A Paupers Pension Tale (Not many nuts to dig up)

Albermarle

I have also found that our living costs have been lowered as I have time to look for bargains and shop around. We also have free or cheap hobbies but have still been able to have several lovely holidays and 'mini' breaks. We are certainly not living a life of poverty by any means.

In my first year of retirement, the only thing we have really overspent on is holidays, mini breaks etc.
Not that we had that many, or anything particularly exotic, but the costs have added up higher than expected. Mainly because after Covid/ working for 35 years/ family issues, we did not want to spoil the trips by staying in cheap accommodation (also stayed in a quite a lot of cheapish/mid range hotels over the years for work, so been there and got the T shirt).
Staying in a nice 3* or standard 4*,  or good airbnb, or holiday cottage, in a nice or busy location does work out surprisingly expensive. Probably can not afford to do the same every year unfortunately, although caravans or tents are not on the agenda !

MallyGirl

gambleruk said:

Great to read your comments c'est_moi and also to see that as you say your mindset is very similar to mine.

Off to Manchester later to see The Lemonheads then back there again on Tuesday to see Counting Crows so still getting my live music fix though the difference in the price of the tickets is quite scary, £28 for Lemonheads £70 for Counting Crows and they were bought last year as it has been rescheduled. I think I might have mentioned before that high price gig tickets are going to be a thing of the past for us but Counting Crows in my top 3 bands so exception had to be made even though I have seen them a few times before.

Gigs are a big thing for us too. Tickets are getting pricey but then, for us, there is usually a train fare into London as well. We have based weekend mini breaks around gigs too now we have dog who has been very poorly so we won't put her in kennels anymore- that has stopped the mini break gigs as we couldn't leave her in a holiday cottage or Airbnb.

Daffodil1234

Thanks @gambleruk for this thread - recently came across it.  What a useful contrast to the higher pots / more pricey ways of living that sometimes get mentioned on the forum.  I really like the balanced focus on living a healthy life while still able to enjoy things.   (In my 50s and noticing the usual physical problems starting up...)

Sea_Shell

Morning @gambleruk

I've just been having a quick re-read and catch up with this thread.   (I will bookmark it now!)    I know what you mean about overlapping threads, as we do seem to have a similar outlook on life, money and retirement.

Yes, my pots are a bit bigger, and I did chuckle up thread* at us both being called brave!     Brave or certifiable...one of the two

How are your financials looking in the current climate?    How are your pots holding up, since you started this thread?

You started the thread with a joint "pot" of £180k?   

Your pension pots of £110k, £15k and £10k
Savings of £30k
Wife's pension pot £15k



*Was that this thread or somewhere/someone else, as I can't find it now?   I'm sure we were both mentioned!

Albermarle

Daffodil1234 said:

Thanks @gambleruk for this thread - recently came across it.  What a useful contrast to the higher pots / more pricey ways of living that sometimes get mentioned on the forum.  I really like the balanced focus on living a healthy life while still able to enjoy things.   (In my 50s and noticing the usual physical problems starting up...)

I think you will find that many on this forum with larger pots, are still relatively cautious spenders, which is probably half the reason they have a larger pot!
It is an MSE forum, and the occasional poster who has a free spending lifestyle, are usually just one off visitors.
What you do see is people with large pots being needlessly anxious about retiring and carrying on working 'One More Year' or more. ( like I did  )

harlequinnyc

c'est_moi said:

OP it seems that you and I both have gone down very similar paths!

I 'retired' two years ago - aged 51. I had 4 years left until I could draw on my work pension, so we are also now living on one salary. I was by far the larger earner too, so going down to £1500 a month was scary to say the least. Being mortgage free  makes it much easier to take the plunge.

The plan was to bridge the gaps by drawing on our savings. So far we would have managed without doing that, but we had a very urgent and expensive builders bill which has taken an eye watering 20K out of that pot. I have done some temping work and other bits and pieces and managed to 'pay back' 10K of that.

I have also found that our living costs have been lowered as I have time to look for bargains and shop around. We also have free or cheap hobbies but have still been able to have several lovely holidays and 'mini' breaks. We are certainly not living a life of poverty by any means.

I also had a frugal childhood and I do think it has had a huge impact on my attitude to saving and not wasting money.

I am now well over half way through that 'no man's land' of retirement and pension. When I get there we will be over 1K a month better off. I am still short on my NI contributions and will pay for one year after April - I already have paid some this year through my temp work.

