When do you stop saving?

[Deleted User]

When do people think saving in general becomes redundant? What amount is enough for you to think, right, no need to save anything more.

Let's say you've
- no debt
- no plans to take out debt
- mortgage paid off
- been paying into your pension every year since your 20s
- no kids
- happy and content that you've got a decent, reliable job which you don't foresee losing any time soon.

Maybe your yearly salary * % would be a decent measure e.g. if you're on 25k then 300% of that saved is £75k. Would you carry on saving after saving 300% (or whatever figure you choose) of your salary or just live for the moment and spend some dosh!

As they say there's no point in being the richest man in the graveyard!

Toto

I doubt I would ever want to stop saving because knowing me my goals will move with my circumstances. Once I am mortgage free I and had a large pot I would probably want to buy a holiday home abroad. then of course having 3 kids and one on the way I would want to be able to help them onto the property ladder. So while I am earning I will always be saving some of my income.

torbrex

For me it will be when my total savings in all forms equals my estimated expenditure up to age 75.
Yes I am anal enough to know how much I will spend on things and have made allowances for price rises and the odd emergency, I have not included projected pension earnings as that is something I am looking on as my bonus.

I fully intend retiring from full-time work when this balance is acheived but do not rule out part-time work if needed for extra income.

My current estimate has me retiring at 58.

nearlyrich

I am saving to retire early but I still buy stuff and go on great holidays. I do my research and pay the least I can for the things I want so I can save some of the money for later. An example I can give is I looked at some earphones on the Apple Store which I want they are £70, a quick google brought up a couple of sites with the same thing from £17...I can afford to pay £70 but prefer to pay £17.

free4440273

(when i run out of money :rotfl: )

i have a massive mortgage; no pension; a (significant) personal loan; I try and save as and when i can.

[Deleted User]

We're kind of in the situation you describe. The only difference being we have our own business, the nature of which means that we could make a modest income or get lucky and make a lot. Also we have no idea of how long the business will thrive as it depends upon the market. I'd say it's highly likely to keep at least a modest income coming in for a decade - and maybe it'll still be earning for us when we're 80!

The biggest priority for us is that we simply can't contemplate going back to work for someone else after experiencing the luxury of our own, low maintenance business. So ensuring that we have enough to get by WITHOUT going out to work if the business fails is more important than living the high life now.

We've got enough in pensions and a mortgage free house that we could sell to supplement it (no dependents). So after 60 is already taken care of.

That leaves us a 15 year period to spend our savings over. That works out at about £10k a year, but we're nervous about spending it because what if the business stops bringing in enough to live on sooner than that? It's a nice dilemma to have, I know, but it is a tricky one. Live for the moment or for a future that you might not live to see?

[Deleted User]

enjoyshoes wrote: »

:there's no point in being the richest man in the graveyard"
very very!!

:spam: in the signature. Reported

PasturesNew

As I see it, the point of savings is security and assurance.

Where will you be financially when you retire on what you have?
You've got the house, so how good is the pension?
If your pension brings in £100/week and the house is a 200 year old 8-bedroomed house then it would quickly become apparent that within 5-10 years that house would need major investment/maintenance that couldn't be serviced by the £100/week pension.

If, on the other hand, you've got £1000/month pension coming in and your house is easily maintained and quite new at the point of retirement, then I'd say there's no need to save anything and you should enjoy what you've got now.

It's a big variable really.

But it's all really about: when I retire, what lifestyle will I be able to afford and how much of my pension income will be gobbled up by maintaining my house 10, 20, 30 years after my retirement date.