Retired - do you watch every penny

mikki2d

I'm just about to take Very Early Retirement some 12 years before official state pension age so I'm prowling around this site looking for ways to save money  My husband is 14 years older than me and hada  recent diagnosis of leukaemia.  He is very well and doesn't reuire treatment just now but the offer to go came along at work and suddenly some things mattered more than money.  He retired 8 years ago and we paid off our mortgage and both our cars are bought outright so we don't have many outgoings.  We have a fairly decent amount of money in savings and my pension pot will add to that as well as replacing some household flooring and furnishings.  I would like to think that I won't need to work again but who knows what the future holds.

maisie_cat

My husband took early retirement at 55 , his state retirement age will be 67, I have a micro business that is currently on hold so I suppose I'm technically also retired.
Our income isn't high, technically poverty according to Rowntree, although it feels anything but, we have plenty of money for our needs. We have enough food, no mortgage or debts, and savings to cover large outlays, our bills are quite low we don't have central heating but we do have jumpers. Our largest spend is food follows by council tax, then car costs, I know that we spend £1.50 a day on electricity and £10-15 a day on food, lower at the moment because we are not eating out.
We haven't had a foreign holiday for 12 years, we have camped in the UK instead. We don't buy clothes often although we do like to go out for pub lunches.
It really depends on what makes you happy, we are happy pottering around the place and get satisfaction from the small things. Yesterday I did some woodworking, harvested cucumbers and made pickles, made bread  & did some cooking.
We did make a budget prior to making the decision for hubby to retire and if anything I overstated the expenses side, but I do keep a watchful eye because large purchases need to be funded from the savings. There are more important things than money, but I feel fortunate to be able to say that because I have been reasonably careful for many years

cattie

Being left on my own to bring up my son with no maintenance being paid by my ex meant we knew some hard times financially until he was old enough for me to get a full time job. Having to make every penny go as far as possible instilled in me a reluctance to spend more than necessary.

All these years later I have no money worries, more than enough put by to enable me to have a very good standard of living, but it is still so hard for me to splash out & I will always shop around, although there is no real need for it.  I completely cleared my mortgage in just 12yrs, which leaves me with relatively low outgoings

I've a friend roughly the same age who has lived hand to mouth for as long as I've known her & is very wasteful with money, it goes through her fingers like water & she is always getting behind with rent on her council flat & behind with council tax too. I thank my lucky stars that my life is so different from hers. I was brought up with the ethos that bills were paid first & foremost & what was left was the amount you had to spend on other essentials & maybe a bit put by for treats or luxuries.

snowbird20

my husband is 76 now and ready to retire.  So, effective 1/9/20 he will be underfoot all the time.    Our income will decrease dramatically so we will have to begin watching our pennies more carefully.  He already gets his Social Security, I will start receiving mine next spring.  He has some additional income from the family business and we have some retirement savings.  He receives an income payment from a trust fund, too.  We have two mortgages, tho, and sometimes unexpected expenses happen in one house or another.  So, yes...we will have to be a bit more vigilant in tracking and budgeting after September.

Silvertabby

cattie said:

I've a friend roughly the same age who has lived hand to mouth for as long as I've known her & is very wasteful with money, it goes through her fingers like water & she is always getting behind with rent on her council flat & behind with council tax too. I thank my lucky stars that my life is so different from hers. I was brought up with the ethos that bills were paid first & foremost & what was left was the amount you had to spend on other essentials & maybe a bit put by for treats or luxuries.

I don't know what it is - but it's more than just the way you were brought up.  I have a similar attitude to you, and we are now more than comfortable in our retirement.

  My sister, however, believed that money was for spending, and that bills should be ignored for as long as possible.  When she had her own business, she would grab a handful of notes from the till for 'spends', claiming that 'what the taxman doesn't know about doesn't count'.

  Post her inevitable bankruptcy, she ended up living in a council flat, on benefits - and even then her rent had to be paid direct to the landlord, as there was no way she would have paid it herself.   

[Deleted User]

I certainly do not watch every penny. I can't take it with me! I would not have considered retirement should that have been necessary.

Often amazed by some on pensions board who say things like, 'have DB pension of £30,000 savings of £300,000 and house worth £500000 can I afford to retire!! 'What is the matter with these people! Well i suppose they can afford decent coffins!

PennyForThem_2

The matter with these people is 'not wanting to worry about every penny'!  Large house with outgoings to match.  My council tax is 2.5K at 25% reduction.  Lifestyle that they really don't want to reduce that much while young retirees, and then outgoings if they do not downsize or even if they do which will cost more.
Each to their own.  But I do understand those that, maybe, seem to have really large retirement incomes and still say not enough.  I really admire those that don't but lead a life they are happy with.  But each person's /couple's situation is uniquely different and we need to respect that....... (not sayingpeople on this forum don't).

MalMonroe

Baron_Dale said:

I certainly do not watch every penny. I can't take it with me! I would not have considered retirement should that have been necessary.

Often amazed by some on pensions board who say things like, 'have DB pension of £30,000 savings of £300,000 and house worth £500000 can I afford to retire!! 'What is the matter with these people! Well i suppose they can afford decent coffins!

Thank goodness, someone who thinks like me! I know someone who has retired and has 'portfolios' all over the place. And hates spending money. When she goes, her two nephews are going to be very well off indeed. I try to say spend it yourself, on yourself but no. Save, save, save. I guess old habits die hard. But I saved for my old age and now it's here. Woo hoo! There won't be anything for me to leave and I'm not hard up now either. I guess I'm fortunate, I don't penny pinch and won't. If I need more money I'll just take on some work. I'm still registered as self employed and the work I do isn't arduous and I don't hate it. Best of both worlds really, I feel as if I'm living the dream - even if others don't agree. What on earth are people amassing fortunes for? Their heirs are going to be rich. 

dunroving

I saved up plenty for retirement by living very frugally, and now I have some money to spend, I can't get out of the habit! I realised after I retired that, with the mortgage paid off, my moderate defined benefit pension covers the same expenses as when I was working (when I got by with about £10k-£12k per year, excluding mortgage).

Friends and family started off retirement by buying a brand new car. Not high-end plush, but not cheap either (bought SUVs, with high-end spec, so I'm guessing towards the £30k mark). I just don't see the point, especially as I only drive 2k-3k miles per year!
Another friend says, spend it while you've got it, you can't take it with you, etc. But whereas he buys a new phone every year, and all sorts of other expensive electronic gadgets he never uses, I'm just not interested in that stuff. My 6-year-old Samsung does what I want, my 10-year-old flat screen TV does what I want, my car gets me to where I want, and is reliable at 9 years old and 33k miles. Why buy toys just for the sake of it?

My "luxuries" are wine, whiskey and coffee. And if I want to do something in the garden that requires a new tool, or buying plants, I buy from a reputable nursery (although I also buy from the local supermarket!)

When I'm gone, I know there will be a fair bit of money left, but I don't see that as a reason to spend it. 

[Later edit: this frugal lifestyle was recently labelled by a family member as "miserly", which I felt was a pretty unkind remark.]

TomokoAdhami

Sounds great you didn't waste money in life. Yes, now, you can live a life that you want. I feel sorry for older who wasted their money in youth and then kids send them into old homes.