I also have no regrets. I am mentally and physically in much better shape than I was two years ago. I can't pretend I don't read the current news with trepidation, but as I have never put my money into investments that is one worry I don't have - though inflation is clearly eroding at our savings pot.

 

It is nice to read about someone who has found things very much the same as we have.

This could actually have been written by me! Same circumstances exactly (apart from the expensive builders bill, thank goodness).

'Retirement', or as I like to say, becoming a 'house person',  in your early 50's gets a huge thumbs up from me, nearly one year down the line.  I haven't regretted it for a moment, have found I have not used the predicted £100's of savings each month, as I thought I would and I am also grateful to @gambleruk for the comment in the original post; which I now enjoy myself, that I can now stand under a tree, sheltering from the rain with my dog and watch everyone travelling to work on a Monday morning. Priceless  

gambleruk

Sea_Shell said:

Morning @gambleruk

I've just been having a quick re-read and catch up with this thread.   (I will bookmark it now!)    I know what you mean about overlapping threads, as we do seem to have a similar outlook on life, money and retirement.

Yes, my pots are a bit bigger, and I did chuckle up thread* at us both being called brave!     Brave or certifiable...one of the two

How are your financials looking in the current climate?    How are your pots holding up, since you started this thread?

You started the thread with a joint "pot" of £180k?   

Your pension pots of £110k, £15k and £10k
Savings of £30k
Wife's pension pot £15k



*Was that this thread or somewhere/someone else, as I can't find it now?   I'm sure we were both mentioned!

Good morning Sea_Shell, 

My pots are still the same really, one thing I did do is combine all my pensions into one, went with Interactive Investor for the low fees and at the moment it is at £130k in Vanguard Vls80. Like I have said before cannot touch it for another 30 months so makes no difference to me at the moment what the markets do and I am hoping to delay touching it for as long as I can.
Savings is still in premium bonds and still at 30k though am thinking of moving it into a savings account soon, as people do one more year to retirement I am like one more month to see the draw for the premium bonds. My user name probably gives you an insight on why lol. Wifes pension is up to 21k and trying to build that up as much as we can over the next few years.

So my pots are fine really but we have not had a major financial payout yet, eventually the car will need replacing and both our dogs are 8 years old now so I have no doubt they will need something in the future. I have not re read my thread but sure I was hoping to live on £1000 per month, last years figures came out at £1600 per month and think this years will be similar. We have not really cut back on anything though so if for instance the price cap had not happened for the electric then I might have had to look more closely on our outgoings. Paying £6.80 for a pint of ale at the Manchester Ritz did not help last night though we were in a pub nearby beforehand which gave us 25% off drinks and food when we showed our tickets so that certainly helped cushion the blow.

I remember seeing we were both mentioned being brave and thought it was on this thread but might have been elsewhere, I like to think we are just sensible on how we live our lifes and even though we try to plan ahead for the future we are enjoying each day as we go along

amateur_house

Interesting to read this thread and see how you are getting on. I'm hoping to retire early in around 2.5 years, with a very small final salary pension and a small stakeholder pension. I don't know if it's financially possible, so reading the advice and experiences on here will hopefully help me to decide when / whether I can retire

Sea_Shell

"I was hoping to live on £1000 per month, last years figures came out at £1600 per month and think this years will be similar." 


How much if this is covered by your wife's salary and how much are you having to fund if from your savings?


ETA - sorry if I've missed it, but do you not have any other DB pensions coming down the line other than SPs?

Expotter

I've just come across your thread and I think it's great that you seem to have found a life/work balance that makes you happy and suits you both as a couple. I don't intend to criticise or anything ( it's none of my business after all), but isn't it the case that you have just stopped working and are living off your wife's income, rather than retiring as such? Lots of couples live off just one income and don't really see the person not working as retired,
The only reason I'm saying this is that I don't think that at your level of assets (pensions, savings, etc.) it would be possible for most people to bridge the 17 years or so until state pension and when people plan early retirement they'd probably need a larger pot. Maybe I'm wrong, but I understand retirement as not having to live off a paid employment and instead living off whatever accumulated assets you may have, which is not exactly your situation.
Sorry if it all sounds a bit pedantic, I just think we all need to be realistic in our plans and your tale is not really a pension's tale, just a different lifestyle's tale.