How much to live on

Organgrinder

Just an observation. Nearly every thread either dies a death or evolves around the original theme and as @helensbiggestfan says it's not just about the numbers but about the financial decisions etc.

What anyone has to live on is changeable for many. There are some on index linked pensions. Some on fixed rate annuities. For the former their income is relatively protected from inflation. For the latter the real terms amount they have to live on changes.

Even then, your own personal inflation rate varies significantly.

There are people who have savings but spend every penny of their income.

There are people who manage to save thousands a year.

And indeed many other combinations.

For nearly every one of us the choices we have in retirement are going to be limited by our income.

For me, I have no desire to be in the classroom much longer. What I would like to do and the choices I would like to be able to make require a little more income. Not much more but enough for me to seek it out. So do I settle for what I have and say I'll do without that or do I generate a bit more income. For me the latter but this may change depending on my health etc.

In any event, my thinking evolves. If for example, interest rates fall, I might stop snoozing. If cash ISA rules change or of rates fall below inflation I might change how I do things.

Many of us share this information on this thread because it affects how much we have to live on and if any poster benefits from an idea or suggestion or debate about how to do something then surely that's a good thing.

Whether you generate more income, or save money by changing how you spend, the outcome is the same. More disposable income. 

I fall into the category of person who would like more or possibly be able to do more with what I have. It's why I'm a member of MSE after all. 

helensbiggestfan

Organgrinder . 

Your list of variable pension outcomes  (and I'm sure there are endless permutations) illustrate show just how helpful both this thread in particular and MSE in general have been over the years. 

I discovered MSE when I was in dire financial straits (due to my husbands prolonged illness but I wont rehash it all again). Suffice it to say MSE saved my bacon and I've been an aficionado ever since. It's a fantastic resource.  If it had been around when I was in my 20s I would be a rich woman now. 😂. I could have avoided quite a few financial pitfalls.  Oh well you can't turn back the clock.  

I don't wish to be alarmist but I think it's pretty obvious by now that the global economy is in for a "correction" - polite euphemism, lol. How bad it will be is anyone's guess but I shall be dipping into MSE to help me navigate the choppy waters ahead.  

As I have just moved and am not yet in possession of all the figures I haven't drawn up my new budget yet but I shall be doing my best to keep my outgoings low so that I can replenish my depleted savings.  

Time to go scorched earth for a while to build up the war chest.....

Albermarle

I don't wish to be alarmist but I think it's pretty obvious by now that the global economy is in for a "correction" - polite euphemism, lol. How bad it will be is anyone's guess but I shall be dipping into MSE to help me navigate the choppy waters ahead.  

Just for info there are lots of threads on the fat cats (pensions)   board recently expressing similar worries. The answers are along these lines;

1) Recent market downturn has been only mild/medium in historical terms
.2) Something similar is expected every couple of years or more and something a lot worse every 10 years or so.
3) As the news is awash with Trump etc there is a tendency to think current events are of much greater significance than past ( or future ) events. Remember it is only 3 years since the worlds second biggest nuclear power invaded a democratic European country, and only 4 years since a worldwide pandemic/lockdown.4) Financial markets do react to bad news but often not as dramatically as the media likes to portray and they often bounce back quite quickly.
So the rest of 2025 may bring choppy waters, but most likely it will not be as bad as we might think.
Although could be famous last words of course.....

helensbiggestfan

I guess only time will tell.

Tbh I'm not concerned for myself. I think retirees will probably be safe enough, after all we don't have to worry about becoming unemployed. I think it will be our young people, especially those with children,  who will be the worst affected re job losses etc.

🤞it wont be as bad as 2008. 

Organgrinder

Well last but one day of my holiday and been poorly for the last three with a throat infection. Oh well.

Have taken the opportunity to tidy up my ISAs and move away from Plum (who have a stupid rule regarding how and when interest gets paid so have had to find a work around for that).

This year I have two cash ISAs currently although I'm only funding one. And three S&S ISAs. I should add don't let that make you think I'm rich....these are to pay off the mortgage next year and to get about £900 in cashback in total.

Anyway, the interest rate is 5.06% so happy with that.

Next job..... Start looking for new stooze cards as I've a fair balance to shift come September.

Not quite the holiday I planned, but might as well be productive!

helensbiggestfan

Organgrinder.  What a shame you have contracted a throat infection on holiday. Hope it hasn't spoilt things too much.  I think our bodies do it on purpose......lol.  

When I was working I was ill just about every time I dared take a holiday, it was as if my  body sensed it could relax and be ill.  When I was in work mode I just kept going, I think half the time I was just running on adrenaline.  Then when I stopped, wham.  I would be ill.  Thank god I'm retired. I am a lot healthier, don't catch nearly as many bugs and lurgies.  

