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

Sea_Shell

We've reached a milestone today....We have reached the "Holy-Grail" of the £500,000 mark!! :j:j


This the total of all our Pension/Savings/Investment pots....but excluding the house.

Now the trick is to try and keep it there!!! :eek:

By my "back of an envelope" maths....if we only need £15,000 to live on...we only need overall net average growth of 3%, and we'd never touch the capital.

I'm still working by the way.....not quite thrown the towel in yet!
:beer::beer:

Silvertabby

Are you sure that £15K will be enough to enjoy your retirement? You may take up new hobbies - and want to be able to say 'it's a nice day - lets go out for lunch' whenever the mood takes you.

We have less savings than you, but a lot more pension income. I like knowing that I can pop into the garden centre for 'just a look' - and come out with £50 worth of plants without worrying about it. We don't go on expensive holidays, but we do enjoy the luxury of a new car every 3 years. Those sort of things.

Sea_Shell

Silvertabby wrote: »

Are you sure that £15K will be enough to enjoy your retirement? You may take up new hobbies - and want to be able to say 'it's a nice day - lets go out for lunch' whenever the mood takes you.

We have less savings than you, but a lot more pension income. I like knowing that I can pop into the garden centre for 'just a look' - and come out with £50 worth of plants without worrying about it. We don't go on expensive holidays, but we do enjoy the luxury of a new car every 3 years. Those sort of things.

We've been monitoring our current spending and we spend approx. £12.5 - £13k a year, including a few holidays (albeit nothing too flash), so £15k is actually giving us a bit more spends than now.

We're frequently disappointed with eating out....so would rather take a picnic somewhere nice!!

Cars, again, not bothered about new ones every few years, but yes, we would need to dip into capital to change. Probably spend about £6 - £10k to change.

We've never been shoppers or spenders really, and so i'm not sure that our underlying personalities will change once we retire, proper. However, if we do feel more flush than we are expecting...then we might splash out a bit more. But only to match the cut of our cloth.

Also, i don't know if you read further back on the thread...but we will also have DH's DB pension, and our state pensions later on too...so the £15k (or whatever) won't need to come just from the main pot.

We could blow the whole pot in 15 years, and then just rely on those....but i can't see us ever spending £30k plus a year (and that would be without any growth at all) ;)

atush

we know too many people who haven't made it past 70.

Beware of using other peoples LEs as they may not be related to yours at all. Unless you share bad genes witht hem, and all their bad habits sucha ssmoking, drinking, being obese etc.

What are you doing about SP? Are you both currently paying Noics or just you? With DB pensions, your OH may not be getting the new SP but a lesser amount.

Or have you factored in the cost of buying years once you stop working?

Silvertabby

Sea_Shell wrote: »

We've been monitoring our current spending and we spend approx. £12.5 - £13k a year, including a few holidays (albeit nothing too flash), so £15k is actually giving us a bit more spends than now.

We're frequently disappointed with eating out....so would rather take a picnic somewhere nice!!

Cars, again, not bothered about new ones every few years, but yes, we would need to dip into capital to change. Probably spend about £6 - £10k to change.

We've never been shoppers or spenders really, and so i'm not sure that our underlying personalities will change once we retire, proper. However, if we do feel more flush than we are expecting...then we might splash out a bit more. But only to match the cut of our cloth.

Also, i don't know if you read further back on the thread...but we will also have DH's DB pension, and our state pensions later on too...so the £15k (or whatever) won't need to come just from the main pot.

We could blow the whole pot in 15 years, and then just rely on those....but i can't see us ever spending £30k plus a year (and that would be without any growth at all) ;)

Horses for courses. Actually, it's suprising how much you save by not going to work! - commuting (we now only need one car, not two), work clothes, office collections and outings. They all added up (especially the second car) Mr S has been retired for a while now, since being made a redundancy offer he would have been daft to refuse, and I worked part time for a while before retiring 2 years ago. We love it - we can do what we want to do when we want to do it, and are throroughly enjoying ourselves! I hope things work out as well for you - my very best wishes to you both.

kidmugsy

Silvertabby wrote: »

but we do enjoy the luxury of a new car every 3 years.

Say it ain't so, ST.

Sea_Shell

State pension is a work in progress and will be reviewed nearer the time re additional contributions.

Silvertabby

but we do enjoy the luxury of a new car every 3 years.
Originally posted by Silvertabby

kidmugsy wrote: »

Say it ain't so, ST.

I'm afraid so! We don't waste £3K+ a year on expensive holidays, but we do enjoy our new cars! That said, this year is an exception. The car we like has a new model out, but the engine we want isn't available yet - so we will wait for a year or so.

P.S. If it wasn't for us, there wouldn't be as many nice nearly new second hand cars for you to buy !

cobson

Sea_Shell wrote: »

We've been monitoring our current spending and we spend approx. £12.5 - £13k a year, including a few holidays (albeit nothing too flash), so £15k is actually giving us a bit more spends than now.

As you are at the frugal end of the spectrum, have you looked at mrmoneymustache.com ? if you look on the forum on that site there is a UK Tax Discussion sub-board where the UK posters hang out, with links to journals etc. A lot of people on MSE wouldn't think a couple could live on your level of spending, but at MMM it is the accepted norm...

Sea_Shell

Funny that I don't feel particularly frugal or that I go without. We just don't spend on unnecessary stuff.

Shop in Aldi / Primark. PAYG mobile. Always shop around and switch bills etc.
Have 4 holidays a year (1 abroad)
Run 2 cars.
I'm not into shoes or handbags.
I'm very low maintenance!!!
Hardly ever buy lunches or coffee out.
Would rather dine in with a bottle of wine, than eat out.