It's time to start digging up those Squirrelled Nuts!!!!

zagfles

NedS said:

Sea_Shell said:

We've estimated £5k, for 2023, so we look pretty "average".

We're over on some and under on others.

Hmm, we are around £6.8k so around 36% above average (that's for 2022/23 tax year)

Most of that is our energy being above average at around £4,000 this year, plus our broadband and 2 x mobile phones come in at £700. Our water bills are also over at £588 (no meter). We are marginally under on CT and insurance.

I have not included any of the additional help we have received with energy costs other that the EPG which for us only caps electricity as we use oil for heating, but I assume that's in keeping as £2500 is quoted for average usage and everyone would also have received £400 rebate which has not been deducted from that £2500 figure.

Yes on average use the annual current bill for those with gas & electric is actually £2100 after the EPG and £400 rebate. The EPG is going up to £3000 for average use in April, but latest predictions for the price cap is down to £2800 due to falling wholesale prices so the EPG might not even be needed.

Ganga

arnoldy said:

Sea_Shell said:

DH hit the jackpot with me 😎😎🏅

Spending money on "stuff" really doesn't float my boat.

Also one thing I really notice now is how money "burns a hole in people's pocket". It has to be spent. And quickly. Even if the savings and pensions position is looking a bit shaky for them. 

#1 way of spending the money that's burning in the pocket seems to be "eating out". Even if nowadays its £20-25 for a Steak, £7 for prawn cocktail, £20 for cheap wine and tip on top. For food that you could cook infinitely better yourself. for a tiny fraction of cost.

#2 way of getting rid of ££s is holidays, even with todays high prices.

Each to their own though, personally I would prefer a country walk with flask and picnic

We are in our 70,s and enjoy our time in the sunshine ,we cannot take it with us so spend what we can afford on 3 or 4 holidays a year.

eastcorkram

Ganga said:

arnoldy said:

Sea_Shell said:

DH hit the jackpot with me 😎😎🏅

Spending money on "stuff" really doesn't float my boat.

Also one thing I really notice now is how money "burns a hole in people's pocket". It has to be spent. And quickly. Even if the savings and pensions position is looking a bit shaky for them. 

#1 way of spending the money that's burning in the pocket seems to be "eating out". Even if nowadays its £20-25 for a Steak, £7 for prawn cocktail, £20 for cheap wine and tip on top. For food that you could cook infinitely better yourself. for a tiny fraction of cost.

#2 way of getting rid of ££s is holidays, even with todays high prices.

Each to their own though, personally I would prefer a country walk with flask and picnic

We are in our 70,s and enjoy our time in the sunshine ,we cannot take it with us so spend what we can afford on 3 or 4 holidays a year.

There's a classic example of  two ends of the scale
We're in our 60s, both still working, with a joint income of around 85k , and we don't really do holidays. We've done two weekend city breaks in the last 20 odd years. Can't imagine we'll do holidays in retirement either. 

Albermarle

Pensions_matter_2 said:

Reading all the comments, I do think a lot of people on here have worked hard and saved sensibly over many years to get to a position where they can manage well in retirement. Its not something that happens without some sacrifices along the way. A certain mindset is required for the most part, whether gained earlier or a little later on in life. 

I think it can be assumed that nearly everyone contributing regularly to this, or other Savings/Investments/Pensions threads, are of this mindset to some degree or other.
The interesting part is more about what happens once you have reached a certain level of financial comfort, as you get older.
Do you open the purse strings a bit, or can you open them even if you want to, and break the habits of a lifetime ?
Do you continue to pursue savings diligently in many aspects of your life, or do you ease off a bit?
Do you even continue to accumulate even in retirement, or do you maybe up the spending, as 'you can't take it with you' ?
Etc. Etc. 
Plus of course everyone is different, and there is no right or wrong answer. However it is interesting and useful to hear other opinions, experiences and the actual figures.

