Have we got our sums right?? Appraise our plan.

stoozie1

Are both your OHs DB pensions deferred now? What is your spouse's pension from each?

Sea_Shell

stoozie1 wrote: »

Are both your OHs DB pensions deferred now? What is your spouse's pension from each?

They are both 'earmarked' to start paying at 60 (i think), but we'll see nearer the time (deferment options etc). As for the WP element , i haven't got the paperwork handy, but it's about 50% between the 2.

jennyjj

Sea_Shell wrote: »

Hi All

We've recently reduced our hours and will have a joint monthly income of approx £750 pm going forwards, which currently covers all our spending (excluding holidays) . . .

I've been keeping track of our spending for a few years, and think we'll need approx. £12-£15k p.a. in full Retirement.

So worst case scenario if we stopped work tomorrow, we'd have £226k available, which should last approx. 15 to 18 years, with our pensions available after that. i.e. defer as long as possible.

Does this all look do-able, or have we made a complete Horlicks of it all.

Your plans and forecast seem pretty sound. Only slightly less in assets than I had when I took the plunge ( and I never looked back)
However, I suspect you may have underestimated annual expenditure a little. Even with paid off mortgage and no kids, I anticipated needing >1300 per month or so. In my case it was cash pocket money that just seems to vapourise on petty cash spending that couldn't be accounted for.

Other than that. JFDI

kidmugsy

jennyjj wrote: »

cash pocket money that just seems to vapourise on petty cash spending that couldn't be accounted for.

I sympathise. Sometimes I have an inordinate fancy for a bag of crisps.

Sea_Shell

Ooh, I can have £20 in my purse and it stays there for months!!!!! We very rarely buy stuff "on the go" and always pack up snacks/drinks for journeys too.

Bills are currently £300 per month (CT, Gas/Elec, Sky, Water), and all our other spending averages out at £400-500 pm. Then its just holidays on top of that.

Triumph13

Unfortunately I just crunched your numbers before I saw your later post saying the DB pensions kicked in at 60. That gives about £80k of additional slack on top of the following.


I assumed:
You 48, SP age 68, deferred for 5 years
DH 52, SP and DB age 67, both taken then.
3% average real return on pension investments
0% real return on cash and non-pension investments.
Both stop working and stop paying into pensions today
Each need to pay 10 years of voluntary NICs to get full SP


That works out at a combined post past income of £29k pa when all pensions are in play and also works out that you could spend that same amount per year from now rather than the £15k you say you need as a couple. With 50% widows pension you'd be on £15,600 post tax from your deferred SP and your WP.


Add in the impact of the DB really being due from 60 not the 67 I assumed and you really are laughing and don't need to worry about equity release or have part time jobs unless you enjoy them. You have enough for £30k a year spending now. Congratulations!

Sea_Shell

Sorry, the DBs kick in at 65.

Sea_Shell

First 6 months of the year and the figures are in....

Total outgoings * - Average £1012 per month
Total Income ** - Average £1101 per month

Be interesting to see how that stacks up by the end of the year.

* this excludes payments to Credit Cards, as that would be double counting (all 0%) And excludes Pension Contributions, as that's just moving money around.

** This includes all Interest/Vouchers/Cashback

AlanP_2

Sea_Shell wrote: »

Ooh, I can have £20 in my purse and it stays there for months!!!!!

My wife is good at that as well

Sea_Shell

Sea_Shell wrote: »

First 6 months of the year and the figures are in....

Total outgoings * - Average £1012 per month
Total Income ** - Average £1101 per month

Be interesting to see how that stacks up by the end of the year.

* this excludes payments to Credit Cards, as that would be double counting (all 0%) And excludes Pension Contributions, as that's just moving money around.

** This includes all Interest/Vouchers/Cashback

End of the year and the final figures are in.....

Total outgoings = £1030 ave. per month
Total earnings = £1055 ave. per month Happy Days!!!

Overall, on all investments/cash/pensions we are up 7.8% on last years figures. Obviously that market drop could be just around the corner...so not counting too many chickens, but it's looking good at the moment.

Here's to 2018, lets hope it's a good one.