How much to live on

Datchet

Very interesting and informative thread - thanks all! I’m 58, in good health and have a good job… but I am desperate to retire! I’m a late starter and have teenagers who may or may not want to go to college / university if They do, it would seriously deplete our savings. We want to downsize & move away. I’m not sure how little we can get by on and I think have been avoiding the inevitable decision. We love our holidays too.how much is enough? 

[Deleted User]

Welcome Datchet! May be useful to be more specific about your financial circumstances. Outgoings, income, pension provision etc... On this thread people tend to be very open and helpful. However, we will need more to go on! Best wishes.

Pollycat

trevjl said:

Why does everyone seem to think they are going to need a new roof ? my house is 52 years old as it the rest of the estate, nobody has had a new roof, well apart from the one that burnt down !!

I've been up and in the loft, there is nothing wrong with it. It will certainly see me out.

If you live in a Victorian terraced house, it's probably prudent to have a contingency fund for a new roof.
If your house is 50 years old, maybe it's not necessary.

Savvy_Sue

Your youngsters going to college / university only depletes your savings if you allow it to. Surely better to encourage them to understand they'll have to stand on their own two feet.

Desperate to retire, or desperate to leave your current job? I think it's worth working out which it is.

Daffodil1234

Hi Datchet,  you asked "how much is enough".  I'd suggest no one can tell you that but you might find a way to work it out for yourselves, if you look at how much you are currently spending over a year, and then determine how much of that (less / same / more) you'd spend in retirement.   That will give you a starting point of how much you need (adjust also for spouse / children if relevant ).

Albermarle

Datchet said:

Very interesting and informative thread - thanks all! I’m 58, in good health and have a good job… but I am desperate to retire! I’m a late starter and have teenagers who may or may not want to go to college / university if They do, it would seriously deplete our savings. We want to downsize & move away. I’m not sure how little we can get by on and I think have been avoiding the inevitable decision. We love our holidays too.how much is enough? 

How much you need is a subject discussed in this and other threads on the pensions forum, in some detail. If you read through this thread, you will see a lot of relevant details about different peoples expenditure, and I think there will be links to other threads with even more detail.
A rough consensus could be at the lower end, a couple with low spending needs can manage quite well on two state pensions, and a top up of a few thousand a year for holidays and bigger items etc 
Some more comfort would come from say a combined income of £35K pa ( or more of course)
The issue for many though is timing, if they want to retire before the state pensions and/or occupational pension kicks in, you need a significant slug of money to bridge the gap.

Uni costs are largely covered by Student Loans, although some parental top up is usually needed, and/or they can get a job whilst at Uni.

cjulien

I don’t know if anyone shared the link but there has been good research on this at https://www.retirementlivingstandards.org.uk/

jackieblack

Good morning all - am de-lurking as I’m just beginning the process of trying to work out the earliest I can feasibly retire. 

I work in a school and have been in the LGPS for 20 years+. My hours have varied hugely over that time but until recently been term time only so ‘pro rata’-ing has impacted hugely. Their website has a thing where you can enter the age you want to retire and get an indication of likely pension but I have to confess that I find the pension stuff very confusing. 

I would love to retire in the next 3-5 years (age 58-60) downsize my home and move closer to my daughter and granddaughter, but elderly parents with various health issues are currently 10 minutes up the road and moving away while they still rely on me would be extremely difficult, to say the least (even though sibling moved away years ago and the sun apparently shines out of him 🙄)

One good thing, I think, is that because I’ve never had a very good, or even ‘average’, income I know I can manage quite well on what some people would consider very little money. Of course that means that there’s little ‘wriggle room’ so I’m conscious that I need to be very very certain before making any rash decisions, but have to confess that there are days when I could happily throw my hands in the air and just walk away - unfortunately a luxury I can’t afford…

[Deleted User]

Welcome to the thread jackieblack! Looking forward to hearing more. If you wish to share finances and future pension information I am sure the good people on here will offer lots of thoughts and ideas.
You are quite right to say that you can have an enjoyable and purposeful retirement without having ‘loads of money’. It is all about personal preferences and priorities.

Albermarle

Their website has a thing where you can enter the age you want to retire and get an indication of likely pension but I have to confess that I find the pension stuff very confusing. 

On this specific point, it could be worthwhile asking the question on the pensions forum, where there are regular posters familiar with the LGPS scheme.

If you want more feedback generally, you would need to post more details about your situation. Such as is the mortgage paid? What amount do you hope to achieve by downsizing? Any savings etc.

Also have you checked that you will get a full state pension?