How much to live on

runningromani

I’m on day 4 of early retirement at 55, as a retirement gift I managed to contract COVID-19, which my wife is now delighted to have as well 🤨 (We’re doing ok now but felt grim first few days) anyway, aside from that all of the rising costs did get me in a bit of tailspin about are we doing the right thing and about managing going forwards. My figures are earlier in this thread but on balance we’ve accepted we will have less available spends but it’s worth it for not working (stressful job) at least for now. We reasoned that a temporary contract or part time work in less stressful roles was an option but not at least until winter - we need a break after 2 awful years. All that said we are so soon into this we haven’t adapted yet so to speak to feel any impact. I built some extra money in for first 6 months as a buffer and for us it’s getting used to spending savings rather than adding to them. I do like this thread as it’s very helpful and friendly so am happy to share some thoughts over the coming months as I’m a great reflector! And if it helps anyone a little that’s great. 

drummersdale

Hi @runningromani good to hear from you again now you’ve officially retired - sorry to hear you and your wife got the dreaded Covid but good that it was a mild dose. You were retiring 4 years than me so that will have impacted on your actuarial reduction - I hope your figures where what you expected from My CSP.  I’m waiting for mine to see if they add up….although I’ll still be working 2.5 days a week so not as much of a shock to
the system as it will have been for the 2 of you.

runningromani

Hi @drummersdale the figures were almost identical to the pension calculator on the MyCSP page. Just feels like I’m on annual leave at the moment which essentially I am until 30 Apr pension kicks in 1 May 🤞hope all ok with you 👍

drummersdale

That’s good to hear @runningromani!  You might be in for a bumper increase next April if inflation is still high in September when they determine the CPI rate! 

Kim1965

[Deleted User] said:

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?

At 60 i pick up about 8 possibly9k db inflation linked pension, no point in deferring. 
Providing no market crash, probably at 60 i coukd have 200k plus in dc pension. 
 From 60 with pt work i could be ok on 20k. I am not adverse to drawing the natural income (7k pa) from the investments. I would like to leave my kids an inheritance and a property, something I will not get. 
 I think in times of high inflation, db pension income like the tps is so valuable. 

[Deleted User]

Kim1965 looking at those figures by 60 you should ok. You could take £11000 a year from your DC until SP. That with your DB pension would give you £20000 a year.  From SP age onwards 9000DB, 9500 SP and say £4800 a year from your DC giving you over £23000 per annum. Lots of other permutations available, You could  also use the the tax free element of your DC fund to establish a back up emergency fund or perhaps your DB  scheme pays a lump sum too.

I can understand you may want to leave something to your children, but you have a life to live too. Surely leaving them a house is enough.

moving_forward

				Month total		Annual total
Housing payments				£        196.00		£     2,352.00
	Council Tax		£        113.00
	Windows		£          12.00
	Home Insurance		£          14.00
	Household Goods		£          50.00
	Home Maintenance		£            7.00
Groceries				£        500.00		£     6,000.00
Transport				£        412.00		£     4,944.00
	Fuel		£        150.00
	Train fare		£          47.00
	RAC		£            6.00
	Car Insurance		£          30.00
	Car Care		£          79.00
	New Car		£        100.00
Utilities				£        271.00		£     3,252.00
	Internet		£          24.00
	Gas & Electric		£        165.00
	Water		£          32.00
	TV Licence		£          14.00
	Giffgaff		£          16.00
	Software subscriptions		£          20.00
Recreation and leisure				£        438.00		£     5,256.00
	Alcohol		£        100.00
	Fast-food		£                 -
	Misc		£          50.00
	Her Personal Spends		£          90.00
	His Personal Spends		£          90.00
	Disney Plus / Netflix		£            8.00
	Prime		£          10.00
	Holiday spending		£          90.00
Charity gifts/donations				£          65.00		£        780.00
Health & Beauty				£        122.00		£     1,464.00
	Adhock meds		£          15.00
	NHS Prepayment		£          11.00
	Hair & Beauty		£          20.00
	Dental		£          23.00
	Opticians		£          53.00
Buying new clothes				£          60.00		£        720.00
Pets				£          70.00		£        840.00
	Food		£          45.00
	Other		£          25.00
					£  25,608.00

Apologies, I have spent ages trying to format this so it doesnt fill up a page but this is the best I got without typing it all out again!

I have excluded debt payments and mortgage as these will not be payable in retirement.  This is our current payments but home maintenance will increase once debt paid.

jevbanx1

Hello. I have been lurking for some time, reading the thread with great interest. I had started reading another thread in the pensions section but the figures discussed there were and are unobtainable for me. 
I am retiring this year. I'm on my own with a little cat for company. I'm 64 in August with my last working day being 31/8. My projected pension will be almost £12000 per annum with me choosing to take the largest lump sum I can that I intend to draw down from each month until my SP kicks in at 66. I have no debts. My house is paid off. I have all the usual outgoings but had a bit of a wobble when the utilities shot up recently. I was once more thinking I'd work ' just one more year', but cannot face it, so my papers are in and I'm looking forward now to August with a mixture of trepidation and positive anticipation. 
Thanks
Jan 

moving_forward

I think we all had a wobble with the utilities working, retied or otherwise!
We have a while to go but we are planning on living on what we hope to retire on and saving the rest once debt paid off. This will give us a good few years "practice".

Kim1965

moving_forward said:

I think we all had a wobble with the utilities working, retied or otherwise!
We have a while to go but we are planning on living on what we hope to retire on and saving the rest once debt paid off. This will give us a good few years "practice".

Thats for two. V detailed breakdown. Im likely to be on my own in retirement, council tax higher than yours even with the single person discount, only band c. Alcohol probabky the same.. Lol
 Certainly less on groceries, pets. 
Whats the £400 fir tansport?? Is that car purchase?