How much to live on

Farway

comeandgo said:

ninjaef said:

I work for a global company. Very fortunate to have a company pension. The actuaries and trustees write - every year - to the some 300,000 employees worldwide with a "Pension Planner" pack. The last annual review we had (Dec 2020) was that a single person (like moi) needs around £25000 a year if retiring now - today - for a "comfortable" living based on no mortgage and no debt.

I also am a "Which?" consumer subscriber. They reckon that an annual household expenditure of £17,200 would allow for small luxuries, such as a European holidays, hobbies and eating out. They consider that you’d need £40,000 a year (household) if you add on luxuries such as long-haul trips and a new car every five years .
So if like me you're on your own at 50 (as I am) then about £20,000 is sufficient for a "comfortable" mortgage free life in the UK.
Of course if there are two of you , then £40,000 a year in the UK.
If like me you're considering retirement in a warm , gentle , lovely place where the cost of living is significantly less than the UK then you can get away with about £12,000 to £15,000 a year  - each of you.

I'm looking at Greece - but then there's so many options for UK citizens - for sure, most can only be better than here !!!

The slightly horrific thing is that many people cannot afford to pay into a pension. Life is hard enough. I am extremely luckily to have been with my employer for 30+ years and they paid most of my pension contributions into a "final salary" pension. There 'aint many of them around now. It is worrying that for those relying on the state pension, so many are "sleep walking" into a tough retirement - the state can only get worse not better , more people, increased life expectancy ,  much else to fund rather than "grey voters". 

A dark future for many! 

Move to a sunnier climate where cost of living is less and that all important sun extends life expectancy    

Until last week I would have agreed with you the need to pay into pension but my mum died recently and I’m dealing with her affairs.  She never worked a day in her life but her monthly income from state pension, pension credit, greatly reduced rent and greater reduced council tax and other bad weather payments, she had more money coming in than I have after working and work pension.  She had benefits of over £1,050 a month. 

Not quite the income my mother had but similar situation, plus one benefit begets another, she also qualified for free care and although never used, free NHS dentistry [old school fear of dentists, wouldn't go near one]

mggftz30

comeandgo said:

Until last week I would have agreed with you the need to pay into pension but my mum died recently and I’m dealing with her affairs.  She never worked a day in her life but her monthly income from state pension, pension credit, greatly reduced rent and greater reduced council tax and other bad weather payments, she had more money coming in than I have after working and work pension.  She had benefits of over £1,050 a month. 

But out of the £1,050 per month she would still had some rent to pay?
Sorry for your loss @comeandgo

[Deleted User]

Althought the recent posts are interesting, we do need to keep to topic of this thread. Otherwise we may stray into the territory of the benefits board. Just my personal view.

otb666

Me and hubby 57 and 55 taken voluntary redundancy this year, both have full state pensions at 67 i have a DB pension 5kpa and husband has a draw down 230k to fill the gap- I like this thread as it gives me hope it will be enough-we have bills at 600pm food and stuff 600pm Feel a bit nervous as obviously have to rely on savings to last which we only have about 18k of, but it will certainly be a new adventure and change for sure

[Deleted User]

Otb666. Have you now paid off your mortgage? Have you also got the redundancy money as a back up? Just being curious. I think you will be ok. You may need to use just over half of your drawdown pot to fund the next 9 years say at £15000 a year, plus your £5000 a year DB Pension giving you £20000 a year. You may to drawdown more  more if still paying off your mortgage. Also your pot will hopefully grow a little too over the next 9 years. Even if the pot is exhausted by the time you reach state pension age, you will still have about £23000 a year income at today’s prices. (9300+9300+5000). Plus a mortgage free house. How do my estimates add up? Best wishes.

RetSol

[Deleted User] said:

Otb666. Have you now paid off your mortgage? Have you also got the redundancy money as a back up? Just being curious. I think you will be ok. You may need to use just over half of your drawdown pot to fund the next 9 years say at £15000 a year, plus your £5000 a year DB Pension giving you £20000 a year. You may to drawdown more  more if still paying off your mortgage. Also your pot will hopefully grow a little too over the next 9 years. Even if the pot is exhausted by the time you reach state pension age, you will still have about £23000 a year income at today’s prices. (9300+9300+5000). Plus a mortgage free house. How do my estimates add up? Best wishes.

This was basically my analysis and I had the same questions.  @Otb666's bills seem a little high at £600p.m. but make sense if paying a mortgage. 
If @Otb666 has a mortgage, I am curious to know how long they have had it, when it has to be paid off etc.  I have an interest-only mortgage.  It is not a problem at the moment.  I am mortgage-neutral (and more) and the interest rate is very low but the loan is repayable in September 2024 and I will need to address the issue idc.
I have 11 years to go before SPA.  At that 

point, I will be laughing, I feel, but it is a bit like waiting for the cavalry to arrive...

marycanary

ninjaef said:

I'm looking at Greece - but then there's so many options for UK citizens - for sure, most can only be better than here !!!

