Spend or Save?

I'm having a midlife crisis. I have a good amount of savings, a small buy to let property which brings a regular small income, and a tiny pension projected income. I'm 54, newly separated, two kids. I work part time employed and also run a small business. I have no debt apart from a small mortgage on the buy to let.  I'm a bit bored. I dream of owning a campervan/ travelling the world/ redesigning my garden, but am stymied by the fear of not having enough money in retirement. But what if I don't get there in good health? Should I spend money now and enjoy life whilst I'm able, or keep scrimping and saving for the future? How do I find a balance? (Kids have money invested for university and beyond, so that's not a concern.) Help! 
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Comments

  • MovingForwards
    MovingForwards Posts: 17,139 Forumite
    10,000 Posts Sixth Anniversary Name Dropper Photogenic
    I'm mid 40s, I never expected to be disabled following an accident nearly 20 years ago. I started life 6 years ago and plan for the immediate eg what I'm doing this week, medium term eg the next 5 years and long term eg early retirement.

    Sometimes my immediate gets pushed to the following week, month or year depending on health on the day / time of year. 

    It's all fair and good waiting until retirement, but treats and life is needed before then. Have a proper look at your budget and see where funding can be split to achieve what you want to. Memories last a lifetime.


    Mortgage started 2020, aiming to clear 31/12/2029.
  • Clowance. Hello there! Maybe pop over to the 'How much to live on thread' to discuss your retirement plans. Lots of people there with help and advice who are having a good retirement on average pensions or below. I only say this because in your post above you said, 'Wish I was in your position but sadly still working at 64.' Maybe things may not be as impossible as you say. Come and talk to us.
    Best wishes.
  • Asmithalex. In my view spend!
  • missile
    missile Posts: 11,763 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 7 June 2022 at 7:57AM
    Don't risk a life of regrets. Follow your dreams.
    "A nation's greatness is measured by how it treats its weakest members." ~ Mahatma Gandhi
    Ride hard or stay home :iloveyou:
  • 400ixl
    400ixl Posts: 4,482 Forumite
    1,000 Posts Third Anniversary Name Dropper
    Retirement in poverty can be a long and painful existence. Make sure you find the balance between ensuring you are financially secure for retirement and spending frivolously now.

    The likelihood of you living well into retirement is much more likely than a poor health outcome.
  • Albermarle
    Albermarle Posts: 27,386 Forumite
    10,000 Posts Sixth Anniversary Name Dropper
    As  above. a 54 year old can expect to live on average another 30 years. That means 50% will live longer than that. If you have no very bad habits, and no serious underlying health conditions, then the chances of you reaching 90 are significant.
    Also with little retirement provision apart from the State Pension, then retiring before state pension age will not really be possible, and even then you may have to claim means tested benefits.

    That is not to say do not spend now and live your campervan dreams, but just be aware of the other side of the coin.
  • PennyForThem_2
    PennyForThem_2 Posts: 1,036 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    So here we are in a cost of living crisis with energy/foodprice predictions to increase not lower.  Make sure that you have enough and a bit over to retire on because think of the stress if you cannot cover the bills, and/or buy enough food.

    I want a stress free retirement and have planned to make sure my income is in a comfortable zone with a backup if needed.
  • SarahB16
    SarahB16 Posts: 393 Forumite
    Third Anniversary 100 Posts Name Dropper
    So here we are in a cost of living crisis with energy/foodprice predictions to increase not lower.  Make sure that you have enough and a bit over to retire on because think of the stress if you cannot cover the bills, and/or buy enough food.

    I want a stress free retirement and have planned to make sure my income is in a comfortable zone with a backup if needed.
    I share your thoughts on this as I too would like to be in a comfortable zone as well.  

    I don't wish you to provide your personal circumstances but so that others that think along the same lines that you do what would you say a 67 year old (retiring today) should have to live a life in a comfortable zone with a back up if needed.   

    Please could you perhaps provide an approximate figure of what their pension would need to be (private pension plus state pension) and what their back up fund ideally should be.  

    I don't know yet how old I will be when I retire and it is likely to only be when I have built up the kind of pension and savings that you refer to so it would be good for me to have something to aim for.  

    I am not married and my previous DB pension and current DB pension are both solely for me and I have savings.  

    Thank you  


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