How much to live on

Kim1965

Many people have contribuzed to this thread over the last 1 and half years. Those already retired, im interested if their retirement finances have been robust in the current climate? Likewise those approaching retirement, have your plans altered?
 Im nearly 58, working still. Plan to go at 60 (or do a bit of very part time work). I could go part time now but feel the need to accumulate more. 
 Anybody feeling the pinch? Or working on? 

blue.peter

Kim1965 said:

Those already retired, im interested if their retirement finances have been robust in the current climate?

I took early retirement (following redundancy) in 2015. So far, so good.

When I was made redundant, I took a long, hard look at my expected retirement income before making the decision not to look for another job. I decided that I would have more than the minimum that I needed. Not only did I get my sums right, but they were based on conservative assumptions. My actual income proved to be a little more than the projection on which I based my calculations.

I'm certainly noticing the effect of inflation, especially in relation to my energy expenditure. However, I'm coping so far. I'll be drawing my state pension in a couple of years or so, and think that I can withstand a bit more of the present high inflation before then without having to draw on my savings.

One concern that I do have is that the index-linking on the larger of my two private pensions is limited to 5%. That's fine when inflation is within the target range, but it does mean that the margin between income and expenditure is narrowing at the moment.

PennyForThem_2

I have an annuity which is fixed at 4% p.a. increase - I have gained for the last 11 ish years - so if inflation goes up for 2-3 years, well, swings and roundabouts.  However I am not dependent on it, having Public Authority DB pensions and the SP.

So far ahead of the game in that have more than enough income and I have room to cut if need be.

Kim1965

I think those with gov db schemes are in a good place. Lets hope inflation nose dives.
 Bridging the gap to sp seems to be most peoples problem. 

PennyForThem_2

Kim1965 said:

I think those with gov db schemes are in a good place. Lets hope inflation nose dives.
 Bridging the gap to sp seems to be most peoples problem. 

Bridging the gap by continuing work is OK if you like and are interested in your job and it does not have any physical burden on your health.

Kim1965

Its a no on both in my case. 

otb666

we were made redundant in pandemic hubby mar21 aged 57 me jan 22 aged 56, we had severances which paid off mortgage and debt which left 35k in savings and 5500 pa DB pension and drawdown pension 18000 pa. which will take us up to state pension age.  We use 600 food 600 bills and 600 everything else per month.  The electric and gas are fixed until feb 24 just under the current SVT at 240pm after that it will be 300pm.  Hopefully got wiggle room.  Unfortunately since retirement time has been taken up looking after parent who insists on staying at home. We have also had a son return home but hopefully both will be for the short term only otherwise its like we never stopped work as work pressures has been replaced by home responsibilities pressures 

elantan

otb666 said:

we were made redundant in pandemic hubby mar21 aged 57 me jan 22 aged 56, we had severances which paid off mortgage and debt which left 35k in savings and 5500 pa DB pension and drawdown pension 18000 pa. which will take us up to state pension age.  We use 600 food 600 bills and 600 everything else per month.  The electric and gas are fixed until feb 24 just under the current SVT at 240pm after that it will be 300pm.  Hopefully got wiggle room.  Unfortunately since retirement time has been taken up looking after parent who insists on staying at home. We have also had a son return home but hopefully both will be for the short term only otherwise its like we never stopped work as work pressures has been replaced by home responsibilities pressures 

That's something I worry about, finally getting to retire just for it not to be my retirement but caring duties etc ... hope it works out for you soon xx

otb666

Thanks @elantan Its not so bad listening to all parent old stories Nice to have the time to do this.Retirement is a big mind shift once you get off hamster wheel and have time to think about whats it all about.  But we dont worry about money as we never have really and not big spenders

Silvertabby

Retired at 60, but both now past SPA.  I was in the fortunate position of being able to top up my State pension to the full nsp by paying 4 years of voluntary NI.

Mortgage long paid for, and no other debts.  All of our pensions are uncapped public sector DBs, so we are not hurting.

We have always given our winter fuel allowance to two family members who need it more than we do, ditto the extra £300 this year.