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Pensions Planning: The NUMBER

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  • rnjrnj Forumite
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    Im clearly not spending enough, I did a retirement calculator, i think it was on pensions advisory site, they estimated id need more in retirement than i spend now!
  • enthusiasticsaverenthusiasticsaver Forumite, Board Guide
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    rnj wrote: »
    Im clearly not spending enough, I did a retirement calculator, i think it was on pensions advisory site, they estimated id need more in retirement than i spend now!

    That does not surprise me as we are spending more in retirement than we did while working.

    You have more time when retired to spend on hobbies, eating out, travelling and diy which all cost money.

    You are home more so fuel bills higher as heating etc on during the day.

    Although you may not have commuting costs there may be fuel to pay for days out etc.

    What you spend in retirement depends on what sort of retirement you want to have but it may not translate to the same expenditure as when working.
    Early retired in December 2017

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to [email protected]
  • TerronTerron Forumite
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    cfw1994 wrote: »
    Is the BTL still working well? My broad understanding was that there were changes this year that negatively impacted them....but curious to know short detail from one involved!!


    Sorry missed this earlier.
    Yes, BTL is still working well for me overall.Mortgage tax relief is being reduced gradually, with another step this year, The way it works is not simple though and as a basic rate tax payer it has not affected me yet. It might next year with pensions pushing up my income.
  • SkyFaeSkyFae Forumite
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    First Anniversary
    i'm really struggling to work out my pension needs Number.

    I have anxiety issues mixed with socialphobia and get extremely paranoid about not having enough money to the point that my sister is concerned that I have got into a bad mind loop.

    I currently double down on my mortgage and make a annual overpayment too, I was careful on my research making sure I wouldn't get penalised for this as I have fell foul of that before. So wont have that worry soon.

    but no matter how much research I do on Mortgages I end up panicked to the point of Anxiety shakes that I am not putting enough away.

    also I have the confusion of 2 frozen self-created pensions, 1 frozen final salary pension and now a fairly new Stakeholder pension. making what I have already got a harder pot to calculate.

    I can meet up with a Financial Advisor as i'm not good at face to face.

    does anyone know of a handy spending calculator or pension calculator so I can at least work out if I have enough as cash, even if I cant work out how much I would get a year/month/week any other way.

    the recent ITV show about how people were trying to survive on pension money after bills didn't exactly help my state of mind.

    apologies if this is the wrong place for my question
  • crv1963crv1963 Forumite
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    SkyFae wrote: »
    i'm really struggling to work out my pension needs Number.

    does anyone know of a handy spending calculator or pension calculator so I can at least work out if I have enough as cash, even if I cant work out how much I would get a year/month/week any other way.

    the recent ITV show about how people were trying to survive on pension money after bills didn't exactly help my state of mind.

    apologies if this is the wrong place for my question

    There are pension needs calculators but they give a rough rule of thumb- try Aviva or Hargreaves Lansdown sites.

    Don't panic about it, simply sit down, write down what you have already- pot sizes and then an estimate of the income- the calculators can do this for you based on pot size, or you can self estimate- we use a 3% rate so 100k gives 3k pa pension, others use higher numbers such as 4 or 5%.

    Then add in SP- we use 8.5k pa.

    That way you arrive at a very rough estimate of income at SPA. Figure 1.

    Next your income needs- all your fixed bills, utilities, council tax etc. Don't include Mortgage or work related costs or pension savings as you won't have these hopefully on retirement. Figure 2.

    If one is greater than two you have enough to manage.

    Next look at quality of life, or what you would like in retirement and what it costs, Figure 3. If Figure one is greater than three again you have it sorted. If not then it is a case of adjusting your expectations in retirement, or saving more, or working longer or a combination of the three.

    We worked out-

    1) Our must have income- basics paid, have a bit of a life.
    2) Our would like income- as above plus monies for EU holidays, cars.
    3) Our luxury would like income, as both above plus world wide or long haul holidays and helping the next generation with larger sums of money.

    We are aiming for luxury level but will be content on the middle figure if that is what we end up with.

    Everyones number is slightly different, ability to save changes and don't forget to live a life now. Anxiety about it all does nothing for the future and robs you of peace now. If getting anxious, use distraction to something else and return to it when you are calmer. The one good thing is that it is in the future so you have time to make adjustments now and planning is better than no planning.
    CRV1963- Light bulb moment Sept 15- Planning the great escape- aka retirement!
  • CWSmithCWSmith Forumite
    451 posts
    We took slightly early retirement a couple of years ago and (what joy!) our outgoings/spending has turned out to be substantially less than we anticipated.

    Ok, we moved from the SE to Cornwall where the winters are wetter but warmer, so our heating bills have decreased.
    With more time to shop around and cook, our food bills have also decreased and I'm sure we are eating at least as much as before.
    Without requiring "good" work clothes, and with time to indulge my hobby of needlework, our clothing bill has decreased and yet we have more clothes.
    Even with going on outings regularly, our car fuel bills are nowhere near what our work fuel bills were.
    The biggest surprise, Cornish car repairs / tradespeople etc. are a fraction of Surrey prices!

    It's all good!
  • justme111justme111 Forumite
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    When my friend from Northamptonshire came here and went to a garden centre with me she bought all plants her car could fit in as she says it is much cheaper.
    The word "dilemma" comes from Greek where "di" means two and "lemma" means premise. Refers usually to difficult choice between two undesirable options.
    Often people seem to use this word mistakenly where "quandary" would fit better.
  • westvwestv Forumite
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    CWSmith wrote: »
    We took slightly early retirement a couple of years ago and (whThe biggest surprise, Cornish car repairs / tradespeople etc. are a fraction of Surrey prices!


    Presumably you are surprised how much cheaper they are rather than being surprised they are cheaper. I think Cornwall is, in some ways, quite a deprived part of the UK.
  • CWSmithCWSmith Forumite
    451 posts
    westv wrote: »
    Presumably you are surprised how much cheaper they are rather than being surprised they are cheaper. I think Cornwall is, in some ways, quite a deprived part of the UK.

    It doesn't come across as deprived at all. Just different. The pace of life is so much slower and laid back than in Surrey, honestly, it felt like we had time-travelled back to the 1970s when we first moved. It's another world. There is no great urgency, or sense of acquisitiveness. Sorry, off topic somewhat.
  • lisyloolisyloo Forumite
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    CWSmith wrote: »
    It doesn't come across as deprived at all. Just different. The pace of life is so much slower and laid back than in Surrey, honestly, it felt like we had time-travelled back to the 1970s when we first moved. It's another world. There is no great urgency, or sense of acquisitiveness. Sorry, off topic somewhat.


    Dont be sorry.
    Its fascinating to hear that parts of the UK can be so different.
    I don't know where I'll be living in retirement (would want to take care of some parents) but it's good to know that we could live more cheaply and with a different quality of life.
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