How much to keep in rainy day savings during retirement?

blueandgreenpoppy

@DairyQueen Thank you, that's very useful.


Our capital spends will be less than yours, but your formula makes absolute sense.

Thrugelmir

Albermarle said:

blueandgreenpoppy said:

MEM62 said:

I have a DC pension so will be keeping circa 12-months living expenses in a slush fund.  This is primarily to prevent us drawing money down during a market slump.  

The pandemic really brought home to me how important that is if you rely on stock market investment for pensions.

We are so lucky to have DB schemes.

Things like the Pandemic are actually not that relevant as in fact markets are now above where they were before the pandemic. In the last ten years people with DC pots have seen some big rises in value .

The pandemic is extremely relevant. As there's a mounting bill that every taxpayer will be contributing to in the future. 

Likewise corporation tax is being discussed at a global level for good reason. There's a common cause that has brought thinking into line. 

cfw1994

Thrugelmir said:

Albermarle said:

blueandgreenpoppy said:

MEM62 said:

I have a DC pension so will be keeping circa 12-months living expenses in a slush fund.  This is primarily to prevent us drawing money down during a market slump.  

The pandemic really brought home to me how important that is if you rely on stock market investment for pensions.

We are so lucky to have DB schemes.

Things like the Pandemic are actually not that relevant as in fact markets are now above where they were before the pandemic. In the last ten years people with DC pots have seen some big rises in value .

The pandemic is extremely relevant. As there's a mounting bill that every taxpayer will be contributing to in the future. 

Likewise corporation tax is being discussed at a global level for good reason. There's a common cause that has brought thinking into line. 

The Second World War brought a mounting tax bill that took decades to pay…doesn’t mean markets won’t continue to broadly rise.  With some falls, as always….

I’m reminded that a pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty…..😉

Thrugelmir

cfw1994 said:

Thrugelmir said:

Albermarle said:

blueandgreenpoppy said:

MEM62 said:

I have a DC pension so will be keeping circa 12-months living expenses in a slush fund.  This is primarily to prevent us drawing money down during a market slump.  

The pandemic really brought home to me how important that is if you rely on stock market investment for pensions.

We are so lucky to have DB schemes.

Things like the Pandemic are actually not that relevant as in fact markets are now above where they were before the pandemic. In the last ten years people with DC pots have seen some big rises in value .

The pandemic is extremely relevant. As there's a mounting bill that every taxpayer will be contributing to in the future. 

Likewise corporation tax is being discussed at a global level for good reason. There's a common cause that has brought thinking into line. 

The Second World War brought a mounting tax bill that took decades to pay…doesn’t mean markets won’t continue to broadly rise.  With some falls, as always….

I’m reminded that a pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty…..😉

I'm reminded of the quote.

 “You get recessions, you have stock market declines. If you don’t understand that’s going to happen, then you’re not ready, you won’t do well in the markets.” — Peter Lynch

cfw1994

Thrugelmir said:

cfw1994 said:

Thrugelmir said:

Albermarle said:

blueandgreenpoppy said:

MEM62 said:

I have a DC pension so will be keeping circa 12-months living expenses in a slush fund.  This is primarily to prevent us drawing money down during a market slump.  

The pandemic really brought home to me how important that is if you rely on stock market investment for pensions.

We are so lucky to have DB schemes.

Things like the Pandemic are actually not that relevant as in fact markets are now above where they were before the pandemic. In the last ten years people with DC pots have seen some big rises in value .

The pandemic is extremely relevant. As there's a mounting bill that every taxpayer will be contributing to in the future. 

Likewise corporation tax is being discussed at a global level for good reason. There's a common cause that has brought thinking into line. 

The Second World War brought a mounting tax bill that took decades to pay…doesn’t mean markets won’t continue to broadly rise.  With some falls, as always….

I’m reminded that a pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty…..😉

I'm reminded of the quote.

 “You get recessions, you have stock market declines. If you don’t understand that’s going to happen, then you’re not ready, you won’t do well in the markets.” — Peter Lynch

Feel free at any time to share what’s going to happen: whenever you’re ready 🤣

Albermarle

Thrugelmir said:

Albermarle said:

blueandgreenpoppy said:

MEM62 said:

I have a DC pension so will be keeping circa 12-months living expenses in a slush fund.  This is primarily to prevent us drawing money down during a market slump.  

The pandemic really brought home to me how important that is if you rely on stock market investment for pensions.

We are so lucky to have DB schemes.

Things like the Pandemic are actually not that relevant as in fact markets are now above where they were before the pandemic. In the last ten years people with DC pots have seen some big rises in value .

The pandemic is extremely relevant. As there's a mounting bill that every taxpayer will be contributing to in the future. 

Likewise corporation tax is being discussed at a global level for good reason. There's a common cause that has brought thinking into line. 

Perhaps I could have worded it better, but I was just trying to get the point across to someone who was clearly inexperienced with investments , that one bit of bad ( very bad)?) News like the Pandemic does not necessarily mean all investments crash into oblivion for ever.