How much to live on

[Deleted User]

RetSol said:

Peace of mind far greater benefit to me than always maximising financial returns.

Trying to optimise returns can be fun!

Admittedly, it is more fun if one has the luxury of being able to regard it as a fringe activity rather than as critical to one's financial survival. 

All this may be true but I think discussion of investing and mortgages in detail is best dealt with elsewhere. The usefulness of this thread is its focus on the simple question 'How much to live on'. Mortgage costs can be part of that but that's it. Of course this is just my opinion, but I think we need to keep to subject.

luvchocolate

[Deleted User] said:

RetSol said:

Peace of mind far greater benefit to me than always maximising financial returns.

Trying to optimise returns can be fun!

Admittedly, it is more fun if one has the luxury of being able to regard it as a fringe activity rather than as critical to one's financial survival. 

All this may be true but I think discussion of investing and mortgages in detail is best dealt with elsewhere. The usefulness of this thread is its focus on the simple question 'How much to live on'. Mortgage costs can be part of that but that's it. Of course this is just my opinion, but I think we need to keep to subject.

Definitely agree let's please keep this thread on track...the pension and mortgage board are better suited to recent posts. 
I've been meaning to post my situation and will try to post tomorrow!

cbsexec

This thread is drifting back to “big number” pension discussions rather than “ how much to live on” which seemed more in touch with those of us with smaller pension pots or even just state pension.  Please get back to basics it’s really helpful. 

MovingForwards

I've decided to retire at 58, it gives me 12 years to save, clear the mortgage / buy a new home and clear the mortgage, whilst building up my pension fund. Provided there's no changes to NI requirements, I'll have a full record in under 8 years.

I'm aiming for £100k cash and the same across my pensions. 

£6k per year is all I need, based on current numbers and if I do move, my numbers shouldn't increase much.

moving_forward

Is that 6K a year to live on @MovingForwards or to save towards retirement goal

MovingForwards

moving_forward said:

Is that 6K a year to live on @MovingForwards or to save towards retirement goal

It's what I will need per year to run my current lifestyle, but without the mortgage and money I'm saving for retirement.

moving_forward

That's a fantastic amount to be able to live on. We (2 adults) use approx £22k a year if you exclude debt and mortgage. Pension contributions come off pre take home pay. We are working reducing over spending, some spending like transport costs won't be there when we retire but higher energy prices will probally eat those up.
Of course we will use some of the debt and mortgage money to fund capital expenditure when they are paid off.
We hope to have enough to either retire one of us or both part time in about the same time frame as you.

henry24

How is it possible to live your life on only £6000?

luvchocolate

Hi  my state pension was due at 62 before the new pension came into place. I deferred for 2 years and took the higher pension.
I put my name down on a lovely over 55s housing association property luckily both happened within 2 months. So a good saving  on private renting.
Monthly income. State pension £8900 works pensions £275 plus£200 winter fuel allowance. So app.£14,180 per year
I no longer run a car due to living close to town centre 

Usual outgoings....rent council tax..water meter..gas central heating Internet,mobile. I eat well meet friends for coffee/lunch. 
Visit 2 young Grandchildren every 2 weeks 70 miles away on train using senior railcard. 
Obviously pay a small amount of tax, but I'm absolutely fine and no problem 
Works pensions lump sums took care of moving and bought new furniture etc. Funeral and power of attorney done and paid and enough in savings to feel safe. 

moving_forward

Lovely to hear your doing well @luvchocolate .
Our outgoings reduced when we moved to a smaller property. We may look at an over 55s place when we nearing retirement as I think they are a good idea at maximising your independence years. Ours would probably be private though so costs of ground rent and service charges would have to be considered.