I've done the same with this house move, I've worked myself into the ground and thoroughly overdone it. I feel drained and exhausted. Never mind next week the weather looks set to be glorious so I shall just recuperate in the sun.  

One of the hardest parts of this move has been sorting out utilities.  I spent nearly two hours sorting out Severn Trent.  The previous owner picked up his mail yesterday and he was telling me he had the same issues.  I thought technology was supposed to make these things seamless. Ha!!! 

As for money......my solicitor owes me around £400 in respect of an overcharge.  I'm chasing that up. She has admitted she owes me but is dragging her heals.  Typical.  They are quick enough  to take it from you.  Same with Inland Revenue. I need to get a grip  and make a claim for an overpayment.  Should be fun. 😉

No definitive budget yet.....but from what I can gather the utilities, broadband etc are going to cost roughly the same as I was paying before. The council tax goes up a band so I am guessing around another £500 p.a. Of course I shall be saving a shedload of money in rent.  I noticed the letting Agents had increased the rent for the next tenants so I am guessing that if I had stayed here I would have had my rent increased at some point this year.  My medical insurance has gone up by £15 a month but I want to keep this going. I have a nasty feeling I am going to need some surgery in the foreseeable future .......Hey Ho.  The joys of aging. 

When sorting out my new energy supplier I noticed they do a reduced rate for electricity on Sundays between 11-4. So from now on I shall be using the guzzlers like the tumble dryer during those times.  I know, I know .....tumble dryers are the devils spawn but my pet peeve is wet washing hanging round the house so I'm not giving mine up. 

Once everything is finalised and running smoothly I shall then look at bank switching, sorting out new savings accounts and try my hand at stoozing,  

I need to replenish the war chest.  

hugheskevi

helensbiggestfan said:

One of the hardest parts of this move has been sorting out utilities.  I spent nearly two hours sorting out Severn Trent.  The previous owner picked up his mail yesterday and he was telling me he had the same issues.  I thought technology was supposed to make these things seamless. Ha!!!

I've recently moved house, and found that water and council tax were the most difficult to sort. There was nothing complicated, but the water company and the council were so painfully slow to do anything. All the other utility providers were fast, easy, and efficient. It took about 6 weeks to get accounts up and running and correct direct debits in place.

helensbiggestfan said:

No definitive budget yet.....but from what I can gather the utilities, broadband etc are going to cost roughly the same as I was paying before. The council tax goes up a band so I am guessing around another £500 p.a. Of course I shall be saving a shedload of money in rent.  I noticed the letting Agents had increased the rent for the next tenants so I am guessing that if I had stayed here I would have had my rent increased at some point this year.  My medical insurance has gone up by £15 a month but I want to keep this going. I have a nasty feeling I am going to need some surgery in the foreseeable future .......Hey Ho.  The joys of aging.

One of the more frustrating things of moving is that I previously had excellent figures for regular expenses, but now it will take a year before I get back to having exact usage data to calculate expenses. This means my water, gas, and electric costs are now estimated and quite uncertain.

I also don't have an NHS dentist now. I've made allowance for private dentistry, but in practice will keep my old dentist and go there when I am nearby for check-ups, unless we have any issues (we have moved 150 miles away, but I will be back in my old area with work occasionally).

My new estimated regular costs for myself and my wife are:

Organgrinder

Happens every school holiday!

As it turns out my utility switching period starts today. Looking back at old emails by switching and fixing I must have saved at least £1,000 or so since moving 7 years ago.

Bit trickier this time. But got another 50 days on current fix (last June) so I'll see what's happening and try and time it correctly.

helensbiggestfan

Hughevski. 

Great breakdown.  I think my council tax will be around £2k and thankfully we don't have to pay extra for green waste so not too bad.  

My car tax is quite high, £350 a year which makes my car running costs an average of around £1k, including "running around petrol". I don't drive far these days. For long journeys I prefer the train.  

It's all swings and roundabouts isn't it.  As you say it will probably take a year or so to know exact amounts.  

Organgrinder .  it just shows it's worth shopping around,  £1k saved is better in your account than your utility companies.  Unfortunately we can't switch water and council tax, we're stuck with what we're given.  Lol.  

I have fixed with British Gas for both gas and leccy for 16 months at exactly the same price I was paying Octopus.  I only switched because Octopus told me they were unable to take over the gas here for some reason so they advised me to apply to the existing supplier and then switch back at a later date.  

I'm no worse off and at least I know my outgoings for the next 16 months,  I nearly always use less than they suggest and I usually get a refund each year.  This new house is a B rating so hopefully I will be nice and cosy without breaking the bank.  

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[Deleted User]

@hugheskevi. I am surprised the section on mobiles, presents etc... only comes to £551 per annum. I budget £1500 for presents and birthdays alone! For Dentist and glasses I put by about £450 per year. Sim only mobile contract mobile is about £120 per annum. Haircare and chiropodist are about £470. Guess we are all different lol.