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How much do you expect you will require to live on each month when you are retired? ie no mortgage, no commute to work BUT maybe higher heating, hobby costs. I'm getting to the stage where I'm realising that I don't need to be super rich to retire and will only really require living costs but I don't know how much I should aim for each month. Bills plus food plus bit for fun??? How are the rest of you viewing this?
:rotfl:
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Anything else extra comes out of savings.
As I have spreadsheets for income, outgoings and savings, I could see what my expenses were, strip out everything to do with the mortgage, work and savings (not the car related ones) and see what I (we) needed each month.
I'm consistently saving each month which will cover home repairs, upgrades and retiring a year or two early.
I've also got a few very small old pensions, my current DB pension (which will never match SP) and I'm paying into a SIPP.
(I'm mid 40s but it's always good to see what others are planning)
To have any sort of life, plus have money for repairs and replacements, dentist, opticians, holidays, clothes, days out - double it
Right now we could retire on my private pension, husband has no pension other than the state one to look forward to, so Im holding off a while longer. However we both now only work 3 days a week and have done the past 5 years ( 57 and 59 ), well actually Ive only worked PT for the past 20 years
Neither of us are saving to give the kids a leg up or thinking we need to be saving for them, we help them as much as we can as we go along and they know there isn't going to be a big inheritance - maybe a house if its not sold to pay for old age care
You have to work out what expenses, other then then general running costs of a home and feeding yourself, are important to you. And be totally honest, if you are the type of person who likes spa days and beauty appointments - budget them in because if you dont make provision for everything thats important to you, no matter how frivolous you feel they may sound, if you start having to go without you will start dipping into the budget from somewhere else
Between our state pensions and my private pension we will be ok and we aren't looking to a later life of worrying about heating or eating but we are also not looking to a retirement full of cruises and exotic travel