How much to live on

anita116

Albermarle said:

PennyForThem_2 said:

I have just found this thread on the pensions forum which aligns nicely with the thread here:
https://forums.moneysavingexpert.com/discussion/6257477/a-paupers-pension-tale-not-many-nuts-to-dig-up/p23

Title says it all!

Just be aware that this thread has been revived recently. So the past couple of pages are recent, but the rest is from about a year ago. ( might make more sense if you know that ) 

The difference a year makes really puts into context the challenges of future planning.   What people said they could live off a year ago would barely pay utility bills now for some.   

Albermarle

anita116 said:

jevbanx1 said:

Thank you for all this. I worked this tax year until the end of August. I left work end of July but had a full month's annual leave still to take, so my retirement date was 31/8. 
I don't think I'm too much clearer on what I can invest this year, but feel more confident for next year. Financial acuity is not my strength! 
Again, thanks for the really useful information and on a final note, any recommendations as to which fund or pension I should look into please?
TY 
Jan 

It's worth checking out free advice offered by companies - they will only charge if you take out some products through them.   A decent one will explore your attitude to risk as a good starting point.   If they don't do that then walk.   
I had discussions with three established companies (all free) after checking out their reviews and legitimacy.   https://www.fca.org.uk/consumers/finding-adviser has good unbiased advice.

Presume you are talking about going to a financial advisor?

Normally it is recommended to go to an IFA ( I for Independent). They are not linked to any products, and get no commission. They charge an initial fee and then an ongoing % (although the latter is not obligatory).
If you go to a FA, or associated company they can only offer their own products, although the fee structure can be similar.

You are right in that nearly always both FA's and IFA's will offer a free introductory meeting. However they will not offer any personal financial advice in this meeting ( advice being almost a legal term in this context as they are liable for any bad advice). However you may glean some pointers/general guidance from the meeting, which it sounds like you did. 

A decent one will explore your attitude to risk as a good starting point.
They will all do this in some depth once you have engaged them, as it is a critical point. Some may discuss it on a less detailed level during the free meeting.

arnoldy

eperlizzy said:

Reading with interest However my problem is I rent via housing association so will still need to pay 💰 . No end of mortgage for me worrying times 

But on the other hand, Council and HA tenants normally have very good value rents, repairs and refits included and no worries about saving for new roof, boiler, painting outside of house. Some of the HA tenants around here even seem to get their gardens tidied up by HA.

Kim1965

eperlizzy said:

Reading with interest However my problem is I rent via housing association so will still need to pay 💰 . No end of mortgage for me worrying times 

What sort of pension provisions do you have?

MovingForwards

Well, slight change of direction from me. I did leave my last job, took a FT FTC role which then developed into a couple of year's of PT instead. It comes with a DB pension and I'm sticking with paying 100% contributions.

Interestingly, or shall we call it an experiment, my new take-home salary is less than what full SP is. I've still got my mortgage, my utilities have gone up under £10pm since the cap, I'm not filling my car up much as I'm working at home and it's giving me a taste of what early retirement would be like.

I'm definitely enjoying having free time, although I'm also studying during my non-working days. I'm getting to potter around my garden and can balance my health slightly easier. It's creating a dilemma though as I'm not sure I'll want to return to FT after this contract and am keeping an eye out for a permanent PT role.

otb666

as per title of this thread Still managing on 600 bills 600 food/petrol 600 everything else per month. However i have given up smoking so that has saved me from going over budget I retired jan and was determined to manage.

[Deleted User]

otb666 said:

as per title of this thread Still managing on 600 bills 600 food/petrol 600 everything else per month. However i have given up smoking so that has saved me from going over budget I retired jan and was determined to manage.

 I see in your footnotes you say mortgage of 70000 to be cleared in October 2022. Have you done this? How are your savings going?

Kim1965

otb666 said:

as per title of this thread Still managing on 600 bills 600 food/petrol 600 everything else per month. However i have given up smoking so that has saved me from going over budget I retired jan and was determined to manage.

Well done on the no smoking, £12 a packet, i think. 

[Deleted User]

I am also posting an update here that in most part I posted on a thread in the retirement section in response to a poster who was considering retirement. I have previously posted similar before but it updates my current spending patterns.

 I am just under two years away from state pension age. I consider myself to be semi-retired. I took the final part of my DB pension 5 years ago after a phased retirement. Since that time, I have undertaken several part-time temporary contracts to supplement income, savings, cosmetic dentistry and some house improvements. I am currently working just over 2 days a week and will probably do so until next year. I will definitely finish completely by August 2023. After tax and NI my net pay at the moment is about £1000 a month. For many of my previous part-time contracts it has been a lot less. For the next few months this money will go into savings.

Without this additional income my pension income is about £1530 a month. I allocate it as follows,

£650 for all household bills and petrol including food and household goods.
£250 to regular monthly savers.
£200 to an account that covers annual bills such as house and car insurances, MOT and Car Service plus annual dentist check and two dental hygiene visits per year. This usually runs at an annual surplus
£150 a month to a second back up current account (with a different bank) that I also use for spending on clothes, Christmas and Birthday presents throughout the year. This also usually runs at a surplus.
£100 a month to a medium risk S&S ISA
£180 a month for daily expenses such as haircuts, meals out, sundries etc...

I have no debt and own a mortgage free house.

During the past 5 years the part time earnings (which have varied from £400 to £1200 a month) have been used for some house improvements and holidays.

I do not have extensive savings but enough to make me feel safe £10000 plus in an emergency fund and a similar amount in premium bonds. I also have smaller amounts in a S&S ISA and a 3-year bond

The regular savers, which tend to have a one-year lifespan, I have also used for trips and other one offs.

I am confident I can cope on just my pension income should the part-time work end. I only work because I enjoy what I do. Knowing that I can stop whenever I want too and be able to manage is also liberating! I will have to do so from September 2023 to July 2024 when my state pension kicks in. I have 2 more years NI contributions to make to ensure I receive almost a full new state pension less a few pence a week.

My current estimated income from July 2024 at age 66 is for a monthly income (At today's values) of about £2200 a month after tax.

My house is well maintained, and I have recently had a new kitchen installed as well as a new garage roof and garden fencing.

I would like to upgrade my car once more within the next year or so (newish second hand). This will be a cash purchase.

otb666

Yep paid up no mortgage now We have £35k in savings and 10 years before state pension kicks in.  We updated house stuff kitchen appliances and boiler and fixed gas and electric til feb 24, its been a bumpy road but got there in the end