Retirement - Actual vs Expectation

Sarahspangles

katejo said:

I started using YNAB nearly 10 years ago and it made a huge difference. I allocate all my money to jobs/savings categories. My long term savings/investments are also off budget. This week a financial advisor tried to persuade me to move more off budget into unit trusts to feed my stocks and shares ISA but I am reluctant to do so. I prefer shorter term savings accounts with less risk

I’m glad I’m not the only YNAB fan, I’ve got budgets going back to 2010. I balance every morning - it’s as natural as brushing my teeth!

Albermarle

Sarahspangles said:

katejo said:

I started using YNAB nearly 10 years ago and it made a huge difference. I allocate all my money to jobs/savings categories. My long term savings/investments are also off budget. This week a financial advisor tried to persuade me to move more off budget into unit trusts to feed my stocks and shares ISA but I am reluctant to do so. I prefer shorter term savings accounts with less risk

I’m glad I’m not the only YNAB fan, I’ve got budgets going back to 2010. I balance every morning - it’s as natural as brushing my teeth!

Although I am money conscious, I have no budgeting software tools or spreadsheets. My view is I did not retire to have to work on such things. So back of a fag packet is enough for me ( exaggerating slightly ).
I think it comes from the fact that I had a commercial negotiating job, that meant deals had to be sometimes done over the dinner table with no laptop in sight. Or in the car park after driving back from lunch. So I feel comfortable holding a lot of it in my head, especially as my mental arithmetic and memory is pretty good. 
Plus I probably have more than I need, which reduces the need to budget in detail.
Each to their own !

Sarahspangles

Albermarle said:

Although I am money conscious, I have no budgeting software tools or spreadsheets. My view is I did not retire to have to work on such things. So back of a fag packet is enough for me ( exaggerating slightly ).
I think it comes from the fact that I had a commercial negotiating job, that meant deals had to be sometimes done over the dinner table with no laptop in sight. Or in the car park after driving back from lunch. So I feel comfortable holding a lot of it in my head, especially as my mental arithmetic and memory is pretty good. 
Plus I probably have more than I need, which reduces the need to budget in detail.
Each to their own !

I’m just naturally analytical, so it’s satisfying to me in the way cleaning my car is to OH!

Albermarle

Sarahspangles said:

Albermarle said:

Although I am money conscious, I have no budgeting software tools or spreadsheets. My view is I did not retire to have to work on such things. So back of a fag packet is enough for me ( exaggerating slightly ).
I think it comes from the fact that I had a commercial negotiating job, that meant deals had to be sometimes done over the dinner table with no laptop in sight. Or in the car park after driving back from lunch. So I feel comfortable holding a lot of it in my head, especially as my mental arithmetic and memory is pretty good. 
Plus I probably have more than I need, which reduces the need to budget in detail.
Each to their own !

I’m just naturally analytical, so it’s satisfying to me in the way cleaning my car is to OH!

When I was working I was also known to be analytical, but more in the way of analysing market/customer/competitor situations in a less emotional way than some others. 
It is the minutiae of budgeting and spreadsheets I don't like ! 

Bostonerimus1

Albermarle said:

Sarahspangles said:

Albermarle said:

Although I am money conscious, I have no budgeting software tools or spreadsheets. My view is I did not retire to have to work on such things. So back of a fag packet is enough for me ( exaggerating slightly ).
I think it comes from the fact that I had a commercial negotiating job, that meant deals had to be sometimes done over the dinner table with no laptop in sight. Or in the car park after driving back from lunch. So I feel comfortable holding a lot of it in my head, especially as my mental arithmetic and memory is pretty good. 
Plus I probably have more than I need, which reduces the need to budget in detail.
Each to their own !

I’m just naturally analytical, so it’s satisfying to me in the way cleaning my car is to OH!

When I was working I was also known to be analytical, but more in the way of analysing market/customer/competitor situations in a less emotional way than some others. 
It is the minutiae of budgeting and spreadsheets I don't like ! 

