How much to live on

Organgrinder

Back to comedy "misquotes".

"Vanished. Simply vanished."

"Like an old oak table."

firesidemaid

@Organgrinder et al hi to all!

I've been following you all for a while (as the Pensions Board is a bit too grown-up for me) 

But finally thought i'd post as something you said resonated with me.

My position: I'm 55 and have a decent (deferred) NHS pension and a much smaller DC pot. Currently doing contracting. Never thought I'd take my NHS pension early as I couldn't face 'losing' some, but as I turned 55 I started looking at the % reduction rates. Did a cost/benefit analysis for every 6 months between now and 60 (I'm in the old scheme). Realised a) it didn't make any difference when I took it early ie. at 56 or 59 and b) that I'll be well into my 80s before I regret it. 

Work is not necessarily reliable these days, and I do a lot of miles. So, decided to use the little pot to pay off the last of the mortgage (was due for renewal this year) - and without that monthly cost and the petrol saving, we can manage the drop in income difference ok. My plan is to continue to work, but on my terms for once and NOT because I have to.

It's been really helpful to hear some of your shared personal experiences and stories thank you! I'll share more in a later post, but for now my semi / retirement day is in less than 2 months.

Organgrinder

firesidemaid said:

@Organgrinder et al hi to all!

I've been following you all for a while (as the Pensions Board is a bit too grown-up for me) 

But finally thought i'd post as something you said resonated with me.

My position: I'm 55 and have a decent (deferred) NHS pension and a much smaller DC pot. Currently doing contracting. Never thought I'd take my NHS pension early as I couldn't face 'losing' some, but as I turned 55 I started looking at the % reduction rates. Did a cost/benefit analysis for every 6 months between now and 60 (I'm in the old scheme). Realised a) it didn't make any difference when I took it early ie. at 56 or 59 and b) that I'll be well into my 80s before I regret it. 

Work is not necessarily reliable these days, and I do a lot of miles. So, decided to use the little pot to pay off the last of the mortgage (was due for renewal this year) - and without that monthly cost and the petrol saving, we can manage the drop in income difference ok. My plan is to continue to work, but on my terms for once and NOT because I have to.

It's been really helpful to hear some of your shared personal experiences and stories thank you! I'll share more in a later post, but for now my semi / retirement day is in less than 2 months.

Always nice to hear good news. And always nice to see people working things to suit themselves too.

Organgrinder

Today I've been reflecting on how our plans can change a lot.

However much you've saved or plan to save, can be changed in an instant.

Best therefore to have some sort of flexibility.

On the latter I would urge everyone to recognise that plans can, and indeed do change very quickly. 

Things change. Learn from mistakes.

Don't expect things to be different unless you too make changes.

Shimrod

Organgrinder said:

Today I've been reflecting on how our plans can change a lot.

However much you've saved or plan to save, can be changed in an instant.

Best therefore to have some sort of flexibility.

Not just finances but also health - either your own or that of family members.

We both finished work last year with the intention of more travel, taking advantage of last minute deals as well as cheap Sunday nights in hotels for UK breaks.

Unfortunately my mother has been diagnosed with dementia, something we suspected from the start of the year. This has meant almost no foreign holidays and we've only tried one night away in the UK. It's taken up a lot of time both in getting a diagnosis as well as making sure she is ok.

helensbiggestfan

Some great food for thought there,  Organgrinder.  

If life has taught me anything it is that change is inevitable.  All we can do is meet those changes and rise to life's challenges.  

  ................."If you can meet with Triumph and Disaster
And treat those two imposters  just the same"..........

(Taken from the poem "If" by Rudyard Kipling).  

We all know that money isn't the universal panacea for all life's  "slings and arrows" but having that nest egg might just help us navigate the worst.  Or at least give us a breathing space. 

Which brings us to the question we ask in this thread.  How much?    

There's no definitive answer, too many variables.  I guess it all depends on our own personal goals, what we actually need and/or want, then maybe just a bit extra for luck and peace of mind.  

Then, the goal posts move, and  we have to have a rethink.....

Did a stupid thing this week.......Ordered a watch for my grandsons birthday on the 25th. .  I can't find it.  Must have put it in a "safe place". 😂. Luckily it wasn't expensive.  If it doesn't turn up this week I've got time to buy a replacement,  

Don't you just love those senior moments...,.,,, 

otb666

I thought I would post update on my figures as have not done it for a while.  Retired 5 years ago budget still the same 1800pm with 3000pa for insurance car and presents.  The 1800pm is split 700 bills 600 food 500 everything else.  (used to be 600/600/600 but bills went up)  With the food i keep in budget my changing my staples from expensive food to cheaper food and good incentive not to overeat. We have had a lot of work since we retired with the elderly relatives and glad we retired so we were there for them but also glad that stage is coming to the end.
Anyway just thought I would post as not everyone wants an expensive retirement as never had an expensive life and seriously after decades of skintness cannot change my ways now haha

helensbiggestfan

Otb66 Sounds like a comfortable budget there.  

Well as expected September was a heavy month, finance wise. (car tax and insurance) and October looks to be same.  Thankfully October spending is on "nice stuff". Easter week getaway booked and paid for, and finally starting on the house and garden. Three trees planted this week. They were quite small saplings so I actually managed those myself.  I have now started getting my handyman to the do the heavy jobs, both around the house and in the garden. He's coming next Wednesday, there's quite a lengthy to do list waiting for him. A lot of the jobs he does are things I used to do for myself with ease but now i am more decrepit I am quite happy to delegate, especially if it involves ladder work. 😱

As my late husband used to say "why have a dog and bark yourself".  Or as my dad would say "Ano Domini" gets you in the end".......Both very wise men.  Lol. 

My 90 Day "Change my Life" challenge is going well.  Exercising every day, healthy eating, decluttering steadily. I did think about joining a gym but decided against it.  I have instead set up a spare room as a mini home gym as a temporary measure.  I might convert the garage at some point, not decided yet.  I know me ......if I had to drag myself to a gym in the depths of winter I wouldn't go. Having my own mini gym on site as it were is so much easier, so no excuses.    I am thinking of adding a portable home sauna - just a basic "tent" version for now, see how it goes.  Anyhoo, saving myself both time and money. What's not to like. 

Finances are ok.  The exra spending was budgeted for and I am careful to shop around. Had to order the paint I wanted online, B&Q didn't stock it in store.  So, I tried a few different outlets whilst I was at it ........the price difference was astonishing. 5 litres of the Dulux  light and space range varied from £42 to £76.  Just goes to show.  

I have even managed to reduce my food budget ........wonders will never cease. So all in all, all is good.  

I love my simple retired life.  

,

, 

Smudgeismydog

helensbiggestfan

I love my simple retired life.  

How lovely to hear you say that, me too ❤️

Organgrinder

Gosh our tax system is bizarre.

I pay tax at 40%. I put enough into a pension to get that tax back after my tax is calculated at the end of the year.

I'm therefore classed as a basic rate tax payer and can earn £1,000 in interest before paying tax on it as opposed to £500.

My gross earnings are about £61,000. Of this a total of £13,000 gets paid into various pensions. Which means my taxable earnings are actually £48,000.

I'm somewhat gobsmacked that tax breaks like this are available!!! Not complaining though!