How much to live on

helensbiggestfan

I don't think the Govt will cut the SP, but I think they are probably likely to reduce the rate of annual increases. I seem to recall reading something to that effect. As it is, I think the increases dont really keep pace with inflation.  That's why I'm trying to plan ahead and aim to keep up with my little sideline enterprises.  Not just for the money, although the extra is nice, but also because it's fun. 

I try to run my personal finances as one would run a business, with regular reviews and contingency planning .......a sort of domestic hedge fund management.  😂.  

You don't need a companion to go on holiday.....it's actually quite fun to travel alone, especially cruises which can be as sociable as you want them to be.    You can join in if you wish, or spend the time in splendid Isolation, there's no pressure.  But I think cruises are ideal for solo women, especially when you go ashore in some of the, shall we say, "less women friendly" ports. I have always found my fellow passengers very friendly and have actually made some new friends that way. The only downside is the dreaded single supplement but there are solo deals out there.  

Don't take this the wrong way, but I am sorry but if I went on a cruise with you, I wouldn't share a cabin.  😱😂.   I tried it once with a dear friend, the 6 week Amazon trip.  It was ok and we are  still friends but I have to say I wouldn't do it again.  Sharing a cabin with a husband or lover is just about doable...... but really I do prefer to travel solo, or at least not share my bedroom.......😂🤣.  

Madrick

Yep. I know what you mean
I've done quite a bit of single travel (mostly 3 night European city breaks) over the last 3 years.... (Obviously not much in the last 12 months) 
If you're happy with your own company it's fine, and you often find people are more inclined to start a conversation with someone on their own, rather than a couple.
It's nice just going to see what you want to see, for as long as you want, eating or drinking when you want to and what you want, not having to please someone else. Although, if my good lady was still alive, I'd jump at the chance to not be  travelling alone obviously. 

helensbiggestfan

I agree - travelling alone comes a poor second to travelling with our loved ones but we make the best of a bad job. 😌.   

Farway

Madrick said:

Yep. I know what you mean
I've done quite a bit of single travel (mostly 3 night European city breaks) over the last 3 years.... (Obviously not much in the last 12 months) 
If you're happy with your own company it's fine, and you often find people are more inclined to start a conversation with someone on their own, rather than a couple.
It's nice just going to see what you want to see, for as long as you want, eating or drinking when you want to and what you want, not having to please someone else.

Exactly as I found, just do what I wanted & no asking or fitting in with other's requirements

PennyForThem_2

One of you said it was unusual for someone to want to maximise their retirement income.  I did that because I had a mix of widow pensions, my own pensions (a variety of jobs as I followed my husband) and some savings.  I also loved my job so it was no problem to work beyond retirement age.
To those who think ' Jeese I am 50 - too late'  No- its not - far from it.  I didn't even think about retirement until about 55.  Nor did my husband.  BUT - and a big BUT - we lucked out to a certain extent, being baby boomers.  Husband made redundant, paid off mortgage, husband went back to teaching - db pension.  I got a temp job (low pay) with NHS after a variety of jobs and transferred pensions from those into NHS.  Worked my way up and paid extra into pension.  Add a SIPP and lumpsums from pensions, death of husband into a Stocks and Shares ISA and well, I am relatively well off and really don't (at the moment) have to worry about money.

Husband died 2011 - he had a wonderful job, travelled extensively, loved every minute, was much admired and really, a life well spent.  However he was a spender (but a spender within his means) whereas I am an extreme saver and find it difficult to spend and need a padded financial cusion backing me.  

I do admire those that can exist on 13K.  I worry though that once you have crystalised your pension, whether defined contribution (SIPP) or defined 'gold plated' benefit (Teachers, NHS, Police, Local Council, Civil Service) you are stuffed as to what annual increase is achieved.  All my essential bills have gone up by more than inflation by several percent.  My pensions have not matched (apart from a widow's annuity which is 4% increase per annum for life).  I do not see this mismatch resolving in the near future.

