How much to live on

QrizB

thriftylynny said:

Think the problem is i daren't dib into any investment income as i originally intended as a top up because the markets are so up & down . even within a safe withdrawal limit

I don't know your investment strategy or long-term plans, but the FTSE100 is up 15% on the year. If you're not going to dip into your investments when the markets are doing that well, when exactly will you?

[Deleted User]

Thiftylynny, will your partner be entitled to state pension when the time comes? From your previous posts I believe you have a pension of about £6500 per annum which you top up with investment income of about £3000 a year and some money (about £2000 a year you said) from pension lump sum. From 66 or  67 You will have state pension of £9500 a year giving you an income at today’s prices of about £16000 which will be much easier for you. You will not need that investment income.
So what about the time till state pension age assuming you are about 61?
If I were you (and this is just my opinion I hasten to add) I would cut my investments to no more than £35000, and  use the rest in the following way. £10000 to an emergency fund to give me peace of mind and divide the rest into 6 lots to get you to state pension age, about £7000 per year. I base these figures on your earlier posts. That would give you an income of £15500 for next 6 years which is more doable and less stressful. (Pension+2000 of lump sum money + 7000) you could always keep those lots of 7000 as premium bonds until needed. As I said just my idea. Just trying to show you alternatives. Of course you could take on some temporary work. You have lots of combinations and choices so don’t panic or get yourself down.
I know having most of your money in investments may make you feel secure but that shouldn’t be at the price of happiness and well being. And the plan above would still leave you a decent back up and contingency.
Best wishes

[Deleted User]

To add to my previous post you would not be paying tax as £9000 per year until 66/67 would be coming from savings. As I said above just my opinion. Always take advice from those qualified to give it should you feel it necessary.

Gin_and_Milk

Good to see that this thread is up and running again.  Even though I'm 47 with a view retiring at 60 with a DB pension, I still find this thread very informative - and more reassuring, and a lot of the figures on here are similar to mine!

littlemissbossy

Hi all, this is my favourite thread too.

Me and hubby have just seen a financial advisor to do a review and help with pension decisions.

The conclusion was that we need £20,800 pa to live on, this includes all bills, food, spending money, running one car, an American holiday every other year (4 times in total), house repairs and a contingency pot.

Hubby has already retired and I've got about another 18 months left to make it all do-able.

PennyForThem_2

What worries me with this thread is that most of you are couples and relying on a couples' income.  Have any of you thought about when one of you dies?  What then?  Has the survivor got enough to live on?

(Been there, done that which is why I ask this question.)

MovingForwards

@PennyForThem_2 I only budget based on my income and subsequently worked out a retirement for 2 on 1 pension, that way it's not a hardship.

littlemissbossy

PennyForThem_2 said:

What worries me with this thread is that most of you are couples and relying on a couples' income.  Have any of you thought about when one of you dies?  What then?  Has the survivor got enough to live on?

(Been there, done that which is why I ask this question.)

Yes, we have worked that in to our figures, it’s definitely the best way I think. 

Dazza1902

PennyForThem_2 said:

What worries me with this thread is that most of you are couples and relying on a couples' income.  Have any of you thought about when one of you dies?  What then?  Has the survivor got enough to live on?

(Been there, done that which is why I ask this question.)

Unfortunately I am in that position now.
My wife is very ill. After Xmas we will have to sort out possible I'll health retirement etc. I know this will adversely affect retirement plans. It's difficult when your in the middle of it to sit with a calculator and go through the maths.
Short term , with the loss of her income I may have to work harder for longer (small price on my part to pay).
 But I think your right, we avoid contemplating the what if.

Bobinyorkshire

My wife applied for ill health pension within the NHS and was turned down initially, but was successful on appeal. So be persistent if you get any knock backs. Good luck