Whats your magic number?

edited 30 November -1 at 1:00AM in Pensions, Annuities & Retirement Planning
52 replies 6.7K views
12346»

Replies

  • LintonLinton Forumite
    14.2K Posts
    Part of the Furniture 10,000 Posts Name Dropper Hung up my suit!
    ✭✭✭✭✭
    A couple of thoughts. Day to day expenditure definitely does decrease over time. I can say for sure that when I am in my 90s we won't be running two cars, nor will we be spending as much on eating out and general entertainment. At some point there will only be one of us instead of two, which will reduce some of the costs, but it will also reduce our income.

    ......


    Expenditure may well decrease in old age though old age could be 75, 80 or even 90+. However I feel it is dangerous that you should plan for it to decrease as you could find your choices have been limited when its too late to do anything about it.
  • OldMusicGuyOldMusicGuy Forumite
    1.7K Posts
    1,000 Posts Fourth Anniversary Name Dropper
    ✭✭✭
    Linton wrote: »
    Expenditure may well decrease in old age though old age could be 75, 80 or even 90+. However I feel it is dangerous that you should plan for it to decrease as you could find your choices have been limited when its too late to do anything about it.
    I have done sensitivity analysis and we can maintain a consistent level of real spending throughout our retirement. But I don't believe that to be realistic so my model allows for downward adjustments to expenditure in later life (I can vary the year at which it kicks in and the level of decrease).
This discussion has been closed.
Latest News and Guides

Best student bank accounts 2021/22

Incl. free 0% overdrafts and railcards

MSE Guide

Next 50% off sale rumour

Here's what we've found...

MSE Deals