How much to live on

Organgrinder

It is of course a tricky decision for many.

For me, my disposable income will never be less than when in employment, that is after housing costs. However I recognise other costs will increase eg heating etc.

I plan on continuing to mark exams and/or tutor to supplement my income and to keep my mind active!

Albermarle

[Deleted User] said:

I have been lurking reading through this thread for a while. Very informative and interesting in the most part. However, recently it seems to be more about how to make money, rather than how much you need to live on. Just an observation from a newbie!

Probably after over 200 pages the thread is dying a natural death .

Organgrinder

Albermarle said:

[Deleted User] said:

I have been lurking reading through this thread for a while. Very informative and interesting in the most part. However, recently it seems to be more about how to make money, rather than how much you need to live on. Just an observation from a newbie!

Probably after over 200 pages the thread is dying a natural death .

Very reasonable. ;-)

louby40

I found it very interesting when I first read it. I'm retiring from my teaching job next year on a pension of about £18k so it's even more relevant to me now. 

Nebulous2

[Deleted User] said:

I have been lurking reading through this thread for a while. Very informative and interesting in the most part. However, recently it seems to be more about how to make money, rather than how much you need to live on. Just an observation from a newbie!

It's the nature of forums that threads develop a life of their own, particularly over a long timescale. 

There was a contributor who took it upon themselves to keep this thread on track, but they have now left. 

Your post prompted me to spend a couple of hours going through the thread, mainly looking for my own contributions. 

Our situation as regards how much to live on has moved on, and this has been a spendy year so far. 3 foreign holidays, several staycations, ongoing house upgrades, and a new vehicle, now that the price of them has gone back to a more normal pattern. 

I'm of the view that this will be an exceptional year, rather than becoming the new normal. We've two holidays booked for next year, but they aren't as ambitious as the main one this year, and some of the biggest costs involved in them have already been paid. 

It's also beginning to get to a point where I am not sure how I found time to work. My part-time job may have served it's purpose, and I may find a good time to walk away. 

Organgrinder

By their very nature, threads evolve. How much to live on takes many forms and generating extra income is essential for some, desirable for others and holds no interests for some.

As the economy changes, so does the cost of retirement and so for me, my how much to live on is not a fixed number. If it were, retirement planning would be much simpler.

So it's fine in my opinion to discuss such matters. If you don't wish to read it, then don't read it. I hardly think it's anyone's job to "police" the direction a thread takes.

Profits and returns are a natural part of how much you have/want/hope to live on. 

Good returns are welcome. None of us want to see an unwelcome return so it's useful for me to discuss such matters.

TallGirl

I find this chat really useful as I am looking to emigrate next year so the tax rules of the new country (Denmark) has really complicated everything for us. I do have a good pension provision and a small DC pension plus an SS ISA to live off before retirement so had worked out I could afford to go at 57 although my 5 year older other half has no pension provision.

Moving back to my home country means leaving my FT job and instead working with my other half on their self employed business. We think we can afford to work 3 days a week (both FT now) as we hope to sell our house and buy bigger and better over there but still pocket £200 to 300K. Even if there are any renovations needed there is enough plus a buffer of cash to live on which there would not have been had we stayed in this house. Car's are expensive over there due to import taxes but normal living expenses seems to be the same. Health care is better than the NHS as you have a treatment guarantee so no waiting years for hips and knees. 

It is really good to read what people can live on I think I can get an idea of the monthly expenses it is the large one offs that I want a good buffer for. I am also grappling with putting money into my other half name. We are getting married later this year but have known each other for 10 years and our finances are separate. We have no dependants to leave any money to but there is always the risk of a break up. She is 40% tax payer I am 20% so it makes sense to put money into a pension for her. I struggle to get advice on exactly this because we are moving my IFA cannot/won't say much.

Anyway a lot of rambling just wanted to say like many writing on here it is a battle between have I got enough to live on and when is the right time to go. For me it is returning home after 30 years to be closer to my family again and also possible have to look after my 80+ year old parents. I am looking forward to it but was not planning to do it for another 2 to 3 years however my friend died just turned 54 (same age as me) and it does bring things into perspective. Life is short and you never know what can happen. 

Organgrinder

TallGirl said:

I find this chat really useful as I am looking to emigrate next year so the tax rules of the new country (Denmark) has really complicated everything for us. I do have a good pension provision and a small DC pension plus an SS ISA to live off before retirement so had worked out I could afford to go at 57 although my 5 year older other half has no pension provision.

Moving back to my home country means leaving my FT job and instead working with my other half on their self employed business. We think we can afford to work 3 days a week (both FT now) as we hope to sell our house and buy bigger and better over there but still pocket £200 to 300K. Even if there are any renovations needed there is enough plus a buffer of cash to live on which there would not have been had we stayed in this house. Car's are expensive over there due to import taxes but normal living expenses seems to be the same. Health care is better than the NHS as you have a treatment guarantee so no waiting years for hips and knees. 

It is really good to read what people can live on I think I can get an idea of the monthly expenses it is the large one offs that I want a good buffer for. I am also grappling with putting money into my other half name. We are getting married later this year but have known each other for 10 years and our finances are separate. We have no dependants to leave any money to but there is always the risk of a break up. She is 40% tax payer I am 20% so it makes sense to put money into a pension for her. I struggle to get advice on exactly this because we are moving my IFA cannot/won't say much.

Anyway a lot of rambling just wanted to say like many writing on here it is a battle between have I got enough to live on and when is the right time to go. For me it is returning home after 30 years to be closer to my family again and also possible have to look after my 80+ year old parents. I am looking forward to it but was not planning to do it for another 2 to 3 years however my friend died just turned 54 (same age as me) and it does bring things into perspective. Life is short and you never know what can happen. 

It's always good to discuss such matters.  We can only offer our perspectives.

Be open to everything would be my advice. Don't close anything off until you fully research it. It might just help you despite any misgivings you may have.

Hope everything goes to plan.

kempiejon

I was looking at a website the other day that suggested people would spend about a third less in retirement. I'm not sure if this will apply to me but I expect to earn more in retirement than in employment however that's not until my pensions are in payment.
I want to give up work before pensions age. I am happy to be poorer in that period and not have the nuisance of going to work. 

blue.peter

kempiejon said:

I was looking at a website the other day that suggested people would spend about a third less in retirement.

Don't rely on it. It might be true for some (or even most) people, but that doesn't necessarily mean that it's true for you. You have to support your own lifestyle in retirement, not somebody else's.

My own experience is that my spending in retirement is roughly the same as it was when I was working. Whilst I spend less on some things (e.g., travelling to work), i spend more on others (e.g., heating my house). I've been retired for nine years now, so I have plenty of experience of my own retirement spending. Having said that, I've never spent extravagantly. No exotic holidays, for example - they just don't appeal to me.

Do your sums carefully. Look at what you've actually spent over the last year (or five, if it fluctuates noticeably) and think about how that'll relate to your expected retirement spending and income.