How much to live on

203846930

It really is a bargain if you have the means to take advantage of it.

That covers it well.
I would hate to dip into my savings then not have enough left if I needed something big.
I did spend a lot of time looking into everything and decided what to do with the answers that I got. My projected AOP will be more than enough without having to top it up and may even be enough so that I can cut back on my drawdown to make that last longer.

thriftylynny

What a refreshing read this thread is & just what i need at exactly the right time as i too have been lurking (big time !!) on the pensions board ! I thought i was doing as well as i possibly can at 61 until I ventured into the land of some impressive investment/pension choices ...in defense however they do seem a clever bunch & i have learnt quite a bit even though i'm in the little league? I retired early at 58 & manage okay on £6120 pa pension plus i had a 13k lump sum which i portion out to give a little extra until i reach SP in about 4 years time eg @ 2k pa . I am MF & downsized at same time i left work & invested the residual left from sale of house , my investment choice 4 years ago was not a good one however & has not achieved what i wanted it to do , it hasn't lost but just crept along providing a little extra which i draw on annually as a top up (around 3k) So all in i have around 11k a year, not anywhere near luxurious, but manage perfectly well , 2 of us, but that's another story i'm afraid !.

RetSol

thriftylynny said:

What a refreshing read this thread is & just what i need at exactly the right time as i too have been lurking (big time !!) on the pensions board ! I thought i was doing as well as i possibly can at 61 until I ventured into the land of some impressive investment/pension choices ...in defense however they do seem a clever bunch & i have learnt quite a bit even though i'm in the little league? I retired early at 58 & manage okay on £6120 pa pension plus i had a 13k lump sum which i portion out to give a little extra until i reach SP in about 4 years time eg @ 2k pa . I am MF & downsized at same time i left work & invested the residual left from sale of house , my investment choice 4 years ago was not a good one however & has not achieved what i wanted it to do , it hasn't lost but just crept along providing a little extra which i draw on annually as a top up (around 3k) So all in i have around 11k a year, not anywhere near luxurious, but manage perfectly well , 2 of us, but that's another story i'm afraid !.

Thank you, @thriftylynny.  Another inspirational story!
FWIW, I think that there is a lot to be said for an investment which does not lose value but creeps along.  Maybe not such a bad choice, if it's allowing you sufficient extra income for your needs.
I am wrestling with whether or not to downsize at the moment. 

thriftylynny

The only drawback i had from downsizing RetSol was that i moved from a very expensive area { not a posh house ! ) i had already paid off the mortgage but had no savings at all , hence the reason to downsize to free up some to use as my investment income . I moved about 25 miles away to a much cheaper & rural area .I know it's horses for courses & all that but i really shouldn't have looked on Rightmove to discover that my former home had sold recently for a hell of a lot more than i sold for , working out at an increase of 30k per year over 4 years(120k) .... so maybe i shouldn't have moved away but downsized within same area instead esp as i was already MF ? . House i moved to has increased in value around 25 k overall, over the same period, , ..but ah well should just feel grateful for what i have now , life's far too short & obviously i've spent far too long on the making money threads !!

[Deleted User]

Don't waste precious time with the 'if onlys' thriftylynny! The main thing is you are mortgage free in a nice rural location. You have investment funds that generate some £3000 (so I guess about £85000) and when you get your state pension an annual income of about £18500 a year.  (6210+3000+9300) That's not bad at all! You may even be able to use some of that investment money for treats and holidays, as you may not need that £3000 a year from them in full. You will be fine.

SandyShores

thriftylynny said:

.... i really shouldn't have looked on Rightmove to discover that my former home had sold recently for a hell of a lot more than i sold for ....

Hi thrifylnny I second what Barondale says about not wasting time on the 'if onlys'.  I should know 'cos I've wasted a lot of time on it and can guarantee its not worth it.  As long as we have a nice home and enough to live on and of course our health, the rest is a bonus   That's what I try to tell myself when I'm tempted to torture myself over past decisions

Savvy_Sue

Silvertabby said:

duncanthedog said:

[Deleted User] said:

duncanthedog, if you have another 4 years until you are 66 why not pay voluntary contributions for the next 4 years. That will increase your state pension by about £20 a week index linked for life. Just under 3 years to beak even. A very good deal.

