How much to live on

[Deleted User]

Hopefully will hear from more of you soon. We keep this thread going with regular input. 

moving_forward

Welcome back BD. Happy Easter 🐇
Your plans sound great. We are in the process of working out the new budget with so many changes.
April's N.I. increase has been wiped out by Mr M_F's payrise. The balance of which after a small increase to his pension will go towards debt. I have nominally increased the groceries budget by £25 to £500 which although high for two people has to include dietary requirements and skin issues so expensive toiletries but hey ho. July's N.I. Inc will also go to debt paydown. Come October's possible energy increase 😱 we shall be able to reduce the debt overpayment to cover. 
We are so grateful we got our heads screwed on about debt before all this cost of living crisis as changes made have already come to fruition.
I shall be back later with our estimated budget from August.

MovingForwards

Great to see you back @[Deleted User] cruises are definitely on my retirement list, there's a few places I want to see. 

There's not much going on with my plans:

I paid my car off last month and my current account is on the verge of crying as it waits to be fed.

I'm still toying with the idea of moving, yet it's tempting to stay and be mortgage free. I've not finished dealing with the estate therefore it's all hot air thinking.

Early retirement, or not working FT, is still very much a must and I've 12 years to get money together to fund the 10 year gap. The idea is to use some of my SIPP / savings from 58, the rest of my SIPP, pensions and savings will remain in place until SPA kicks in and fund the lifestyle I'm planning.

Kim1965

"Cost of living crisis" has put 2k a year on my required number. Still on course for part time retirement in 2.5 yrs at 60.
We have not heard much regarding rising prices on this thread, the average energy bills set to reack 3 k pa. This MUST be changing some fols plans?

Daffodil1234

Interesting question from Kim about cost of living, and noticed Baron Dale's comment about an extra £80 pcm on bills.  I've been wondering whether the rising bills will delay my provisional assumption for retirement in around 3.5 years.  Very hard to judge so far as I'm on a fixed deal for gas and electricity which runs through till August 2023 (clearly this means there will be a huge jump in August 23 but hard to know to what amount).  So I haven't definitely changed retirement plans as yet, but I am open to the possibility of having to do so.......  or maybe rather than both of us (self plus spouse) retiring, perhaps one continues working for a bit longer.

[Deleted User]

Kim1965 said:

"Cost of living crisis" has put 2k a year on my required number. Still on course for part time retirement in 2.5 yrs at 60.
We have not heard much regarding rising prices on this thread, the average energy bills set to reack 3 k pa. This MUST be changing some fols plans?

Whilst I fully accept that prices are rising I personally do not feel that I am ‘in crisis’. Grocery shop has gone up but I look more carefully for offers. I mainly shop in Sainsburys. I believe our energy bill will rise about £800 a year at worse, to to about £2200 per annum I have adjusted the budget accordingly. I may save a little less until July 2024 when  SP becomes payable.

Not travelling for 4 years means I have more savings than estimated. To be honest being nearly 64 I am not going to put off things I want  to do without a very good reason. 

I fully appreciate I am in a good position compared to some, but I have worked part time for nearly 6 years since taking my occupational pension to ensure I would be ok.
To be honest I would downsize to a small bungalow or apartment if that meant I could do the things I want to do before departing this world. My savings are there to use during retirement and that’s what I intend to do.

KIm1965 I do not know your full circumstances but I would caution against the ‘one more year syndrome’. Have a careful look at your budget. Do you really need another £2000 a year. Maybe look at the news and media more objectively. You know how the newspapers love a crisis! Remember peace of mind and quality of life are important. Continue to make plans but take time to realise them too.

MovingForwards

Kim1965
Projecting as if I was of SPA, with only full SP at £9627.80pa, the mortgage paid off and internal upgrades done as originally planned, it wouldn't make too much of a difference to me.

My (our) bills, food, running a car and lifestyle would still come in at approx £585pm for 10 months and £451 for 2 months; £6752 per year.

Leaving me £2875.80 per year for a bi-annual cruise, home repairs, replacing broken goods etc.

drummersdale

I have clicked the button and am looking to start partial retirement from the civil service around the beginning of August. I will be looking to do 2.5 days a week so if I have done my calculations correctly I will get around £24k pension per annum plus around £26,500 from part time working until my wife decides she’s had enough - but she’s 5 years younger than me. I’m working on the basis that no NI on pension plus lower contributions all around should mean I am broadly on the same each month but for working 2.5 days a week less - which dues seem too good to be true. Plus if I am right in that CS pensions don’t have a cap on CPI increases then I expect next years (based on the rate in September this year) will be significantly greater than what any CS pay rise might be. Just waiting for my quote from My CSP to see if my calculations are correct - fingers crossed!

Kim1965

I dont think i can fully retire until spa. Baron dale, your close enough to spa, drummersdale has stable pt employment.
 Many contributors to this thread are talking sub 12 k for a singke retiree, 20k for a couple. A rise of 1k+ energy rise is more significant for marginal retirees. Inflation at 7%.
 I have relatively low costs, mf, but have 9 yrs to sp. So i could go now and be a marginal retiree. Each additional year of saving/not spending makes dramatic difference to my finances. Each year delay puts 2k a yr on my retirement income. Retiring on the breadline at this particular time would be an uncomfortable decision for me.
 Im intetested what those folk who have retired without much leeway are thinking? 

[Deleted User]

Kim1965 Thank you for the information. Perhaps you should aim for 60 assuming that are you 58 now and you SP age is 67. Two years to plan and make provision. Do you have a reasonable back amount in the bank? I know reasonable could depend on individuals but could I suggest £20000? What would your pension income be at 60?