Enjoy life while you can.

MK62

Thrugelmir said:

Happiness doesn't revolve around money.

.......but unhappiness often does!

Not necessarily around here so much, but in general, there is an army of people marching into old age with very little - often (though not always, of course) the result of a spend, spend, spend attitude to life.

Fair enough, you can't take it with you, but, assuming you are in a position to do so, you should balance today and tomorrow.......one shouldn't be at the expense of the other.

True, it's then possible, perhaps even likely, that you might die with money......but imho, that's better than risking living your last years in poverty.

MallyGirl

pensionpawn said:
I'm conscious that my father told me when he retired at 65 that he came into the good money when he was just becoming too old to enjoy it. I don't want that to happen to me and my wife.

The difference is that people in the previous generation or 2 would have had much harder lives than we do with the war and following hardships and then fewer of the gadgets and inventions that make so many everyday things easier. By 65 they were knackered. I don't believe I will be although I am aiming for 58 as i think we will have enough in the pots by then. Touch wood I will be able to do the things I enjoy for a good couple of decades after that, adapting as different things start to appeal.

savingmore

interesting thread.   How much do people feel is a good retirement pot? level of income? I know there are other threads on that but interested in folks views here.  still deciding/balancing whether we are good to go now or not,  a couple of years before sp...

pensionpawn

MallyGirl said:

pensionpawn said:
I'm conscious that my father told me when he retired at 65 that he came into the good money when he was just becoming too old to enjoy it. I don't want that to happen to me and my wife.

The difference is that people in the previous generation or 2 would have had much harder lives than we do with the war and following hardships and then fewer of the gadgets and inventions that make so many everyday things easier. By 65 they were knackered. I don't believe I will be although I am aiming for 58 as i think we will have enough in the pots by then. Touch wood I will be able to do the things I enjoy for a good couple of decades after that, adapting as different things start to appeal.

This is true, although my father was fond of buying new labour saving devices when they came to market. Also to slightly amend  my initial comment it's not just the older generation, it can be younger people who grew up in more recent and / or similar austere times / environments. A dear friend at work (wife, two kids early teens) has more than one house and plenty of fiscal reserves however his main (nice detached though > 100 years old) residence is coal fire heated, insists on driving a old second hand car because it's cheap though needs repairing now and then. He's a very generous man (but fiscally hard on himself) who will be first to buy a round in the pub (remember those...) though is proud of the money that he's saving on the house and car. I ask him what he's planning on doing with the money that he's saving (not to spend in the future) and I just pull his leg by reminding him that a £ coin only has value during it's movement from one owner to another. His answer is that it will be there for his kids. Although I've been brave enough to suggest that he should spoil the kids (and his wife!) within reason now I've stopped short of hinting of the potentially regret his (grown) children may have that they couldn't enjoy life more with their parents when they were young. Looking in from outside the family it does seem sad on occasion that, for example, his wife has to drive the kids around in a beaten up 4x4 (often in for repair) when he could easily afford not one, but two new cars. Horses for course and not my place to suggest to him otherwise.

pensionpawn

savingmore said:

interesting thread.   How much do people feel is a good retirement pot? level of income? I know there are other threads on that but interested in folks views here.  still deciding/balancing whether we are good to go now or not,  a couple of years before sp...

Look at your current outgoings after you have removed all costs for bringing up kids (if you have / plan to have any), life assurances, mortgage repayments (if you plan to be mortgage free), pension contributions. Then add on extras for what you'll want to do more of in retirement that you don't do now. I'm aiming at generating pots large enough for me and my wife to drawdown our personal allowance each, so a minimum of £25k pa tax free. This can be nudged slightly higher (tax free). Unless you're used to a very extravagant life style now that should be a good starting position to aim for.

barnstar2077

pensionpawn said:

MallyGirl said:

pensionpawn said:
I'm conscious that my father told me when he retired at 65 that he came into the good money when he was just becoming too old to enjoy it. I don't want that to happen to me and my wife.

The difference is that people in the previous generation or 2 would have had much harder lives than we do with the war and following hardships and then fewer of the gadgets and inventions that make so many everyday things easier. By 65 they were knackered. I don't believe I will be although I am aiming for 58 as i think we will have enough in the pots by then. Touch wood I will be able to do the things I enjoy for a good couple of decades after that, adapting as different things start to appeal.