You can do a budget at a very high level by just looking at how much you spend each month without breaking it down much further. This will give you some numbers to plug into your savings and retirement goals. What you miss out on with this approach is seeing where you spend your money and taking steps to control your spending. Some of the biggest savings can be made on food if you tend to eat out or order take aways a lot. IMO personal finances and cooking should be mandatory in schools to some level just like maths and English.

enthusiasticsaver

The people with huge pension pots probably earn more and spend more so I would think if you can manage on £1600 per month then a pot of £400k should be enough with both receiving full state pensions at 67? The state pensions alone will give you that. 

We retired at 58 and are managing fine on DB pensions and stocks and shares ISAs.  Our state pensions pay out this year for my husband and in 2 years time for me.  Initially we said we wanted minimum £2k a month but our DB pensions alone give us £3k now so we have mostly left our investment pot alone except for family gifts and a few large holidays and changing 2 cars.  In the early years though not all DB pensions were paying out and our income was nearer to the base £2k we needed to retire on. We probably spend more than some as we run two cars, have expensive hobbies, gift to family often and travel a fair bit.  If we needed to cut back we would but so far we have not had to. 

It might be worth thinking about what you want from retirement.  Someone on here told us that the early years are the most expensive as often people will future proof their homes by doing home improvements, travel while their health is good and be out and about a fair bit.  If you have been working and not had a great deal of spare time will you be taking up  expensive hobbies or travelling and will the pension payment of £1600 be enough to sustain that? 

gorgeousme

enthusiasticsaver said:

The people with huge pension pots probably earn more and spend more so I would think if you can manage on £1600 per month then a pot of £400k should be enough with both receiving full state pensions at 67? The state pensions alone will give you that. 

We retired at 58 and are managing fine on DB pensions and stocks and shares ISAs.  Our state pensions pay out this year for my husband and in 2 years time for me.  Initially we said we wanted minimum £2k a month but our DB pensions alone give us £3k now so we have mostly left our investment pot alone except for family gifts and a few large holidays and changing 2 cars.  In the early years though not all DB pensions were paying out and our income was nearer to the base £2k we needed to retire on. We probably spend more than some as we run two cars, have expensive hobbies, gift to family often and travel a fair bit.  If we needed to cut back we would but so far we have not had to. 

It might be worth thinking about what you want from retirement.  Someone on here told us that the early years are the most expensive as often people will future proof their homes by doing home improvements, travel while their health is good and be out and about a fair bit.  If you have been working and not had a great deal of spare time will you be taking up  expensive hobbies or travelling and will the pension payment of £1600 be enough to sustain that? 

We don’t have any hobbies as such, but we do like simple pleasures like a forest walk or a dinner party with friends. 

We do like traveling, we have agreed to get all the expensive travels done during our working life for 2 reasons….first, we can work to replenish the savings pot and second, we get to enjoy our travels in fitter bodies. We are hoping that the bucket list destinations will have all been ticked off before we retire.

You have got me thinking now, whilst we are not planning for any expensive travels, we may have itchy feet in the future. 

Albermarle

Bostonerimus1 said:

Albermarle said:

Sarahspangles said:

Albermarle said:

Although I am money conscious, I have no budgeting software tools or spreadsheets. My view is I did not retire to have to work on such things. So back of a fag packet is enough for me ( exaggerating slightly ).
I think it comes from the fact that I had a commercial negotiating job, that meant deals had to be sometimes done over the dinner table with no laptop in sight. Or in the car park after driving back from lunch. So I feel comfortable holding a lot of it in my head, especially as my mental arithmetic and memory is pretty good. 
Plus I probably have more than I need, which reduces the need to budget in detail.
Each to their own !

I’m just naturally analytical, so it’s satisfying to me in the way cleaning my car is to OH!

When I was working I was also known to be analytical, but more in the way of analysing market/customer/competitor situations in a less emotional way than some others. 
It is the minutiae of budgeting and spreadsheets I don't like ! 

You can do a budget at a very high level by just looking at how much you spend each month without breaking it down much further. This will give you some numbers to plug into your savings and retirement goals. What you miss out on with this approach is seeing where you spend your money and taking steps to control your spending. Some of the biggest savings can be made on food if you tend to eat out or order take aways a lot. IMO personal finances and cooking should be mandatory in schools to some level just like maths and English.

