Changes in your retirement expenditure

chuffinnora

We retired 6 months apart, 1st my wife at 57 then me at 60. I was intending to work for another 2 years but seeing her strutting around in joy, and reminding me often "look what you could have ☺️" made my mind up. Don't regret that decision at all.

Our income also fell off a cliff, both having been pretty good earners, company car, life insurance, private health, phones etc. But we had analysed our various pensions, savings and investments..it became clear we could afford to retire.

So far we have budgeted about 75% of our previous combined net pay monthly, and seem to be spending that freely without worrying about cutting back too much. Still running 2 cars, but 1 car barely gets used. My wife is keen for both to retain some independence and that works well.

She is also intending to take on a part time "none thinking" job over winter. I've got enough jobs around the house to keep me busy for a long time. And I'm loving doing nothing some days without the pressure to constantly deliver.

Our spreadsheet has an increasing spend budgeted for next 10 years, then more or less level up to the 25 year target. Whilst still leaving a reasonable amount in reserve.

MallyGirl

https://forums.moneysavingexpert.com/discussion/comment/82165509#Comment_82165509

I know why - still supporting daughter who has graduated but is unable to start her job yet due to post infection fatigue, him not super sure that we have enough to do everything we want to in retirement (we do - being addressed by getting external advice), plus he actually enjoys his job whereas I hated mine.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82165543#Comment_82165543

It is very difficult to put these things out of your mind when planning retirement, but as humans we do tend to concentrate on the bad news ( people dying early, especially if it has just happened), and take less into account all those people we know who do not die early.

The statistics are clear - A 60 year old will live on average another 25 years ( slightly less for a man and slightly more for a woman) . People with good health; education; finances; family etc will tend to be in the 50% with above average life expectancy. About 25% of people will reach their 90's.

MasterG83

Although I have a modest pension investment and I'm 58, my plan is to exit the UK to cheaper living for 10-15 years, health permitting, therefore reducing my costs to enable to fund to last longer. I am currently working for a bank and the pension matching contributions are good, therefore I will wait until I'm made redundant to keep stashing that. Might not be too long, maybe at 60 yo

maxaxe

https://forums.moneysavingexpert.com/discussion/comment/82165517#Comment_82165517

I mostly work from home, so I expect my costs will go up. Perhaps I will eat out less as I will have time to cook at home.

MayDogsandCoffee

@maxaxe Same here, I will be able to get out and about a bit more so might have to be strict with myself to start with.

dont_use_vistaprint

https://forums.moneysavingexpert.com/discussion/comment/82157323#Comment_82157323

I don't agree. It's a given that you'll spend more in retirement. For many people, work is an expensive activity, especially if it denies you have time doing the things you enjoy or spending time with the people you care about. You often compensate with expensive hobbies clothes meals out holidays often choosing out of convenience or lack of time.

I retired at 52 and spend around 3 to 6 months of the year travelling doing photography now the rest of the time I'm in the UK close to my friends and family who I'm always cooking for and hosting.

there are so many activities and things to enjoy that don't cost you , when you have the time. I regularly visit London and spend hours in free galleries and exhibitions, camping in the Peak District road trips around the coast of the UK none of this costs much at all.

When I'm in the UK, I spend hardly anything probably around 25% of my pre-retirement spending. The travel is all budget travel, mostly central and Southeast Asia, and some cheaper parts of Europe, always out of season.

Overall of my travel and minimalist lifestyle in the UK, I'm spending between 50 to 75%of my pre-retirement spend.

leosayer

Stopping work meant more time at home and more time to contemplate our surroundings.

We identified that our house required work to address a very tired kitchen, shower room and conservatory along with a bedroom in the eaves no longer suitable for our very tall son.

We somehow ended up undertaking a major building project which is just about to finish. It has cost us around a quarter of our entire savings but it has given us the house that we'd be happy to spend another 25 years in.

So beware the dangers of retirement!

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82173509#Comment_82173509

We identified that our house required work to address a very tired kitchen, shower room and conservatory along with a bedroom in the eaves no longer suitable for our very tall son.

This is what happened in Covid when many people were suddenly at home every day. There was a boom in DIY and building projects planned. Unfortunately there was not sufficient supply of building materials or labour. and that is when the cost of building works shot up.