This is true, although my father was fond of buying new labour saving devices when they came to market. Also to slightly amend  my initial comment it's not just the older generation, it can be younger people who grew up in more recent and / or similar austere times / environments. A dear friend at work (wife, two kids early teens) has more than one house and plenty of fiscal reserves however his main (nice detached though > 100 years old) residence is coal fire heated, insists on driving a old second hand car because it's cheap though needs repairing now and then. He's a very generous man (but fiscally hard on himself) who will be first to buy a round in the pub (remember those...) though is proud of the money that he's saving on the house and car. I ask him what he's planning on doing with the money that he's saving (not to spend in the future) and I just pull his leg by reminding him that a £ coin only has value during it's movement from one owner to another. His answer is that it will be there for his kids. Although I've been brave enough to suggest that he should spoil the kids (and his wife!) within reason now I've stopped short of hinting of the potentially regret his (grown) children may have that they couldn't enjoy life more with their parents when they were young. Looking in from outside the family it does seem sad on occasion that, for example, his wife has to drive the kids around in a beaten up 4x4 (often in for repair) when he could easily afford not one, but two new cars. Horses for course and not my place to suggest to him otherwise.

On a slight tangent, but about odd habits.  I know a guy who does soul destroying menial work, being ordered around for £22k a year with no sick pay, who owns eight properties.  When asked why he does it he says "I have always worked."  People is mad!

I understand wanting to keep busy, but at least work for yourself.  Madness.

Albermarle

savingmore said:

interesting thread.   How much do people feel is a good retirement pot? level of income? I know there are other threads on that but interested in folks views here.  still deciding/balancing whether we are good to go now or not,  a couple of years before sp...

This is quite interesting Retirement living standards | Loughborough University (lboro.ac.uk)
There is also a similar Which report.

MK62

pensionpawn said:

savingmore said:

interesting thread.   How much do people feel is a good retirement pot? level of income? I know there are other threads on that but interested in folks views here.  still deciding/balancing whether we are good to go now or not,  a couple of years before sp...

 I'm aiming at generating pots large enough for me and my wife to drawdown our personal allowance each, so a minimum of £25k pa tax free. This can be nudged slightly higher (tax free).

Ooohhh.....do tell.....can't leave that sort of nugget on the table without expanding on it......

hugheskevi

savingmore said:

interesting thread.   How much do people feel is a good retirement pot? level of income? I know there are other threads on that but interested in folks views here.  still deciding/balancing whether we are good to go now or not,  a couple of years before sp...

The starting point for us is our spending excluding pension, mortgage, ISA, etc, which is around £30,000 as couple living in London. Our retirement will be in rural Wales.

Planning to very retire very early gives plenty of flexibility. For our income as a couple I would be unhappy with anything below £30,000. Our large additional costs will be council tax and purchasing class 3 NICs - which adds £3,000 p/a. I think everything else will broadly even itself out (lower costs generally but having pets and a lot more free time), so £33,000 should be fine. In practice, I'm targeting around £40,000 p/a which will increase to £50,000 p/a at age 58.

An interesting question I looked at recently was the income level I should arrange for the survivor of whomever dies first. If I did nothing, my wife's net income would be 60% of the net amount we would have been receiving as a couple if I pre-decease her, and I would have 63% of couple income if she dies before me. Personally I decided I want this to be 70%-75%, and fortunately our DB scheme permits exchange of pension in return for enhanced survivor benefits so we can arrange for whatever level of survivor benefits we see fit.

So in the long run (post 58) our income as a couple will be £50K p/a, reducing to £37,500 upon the death of either of us. That works out as a replacement rate of about 38% (gross pension income divided by gross salary) which is a bit low, but I'm nonetheless very comfortable with that given our consumption level at the moment.

blisteringblue

savingmore said:

interesting thread.   How much do people feel is a good retirement pot? level of income? I know there are other threads on that but interested in folks views here.  still deciding/balancing whether we are good to go now or not,  a couple of years before sp...

There are plenty of "wad" comparing threads on this board and I like that this is more about people thoughts about money not actual discussions of "how much have you got".
Pots are relative.  Personally I had a monthly figure in my mind and I can pay myself that comfortably until I am about 87 years old (there is a brilliant google spreadsheet that has appeared on the board for working this out).   When I will still have full state pension and a couple of small DBs.    At 87 years old I probably won't care where I am sat in my pants saying "wibble".   As I said earlier I am currently 53 and start my retirement journey in exactly 7 weeks. 

Update: Grr this new forum interface blows chunks.  I tried to link to the spreadsheet but apparently that is not allowed now.   Well remove the functionality then     Here is a link to the website then  https://whatapalaver.co.uk/retirement-planning-couples