Pensions_matter_2

Ive been saying to family the last few years that once I start my DB pension (this year), I really do intend to spend all my income, at least up to SPA. Im sure they dont believe me as Ive always been so frugal. I will certainly give it a go and may surprise myself (plan is to save most of my SP when its becomes payable to help cover possible healthcare costs (there I go again, being cautious about spending …))

billywhizz1966

Pensions_matter_2 said:

Ive been saying to family the last few years that once I start my DB pension (this year), I really do intend to spend all my income, at least up to SPA. Im sure they dont believe me as Ive always been so frugal. I will certainly give it a go and may surprise myself (plan is to save most of my SP when its becomes payable to help cover possible healthcare costs (there I go again, being cautious about spending …)

Enjoy the journey of discovery - I am slowly getting used to this world of releasing the shackles 

Albermarle

billywhizz1966 said:

Pensions_matter_2 said:

Ive been saying to family the last few years that once I start my DB pension (this year), I really do intend to spend all my income, at least up to SPA. Im sure they dont believe me as Ive always been so frugal. I will certainly give it a go and may surprise myself (plan is to save most of my SP when its becomes payable to help cover possible healthcare costs (there I go again, being cautious about spending …)

Enjoy the journey of discovery - I am slowly getting used to this world of releasing the shackles 

From your previous post, it looks like you are getting the hang of it 

Foreign travel is our major guilty pleasure. As our retirement plan, we are happy to spend upwards of £30k per year on these abroad and in the UK each year  (its in the plan for the next 10 years to see the world and its golf courses as well as a pretty big bucket list of sporting events) 

zagfles

Pensions_matter_2 said:

Reading all the comments, I do think a lot of people on here have worked hard and saved sensibly over many years to get to a position where they can manage well in retirement. Its not something that happens without some sacrifices along the way. A certain mindset is required for the most part, whether gained earlier or a little later on in life. 

I wouldn't say we made any "sacrifices", we never saw it as a sacrifice to avoid spending on unnecessary fluff, and we never delayed stuff we wanted to do until retirement. I've known too many people make the mistake of working really hard looking forwards to doing stuff like travel the world when they're retired, only for them to die before or shortly after retirement or be prevented from doing what they wanted by ill health.

I think the key is not to deny yourself or make sacrifices but to get value in your spending and spend on what makes you happy, rather than what's expected by others, friends/family etc, and not live under the illusion that you'll always get better by spending more, ie the "you get what you pay for" myth.

For instance I drive a 14 year old car, I have no interest in getting a better/faster/posher car, it doesn't bother me at all that friends/relatives/colleagues have better/newer cars. My wife has friends who will never be seen in the same outfit twice, so every invite to any kind of social event, wedding, 50th party, etc, they'll all turn up in brand new outfits whereas my wife will just get something out of her wardrobe she's probably had years.

We eat out and travel a lot and always have, but have no interest in posh hotels, flying business class, expensive meals etc. We went on 6 foreign holidays in the year before lockdown and spent £10k, yes a lot, but not bad for 6 holidays in 3 continents. 

trevjl

For instance I drive a 14 year old car, I have no interest in getting a better/faster/posher car, it doesn't bother me at all that friends/relatives/colleagues have better/newer cars

I'll tump you !! mines 15 years old and I have only had it 2 years. It gets me from A to B, don't care if I leave it unlocked or parked under a tree to get covered in mess or scratched by a bush. As mentioned on another post, I have recently bought an 1/8 of a racehorse, much to the scoff of some of my friends and family. I go on to mention that I have never coughed up £20K+ for a new car and never would. Most expensive car ever was £2700 on a Ford Granada in 1987 !!

One persons value is another persons extravagance.

Albermarle

trevjl said:

For instance I drive a 14 year old car, I have no interest in getting a better/faster/posher car, it doesn't bother me at all that friends/relatives/colleagues have better/newer cars

I'll tump you !! mines 15 years old and I have only had it 2 years. It gets me from A to B, don't care if I leave it unlocked or parked under a tree to get covered in mess or scratched by a bush. As mentioned on another post, I have recently bought an 1/8 of a racehorse, much to the scoff of some of my friends and family. I go on to mention that I have never coughed up £20K+ for a new car and never would. Most expensive car ever was £2700 on a Ford Granada in 1987 !!

One persons value is another persons extravagance.

I hope the racehorse is younger than your car !