Sorry for long post - I spend roughly 25-30K per year including about £450 per month to mitigate IHT and yes, my estate will be affected by IHT unless I give away to children.  So I am in the Pension Forum bracket.  And why am I liable for IHT?  Luck with property purchase,  Luck with inheriting money from parents who moved to Australia - one of the reasons they moved was would not be taxed and IHT does not exist there.  Luck with investing in Stocks & Shares ISA and a Self Invested Pension (SIPP) that is stocks & shares based.  Yes, I pay for financial advice.  That takes a lot of stress out of self investing which a lot of the Pensions Forum ppl do.  I pay for expertise and advice so that I can minimise tax implications.  

I turn off the heating before the 1st May.  I wrap up and wear a beanie hat in the house - saidI was extreme.   

PennyForThem_2

Looking at this thread in the PensionsForum you may be surprised that it reflects this thread inlow/high incomes:

https://forums.moneysavingexpert.com/discussion/2146737/pensions-planning-the-number/p185

Madrick

PennyForThem_2 said:

Looking at this thread in the PensionsForum you may be surprised that it reflects this thread inlow/high incomes:

https://forums.moneysavingexpert.com/discussion/2146737/pensions-planning-the-number/p185

I love reading the ones, where they have for example pension pots of £800k, 300k plus in ISAs, along with £150k in cash savings, own two houses and still worried how they'll survive in retirement....😂
Its like an episode of those reality programs of the rich and famous

They have pension pots, greater than most of us have earned in our whole working lives

helensbiggestfan

So true.  😂🤣

I enjoy reading them too. 

I do question whether they are over cautious or perhaps it's just me blithely walking into financial Armageddon.  Still it doesn't really matter which, because we each of us has our own reality.  My finances were destroyed by my husbands illness, completely out of the blue and beyond our control.  However, there's no point in fretting over it.  What's done, is done.  What counts is how I deal with it, right now.  

I am well aware the spectre of inflation hangs over us all like the Sword of Damocles.  I have lived through periods of high inflation.  Even our current rate of inflation, which by comparison is actually very low, will affect my purchasing power in years to come.  That  £12k is fine for now but sooner or later it will be inadequate,  hence my attempts at "domestic hedge funding" and trying to future proof my finances.  

Worse still,  not only will inflation eat its way into my purchasing power but life gets more expensive the older we get.  Keeping older bodies in good running order doesn't come cheap.  😂🤣. As Bette Davis said "aging ain't for cissies" and it takes work and cash to stay fit and healthy. For example, this morning I have paid to be tortured by my masseuse. I am of course cheeky enough to ask for a senior discount, thankfully she is a very obliging lady,  even if she is a brute.  😂. 

I refuse to worry about the future, it will come anyway - if I'm lucky enough - and I'm sure I'll deal with it, whatever it brings.  In the words of Mr McCawber "something will turn up" and, if it doesn't, then I shall simply downsize. 

And who knows.....maybe my little fledgling business will fly and soar and I'll be laughing all the way to the bank.  🤞

PennyForThem_2

So this is from the Pension Forum:
https://forums.moneysavingexpert.com/discussion/6019383/its-time-to-start-digging-up-those-squirrelled-nuts#latest
Look at Sea_Shell's posts - she is frugal but has built up a pension SIPP that more than compensates for her lifestyle (IMO)

Not all the people on Pensions Forum have built up 1million £ pots.  Although this would be the forum to go to if you had and wanted advice.

I pay for my financial advice and don't do my own financial planning - I would find that would stress me and be really bad for my mental health.  I know that I am paying over the odds for a IFA planned SIPP but also I get IHT advice included.  Others will be quite happy playing with funds on various platforms and sorting out their own financial affairs.  I am not - it would stress me out.

But I read the Pensions Forum to glean knowledge and to formulate my own opinions which I can discuss with my Independent Financial Advisor (IFA) and really an IFA can help anybody - yes there is a cost but that should be really transparent up front and they can help.

scaredofdebt

Interesting thread, I am hoping to retire in about 4 years my private pension should, stock-market permitting, give me about £700 a month drawdown without eroding the capital.
I reckon about £1,000 a month covers all bills, food, enough to run a car and a little spare for treats and breaks etc.
So I need another £300 a month that I intend to get from mystery shopping, matched betting etc.
Pension forecast suggests I will get £790 a month at 67, same for my wife, so should be fairly comfortable by then fingers crossed.
I'm sure the kids will still need money!