Retirement planning - have you revised your figures?

Gin_and_Milk

Hi,

There was thread somewhere on this section of the forum I'm sure, which was about retirement figures.  The numbers seemed more realistic than on the main pensions board, and a lot of the posts were in relation to DB pensions.
Given the increase in the cost of living, have any of you revised your figures?  For those of you already retired, how are you managing?  I'm not due to retire yet, and my current projection is around £19k p/a, (not including salary sacrifice or wage rises).  Just wondering now if that would be anywhere near enough, so I'm curious to know how others are doing.
Thanks  

otb666

my figures were £600pm food £600 bills £600  everything else. we have no mortgage and been retired 11 months We have £35k for annual insurances Holidays and car service.  We have managed fine Although we have stopped drinking and smoking which was costing about £500 per month. We also have an adult son living with us who we dont charge for

Gin_and_Milk

Thanks, that's useful (and reassuring) to know.  You're doing well to keep your bills at around £600.  I know what you mean about smoking.  I switched to vaping a couple of years ago and I've saved a bloody fortune.

jacko220

Pension £25k work pension + £7k OAP pension, seem to manage alright but believe this is above the average.

I am widowed therefore it is alright, have not had any major splurges since retirement may go for Sky Sports and BT Sports as now into my seventies.

Find life is as slow or fast as you like it. Not boasting but really do not have to count the pennies, however count my blessings for what I have. Hope this helps.

Albermarle

otb666 said:

my figures were £600pm food £600 bills £600  everything else. we have no mortgage and been retired 11 months We have £35k for annual insurances Holidays and car service.  We have managed fine Although we have stopped drinking and smoking which was costing about £500 per month. We also have an adult son living with us who we dont charge for

On the main pensions board this figure of £35k pa crops up quite frequently for a couple. It seems to be a halfway house between managing on two state pensions, and having a so called comfortable retirement on £45k/£50K ( after tax )
I assume everybody will have to increase their previous projections by 10% this year though, and another few per cent next year.
This link is to a study of retirement incomes.  Home - PLSA - Retirement Living Standards but again you probably need to add around 15% to these figures which are a couple of years old.
You can quibble with some of the detail - the amounts for food shopping seem low, whilst the amounts for clothing and footwear seem high for example.
Which have a similar report and although the details are different, the end figures are similar.

Gin_and_Milk

Thanks for the link Albermarle, I do find these sort of things interesting. I'd seen the ones from Which, like you say they are pretty similar, and roughly the same age.  I think 15% is probably a safe figure to bear in mind too

MovingForwards

This thread?
https://forums.moneysavingexpert.com/discussion/6228191/how-much-to-live-on/p1

PennyForThem_2

I decided to work about 6 years beyond retirement age in order to gain 10% on old State Pension deferrment.  This was so I really, really did not need to worry at all about inflation, increasing needs i.e. gardening, cleaning help, or spending either on food, treats, heating etc.  Most of my pensions are DB with 1 annuity inflation proofed 4% pa - first time it will be a negative!

I knew that I would stress if I did not have a very comfortable margin and I have achieved that.    I think, unfortunately, this margin will be eroded, but hopefully the margin will erode slowly.

I have a backup - a really healthy SIPP not drawn down.  So all good! 

(I am a baby boomer, I have profitted from house inflation, education advantages, public service pensions before 2008, and bank of mum and dad - or rather death of mum & dad, and a productive husband.)

Gin_and_Milk

That's the one - I knew it existed!
I've bookmarked it now - thanks :-)

tacpot12

I'm managing just by drawing down my personal pension. I haven't had to increase the amount I'm withdrawing, but I definitely have less free cash than I used to. Most months I would have about £200 spare at the end of the month, and would normally save this, but that amount has reduced over the last couple of months. 

bostonerimus

I have a budget and retirement spreadsheet and I can plug in various rates of inflation and things look of or now, but with an extended inflation of 10% everyone will be in trouble. I have a DB pension that will go up with inflation and SP will go up with it too so things aren't too bad, but I also have income from a rental and I'm not increasing that as my renter is long term and I'm far better placed to deal with inflation.

However, although I don't really need to cut back I am natural frugal (ok tight, mean, Scrooge like etc) and I've turned the heating down and replaced the clothes dryer with a clothes horse.