How much to live on

GunJack

[Deleted User] said:

 I continue to be perplexed by those who have hundreds of thousands in assets and large pension incomes who continue to worry about retirement and having enough. I guess it’s lifestyle and choices, but surely as you enter your 60s and beyond health, relationships and general quality of life take precedence. You certainly don’t need great wealth to enjoy those.

I do knock about over on the Pensions board a lot, and what I have observed is that the majority of those with big DC pensions plus other investments seem to be more concerned with passing most of it on to family once they've gone, rather than necessarily having a more comfortable ongoing retirement themselves. Safe Withdrawal Rates being used that give a smaller income and leave a rather large proportion of the pot left on death to be inherited, for example. 

I'm not saying there's anything wrong with that, just that it seems to me to be a bit unbalanced. I think I'd be a bit more on making me & Mrs.G-J more comfortable but  less inheritance for the kids...after all, they'll likely get the house too. However, I have 2x DB pensions and no DC, so I tend not to give it too much thought (the big DC pot, I mean lol).

The other thing that's big over there is tax and reducing it to as little as possible. I look at it that if I'm paying a bit more tax, it's because I'm better off, so don't stress over it

MovingForwards

Another slight change for me as I will, sadly, be receiving an inheritance. 

Long-term I'll look to buy a bungalow, with a small mortgage, move in and sell my flat. I've managed to swing my flat equity up to 20%, and it will keep increasing again when things have settled for me; whatever is left after the sale of my flat will be dropped into savings, pension and new mortgage overpayment.

I'll future proof my life as best as I can and decide everything else down the line.

What I'm learning from this particular period in my life is winter needs some work and I'll have to pick another couple of hobbies or expand the ones I have.

helensbiggestfan

MF.  Sorry to hear about your loss.  Inheritances do carry that edge of sadness don't they.  Your plan sounds good. 

I think winter will be challenging again. Covid is still with us......I'm guessing there will be some restrictions and maybe localised lockdowns.  Its a good idea to plan ahead and decide how you are going to ride it out.  

I have said I would like to join a gym but realistically I think that might be about March time, once the worst of the winter is over.  I will continue to try and exercise at home, Need  to be more disciplined though.

I've got  a few things planned, a couple of upcycling projects and a bit of decorating after Christmas.  So if we can't get out and about much at least I've got things to do to keep me from going stir crazy.  😉

MovingForwards

Thanks HBF I've got to the point of being stir crazy now, which I know sounds bad, but that's why it's given me a taste of what retirement would be like if I don't find a few more things to do. 

I've recently started swimming on my days off, but it's a huge shock walking out afterwards and waiting for the car to warm up again. Took me a couple of days to warm up the other week, which isn't good now, let alone when I'm older still.

I am interested to see what people get up to in winter as my go to thing is gardening, but there will be a few months a year that's just not happening! 

Bringing it back to pensions, I've not heard from my current employer pension company about the value of the DB, but my SIPP company will take it if under £30k; just have to do a normal transfer.

I'll find out who my new employer uses as a pension provider next week.

For now I'm swaying towards working FT until I'm mortgage free, wherever I live, and wind-down from 60 into PT, stopping at 65. As always, it depends on my health.

Dazza1902

[Deleted User] said:

Dazza1902, your monthly discretionary spend seems high to me. After bills, I allow myself about £200 a month maximum. However, I save monthly for things like clothes, holidays, birthdays and Christmas so they do not have to come out of discretionary spending. The £200 a month covers things like monthly haircut, meals out, little treats etc… 

It's not my discretionary spends I'm worried about, I can stick to a budget. My wife who I love to bits is clueless with money, so my planning has to second guess her financial hopelessness.
I have to build lots of excess into everything, not easy living with somebody who thinks they've won the lottery.
I am just interested in what other people thought of my budget, like you I think it's generous and with a small amount of thought would allow plenty of r&r. 
So to be on the safe side I'm actually aiming for £400 pm month more ( and working my backside off for longer to get it).

Dazza1902

Gunjack.
I agree, my daughter is thru uni, my son is currently at uni. Both have had everything they've needed in life, both know it's down to them and are more than capable to get on in life.
 I cannot understand why so many are fixated with passing on their DC pots. 
All the tax breaks are for people to facilitate their retirement. It seems odd that DC pots passed to offspring fall outside inheritance tax. 

otb666

Still the best read on mse, me and hubby lucked out and got made redundant which meant we could use money to pay off mortgage, 9 years early, so we are both 10 years away from state pension to finance.  He cashed his in and drawdown and me i will get pension straight away with no reduction, we are only gonna have 1850 pm with 30k savings. 

I have noticed you all have higher council tax, So your homes must be more expensive but we bought new home 12 years ago and running costs are cheaper albeit with a lot of stairs But again will save on gym membership.

The area has subsequently improved as really the only way was up from when we bought so lucked out there as well. 

We always pay for car+hse insurance annually as cheaper. 

I think as long as you can try and not spend on whims (especially if you are bored) we all should be ok.  I can honestly say I have never spent much as not that way inclined But hubby does find it harder as he loves just having things instantly.  Last year I added up our spends on Amazon and it was about 1500 on nothing really So will have to keep tabs on that. 


I would be lying if I said I was not worried But never been good with Change and determined not to be bored as surely dont need employer to make me happy and tell me what to do all the time.  I will have a spotless house and garden be healthier and be able to visit family This thread helps me a lot to allay my fears

[Deleted User]

otb666 You will be absolutely fine. Nothing wrong with occasional treats. Even though working 2 days a week at a school during term time I still have plenty of time to keep the house and garden as I want it. Takes away a lot of stress! Best wishes.

Dazza1902

Otb666
Out of interest, would you mind telling us what your monthly fixed costs are ??
 If you have a dB pension, providing you both get full state pension ,at 67 I'm guessing you will have an increase in disposable income.

otb666

No increase as DC pot will eventually dry up after 10 years or so
My DB approx 5500k pa 440pm
1850 per month

600 bills  
ctax 138
gas and electric 120
broadband sky 120
phone 25
water 31
tv12
meds 9

600
food petrol miscellaneous

600
annual costs insurances and car service and presents and to do what we want with.  
savings 30k
Children sorted
Bit rough sorry