Retirement - Live Life or Penny Pinch

SarahB16

SouthCoastBoy said:

For those with dc pensions it definitely is a conundrum, so many variables. Personally I will front load my spending, if I get to 85 and run out of money so be it. I'm starting to enter my twilight years, 58 soon so need to make the most of it, never know when the grim reaper is going to turn up

Very true, we never know that and we really should take advantage of our GP services if we can get an appointment and get our blood pressure, cholesterol, etc, checked.  Perhaps invest in a smart watch too.  

Any unexpected bleeding or pain that hasn't gone away after a fortnight make an appointment with your GP and don't put it down to just getting old.  

Albermarle

MikeJXE said:

You will live as long as you allow yourself to live. I'm not rich by any means but not poor either. I lost my wife 10 years ago, lived in Gran Canaria for 18 months from 2016. In my life I have had many holidays and did mostly what my wife wanted to do, now it's all about me. 4 years ago I decided what my life was going to be like, I built a spreadsheet comparing if I sold and bought and if I sold and rented, how long would my money last that was the question. 4 years ago I sold £150,000 in the bank and rented, My spreadsheet tells me I could live how I want to for another 30 years, I'm 82 now and in reasonably good health, so last Christmas because I don't need it i gave my 2 kids and 4 grandkids £10,000 each and the look on their faces was priceless. I am very happy in doing what I do on my state pension and whats left of my savings, I do not have a worry in the world. My friend age 78 and loaded is worried sick on what life is costing, trying to save every penny for when he dies. Worried about his health, still worried about covid. I tell him he is shortening his life by worrying and I am more likely to go to his funeral than him to mine. Talk up your life not think of dying

My only issue with this would be the rented bit. There is always the possibility you maybe turfed out by the landlord at some stage . There are plenty of stories of older people having to move at regular intervals and hating the lack of security. Otherwise you have a good philosophy .

barnstar2077

I hope to retire between the age of 55 to 58.  I should still have enough funds left to top up my state pension into my mid eighties, but if I have run out by then, then I will have had a fantastic twenty five or so years anyway.

Plenty of people don't live that long so I would rather enjoy the money early on.  Just getting out of bed when I want and deciding when I leave the house is the height of luxury to me.  I can always cut back on eating out, entertainment expenses etc in old age if I need to.

Although I do like to eat out, go to the cinema, etc, I also enjoy just going for a walk and meeting up with friends and family.  If my health and finances both fail me then I will just sit around the house watching TV/using a computer/reading/listening to books etc.

I plan on having an allotted amount of money to spend each year, and if investments are down I will just reduce my spending a bit until things pick back up.  Live on my ISA to start with, while drawing down as much of my DC pension as possible (to use up my personal allowance each year), then supplement my state pension with what is left of my DC, while using what is left of my ISA to pay for one off big payments like a new boiler etc.

I hope to have a plan in place that I don't have to worry about the economy in general too much.

I will let everyone know how it goes! (They say no plan has ever survived a war :  )

MikeJXE

Albermarle said:

MikeJXE said:

You will live as long as you allow yourself to live. I'm not rich by any means but not poor either. I lost my wife 10 years ago, lived in Gran Canaria for 18 months from 2016. In my life I have had many holidays and did mostly what my wife wanted to do, now it's all about me. 4 years ago I decided what my life was going to be like, I built a spreadsheet comparing if I sold and bought and if I sold and rented, how long would my money last that was the question. 4 years ago I sold £150,000 in the bank and rented, My spreadsheet tells me I could live how I want to for another 30 years, I'm 82 now and in reasonably good health, so last Christmas because I don't need it i gave my 2 kids and 4 grandkids £10,000 each and the look on their faces was priceless. I am very happy in doing what I do on my state pension and whats left of my savings, I do not have a worry in the world. My friend age 78 and loaded is worried sick on what life is costing, trying to save every penny for when he dies. Worried about his health, still worried about covid. I tell him he is shortening his life by worrying and I am more likely to go to his funeral than him to mine. Talk up your life not think of dying

My only issue with this would be the rented bit. There is always the possibility you maybe turfed out by the landlord at some stage . There are plenty of stories of older people having to move at regular intervals and hating the lack of security. Otherwise you have a good philosophy .

The rented bit is only a downside if you worry about it,  I don't.  I have been here two years  If I get ejected  I will move on to wherever life takes me.  Who has got security ? You could get run over by a bus tomorrow, lose your job, you are at risk every time you wake up, or don't. Such things don't bother me, my life is what I make of it. if I die tomorrow I won't even know.  

Nebulous2

People tend to spend less in retirement than they expect / intend to and often accrue more, despite having less income.

I'm fortunate in having a DB pension, but continuing to work part-time. 

I still find myself squirreling away in regular savers and paying into a SIPP. 

These were supposed to be the most financially demanding years in our retirement, bridging the gap between early retirement and state pension age. We find ourselves, 19 months in, having accrued £18,000 in SIPPs and having spent £7,000 from our cash / near cash. 

The cost of living crisis, energy cost has been weighing on our (my) minds and we've cut back on fuel usage, despite the fact this winter will be much more affordable than last, with £400 government support and a fixed cost tariff, which is exactly the same as last year. 

That move from accumulation to decumulation is difficult. 

We're not completely skimping in case anyone feels I've taken the hair shirt too far, with two foreign holidays, around 50 nights caravanning in the UK and running two nearly new vehicles.... 

400ixl

Whilst you can't spend it when you are dead, living in poverty because you spent it all is no life and a lot more painful.

Get the balance right in the first place and retire when you can really afford to.

barnstar2077

400ixl said:

Whilst you can't spend it when you are dead, living in poverty because you spent it all is no life and a lot more painful.

Get the balance right in the first place and retire when you can really afford to.

True, but then many people on here don't agree on what poverty means.

I think we can all agree that living homeless on the streets would not be much fun, but personally, if I had a roof over my head and food on my table then I could do without many of life's luxuries.  Where as many couldn't possibly live without a car, meals out and a holiday every year.

People just have to plan for what they think will make them happy and hope for the best.  Whether that might be retiring as early as possible, or doing a few more years to avoid the possibility of not being able to afford a new sofa when they are 93.

MikeJXE

barnstar2077 said:

400ixl said:

Whilst you can't spend it when you are dead, living in poverty because you spent it all is no life and a lot more painful.

Get the balance right in the first place and retire when you can really afford to.

True, but then many people on here don't agree on what poverty means.

I think we can all agree that living homeless on the streets would not be much fun, but personally, if I had a roof over my head and food on my table then I could do without many of life's luxuries.  Where as many couldn't possibly live without a car, meals out and a holiday every year.

People just have to plan for what they think will make them happy and hope for the best.  Whether that might be retiring as early as possible, or doing a few more years to avoid the possibility of not being able to afford a new sofa when they are 93.

Lol you are so right in fact most people today don't know what poetry is. Born 1940 end of the war, no money little food but a roof over our heads, happy as Larry because we didn't know any different. 

p00hsticks

MikeJXE said:

Lol you are so right in fact most people today don't know what poetry is.

I wandered lonely a a cloud.... ;-)

MikeJXE

p00hsticks said:

MikeJXE said:

Lol you are so right in fact most people today don't know what poetry is.

I wandered lonely a a cloud.... ;-)

Oops typo lol