How much is prudent to have in savings (S&S ISA, savings account) when drawing pension

Mick70

its something i often wonder , how much you should have in bank savings ,  if it is all in a DC pension and s+s isa is that a big mistake . do you need some in cash (bank) also ?

SarahB16

Mick70 said:

its something i often wonder , how much you should have in bank savings ,  if it is all in a DC pension and s+s isa is that a big mistake . do you need some in cash (bank) also ?

I'm not sure what age you are referring to @Mick70 but if you are meaning when you are retired then yes, of course, you also need cash in the bank too otherwise how would you pay for the new roof, the replacement to your second hand car, etc.

I have just started recording everything I spend each month however on a separate worksheet I now have a capital expenditure worksheet and am recording items such as house repairs, new car, etc.  These are items I know I need to think about when I am retired and will need to be accounted for when I think about how much I need to live off in retirement.  This will help me to work out how much I need for my pension income (net) so will help me to work out when I can afford to retire.   

With the wonderful advice so far my current thinking using today's money is £20k in a cash/savings account and when I need to dip into it then I will aim to replenish it from my pension income so that I always have that £20k ready to use when the need arises.  

I should add I am 49 however from the very helpful replies to my question this is my current thinking.  Of course £20k today could be £28k in 10 years' time to take account of inflation.     

Albermarle

Mick70 said:

its something i often wonder , how much you should have in bank savings ,  if it is all in a DC pension and s+s isa is that a big mistake . do you need some in cash (bank) also ?

What is meant by 'cash savings for retirement'? — MoneySavingExpert Forum