How much to live on

Lifematters

My current car is automatic. Would not go back to manual now..and never thought I would ever say that! 

Kim1965

We have not had many new retirement plans posted of late. People with modest means. 
 Im still working ft 58, dd per month£600, no debts mortgage paid.
 I keep running different scenarios,  i have £60 k earmarked for house emegencies, a sacrificial £62 k pot to draw to nothing when sp kicks in and a larger pot £150k which generates  about 6k dividend income. Plus db pension approx 7.5k pa fully indexed linked.
Reckon i need 20 to 25k per year. Still cant bring myself to retire, one mire year perhaps. 

Sharktail

Kim1965 said:

We have not had many new retirement plans posted of late. People with modest means. 
 Im still working ft 58, dd per month£600, no debts mortgage paid.
 I keep running different scenarios,  i have £60 k earmarked for house emegencies, a sacrificial £62 k pot to draw to nothing when sp kicks in and a larger pot £150k which generates  about 6k dividend income. Plus db pension approx 7.5k pa fully indexed linked.
Reckon i need 20 to 25k per year. Still cant bring myself to retire, one mire year perhaps. 

Here’s my plan FWIW thought about different scenarios over the past year or two but settled on this joint plan ,
no debt no mortgage also have rental income of 5500 PA which covers all direct debits 

he 56 she 58 pot values 160k + 220k + 12k PA DB @66 + 2 state pensions @ 67
informed employers in oct that we’ll be finishing end of June 23
going to use 220k (keeping 25% tax free for emergency fund )to purchase a fixed term annuity to bridge until 66 & DB ,a year later 2* SPs , leaving 160 invested for whenever can’t see a use for it at the moment 
our needs are quite modest @ 15-18k currently including rental income 

Kim1965

I think my needs are very modest  all dds plus groceries and petrol circa  £900 per month. Pension income £1650 pm if went now i reckon so should be ok... As a couple 2 x tax allowance would be ok for modest living, but hats off if folk can live on less.
 Sharktail is saying £1500 pm as a couple, sea shell lives on that, think gambler uk is approx same.. 

Sharktail

Kim1965 said:

I think my needs are very modest  all dds plus groceries and petrol circa  £900 per month. Pension income £1650 pm if went now i reckon so should be ok... As a couple 2 x tax allowance would be ok for modest living, but hats off if folk can live on less.
 Sharktail is saying £1500 pm as a couple, sea shell lives on that, think gambler uk is approx same.. 

to be fair it’s how we’ve always lived ,I load up my Monzo card with £800 a month very rare I go over  , rarely go out out ,ideal night sitting in with some tinnies & a good movie or the children over for bbq 

Albermarle

Kim1965 said:

I think my needs are very modest  all dds plus groceries and petrol circa  £900 per month. Pension income £1650 pm if went now i reckon so should be ok... As a couple 2 x tax allowance would be ok for modest living, but hats off if folk can live on less.
 Sharktail is saying £1500 pm as a couple, sea shell lives on that, think gambler uk is approx same.. 

This retirement living standards survey quotes £20K pa for a couple as a minimum, although this has been recently  updated to take account of current inflation. If you take £1500 a month and add 10% for inflation, it is approx  £20Kpa .How it gets to that figure ( and all the other figures) can be quibbled with, as of course everyone has different needs.

Also as you know from other threads, some posters say they spend so much ( or little), and then say they have a separate holiday fund, or emergency fund to cover one off expenditures etc so their real annual spend figure is higher.
I agree with you that probably £25K pa is a more realistic minimum figure for most people for a couple to live off, without feeling the pinch too much, but clearly some of the low spenders who inhabit these forums, live OK on less.
Home - PLSA - Retirement Living Standards

Savvy_Sue

Lifematters said:

My current car is automatic. Would not go back to manual now..and never thought I would ever say that! 

Me too. We bought our first automatic when I crocked my shoulder (left) and I realised I'd be able to drive an automatic much sooner than I'd manage a gearstick! Was very grateful for this when I recently crocked my ankle (left) and was able to drive again much sooner than would have been possible with a clutch - or if it had been the right ankle! 

so, as long as I limit myself to crocking my left side ... 

Gin_and_Milk

Thanks for  keeping this thread going folks - always an intersting read.  I'll get my pension statement late spring / early summer, so it will be interesting to see how much it will have gone up by. I've also increased my avc payments too.  Only by £50 a month, but that's enough for the time being.

[Deleted User]

I have just updated my budget for 2023 after cancelling one trip and having paid some annual bills. Total expenditure is now looking to be £20036 and income £22940/£28940 depending on when I enter full retirement. So I am happy with that!  Previously expenditure was looking to be just over £22000 so I am pleased with the new forecast!

littlemissbossy

Me 51 Hubby 56

Hubby has been retired for about 18 months, I'm reducing my hours from 3 days per week to 1 day per week from March 23

Council Tax 173.00
Gas & Elect 150.00
Line rental & broadband 30.00
Sky 56.00
Water 33
Charity 11.50
TV Licence 13.50
Lottery 16.00
Food/drink/toiletries etc 170.00
Petrol 80.00
Going out 150.00
Car bills (insurance/road tax/service) 45.00
House insurance 10.00
Misc 20.00

= £958 per month x 12 = £11500 ish

My personal pension contributions 1560 pa
Holidays 2800 pa
New car 2500 pa
House (repairs/renewals etc) 2500 pa
Contingency 2000 pa

£22860 per year

Hope I haven't missed anything.


eta: my employer pays for my mobile phone and hubby has PAYG £10 every three months or so.