How much to live on

Nebulous2

Organgrinder said:

Today I thought I'd try my luck and open 2 new ISAs....but no payments in until next month as I've used my allowance for this year. 

Both are via top cashback. One pays out £315 less a £50 fee if I pay £1200 in over the course of a year. The other pays £150 if I pay £360 in.

Total investment £1560. Total return £415. 

That's interesting. I use quidco, but I may need to check out topcashback for this. 

Organgrinder

Nebulous2 said:

Organgrinder said:

Today I thought I'd try my luck and open 2 new ISAs....but no payments in until next month as I've used my allowance for this year. 

Both are via top cashback. One pays out £315 less a £50 fee if I pay £1200 in over the course of a year. The other pays £150 if I pay £360 in.

Total investment £1560. Total return £415. 

That's interesting. I use quidco, but I may need to check out topcashback for this. 

Quidco has them too - but not as good cashback rates - I've not checked if they are still there today though.

Also don't worry if you have used up your allowance for this year - set your DD to be after the start of the new tax year and you'll be fine.

Saver73

I'm aiming for between £1,000 to £1,200 a month and I want to retire in Spring of 2030.  To be honest, I think I'll stop then with whatever I've got as I'm so tired of working, it's been more than 30 years full time, I never imagined I'd feel like this and that I'd find it so hard near the end of my working life.  I'm fortunate in that my current job is more than bearable in terms of content and the team I work with, it also pays well, I feel I'm a bit lacking in motivation and I'd rather have the time than money.  Since I decided on a timeline (because that is when I can draw my personal pension) I feel better. Now it's like a challenge to get there!

I guess there will always be an option to do part time work for additional income if needed up to state pension age but I have a feeling that once I stop working that will be it, I'm ready now, I'm not a big spender, so I'll just manage financially with however much I have. I don't have a car, I'm not much of a traveller, preferring UK holidays or weekend breaks and have no dependents.

I plan to spend all of my pension on living!

Albermarle

Saver73 said:

I'm aiming for between £1,000 to £1,200 a month and I want to retire in Spring of 2030.  To be honest, I think I'll stop then with whatever I've got as I'm so tired of working, it's been more than 30 years full time, I never imagined I'd feel like this and that I'd find it so hard near the end of my working life.  I'm fortunate in that my current job is more than bearable in terms of content and the team I work with, it also pays well, I feel I'm a bit lacking in motivation and I'd rather have the time than money.  Since I decided on a timeline (because that is when I can draw my personal pension) I feel better. Now it's like a challenge to get there!

I guess there will always be an option to do part time work for additional income if needed up to state pension age but I have a feeling that once I stop working that will be it, I'm ready now, I'm not a big spender, so I'll just manage financially with however much I have. I don't have a car, I'm not much of a traveller, preferring UK holidays or weekend breaks and have no dependents.

I plan to spend all of my pension on living!

£1000 to £1200 per month is rather low even if you are not a big spender, and presumably have no rent or mortgage to pay ?
Hopefully you will have a separate fund for one off purchases/unexpected expenses like a new boiler, special holiday etc?

In previous threads/posts it has been said the minimum to live off with some degree of comfort is the state pension + £5K pa and even then having some level of emergency fund/savings for one offs offers a degree more comfort.

Saver73

thanks @Albermarle I agree and I'm aware my figures are on the low side.  I'll keep things under review each year, at least, and who knows what will actually happen in 5 years?!

I've lost several close friends in recent years, in my age group, who made plans but never got to retiremement.  I'm in good health and feel well, but it's definitely made me more aware and I feel time is more important than ever, added together with feeling tired of working full time after so many years, I don't think part time work would make me feel better.  I want freedom from being tied to office hours and commuting!

I won't have rent or mortgage in retirement and will continue to have an emergency fund.

In my favour is that my job pays well, employer pension contributions are higher than average and over the next five years I'll have salary increases which means I can add a bit more to my pension and savings, there are also opportunities for annual bonus payments.

I haven't ruled out part time working completely but having always worked full time I'd probably need to try it to know whether it suited me or not.

Savvy_Sue

Saver73 said:

I haven't ruled out part time working completely but having always worked full time I'd probably need to try it to know whether it suited me or not.

As someone who didn't work full-time for about the last 25 years of my working life, I can thoroughly recommend it! Actually I worked p/t for longer than I worked f/t. 

Different patterns suit different people differently. When I first went p/t, it was 'school hours', and I did find it very difficult to leave on time, knowing that once I'd gone, no-one else would be sitting there ready to answer the phone if it rang, so I often came in next day to more or less desperate answerphone messages. This was a small organisation, and I was 'it' for general admin. 

