How much to live on

Nebulous2

Arthurian said:

Just curious as to what happens 20 years down the line. If you retire and spend your tax free lump sum on upgrading the house with new windows, solar panels, new kitchen, etc, will you be planning on gradually saving up again to replace these in 20 (or every 10) years? 

A lot of people have a gap between retirement and state pension age,  that they need to fund. Future-proofing by limiting the big expenses that fall during that time seems sensible. Then when state pension kicks in the situation improves. I expect to have more income than I need from state pension age. 

People in the pension forum talk about safe withdrawal rates, sequence of return and working longer to acquire more money amongst other technical topics. Barring a major economic collapse, many of them will die with more money than they retired with. 

Looking at probate properties for sale - many of them have been sadly neglected, some for lack of cash, but others for lack of motivation. 

Imagine you are in your early 90s, with a kitchen that meets your needs, and you know where everything is. 

Would you feel motivated to get quotes, be broken down for several weeks, spend 1000s and then have to learn a new kitchen? 

I very much doubt that I would. 

MayDogsandCoffee

I am upgrading my new home with the 'that will see me out' attitude.  Once it is done it should last a fair while and if it starts getting shabby when I am much older then so what?  I will leave it to my Nephew to sort out when he inherits.  Very often, it is not the cost but the motivation and upheaval for getting things done.  My current home was all updated after COVID but I am moving into an inherited bungalow which needs bring up to date, and a bit of future proofing.

Pensions_matter_2

Its seems quite common for new retirees to want to put their home in order. We did/are doing the same - new double glased windows, stone repairs, paving, new doors, and planning on new kitchen and bathroom. I can’t see us doing that again any time in rhe future - aside from recurring expenditure on small items/white goods, we are hoping it will all last as long as we are in the home! 

angieb15edin

Pensions_matter_2 said:

Its seems quite common for new retirees to want to put their home in order. We did/are doing the same - new double glased windows, stone repairs, paving, new doors, and planning on new kitchen and bathroom. I can’t see us doing that again any time in rhe future - aside from recurring expenditure on small items/white goods, we are hoping it will all last as long as we are in the home! 

That was our thought get it all done now while we can cope with the disruption which can never be underestimated and reckon it’ll see us out
plus getting it all done in a short time frame minimises disruption to decor as well couldn’t imagine anything worse than redecorating and the next project damaging it 

Must admit not looking forward to the kitchen getting done it’ll be much more disruptive than the other things we’ve had done take aways for a week is going to do nothing for our healthy eating efforts 

Pensions_matter_2

Second that on the new kitchen front! It will be the biggest upheavil and likely to take much longer. Just at the planning (and costing!) stage so will likely be next year.  

LL_USS

I will try to have a new kitchen put in at the start of the retirement and hope it works fine for a couple of decades then :-)

Alnat1

I never went back to full time work after the 1st littlun arrived 31 years ago and we had an income that hovered around 25k a year for the 15 years before I retired at 57 (18 months ago). Just slightly less than that now with hubby's earnings (30 hours a week) and my pension. We manage very well on that, already had 3 overseas hols so far this year and a UK week booked for this month. Still put a bit into savings each month, will cover replacement car, white goods etc. over time. Hubby enjoys work and plans a few more years there before he retires. We have savings to cover the gap until state pension ages.

The mortgage was paid off by the time we were in our early forties, as we always overpaid/shortened the term. Solar/batteries were installed in 2022 before I retired, using savings, and has covered all our energy costs since.

Major spends so far since I retired, extra loft insulation, air source heat pump installed, new external doors, living room bay removed and replaced with bi-folds, chimney breast removed. All should help keep down future costs and spend total was around £11K. Windows will need replacing over next few years though.

We don't use our time researching and jiggling money around different savings accounts and plans and we definitely don't have spread sheets to stress about every penny we spend. We just get on with living life, go where we want, buy what we want, eat well, exercise and take care of our health. According to any tables and charts, we shall be poverty stricken in retirement but having lived well on a low income all our adult lives we are happy we will be able to afford all we want. 

Ordinary_Yet_Unique

@Alnat1 what an excellent and inspiring post! Your approach is one that I believe the vast majority of people who are approaching or who have taken retirement take, and manage to live well. Good to see some balance. All the best with your plans. 

oceandreamer

Thankyou for all your replies.  It does seem that it is sensible to 'get your house in order' before you retire.  I am going to think hard about what is achievable while I am still at work, both in terms of cost and more importantly, time.  I don't really want to retire to a massive to-do list but have to be realistic about what I can manage to do while still working quite long hours.  At least if I have a plan I can take baby steps towards getting it done.  
@Alnat1 you touch on something else which I feel is very important, and that is that money isn't the only (or even probably the most important) consideration. Looking after you future health is absolutely priority number one and has to be a part of any retirement plan.  I am hoping that there will be more time to exercise, cook from scratch, shop etc which will directly improve my health and fitness. 

Plasticman

oceandreamer said:

Thankyou for all your replies.  It does seem that it is sensible to 'get your house in order' before you retire.  I am going to think hard about what is achievable while I am still at work, both in terms of cost and more importantly, time.  I don't really want to retire to a massive to-do list but have to be realistic about what I can manage to do while still working quite long hours.  At least if I have a plan I can take baby steps towards getting it done.  
@Alnat1 you touch on something else which I feel is very important, and that is that money isn't the only (or even probably the most important) consideration. Looking after you future health is absolutely priority number one and has to be a part of any retirement plan.  I am hoping that there will be more time to exercise, cook from scratch, shop etc which will directly improve my health and fitness. 

I'm hoping to retire at 55 so I'm (hopefully) not going to get a new kitchen that'll last for the rest of my days. My current plan is to replace both the kitchen and main bathroom after retirement and then we'll probably have to fund another round at some point unless we decide to move.