Spend or Save?

PennyForThem_2

SarahB16 said:

PennyForThem_2 said:

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  

My strategy was to work longer than retirement age - that way I took advantage of 10% annual interest to deferred state pension and adding to NHS pension.  My husband had died in 2011 - I had half of his small teacher's pension (he had worked about 14 years as a teacher at beginning and end of his career and half of his annuity from pension he had built up when working in private sector.  All of my pensions have in-built annual increases at varying rates though majority are public service so government set.

I also set up a SIPP for myself and contributed to it from my NHS salary (working beyond when my retirement age was).

I am a saver - I find it really hard to spend on myself.  My husband was the opposite.

So my aim was about £30-35k  -  way, way more than most people here would see necessary for a single.  However I live in an old 4 bed house on an F council banding in a great location.  I want enough to pay for help as I grow older. I do not want to worry about buying food, wine, going out and taking odd luxury holiday or the usual bills.  I want to be able to pay for care if I need it and I want as much of that to be paid by my pension income as possible - not my assets.  In England this would be possible because of the cap for care I would only have to pay for hotel costs  - not going to happen like that where I live, I suspect (Wales).

I have exceeded that, but I worked until 69  --  I liked my job, it was not physical, and I cut it to 3 days a week in last 18 months and I was on a good salary for a public authority.

My lifestyle and tolerance is going to be individual.  I admire greatly people on this thread who live on state pension or a little above - but that is not for me and I have been lucky enough to have been in work since 18 other than 5 years break to have 2 children.  I got a degree in my 30's and this helped get me into NHS (admin).

SarahB16

PennyForThem_2 said:

SarahB16 said:

PennyForThem_2 said:

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  

My strategy was to work longer than retirement age - that way I took advantage of 10% annual interest to deferred state pension and adding to NHS pension.  My husband had died in 2011 - I had half of his small teacher's pension (he had worked about 14 years as a teacher at beginning and end of his career and half of his annuity from pension he had built up when working in private sector.  All of my pensions have in-built annual increases at varying rates though majority are public service so government set.

I also set up a SIPP for myself and contributed to it from my NHS salary (working beyond when my retirement age was).

I am a saver - I find it really hard to spend on myself.  My husband was the opposite.

So my aim was about £30-35k  -  way, way more than most people here would see necessary for a single.  However I live in an old 4 bed house on an F council banding in a great location.  I want enough to pay for help as I grow older. I do not want to worry about buying food, wine, going out and taking odd luxury holiday or the usual bills.  I want to be able to pay for care if I need it and I want as much of that to be paid by my pension income as possible - not my assets.  In England this would be possible because of the cap for care I would only have to pay for hotel costs  - not going to happen like that where I live, I suspect (Wales).

I have exceeded that, but I worked until 69  --  I liked my job, it was not physical, and I cut it to 3 days a week in last 18 months and I was on a good salary for a public authority.

My lifestyle and tolerance is going to be individual.  I admire greatly people on this thread who live on state pension or a little above - but that is not for me and I have been lucky enough to have been in work since 18 other than 5 years break to have 2 children.  I got a degree in my 30's and this helped get me into NHS (admin).

Thank you for posting such a detailed reply and I think your income requirement and planning sounds very sensible and it's good for me to know what level of income provides a comfortable retirement.  

I am approximately twenty years younger than you so have not looked into the rules regarding care provision in the UK however you mention hotel costs but bearing in mind that you have a four bedroom house you may possibly wish to consider the person providing the care perhaps having a bedroom in your house.  

PennyForThem_2

We left financial planning until very late - latter half of my 50's.  TBH our finances were all over the place but with help of Financial Advisor we got it sorted, consolidated and pensions explained, annuity bought - husband was 10 years older.    If you have 20 years to go I would advise finding an Independent FA (one not attached to a Wealth Management Company) and get some advice.  (A post on the pensions forum asking how to find one may bring results).

An IFA should listen to you and help you tailor your finances to achieve your objectives but also warn you of pitfalls while suggesting solutions.  IFAs are not just for the rich.  You will have to pay - and you will need to think whether it is worth it or not.  

There are a few ex/retired IFAs on the pensions board.  The Pensions Board is a bit scary and some of the posters are wealthy but it also offers a wealth (no pun intended) of advice.  You can lurk.......

sheilavw

Buy the campervan and follow your dream. We had so many plans for our retirement . My Husband was a life long biker and Route 66 was on the agenda. Sadly he was diagnosed with MND and died just under a year later at 59. We had been together 41 years and married almost 35. It's so true that you don't know whats around the corner

provista_2

We have just done this and splashed out on a VW Campervan.  Always wanted one and decided to make memories now (both 55). It was very expensive and we have used our pensions to buy this, but no tomorrow is a given and we are happy with our choice.
Some will be shocked at what we have done but life is for living and we are going to live it

Asmithalex

Thank you so much for your thoughtful replies! I have decided to do something extraordinary in the short term, and then save a little more and try out the campervan idea as suggested by some of you. 
The extraordinary thing? I've signed up as a citizen scientist on a 2 week expedition in the Masai Mara to collect data on large mammals such as elephant and cheetah with a company called Biosphere. Am beyond excited and feel richer for just making the decision. As someone said above, building memories is just as important as building wealth, if not more so, and ticking this item off my bucket list will give me more satisfaction than anything else I can think of right now. I'm going in March, so have time to plan and buy all the kit without panicking. I can't wait! Thanks for helping me to decide what's important!!

provista_2

Wow have an amazing time it sound like a once in a lifetime opportunity 
Not jealous at all 😝

Farway

Excellent, and what great memories you will have, beats working

Katiehound

Wow: that's a great idea- I am sure you will have a wonderful time.

I have been to various countries in Africa over the years, when I was more mobile and just loved see the fauna (and flora & birds.) it just gets under your skin.

Enjoy

If you are a soul , like me., beloved of biting insects try to avoid them! One of my most useful gadgets is a thing called a zapper which takes the sting out of the bite (of course it doesn't resolve the problem of malaria) but I even keep one in my car! Boots have their own one called bite relief click- other names online- @ £5.99. But note , very important, do not use with spirit based insect repellent. Supposed to last for 1000 clicks- no batteries/ power needed

once home I would try the hire a motorhome idea and see if the dream matches reality.

have lots of fun

harlequinnyc

Sounds absolutely amazing, enjoy your experience! 

IMO, you're doing the right thing. Nobody, I'm sure, lies on their deathbed thinking, "I wish I had more money".