever the sun is that bright...and hope that will be adequate preventative health care.

lessonlearned

Interesting discussion about "how much you need" and also crumbling bodies.

1. Re how much money. I can only say again that in retirement you need far less money than you might think. . Your needs, wants and aspirations do change.

For example I have become more interested in "simple living" and "hygge" and am gradually downsizing and decluttering for a far more minimalist lifestyle.

I am no longer interested in acquiring "stuff" In fact I'm desperately trying to get rid of it. I don't want to be defined by my possessions and they take up too much time, too much physical space and too much head space. I would rather spend the money on travel, experiences and making good memories.

I genuinely think it is possible to live, simply and luxuriously on a surprisingly small amount. All it takes is a bit of imagination.

Jessiebelle . There is a thread in the debt diaries section called the Frugal Living challenge. That will help you will get a clearer picture and lots of ideas.

Also There's loads of websites and books dedicated to simple living, luxury on a budget, etc. In fact it's very fashionable to be Frugal right now.

As for Replacing stuff like white goods, tvs etc .....well they just seem to get cheaper and cheaper. That's the beauty of technology.

Beds........usually it's the mattress that needs replacing not the whole bed. A good bed should last a lifetime, some are passed down through the generations. Invest in a really good bed and then just replace the mattress.

The big one is stuff like boiler replacements and home maintenance. So obviously money has to be set aside. A few DIY skills help too.

2. I am 65 and have no intention of crumbling just yet!!! I look after myself.

Like Money I am on a mission to lose weight and I do invest in private Physio treatments. I take the view that if you eat a healthy diet, and keep active and exercise regularly you can help yourself to stay fit, healthy and long lived.

I am of the opinion that we need to take responsibiliy for our health and that prevention is better than cure. Obviously we can't protect ourselves against everything, illness can and does sometimes strike out of the blue.

Re medical insurance......yes it is now too expensive for me too. So I now self insure. I just keep a reasonable amount set aside.

The big advantage of being retired is the time factor. You have time to shop around, to take advantage of sales, to learn a few practical skills. You are not constrained to taking holidays at peak times so can snaffle up the bargains and deals.

I genuinely think that time is one of life's greatest luxuries. I intend to enjoy every minute I have left.

Gers

As others have said, your needs in retirement contract, well, certainly the wants do.

I hopped off the full time work wheel just before hitting my anticipated SPA which is now two years hence. In Oct 2013 I packed in my job, packed up the house and upped sticks back to Scotland. My intention at first was to retire after completing an 18 month fixed term contract in March 2015. Now I'm working very part time, back in education, and enjoying it enormously. More so when I was doing it full time.

The job may not last past May this year but that's OK because the money is additional to my planned income. I do some exam invigilating at the local secondary school, again, not much money but it buys me some occasional bottles of gin and leaves me guilt free.

Pretty much everything in this house, apart from the white goods, is new. My mother has a fridge in her house which was bought in 1966 (HMV) still going strong. My previous washing machine (Bendix) was only replaced because the door hinge dropped, the Miele I replaced it with has a 10 year warranty and I fully expect it to go on and on.

Planning for your future is a great thing to do. Getting into a 'what if' frame of mind is not so great and it may hold you back. Things happen, unexpected things happen, bad things happen, wonderful things happen, it's all out there.

"If you always do what you've always done, you will always get what you've always got"