DB/state pension only - how much contingency kepts in savings/investments?

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82103027#Comment_82103027

Plus working OMY , means OMY not having to use your retirement funds/pension. So OMY working means maybe two more years security of having enough ( or 1.5 years) .

jimi_man

We're in the same position. Retired 18 months ago and we have DB pensions to provide all our funds (and save a little each month). State pension is six years away yet for both of us, but that will just go straight into savings or it might just be the holiday fund!

We keep around £100k in cash (too much I know) and another £100k or so in various DC pensions, for a rainy day'. We've given a lump sum each to the kids already.

Ibrahim5

https://forums.moneysavingexpert.com/discussion/comment/82103027#Comment_82103027

Brings back memories. When I first started earning serious money I went in a colleague's Mercedes. I was desperately trying to work out how it was better than my Ford. Well it's a little bit smoother and I expect it's slightly faster to accelerate. Neither bothered me. So I kept the Ford and consider it one of the events that enabled my early retirement.

LHW99

https://forums.moneysavingexpert.com/discussion/comment/82104984#Comment_82104984

Must admit I look at expensive cars and think - you're going to be sitting in the same traffic queue as me soon!

@Lowtrawler have you ever been bothered about an expensive car, and is that likely to change?

BikingBud

Worrying about traffic jams?

Least of my worries about retirment, the reason to ride a bike🛵

Lowtrawler

https://forums.moneysavingexpert.com/discussion/comment/82105674#Comment_82105674

I have to admit, I've always taken cash rather than company cars so I could drive something mid priced and sensible. I think, like most people, the quality of car I have driven has improved as I've grown older. I'm someone who enjoys the journey as much as the destination and will take to country roads just for the hell of it. However, I am growing more sensible and mainly like to be cossetted on the journey. With no business mileage, I could see me running a car for 10 years if it remains reliable and I'm enjoying the ride. This is pointing me towards more premium options but not necessarily a higher total cost of ownership.

My point was not to say people should consider delaying retirement to get a better car, just there is a temptation to do so. Therin lies a slippery slope. Just One More Year for the nicer car. Then, it's just one more year and the kids can get on the housing ladder. Then, it's one more year and we can have a regular holiday to the Bahamas. Before getting drawn into the temptation, people need to step back and ask themselves what they want from retirement and stick to it. Don't be drawn into the temptation game.

poseidon1

https://forums.moneysavingexpert.com/discussion/comment/82107390#Comment_82107390

For a few years post retirement I was driving a succession of 2nd hand Audi A5s. However after a particularly expensive repair to replace an engine thermostat, I got tired of the rising cost of ownership and moved on to pure leasing of brand new cars on 3 year leases.

I am now on my third lease which this time is a sensible Nissan Qashqai hybrid with all the bells and whistles.

At £300 per month plus insurance it is an indulgence, but one which is very comfortably affordable.

Having the freedom every thee years to hand the car back and replace with something different (or not) I find quite liberating.

Modern cars have far too many expensive onboard computors and electronics for me to be attracted to outright ownership ever again, and I have pretty much had my fill of expensive German marques.

Ibrahim5

Yes I had to replace an engine thermostat on mine. It cost £12 but looking at it, it shouldn't have been more than about £6.

Lowtrawler

https://forums.moneysavingexpert.com/discussion/comment/82107421#Comment_82107421

I have been leasing a car for my wife for the past 12 years and it has worked out fine for her use need - low mileage, mainstream vehicle, get what is best value at every renewal. In recent years, leasing costs have been rising and I now reckon they exceed outright ownership for many vehicles, particularly if you are willing to run a car for more than 4 years. In retirement, reliability is less important than when working and so I don't believe we need the reassurance of a <3 year old car. However, it certainly takes away hassle and makes it easier to budget.