What are you aiming for as an annual pension for you?

atush

michaels wrote: »

A few people say 'We will be on £x until SP age then 8.5k / 17k more once we have our state pensions.'

This makes no sense to me - surely it is better to use TFLS, flexi drawdown etc to even out the pension over the whole of retirement rather than have a large jump up just when you will probably start wanting to do a bit less?

I agree, and we will draw heavier in the beginning.

brewerdave

We have been living comfortably on ~ £24k nett pa since my wife retired from work some three years ago. We have now both taken our deferred SPs with the result that we will have ~ £40k nett - realistically much more than we will need - so I can now pay someone to decorate and do house maintenance - a couple of holidays a year - a nearly new car -and still plenty left over to pass on to the next generation:rotfl:

Triumph13

michaels wrote: »

A few people say 'We will be on £x until SP age then 8.5k / 17k more once we have our state pensions.'

This makes no sense to me - surely it is better to use TFLS, flexi drawdown etc to even out the pension over the whole of retirement rather than have a large jump up just when you will probably start wanting to do a bit less?

I think a lot of people, including me, struggle with the idea of actually spending their retirement savings as opposed to drawing a sustainable income from them.
I'm managing to get past that to an extent and am planning to burn through quite a lot of capital in the bridging years, but my plan too has us having more as a couple at SPA than as a family of four now for precisely this reason.

hugheskevi

I think a lot of people, including me, struggle with the idea of actually spending their retirement savings as opposed to drawing a sustainable income from them.

One of the unexpected benefits from spending a lot of time traveling in my 20s is that I became extremely relaxed about spending whilst seeing savings dwindle. Although I had a job when I left for 2 of the 3 big trips I took, returning from long periods of unpaid leave is never the most secure position. As such, I am happy to spend, although would always do so cautiously so as to ensure minimal risk of running out of funds.

On 3 separate occasions I traveled for around a year. My general rule was to start thinking about returning when savings dipped below £10,000 and to start thinking about leaving when savings increased above £20,000

Travel also shaped my priorities, as I decided I would far prefer to have time to do things with reasonable funding instead of massive funding but no time. Hence plan to retire by age 45. And as a final benefit, travel broke any tenancy to keep-up / follow peers. Whilst some of my peers pursued job progress and suchlike just because it is the done thing, I decided exactly the trade-off between stress and salary I wanted and didn't pursue progress beyond that - which is effectively a form of partial early retirement in some respects.

barnstar2077

hugheskevi wrote: »

One of the unexpected benefits from spending a lot of time traveling in my 20s is that I became extremely relaxed about spending whilst seeing savings dwindle. Although I had a job when I left for 2 of the 3 big trips I took, returning from long periods of unpaid leave is never the most secure position. As such, I am happy to spend, although would always do so cautiously so as to ensure minimal risk of running out of funds.

On 3 separate occasions I traveled for around a year. My general rule was to start thinking about returning when savings dipped below £10,000 and to start thinking about leaving when savings increased above £20,000

Travel also shaped my priorities, as I decided I would far prefer to have time to do things with reasonable funding instead of massive funding but no time. Hence plan to retire by age 45. And as a final benefit, travel broke any tenancy to keep-up / follow peers. Whilst some of my peers pursued job progress and suchlike just because it is the done thing, I decided exactly the trade-off between stress and salary I wanted and didn't pursue progress beyond that - which is effectively a form of partial early retirement in some respects.

I respect you for making the decision to earn just enough for your travels in your youth, but I am amazed how with that philosophy you are able to retire at 45. Impressive.

indiasign

Currently looking at between £54-59K pa between me and the other half, depending on when we take our respective pensions, but unlikely to be able to retire any earlier than 65 (55 atm)

I have a DB pension which I could take now, at a reduced rate of £9800, or £11200 at 60, wife will get £5800 at 60 (53 atm)

Then DC CSP for both of us estimated at £10500 at 65 or £13000 at 67, plus GSP for both of us at £8500 from 67

So, plenty for us to live on, just have to hope we get to see it! 😥

dwsjarcmcd

I stopped work 6 months ago and my wife has another 3 months to go (me 58, my wife 52). We budget an “net income” of £72k p.a based on using savings until I take my DB scheme at 60 and she will take hers at 55. The TFLS will replace the savings used and have property income as well as a SIPP (me) and we both have small DC schemes. We will both receive max State Pensions at 67.

Our IFA has analysed our plans and agrees that this is very feasible and we can index this amount in line with inflation. We planned for this for a while and used our salaries when we had them to fund home improvements and go some big holidays.

The red line for me was never needing to downsize our house unless we wanted to and maintain the lifestyle we had in retirement, which allowed me to leave (and stop a 4 hour daily commute!)

So far, so good, we don’t spend anything like £6k p.m ATM but expect a few months of that expenditure as we pay for some trips during the winter.

justme111

indiasign wrote: »

So, plenty for us to live on, just have to hope we get to see it! 😥

So would not reasonable course of action be to identify a point a year or 2 or 5 or whatever number if years earlier when it is enough rather than plenty

Crabby

£30k pa, when Mrs C reaches SPA, till then £24k pa made up of db pensions and drawing down Sipps, plus any extra needed from investments.
This kicks in when Mrs C quits her job when she is 58 at the end of the year and will give us £5k plus a year more than we are spending now.

MallyGirl

justme111 wrote: »

So would not reasonable course of action be to identify a point a year or 2 or 5 or whatever number if years earlier when it is enough rather than plenty

That is a matter of personal choice - my husband is more of the 'plenty' side of the scales and would rather work a little longer for the freedom of choice that would bring. I dislike my job atm so I am more in favour of 'enough'. We are not at either point yet so we will continue to monitor and plan.