How much to live on

Organgrinder

blue.peter said:

Organgrinder said:

I must confess that my spreadsheet is getting ever more complicated!

Perhaps you might find a dedicated money management program beneficial? In effect, it's a spreadsheet with all the necessary functionality already built in. You could take a look at AceMoney or MoneyManager Ex . MMEx is free. I currently have AceMoney set up with:

• 3 current accounts (one of which is PayPal)
• 2 credit cards
• 18 savings accounts (some easy access, some regular savers)
• a large number of closed accounts (not normally visible, but easily accessible if I want to look anything up).

If I had a mortgage or any loans, I could easily add them. Indeed, when I lent some money to a family member a while ago, I set that up as a loan account in AceMoney - it's since been repaid, and is now one of the hidden closed accounts.

AceMoney also has scheduling functionality, to cater for future transactions, and reporting capability.

Of course a spreadsheet is good enough. But a proper money management program makes everything easier, once you've spent a little time familiarising yourself with it.

Thank you. I'll have a look.

Phossy

Tastiger said:

Does anyone else have the "one more year" dilemma? I went part time in September - 3 days a week at age 57. Also took my teacher DB pension early. I did all the maths, tracked my budget and found we could just about reach the PLSA suggested £34k for a standard retirement for a couple.
 So I know, financially, on paper we should be OK.
 Well, the new PLSA figures suggest £43k annually - a massive increase, and way more than what I have calculated we would need. But it just puts that little grain of doubt in your head.
 Also, I have been offered another years contract from September on 2 days a week (2 whole days at the beginning of the week). It would mean one more year without drawing off savings/SIPP. I don't love or hate my job. My wife has finished work.
 So do I ignore the ridiculous PLSA estimates? Is time better than money?
 I know at the end of the day only I will know, but I find I spend hours and hours going over it, and am finding it hard to break free from thinking about it.

The best way is to work out you own numbers. The PLSA estimates have got too much air time for something based on 136 respondents, and they are not all retirees. They are statistically irrelevant. If you want to pin yourself to some estimates the look at the Which numbers How much will you need to retire? - Which? which are based on over 5000 respondents. They were printed last March, so I hope to see an update soon. In any case they have a lot of detail attached which you can use as a template if needed. If you struggle with putting a number down for house maintenance/large items, then a useful rule of thumb is to use 1% of the house value on a per annum basis (so for a £400k house use £4000/ annum); though my sense is that it is an overestimate, I've used  it in my calculations (I want to err on the conservative side). 

ggmf

Been using MoneyManager Ex  for the last {checks records} 7 years.

Floss

Phossy said:

Tastiger said:

...I did all the maths, tracked my budget and found we could just about reach the PLSA suggested £34k for a standard retirement for a couple.
 So I know, financially, on paper we should be OK.
 Well, the new PLSA figures suggest £43k annually - a massive increase, and way more than what I have calculated we would need....

The best way is to work out you own numbers. The PLSA estimates have got too much air time for something based on 136 respondents, and they are not all retirees. They are statistically irrelevant... 

The PLSA figures also account for things like a 2-week all-inclusive holiday away from the UK, eating out every month and £1,500 on gifts, charity & helping family that not everyone will do. 

Savvy_Sue

As well as the money, I'd do a thinking exercise.

Think: if I do another year of 2 days pw, how do I feel? Happy? Frustrated? Sick?

Think: if I don't do that year, how do I feel? 

And how does your wife feel? Is she happy to have you out of the house, or desperate to be doing other stuff with you?

[Deleted User]

Beware of any 'one more' of anything syndromes.

Make your plans and see how your figures work.

Live your lifestyle and don't be over influenced by the lifestyles or opinions of others.

Also beware the 'what if?' question.

Time is passing and doesn't offer a rewind!

Organgrinder

[Deleted User] said:

Beware of any 'one more' of anything syndromes.

Make your plans and see how your figures work.

Live your lifestyle and don't be over influenced by the lifestyles or opinions of others.

Also beware the 'what if?' question.

Time is passing and doesn't offer a rewind!

Wise words indeed.

I think many of us work towards a retirement date without ever really knowing what our goals are.

I'm most certainly guilty of this.

My big Eureka moment was realising that 67 and state pension age was a date to work back from provided I could get the income I wanted. I worked through the figures and it worked. From there on it's become a case of maximising everything so I'll be better off.

The one thing I haven't previously shared is that I have one pension that is not index linked. It bothered me for some time. However my investments cover this even with no growth. And believe me, my spreadsheet has been revisited 100's of times! 

Our house could easily release another £100k if we downsized. We're also likely to inherit in excess of another £100k.

As I repeatedly say, we are fortunate. Equally I would implore anyone to do what is right for them. I've never lived to work. I work to live. So anything I say comes from this perspective. But once you get your figures and are ready, I'd say go for it.

helensbiggestfan

Baron Dale.   "time is passing and doesn't offer a rewind".   I love that, I'm definitely going to pinch that one.  😂

bluenose1

I like the Rich, Dead or Broke spreadsheet.
According to that I am far more likely to be dead than run out of money, in fact it says I am likely to increase my savings based on projected income/ expenditure.
It’s an American site in dollars but I just put sterling equivalent in.
https://engaging-data.com/will-money-last-retire-early/

I would still be dithering in work now if not for a new toxic member of staff, have been retired almost 3 months now and my only regret is I didn’t do it sooner. 
Great to not be accountable/answerable to a manager etc, no matter how nice they are.

Floss

I spent some time over on the Pensions board today... some of those folk are expecting to struggle on £45k for a couple, which is over £10k more than my single household salary is now. My expected retirement income will be around half my salary until SP & my DB scheme kick in 4 years later.

Mind you, one couple in particular are apparently putting £40k each into pensions + £ 10k+ into savings a year. It's all Monopoly money to me!