How much to live on

blue.peter

Langtang said:

On the subject of accounts, have you found that you have opened extra bank accounts during retirement to cope with insurance/car tax and savings. A savings account and an insurance account, a holiday account if you will?

Not me, though I can see that this might be useful for some people in that it can imose a discipline. I operated something like this when money was tight (roughly 1985-95). Nowadays I operate two current accounts (though that's purely for resilience), savings and investments. When I get paid, I leave enough in the current accounts to meet the bills due that month and sweep the rest into either cash savings or my S&S ISA. Any large one-off items are met from savings.

Langtang said:

I am assuming that the likes of house insurance etc is cheaper after you retire, seeing as you're probably in the house a lot more than if you were working? Similar with car insurance, since there'd be no commuting miles clocked up?

Not noticeably in my experience. I'm paying more or less the same for home insurance on this house now as I was when I was working.

MovingForwards

@Langtang unfortunately I'm not yet retired, I'm not even 50 but the posts in this section are more relevant to my aims than the pensions and savings boards, due to not earning big money.

I have a couple of different banks I like to use and open additional savings accounts when they have some paying reasonable interest.

At the moment I hold 3 current accounts, 1 is my wages, 2 is my emergency leak pot and 3 is my car pot. Logically if I have to pay the garage or a plumber etc then it's debit card or bank transfer.

I've currently got 7 savings accounts spread over the two banks.

Then I've my SIPP and S&S ISA provider and PBs.

The only account I don't receive interest is my wages account.

Originally I started this way due to being in debt and wanting to keep savings in a different place to my wages, have my debts paid out a different account which I was also building up to clear them, not for any hidden reason but so I had to think about using the money, transfer it and then spend it. Saving my mortgage deposit I was chasing higher interest accounts, doing fixed rate savings accounts each year, savings again and I've just kept that up since becoming debt free and securing my home.

I personally feel comfortable having different pots as they all have different aims eg communal repair pot £25k, car pot £100pm, interior upgrades £5k per room. Although I've only got my leak pot full, the rest are work in progress, it's easier for me to look at a spreadsheet and see what I'm paying where each payday. The way I do things wouldn't suit someone else and I plan on doing this for as long as I'm mentally able to.

Durhamborn

Im 49 and retired,at least i think.I might go and do a few months now and again against tax allowance.Iv had 13 years off between 21 and 49 as well where i took what i called a few years off here and there.
Iv got all direct debits for the next 6 years in a savings account,thats all household bills,and iv accounted for 5% inflation pa.That doesnt include food etc.
I get £600 a month income from investments on top of that,so around £920 a month.At 55 the money for bills will run out,but i can then access my SIPP .That should provide £1k a month.So £1k a month from that and the £600 from investments,£1600 a month.From 67/68 il have a full new pension,im a few years short,but claim the Specified adult childcare credits for my grandchildren so get free years.I keep claiming them when over 35 years as well just in case they up the years later.

My partner still works and will for 6 more years.Shes in a council final salary pension and likes her job.Shes saving so she can run down savings between 55 and 67 and not take her pension early.She also has another final salary with a transfer value of £120k,she will likely transfer and run that down between 55 and 67 to get out tax free.She also rents out her paid for house and she gives me £250 a month towards bills.

I think if i was single £1200 a month gives a good life,£900 do-able.Assumes no debt,fix at least some things yourself,happy with an older reliable car.

In money terms i think SIPP and/or ISA of around £300k+ to go in early 50s,to go at 58ish £250k,if working until full state pension £100k enough.

203846930

At 55 the money for bills will run out,but i can then access my SIPP 

I vaguely recall reading something about the government going to raise the age that fou can access your SIPP to 57, I can't find it at the moment but just to warn you.

blue.peter

duncanthedog said:

I vaguely recall reading something about the government going to raise the age that fou can access your SIPP to 57, I can't find it at the moment but just to warn you.

You appear to be correct. There's a reference to this on Aegon's web site - see https://www.aegon.co.uk/news/pension-ages.html and scroll down to the heading Minimum pension age for private pensions. There's a link there to the relevant consultation document. I haven't bothered to read it 'cos it doesn't affect me. (Retirement's wonderful. If I was still working, I would not only already have known about this proposal, but have been intimately familiar with the consultation. I'm so glad that I no longer have to.)

The change is apparently proposed for April 2028. If this change is made in the same way as the increase from 50 to 55 in 2010, there'll be a group of people who are able to take their pensions at 55 but, if they don't do so by 5 April 2028, will then find that they are unable to take them between 6 April 2028 and their 57th birthday. The people concerned are (if I've done my sums correctly) those born between 6 April 1971 and 5 April 1973.

2021 - 49  = 1972, so I think that this does affect @Durhamborn .

Sunnylifeover50plan

51 & 55, live in Spain, own a house. We budget for about Eur 26k/ Gbp 22.5k pa net spend (some extra money available for treats) for 2 plus a dog and cat. Actuals more or less meet estimates. Retired at 49. Missing our daughter/ family but hoping intl travel might return soon - we didn't plan for a pandemic, my bad.

Mix of savings, wife's/ my SIPP drawdown plus UK state pensions when the time comes. 

[Deleted User]

scottish_lassy, be good to hear how your plans are going.

Any updates from regulars? New posters? All welcome.

sunnylifeover50plan. Quite incredible to retire at 49.

Durhamborn, so with all your years off etc... how did you manage to go at 49! Most of us are ordinary mortals on this thread! lol!

emilysmile

around £1500/Month, no car. 3 ppl include my kid. No much money left each month.

[Deleted User]

Many thanks emilysmile. Does that £1500 include rent or mortgage? If it does your budgeting is very good.

silverwhistle

I've been living on my private pension and bits and pieces. TODAY I start to get my state pension so the weather is glorious, the pub gardens in the village are open (3 or 4 of them..) so feeling flush and guess where I'm going...