I have shown you my budget, see if you can find the money to get me an extra £20 a week out of it and I will give it a go.

£20 per week is the return, not the expenditure.  Yes, it sounds a lot, and you would have to dib into savings - but the returns could be better than anything else available at the moment.

I, too, can buy 4 years of post 2016 NI conts.  I've already bought 2 years, and will buy 2 more before April.

In (very) round figures, each year costs a one-off payment of £750 in return for another £5 per week index linked State pension for life.
As a basic rate taxpayer I will get my money back after just 4 years.  3 years for a non tax payer.

It really is a bargain if you have the means to take advantage of it.

The thing is, you don't have to buy all four years at once. There's a limit to when you can buy them, and I'm afraid I don't know if buying LESS than 4 years would do you any good (but I bet someone here does ...) or whether it's 4 or nothing? 

I did something similar when I was self-employed and not earning enough to pay National Insurance. When I was expecting DS2 and then DS3, I paid for the relevant years so that I could claim Maternity Allowance. It was a no-brainer, can't remember the figures but I was quids in ... and of course it's reduced the number of years I needed later, although I believe I have a full house (and yes, I have checked that!)

Silvertabby

Savvy_Sue said:

Silvertabby said:

duncanthedog said:

[Deleted User] said:

duncanthedog, if you have another 4 years until you are 66 why not pay voluntary contributions for the next 4 years. That will increase your state pension by about £20 a week index linked for life. Just under 3 years to beak even. A very good deal.

I have shown you my budget, see if you can find the money to get me an extra £20 a week out of it and I will give it a go.

£20 per week is the return, not the expenditure.  Yes, it sounds a lot, and you would have to dib into savings - but the returns could be better than anything else available at the moment.

I, too, can buy 4 years of post 2016 NI conts.  I've already bought 2 years, and will buy 2 more before April.

In (very) round figures, each year costs a one-off payment of £750 in return for another £5 per week index linked State pension for life.
As a basic rate taxpayer I will get my money back after just 4 years.  3 years for a non tax payer.

It really is a bargain if you have the means to take advantage of it.

The thing is, you don't have to buy all four years at once. There's a limit to when you can buy them, and I'm afraid I don't know if buying LESS than 4 years would do you any good (but I bet someone here does ...) or whether it's 4 or nothing? 

I did something similar when I was self-employed and not earning enough to pay National Insurance. When I was expecting DS2 and then DS3, I paid for the relevant years so that I could claim Maternity Allowance. It was a no-brainer, can't remember the figures but I was quids in ... and of course it's reduced the number of years I needed later, although I believe I have a full house (and yes, I have checked that!)

I'm buying my 4 years in 2 lumps of 2, at roughly £1,500 each time.  I could buy 1, 2, 3 or 4 years - the choice is mine.  Each year adds £5 per week State pension for the rest of my life.  I could also pay in monthly instalments if I wanted to.

Yes, it's a no-brainer - as long as you have £3K to spare.

triplea35

Could also consider turning a hobby/interest into a small business and becoming self employed, Does not require a large turnover or indeed even a profit but NI contributions qualifying for SP are only £160pa. I intend to keep my self employment up in a very reduced capacity for next two years until SPA as I was contracted out for most of my earlier career.  I will not reach full SP but as stated earlier each year post 2016 increases pension by £5 a week.

thriftylynny

Thank you Baron_Dale & Savvy_Sue , you are both perfectly right ..from now on i am going to look at what i have achieved (positives) rather than the 'if only's' (negatives). Feel much better after your comments i have to say ! I also managed to give my daughter a leg up onto the property market when i downsized so another thing to be proud of plus an ISA value set aside for my son at some future date ..then that's it no more Bank of Mum !! Your figures are indeed spot on Baron_Dale & all being well of course my intention is to have a couple of nice holidays a year once SP kicks in ...eventually that is . Until then i will admit that i actually really enjoy a simpler life & the challenges it brings !!