Of course I have a high level budget, and have a good idea of what we are spending at the supermarket, cars, holidays  etc.
But it is all average monthly spends, checked every few months or so, rather than in detail.
Also to do it in detail you need your partner ( if you have one) to be also happy to supply detail about personal spending etc  which many would not be happy with. 

Pat38493

Albermarle said:

Bostonerimus1 said:

Albermarle said:

Sarahspangles said:

Albermarle said:

Although I am money conscious, I have no budgeting software tools or spreadsheets. My view is I did not retire to have to work on such things. So back of a fag packet is enough for me ( exaggerating slightly ).
I think it comes from the fact that I had a commercial negotiating job, that meant deals had to be sometimes done over the dinner table with no laptop in sight. Or in the car park after driving back from lunch. So I feel comfortable holding a lot of it in my head, especially as my mental arithmetic and memory is pretty good. 
Plus I probably have more than I need, which reduces the need to budget in detail.
Each to their own !

I’m just naturally analytical, so it’s satisfying to me in the way cleaning my car is to OH!

When I was working I was also known to be analytical, but more in the way of analysing market/customer/competitor situations in a less emotional way than some others. 
It is the minutiae of budgeting and spreadsheets I don't like ! 

You can do a budget at a very high level by just looking at how much you spend each month without breaking it down much further. This will give you some numbers to plug into your savings and retirement goals. What you miss out on with this approach is seeing where you spend your money and taking steps to control your spending. Some of the biggest savings can be made on food if you tend to eat out or order take aways a lot. IMO personal finances and cooking should be mandatory in schools to some level just like maths and English.

Of course I have a high level budget, and have a good idea of what we are spending at the supermarket, cars, holidays  etc.
But it is all average monthly spends, checked every few months or so, rather than in detail.
Also to do it in detail you need your partner ( if you have one) to be also happy to supply detail about personal spending etc  which many would not be happy with. 

Yes - my partner is reluctant to provide me all the details of her monthly spending so at the moment I just assume that she spends her whole DB pension.  This is a conservative assumption as she has mentioned that she does often have a bit to put aside and some things will go away in due course.  I suspect the reason she doesn't give me the info is more because she can't be bothered to get it and go through it all rather than for privacy reasons or whatever.

Bostonerimus1

Albermarle said:

Bostonerimus1 said:

Albermarle said:

Sarahspangles said:

Albermarle said:

Although I am money conscious, I have no budgeting software tools or spreadsheets. My view is I did not retire to have to work on such things. So back of a fag packet is enough for me ( exaggerating slightly ).
I think it comes from the fact that I had a commercial negotiating job, that meant deals had to be sometimes done over the dinner table with no laptop in sight. Or in the car park after driving back from lunch. So I feel comfortable holding a lot of it in my head, especially as my mental arithmetic and memory is pretty good. 
Plus I probably have more than I need, which reduces the need to budget in detail.
Each to their own !

I’m just naturally analytical, so it’s satisfying to me in the way cleaning my car is to OH!

When I was working I was also known to be analytical, but more in the way of analysing market/customer/competitor situations in a less emotional way than some others. 
It is the minutiae of budgeting and spreadsheets I don't like ! 

You can do a budget at a very high level by just looking at how much you spend each month without breaking it down much further. This will give you some numbers to plug into your savings and retirement goals. What you miss out on with this approach is seeing where you spend your money and taking steps to control your spending. Some of the biggest savings can be made on food if you tend to eat out or order take aways a lot. IMO personal finances and cooking should be mandatory in schools to some level just like maths and English.

Of course I have a high level budget, and have a good idea of what we are spending at the supermarket, cars, holidays  etc.
But it is all average monthly spends, checked every few months or so, rather than in detail.
Also to do it in detail you need your partner ( if you have one) to be also happy to supply detail about personal spending etc  which many would not be happy with. 

When you are married finances and retirement planning can be far more complicated than for someone who's single. The legal and financial consequences of a marriage contract can lead to some tricky situations if both spouses aren't honest and forthcoming. I can understand the inclination to keep some spending to yourself, but when it comes to your joint finances and planning for retirement the inclination should be to sharing. We'll gladly reveal all in the bedroom and married couples should take the same attitude to their finances.