The slightly horrific thing is that many people cannot afford to pay into a pension. Life is hard enough. I am extremely luckily to have been with my employer for 30+ years and they paid most of my pension contributions into a "final salary" pension. There 'aint many of them around now. It is worrying that for those relying on the state pension, so many are "sleep walking" into a tough retirement - the state can only get worse not better , more people, increased life expectancy ,  much else to fund rather than "grey voters". 

A dark future for many! 

Move to a sunnier climate where cost of living is less and that all important sun extends life expectancy    

I am also single (divorced) a bit older than you at age 58. I don't want to make the thread political but I don't agree that "for sure, most can only be better than here !!!".  I think there are lots of places worse than the UK. This county has many, many problems and I admit it rains a lot,  but we have come through hard times before. I remember the 1970s 3 day week and power cuts and the 1980s Thatcher years.   "..the state can only get worse not better..", you can't know this for sure, no one can predict the future. 
I hope you enjoy a long and happy life in Greece, I'm staying in Blighty.   I have to be optimistic for the sake of my adult children and little grandchildren. If life is s**t at least I'll be spending my pension where It was earned and will be able to help the next generation of Canarys. 
Mary

RetSol

marycanary said:

ninjaef said:

I'm looking at Greece - but then there's so many options for UK citizens - for sure, most can only be better than here !!!

The slightly horrific thing is that many people cannot afford to pay into a pension. Life is hard enough. I am extremely luckily to have been with my employer for 30+ years and they paid most of my pension contributions into a "final salary" pension. There 'aint many of them around now. It is worrying that for those relying on the state pension, so many are "sleep walking" into a tough retirement - the state can only get worse not better , more people, increased life expectancy ,  much else to fund rather than "grey voters". 

A dark future for many! 

Move to a sunnier climate where cost of living is less and that all important sun extends life expectancy    

I am also single (divorced) a bit older than you at age 58. I don't want to make the thread political but I don't agree that "for sure, most can only be better than here !!!".  I think there are lots of places worse than the UK. This county has many, many problems and I admit it rains a lot,  but we have come through hard times before. I remember the 1970s 3 day week and power cuts and the 1980s Thatcher years.   "..the state can only get worse not better..", you can't know this for sure, no one can predict the future. 
I hope you enjoy a long and happy life in Greece, I'm staying in Blighty.   I have to be optimistic for the sake of my adult children and little grandchildren. If life is s**t at least I'll be spending my pension where It was earned and will be able to help the next generation of Canarys. 
Mary

My response to @ninjaef's post is to say that, if you are not at peace with yourself here and now, you will not be at peace with yourself in Greece, or anywhere else.
I have lived, travelled and worked overseas on and off for 35+ years.  I have never been happier than when I am "at home".
I feel that one of the great gifts of the pandemic is to spend more time in my home and to understand what I derive from it. 

KxMx

ninjaef said:

I work for a global company. Very fortunate to have a company pension. The actuaries and trustees write - every year - to the some 300,000 employees worldwide with a "Pension Planner" pack. The last annual review we had (Dec 2020) was that a single person (like moi) needs around £25000 a year if retiring now - today - for a "comfortable" living based on no mortgage and no debt.

I also am a "Which?" consumer subscriber. They reckon that an annual household expenditure of £17,200 would allow for small luxuries, such as a European holidays, hobbies and eating out. They consider that you’d need £40,000 a year (household) if you add on luxuries such as long-haul trips and a new car every five years .
So if like me you're on your own at 50 (as I am) then about £20,000 is sufficient for a "comfortable" mortgage free life in the UK.
Of course if there are two of you , then £40,000 a year in the UK.
If like me you're considering retirement in a warm , gentle , lovely place where the cost of living is significantly less than the UK then you can get away with about £12,000 to £15,000 a year  - each of you.

I'm looking at Greece - but then there's so many options for UK citizens - for sure, most can only be better than here !!!

The slightly horrific thing is that many people cannot afford to pay into a pension. Life is hard enough. I am extremely luckily to have been with my employer for 30+ years and they paid most of my pension contributions into a "final salary" pension. There 'aint many of them around now. It is worrying that for those relying on the state pension, so many are "sleep walking" into a tough retirement - the state can only get worse not better , more people, increased life expectancy ,  much else to fund rather than "grey voters". 

A dark future for many! 

Move to a sunnier climate where cost of living is less and that all important sun extends life expectancy    

I don't think you need to double it for a couple, a shared household is cheaper to run than two separate ones. 

[Deleted User]

I believe for a couple £25000 a year is enough for a very reasonable retirement for a couple. There is an article about these at the Which Magazine site. £40000 is seen as needed for a luxurious  retirement.

As for living somewhere like Greece I think you also need to take into consideration health care, transport links etc.... before making a true comparison.

https://www.which.co.uk/money/pensions-and-retirement/starting-to-plan-your-retirement/how-much-will-you-need-to-retire-atu0z9k0lw3p