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How much to live on
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Sarahspangles said:noitsnotme said:Phossy said:
How much you need per month for the happiest retirement
Interesting new research https://news.sky.com/story/money-latest-consumer-personal-finance-skynews-13040934?postid=8413481#liveblog-body
"According to new research from Legal and General and the Happiness Research Institute thinktank, the happiest retirees have an average monthly income of £1,700 - equating to a pension pot of around £221,558 at retirement."
Surely that can't be right for the pension pot figure? Isn't that a drawdown rate of around 9%? It wouldn't last very long.
*edit* you would need a pot of around £510,000 with a drawdown rate of 4% to achieve £1700 a month (I think).
I'm hopefully looking to retire long before state pension age so my mindset doesn't tend to include that.1 -
At least they're not using the PLSA figures!!!
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Well my pension and stocks and shares ISA have lost 2% this week, mostly since the budget but that said, global markets are down.
It's caused me to take stock of my current position.
Mortgage 1.64% £54k
Short term debt 0% £22k
ISAs 5% £57k
Savings/bonds 5.5% £27k
So effectively debt free. Currently have just over £40k in private pension but with projected final salary pensions of £23k at my expected retirement date. Currently saving approx £15k pa into pension pot and savings. Projected to have £80k in pension pot plus £40k in savings. Mrs O has approx £50k in pension pot plus her projected final salary pension of approx £7k and is currently saving £6k per annum.
So when we want to retire we should have £30k pa between us, no debts and pots/savings of almost £200k. We will draw down on that till we reach SPA where our income gets boosted to approx £53k pa.
I'm starting to think we could even think about retiring a year earlier.3 -
Organgrinder said:Well my pension and stocks and shares ISA have lost 2% this week, mostly since the budget but that said, global markets are down.
It's caused me to take stock of my current position.
Mortgage 1.64% £54k
Short term debt 0% £22k
ISAs 5% £57k
Savings/bonds 5.5% £27k
So effectively debt free. Currently have just over £40k in private pension but with projected final salary pensions of £23k at my expected retirement date. Currently saving approx £15k pa into pension pot and savings. Projected to have £80k in pension pot plus £40k in savings. Mrs O has approx £50k in pension pot plus her projected final salary pension of approx £7k and is currently saving £6k per annum.
So when we want to retire we should have £30k pa between us, no debts and pots/savings of almost £200k. We will draw down on that till we reach SPA where our income gets boosted to approx £53k pa.
I'm starting to think we could even think about retiring a year earlier.
from my experience , not for the want of trying i have not spent what i thought i would spend in retirement , I must try harder !!5 -
Well just done the figures. It's certainly doable!0
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Organgrinder said:Well just done the figures. It's certainly doable!
I guess my point is if you want to get out and can don't miss the opportunity. If I had been bold in 2018/19 I would have had a few extra years retired.4 -
It's certainly getting more attractive. The original plan was for 4 years part time (4 days), but it became 5 in order to save for Mrs O to retire at the same time.
She then got notice of over £40k in a pension pot that had been thought to have been decimated in a financial scandal about 30 years ago.
So with one year of the plan down (well 14 months to be exact), the thought of having 33 months to go is starting to appeal more and more!1 -
Organgrinder, I say just do it!I'm leaving teaching next year at age 56. I told my headteacher (I didn't need to but I'm glad I did).
I do keep panicking and thinking am I doing the right thing but I can't stay in education any longer, totally burnt out and not loving it anymore after so long.
But the numbers are ok and if I'm careful I can manage. So many people say that it's the best thing they did, retiring early.2 -
louby40 said:So many people say that it's the best thing they did, retiring early.
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It's going to be another few years yet......however having done the numbers again I do think earlier than planned is achievable.0
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