Once the boys didn't care or notice if I was home for them or not, I changed to working 4 full days, and I must admit I found that MUCH more satisfactory. I joined a walking group on my day off, and I could also sort out all my 'personal admin' that day - doctor, dentist, optician, and latterly massage! 

Even now I'm retired, I try to keep a 'day off' each week from my regular volunteering and other activities. 

Saver73

@Savvysue thank you that's good to know, something for me to consider and it will give me options.   When I retire I still want to have a structure to my day/week and I've plenty to to keep me busy/active as well as having quieter less active days but I'll be happy to see the back of office hours and commuting!

Albermarle

Saver73 said:

thanks @Albermarle I agree and I'm aware my figures are on the low side.  I'll keep things under review each year, at least, and who knows what will actually happen in 5 years?!

I've lost several close friends in recent years, in my age group, who made plans but never got to retiremement.  I'm in good health and feel well, but it's definitely made me more aware and I feel time is more important than ever, added together with feeling tired of working full time after so many years, I don't think part time work would make me feel better.  I want freedom from being tied to office hours and commuting!

I won't have rent or mortgage in retirement and will continue to have an emergency fund.

In my favour is that my job pays well, employer pension contributions are higher than average and over the next five years I'll have salary increases which means I can add a bit more to my pension and savings, there are also opportunities for annual bonus payments.

I haven't ruled out part time working completely but having always worked full time I'd probably need to try it to know whether it suited me or not.

Obviously I do not know all your details but the usual advice in this scenario, is to maximise pension contributions ( as far as you can afford to of course) , for your last few years of work to take advantage of the tax relief.
Just be careful of how the pension is invested ( something many people ignore) and the MSE Pensions forum can be a useful resource in this regard.

Organgrinder

I'd also add, take advantage of "free money". Be that bank switching, ISA incentives, cashback sites, stoozing etc etc.

I've increased my savings pots considerably since starting doing this. If I look at all the money I've managed to save (though I do often use some of it for holidays!) it will come to over £10,000 by the end of this year 

I got very lucky with a 5 year mortgage fix of 1.64% which finishes at the end of this year. Two years ago I had sufficient funds to pay off the mortgage but kept it invested. The difference will net me approx £6,000 in total.

Stoozing over roughly the same period will amount to £2,000.

Cashback sites are currently showing £600.

Bank switching offers over £2,500 in total over 4 years, though some of this includes compensation when things went badly wrong!

I've got £700 back on flight delays and fingers crossed Black Horse will have to payout as I once had a DCA on a car loan.

I've put roughly £6,000 of all this into my pension this year, getting a £1,500 top up and also reducing the amount I owe HMRC for 40% tax I haven't paid on my exam marking.

It sounds quite obsessive I know, but I spend very little time doing this. 

I also simply do not see the point in overpaying for anything. Eg my high index lense varifocals are £120 for two pairs in Asda. Less than the cost of one pair of lenses elsewhere.

But I don't live frugally either eg three foreign holidays a year (in school hols too!). I'm just a firm believer in maximising what you have.

Plasticman

Organgrinder said:

I'd also add, take advantage of "free money". Be that bank switching, ISA incentives, cashback sites, stoozing etc etc.

I've increased my savings pots considerably since starting doing this. If I look at all the money I've managed to save (though I do often use some of it for holidays!) it will come to over £10,000 by the end of this year 

I got very lucky with a 5 year mortgage fix of 1.64% which finishes at the end of this year. Two years ago I had sufficient funds to pay off the mortgage but kept it invested. The difference will net me approx £6,000 in total.

Stoozing over roughly the same period will amount to £2,000.

Cashback sites are currently showing £600.

Bank switching offers over £2,500 in total over 4 years, though some of this includes compensation when things went badly wrong!

I've got £700 back on flight delays and fingers crossed Black Horse will have to payout as I once had a DCA on a car loan.

I've put roughly £6,000 of all this into my pension this year, getting a £1,500 top up and also reducing the amount I owe HMRC for 40% tax I haven't paid on my exam marking.

It sounds quite obsessive I know, but I spend very little time doing this. 

I also simply do not see the point in overpaying for anything. Eg my high index lense varifocals are £120 for two pairs in Asda. Less than the cost of one pair of lenses elsewhere.

But I don't live frugally either eg three foreign holidays a year (in school hols too!). I'm just a firm believer in maximising what you have.

I had to check who'd written this as I thought it might have been me 😁

I haven't done as much bank switching but otherwise very much the same. My fixed mortgage rate ends in less than two weeks time though so that'll be paid off and I won't be getting the interest any more.