This is money, how much you need in retirement

2nd_time_buyer

Deleted_User said:

The psychology behind inheritance also has to do with the desire to be looked after by your kids in your old age. And vanity. 

Yes, there is a lot in that. 

I am coming round to thinking that the two biggest things we can do to reduce our environmental impact are

1) spend as little as possible (earn less and/or retire young)
2) don't leave inheritance

In any case, it is a good argument for my lack of ambition and success.

Mick70

Mick70 said:

my workings are

ok pension -   single person £15kpa  ,  couple  £28k pa

good pension  -   single person  £22k pa ,   couple  £40k pa

I realise these would need to increase annually, say 2%

Madrick

Mick70 said:

Mick70 said:

my workings are

ok pension -   single person £15kpa  ,  couple  £28k pa

good pension  -   single person  £22k pa ,   couple  £40k pa

I realise these would need to increase annually, say 2%

And just to clarify (as I can be a bit thick sometimes) 
It's adding for example 2% to a person's annual requirement (Number) which is where the allowance is made for annual inflation? 

MK62

Whilst I accept that it may not be this way for everyone, my workings are, that for us, the "survivor" would need a lot more than just over half the joint income.....probably around 3/4s, to maintain a similar lifestyle.......while some things would halve (discretionary spending, food, clothes etc), some would drop a bit (eg holidays, certain household bills), some would stay pretty much the same (cars, other household bills etc), and some might even go up (eg house maintenance etc, esp if I go first).

Malthusian

Deleted_User said:

The psychology behind inheritance also has to do with the desire to be looked after by your kids in your old age. And vanity. 

Inheritance is an incentive to not look after your parents so they shove off the mortal coil and give you the money.

The psychology behind inheritance is simple. People like their kids (and remoter issue), people value their kids' happiness, and their comes a point at which people gain more value from seeing their kids enjoy their money than spending it on themselves (especially as they become more set in their ways).

If you're reducing familial love to vanity then each to their own. What you can't do is reduce inheritance to self-interest, because a purely self-interested child would bundle their frail and ailing parent into the attic and starve them.

Regardless, someone lamenting that that they can’t afford to pay for their daughters’ assets and therefore need an even larger subsidy from the taxpayers’ is the wrong philosophy.

Definitely no argument there. However most people helping their kids with house purchase aren't going to be getting any subsidy from the taxpayer in respect to care costs because they have their own means. It is unlikely Boris' grand design will change anything in that regard as most people will die before they reach the cap.

will-he-payitoff

Well this seems to have gone off topic since I posted it. I currently live comfortably on £13000 net per year.

Gin_and_Milk

will-he-payitoff said:

Well this seems to have gone off topic since I posted it. I currently live comfortably on £13000 net per year.

Does that allow for any treats?  It seems a very tight budget to me, but it's obviously possible if you're managing it.

will-he-payitoff

We have 3 holiday abroad per year and run 2 small cars, eat out twice a week, house paid off and no dependant kids

jimi_man

will-he-payitoff said:

We have 3 holiday abroad per year and run 2 small cars, eat out twice a week, house paid off and no dependant kids

Now that's seriously impressive. Would you mind giving a breakdown of your costs - I'd certainly be interested.

Albermarle

jimi_man said:

will-he-payitoff said:

We have 3 holiday abroad per year and run 2 small cars, eat out twice a week, house paid off and no dependant kids

Now that's seriously impressive. Would you mind giving a breakdown of your costs - I'd certainly be interested.

Yes would be interesting to see a breakdown.
I go on one short holiday abroad ( in fact not the last two years ) and one short UK holiday each year. Run two medium sized cars , very rarely eat out , although like a drink at home. House paid off and one dependant family member .
My expenditure is around triple of the £13K mentioned............