Getting from 55 to 67 with a SIPP

ffacoffipawb

We are managing comfortably on £30k gross, £28k net.

This is £24k (2 retired adults, 3 children, mortgage free) from a mix of a 3% SIPP drawdown, early DB pension and ISA investment trust dividends.

Plus I am spending some PCLS at £6k a year on top to give a total of £30k. This is currently invested with NS&I.

The PCLS should last many years - though its drawdown will reduce when another DB of about £5k (which mostly becomes Post 1988 GMP when i get to 65) comes on tap in 4 years at age 60. I wont be taking PCLS from that one as i dont need more cash and the commutation factor at 60 is about 20 so guaranteed income is better.

So I think i was fine to retire, despite the odd wobble.

frugalandsave

barnstar2077 said:

water	13
gas	30
elect	20
ctax	84
home ins	12
food	150
broadband	37.5
mobile	24.5
tv licence	12.43
netflix	5.99
mortgage	54

Total £443.32
Full disclosure, the above is from last years numbers, so I have upped a couple because I think they have gone up a bit since then.

Thats really cheap, well done. Just broadband you could probs save some money. We pay £23 for super fibre, mobile contract for us is about £18 with unlimited data, mins and texts. Also we dont have the TV license, as we dont watch live tv but this is depending on peoples preference. 

Ceme3000

Barnstar2077 I assume that's for a single person? I'm single and don't spend massively more than you on the basics although I have no mortgage but do have a car which balances out a bit. Obviously your figures don't include extras such as days out, clothes, hobbies,  entertainment, new appliances etc.

But it just goes to show how relatively easily a couple should be able to live on the state pension, not so easy for a single person though.

ffacoffipawb

barnstar2077 said:

water	13
gas	30
elect	20
ctax	84
home ins	12
food	150
broadband	37.5
mobile	24.5
tv licence	12.43
netflix	5.99
mortgage	54

Total £443.32
Full disclosure, the above is from last years numbers, so I have upped a couple because I think they have gone up a bit since then.

We spend approx £2,300 per month as follows:
Gas and Electric £170
Water £55 (metered)
Sky incl Broadband £115 
Mobiles £80 includes Apple Music

Motoring Fuel and Repairs / Spares £150
Netflix / Amazon Prime Video / Britbox / Tv Licence £45
Insurances Home and Car £100
Council Tax £220
Eating out £65
Food / Shopping £600
Regular Savers £400 (holiday fund, contingencies)
Kids £300 (pocket money, school stuff)
Total £2300

If we need any more I draw down more from my PCLS from NS&I.

barnstar2077

frugalandsave said:

barnstar2077 said:

water	13
gas	30
elect	20
ctax	84
home ins	12
food	150
broadband	37.5
mobile	24.5
tv licence	12.43
netflix	5.99
mortgage	54

Total £443.32
Full disclosure, the above is from last years numbers, so I have upped a couple because I think they have gone up a bit since then.

Thats really cheap, well done. Just broadband you could probs save some money. We pay £23 for super fibre, mobile contract for us is about £18 with unlimited data, mins and texts. Also we dont have the TV license, as we dont watch live tv but this is depending on peoples preference. 

The phone contract is for two mobiles.  I am limited on who I can go with due to the signal, but I did try to switch just as this epidemic started, but had to cancel it as there was a technical issue they were unable to resolve, and I was getting no where trying to sort it out over the phone.  I am going to try again later once all this madness is over.

I will also try another broadband provider later too.  I have cable at the moment and play online computer games, changing would mean having to switch technologies (Have a phone line installed etc) which has put me off in the past.
 
I don't watch live TV either, but I do use iplayer and look at their news and weather sites every day and would like to support the BBC.

barnstar2077

Ceme3000 said:

Barnstar2077 I assume that's for a single person? I'm single and don't spend massively more than you on the basics although I have no mortgage but do have a car which balances out a bit. Obviously your figures don't include extras such as days out, clothes, hobbies,  entertainment, new appliances etc.

But it just goes to show how relatively easily a couple should be able to live on the state pension, not so easy for a single person though.

Yes, unfortunately I am single at the moment too.
I am always amazed when couples, ones with no children, tell me that they can't invest the way I do, when in theory one of their salaries alone should more than cover all of their bills, even with a few days out and meals in restaurants thrown in.  I guess many people just don't want to think about money, full stop.

Ceme3000

barnstar2077 said:
 I guess many people just don't want to think about money, full stop.

I've always thought that the basics of personal finance, household budgeting, loans, mortgages, investing, retirement planning etc should be part of the national curriculum and taught in schools.

You only have to lurk on the debt free wannabe forums here to see that some folk get into terrible pickles through poor life choices and then have to work damn hard to dig themselves out. Obviously not everyone, some fall on hard times through no fault of their own, but others clearly live for the moment,  don't save, don't plan and get into debt to live beyond their means. Perhaps a head start in financial awareness at school may have prevented some of this.

Thrugelmir

Ceme3000 said:

barnstar2077 said:
 I guess many people just don't want to think about money, full stop.

I've always thought that the basics of personal finance, household budgeting, loans, mortgages, investing, retirement planning etc should be part of the national curriculum and taught in schools.

You only have to lurk on the debt free wannabe forums here to see that some folk get into terrible pickles through poor life choices and then have to work damn hard to dig themselves out. Obviously not everyone, some fall on hard times through no fault of their own, but others clearly live for the moment,  don't save, don't plan and get into debt to live beyond their means. Perhaps a head start in financial awareness at school may have prevented some of this.

Parents used to teach their chidren the basics............ 

RetSol

FWIW, I have just "retired" at age 55 on an income of c. £23,500 p. a.  The vast bulk of that annual income comes from a civil service pension so it is secure and index-linked.  I will need to earn some extra cash between now and my state pension age of 67.  I also have a mortgage.  I am going to look to earn c. £10,000 net p.a. between now and SPA.  I don't know yet how I'm going to do that but, thanks to lockdown savings, I don't need to panic about finding out. 

JoeCrystal

barnstar2077 said:

Bills

That is very interesting. Thank you for breaking it down. My breakdown is quite similar to yours in most categories speaking as a single living in a one-bedroom flat.. It is surprising how low you can get.
gas: 14
mobile: 15
home ins: 21
water: 26
elect: 29
tv licence / streaming sites:  32
service charge: 43
broadband: 47
Council tax: 76
food: 100
mortgage: 187
holiday fund: 200
pension: 336 net
loan: 404