Help with knowing how much is 'needed' to retire?

Shineyhappy

https://forums.moneysavingexpert.com/discussion/comment/81905060#Comment_81905060

I think that whilst it is possible for a couple to live off two state pensions.

The financial worry for me is what happens if one of you dies a long time before the other one? There will be some savings of course but not 50% of the household income.

Apologies if that sounds very cold as obviously there would be other emotional factors to consider.

Tree_pipe99

https://forums.moneysavingexpert.com/discussion/comment/81908556#Comment_81908556

Life insurance plus savings would be the contingency option?

LHW99

https://forums.moneysavingexpert.com/discussion/comment/81910323#Comment_81910323

Problem is by the time people get to 70-odd, life insurance will probably not be running and would be prohibitively expensive to take out.

BobR64

https://forums.moneysavingexpert.com/discussion/comment/81905060#Comment_81905060

To be fair, the 60k is the "top tier" pension income for couples in these surveys and they are usually described as "comfortable" rather than "reasonable". Obviously people can live on less because most couples probably live on less when in employment, but I don't think it's an especially "mad" level of income for a couple who have both had careers. Two full state pensions and 20k each in private pensions get you there. Obviously not everyone is going to have that but it doesn't seem all that insane to me.

openside50

https://forums.moneysavingexpert.com/discussion/comment/81905129#Comment_81905129

https://forums.moneysavingexpert.com/discussion/comment/81915578#Comment_81915578

I'm not saying insane that people can achieve that level of pension - good luck to them

I'm saying a pensioner couple with savings as a hedge against the various problems life can throw at you, plus their own home - can get by on a lot less than some of the figures often quoted as being required ie that moderate to comfortable £40-60k

I think government findings show that in reality average earnings for pensioner couples is something like £31k, and just £15k for single pensioners, so in effect they already are

We are spending a lot less than I envisaged, I no longer have the costs involved with actually going to work, I should have retired a few years earlier, instead of saving like mad for the last few years

kempiejon

https://forums.moneysavingexpert.com/discussion/comment/81905864#Comment_81905864

Pretty sure that is possible; defer SP and not only does it increases at 5.8% pa that takes £12k of your DB out of tax. Of cause you used to get a 10% bump, not sure that works if you're already taking it, I think it might be possible and rules may chage before if you're not there yet.

BikingBud

https://forums.moneysavingexpert.com/discussion/comment/81936127#Comment_81936127

Not quite, it takes the value of the SP out of my total income, quite different to out of my DB.

Unless there is some magic somewhere of which I am unaware they will still tax my DB, again as part of my overall income, at prevalent rates.

Mr_Benn

https://forums.moneysavingexpert.com/discussion/comment/81908556#Comment_81908556

Thats a very good point Shiney, and not 'cold ' at all. Im a bit stuck with that as Mrs Benn only has a small pension. Ive looked at Life Insurance, but the payouts are obviously not great (were both 64) . My best plan would be to sell our house as would really be too big for just me. The plus being I could spend (blow) all our savings on travelling round the world watching football lol !