Feel guilty if I have to take money out of my savings account.

Brilley

..join the club re feeling guilty about "spending from savings". We have saved all our working lives, and now retired we really struggle when it comes to drawing down our savings, which is daft as this is exactly what we planned to do when we retired early!

After years of seeing your savings grow year on year to suddenly finding them going the other way is a bit hard to take!

I have set up a budget that shows what we planned (and can afford) to spend each year since we retired, and I take some comfort in seeing this figure being bettered at the end of each year. (ie we are spending less than we planned...although why?...I still don't know the answer to that one!)

Eco_Miser

If you are using your savings accounts correctly, you will spend from them in some months (when annual or quarterly bill need paying), and save into them in other months. Absolutely no need to feel guilty about that.

To those retired folk who feel guilty about drawing on their savings - it's what you saved all those years for, enjoy! Having said that, I've been retired ten years, and I haven't felt an urge to splurge yet - nothing to do with feeling guilty, just haven't got expensive interests or tastes.

Alexland

Moving cash between current and savings accounts is of no significance although it's good to use whatever allowances and bonuses are available. The big question is if you are on an overall accumulation path to meet your objectives in your desired timescales?

badger09

C_Mababejive wrote: »

Think of it this way,,if YOU dont take it and spend it then inflation will steal it away and give you nothing in return. If you save enough of it, well the HMRC will steal it away so which is best? treats for you or treats for Mr Inflato and his chum Mr HMRC?

Indeed, though I don't agree with 'steal':cool:.

Or your heir(s) will enjoy those treats you've denied yourself.

Brilley wrote: »

..join the club re feeling guilty about "spending from savings". We have saved all our working lives, and now retired we really struggle when it comes to drawing down our savings, which is daft as this is exactly what we planned to do when we retired early!

After years of seeing your savings grow year on year to suddenly finding them going the other way is a bit hard to take!

I have set up a budget that shows what we planned (and can afford) to spend each year since we retired, and I take some comfort in seeing this figure being bettered at the end of each year. (ie we are spending less than we planned...although why?...I still don't know the answer to that one!)

DITTO, though I haven't actually set a 'spending budget'. Somehow in retirement we're spending much less on day to day living expenses than anticipated.

Eco_Miser wrote: »

....................

To those retired folk who feel guilty about drawing on their savings - it's what you saved all those years for, enjoy! Having said that, I've been retired ten years, and I haven't felt an urge to splurge yet - nothing to do with feeling guilty, just haven't got expensive interests or tastes.

Couldn't agree more, though after 13 years of retirement, we realise the sand is running pretty quickly so have developed some very expensive tastes in travel.

Never been interested in 'stuff' or gadgets, but experiences make for wonderful shared memories.
(I know they don't have to be expensive experiences, but see my 1st response:D)

MikeL93

I think I am using my savings account correctly. For example I had to dip into it at the start if the year to pay for my holiday. I then started saving again but over the past few weeks I have had to dip into it to cover things like my car bills such as road tax, insurance and my dad's 50th birthday on top of that. But once this month is over I should hopefully start saving a bit more again. Just as an example the amount in my savings amount over the past few months has fluctuated between £9,600 to £10,000.

If I have to take some money out of my savings account and put it into my current account for whatever reason I always try and put some if not all of it back. So considering I am currently on my own saving for a house I don't think I am doing too badly savings wise.

fifeken

It sounds like you're doing OK, but your car money could be halved and Netflix and the gym eliminated. If you're paying that for a car then maintenance should be free anyway.


You shouldn't be living with mummy at your age and still spending as you do.

capital0ne

Well never mind Inflation is taking 2% of your savings every year - nothing to feel guilty about.

REJP

It is your money. Why feel guilty about drawing it from savings? What is the point of saving if you feel guilty using the money.
One point, what interest rate are you getting? My main bank account only offers 0.020p interest. Spend it and enjoy it.

FatherAbraham

jaybeetoo wrote: »

I recently retired and I'm finding it very hard switching from being a saver/investor to taking money out of my accounts to provide an income. It doesn't come naturally to me after decades of squirrelling money away. I think it's OK to feel a little bit guilty.

You should definitely consider exchanging your capital for an annuity.

People who buy annuities are far happier than those who use drawdown to provide an income.

FatherAbraham

steampowered wrote: »

Personally I think it is best to plan savings over a year rather than month-month.

If you save more in one month but draw on savings in other months, that's fine so long as over the course of the year you are saving enough to meet your financial goals.

There's nothing wrong with spending that is planned and within your budget.


Unless you invest through a stocks & shares ISA, of course, in which case your returns will beat inflation and will be tax free !

A year is way too short.

Cars don't need to be replaced every year. Dental implants aren't needed every year. Fridge-freezers last longer than a year, so do washing machines.

However, none of them lasts forever, and one needs a multiyear budget to be ready for implosive obsolescence.