Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Sea Shell
    • By Sea Shell 29th Jun 19, 3:14 PM
    • 2,835Posts
    • 5,085Thanks
    Sea Shell
    It's time to start digging up those Squirrelled Nuts!!!!
    • #1
    • 29th Jun 19, 3:14 PM
    It's time to start digging up those Squirrelled Nuts!!!! 29th Jun 19 at 3:14 PM
    Hi Everyone and welcome to my new thread.

    Original thread can be found here... https://forums.moneysavingexpert.com/showthread.php?t=5631875

    As you may know, DH has already finished work and I am also due to finish in 3 weeks time . We hope that our FIRE pot is now enough (our IFA seems happy!)...and so I have made the decision to jump too!!!!!

    This is going to be the next adventure, so if you want to watch us crash and burn, subscribe now!!! - Seriously, though, we are confident we've got our figures right for our circumstances and we'll have a comfortable retirement. Our idea of comfortable, would be spending approx £15k-£20k pa. We currently average about £13k pa spends.

    Anyway, some numbers....

    As of today our total FIRE pot stands at....£536,129. This is made up of...

    DC pension pots - £303,729
    S&S ISAs - £133,648
    Fixed term cash - £69,715
    Easy access cash - £29,037 (net of stoozed CC balances)

    Will will also have SP's (eventually) which we'll look to pay-up to max nearer the time (i'm 3 years short), plus DH has 2 DB pensions due to start paying in approx 12 years of c. £8300 in today's money (indexed).

    I look forward to your company.

    *** Update ***
    So I’ve just been closing off the month end figures for September 2019, and all is still on track. We currently have a “pot” of £548,751.

    Our joint pot breakdown is:

    Instant access cash - £12,925 (net of stoozed CCs)
    Locked Cash - £88,062 (including notice accounts and fixed term bonds)
    S&S ISA’s - £135,797
    Pension Funds - £311,967
    Last edited by Sea Shell; 29-09-2019 at 8:17 AM.
    " That pound I saved yesterday, is a pound I don't have to earn tomorrow " JOB DONE!!
    This should now read "It's time to start digging up those Squirrelled Nuts"!!!
Page 3
    • MallyGirl
    • By MallyGirl 2nd Jul 19, 7:23 PM
    • 4,034 Posts
    • 9,471 Thanks
    MallyGirl
    Same here but one needs to be careful to only consider inanimate objects at times!
    Originally posted by m_c_s
    My DH does start to make comments about not standing still for too long when I get in a declutter mood!
    • MallyGirl
    • By MallyGirl 2nd Jul 19, 7:34 PM
    • 4,034 Posts
    • 9,471 Thanks
    MallyGirl
    Pets alone whack our costs up. Older dog insurance is £68 pcm, younger one is £58, cat is £14. Dogs eat 1lb of raw meat a day each - that adds up! Both dogs on a vet plan at £19 each pcm. We could 'self insure' but I prefer to have cover.
    • BoxerfanUK
    • By BoxerfanUK 2nd Jul 19, 7:53 PM
    • 528 Posts
    • 431 Thanks
    BoxerfanUK
    Pets alone whack our costs up. Older dog insurance is £68 pcm, younger one is £58, cat is £14. Dogs eat 1lb of raw meat a day each - that adds up! Both dogs on a vet plan at £19 each pcm. We could 'self insure' but I prefer to have cover.
    Originally posted by MallyGirl
    We are similar, 2 dogs with Petplan @ £148.00 per month total.

    Interesting thread this is turning into. On the subject of what amount people get through every month after bills are paid, I recently downloaded a spending tracker app to my phone, so currently I'm inputting everything spent to try and unravel the mystery of where it all goes each month.
    • BoxerfanUK
    • By BoxerfanUK 2nd Jul 19, 8:25 PM
    • 528 Posts
    • 431 Thanks
    BoxerfanUK
    I'm actually going to brave the world of e-bay once I've got more time on my hands, as there must be stuff we can get a couple of quid for too.
    Originally posted by Sea Shell
    Been doing this for a few weeks now Sea Shell. Its surprising what people will buy and the prices they will pay. I've been sorting stuff into 3 categories, sell (ebay), charity shop, dump.

    After a few things sold on ebay a few of the things in my 'charity' section mysteriously moved to the ebay section . A bit of a faff at first with photos, postage estimates, packing etc, but once you get into its ok. I tend to schedule listings to start on a Thursday evening around 19.00 on a 10 day listing and ending on the second Sunday around 19.00 hrs as more people tend to be in when your listing ends.

    Also, a 10 day listing on a Thursday covers two full weekends so I think it leads to more 'views' of your items for sale and thus, potentially, a better price achieved. Give it a try.
    • bluenose1
    • By bluenose1 2nd Jul 19, 8:40 PM
    • 2,204 Posts
    • 3,610 Thanks
    bluenose1
    I have been decluttering my clothes / house out as per Marie Kondo. Dont buy into all the thank your clothes as you throw them out etc but love the way I now organise my T-shirt drawers etc. I now have my clothes folded her way colour coded and have found clothes I had forgotten I had. And I haven't even retired yet!
    Money SPENDING Expert

    • cfw1994
    • By cfw1994 2nd Jul 19, 8:50 PM
    • 482 Posts
    • 432 Thanks
    cfw1994
    Sorry, are you joking or being serious? No winky emoji??

    Like a said, they don't actually manage any investments or anything for us, just popped round to have a general overview of the figures and the plan and said, yep, you seem to have everything in hand. So no, we don't pay them a fee.
    Originally posted by Sea Shell
    Fred never jokes when slating IFAs, you need to know that!!

    We live on about 18 thousand a year. Everything else we earn is saved for FIRE (hopefully in about 5 years' time).

    We run two cars, have a pet, go on holidays and days out etc. easily on the 18 thousand.

    When I see people wanting retirement funds of 30 - 40 thousand a year I have no idea what they would spend the money on.
    Originally posted by Spider In The Bath
    There is The Number thread to go through what people are after in retirement.
    I can EASILY see 3K+ pcm going out!

    Yes, you can run cars on a shoestring....'bangernomics' can be a fun thing....but sometimes it is nice to know there are no unexpected bills to be worried about....& it can be nice to think that even in retirement, one can chose to budget for the occasional *gasp* new replacement!

    We would like to enjoy more 'entertainments' than we have time for now - films, theatre, pubs, meals out - not less! We would like to take off for a month or two around the UK, perhaps Europe etc. Those things aren't free!
    We don't particularly want to downsize: all our friends, social life is around here, the house is in a good area, broadly as we want, decent medical facilities nearby....I can imagine a future time when we may become grandparents, and it would be nice be able to put everyone up...although of course at some point we may want something smaller.
    I'd actually like to at least try to help keep putting some aside for our older kids (yes, I know we don't have to), which could eat 100-400pcm (or less in a lean year, of course - that would be the first luxury outgoing to be paused if needed!).

    So: fair play to those who are happy and able to live on £1500 pcm, but do appreciate others won't: it isn't a competition!

    & back on track: enjoy your time & retirement, Sea Shell
    • Anonymous101
    • By Anonymous101 2nd Jul 19, 9:27 PM
    • 1,435 Posts
    • 1,174 Thanks
    Anonymous101
    Yes, sorry for going off topic Sea Shell.

    One question I was meaning to ask, apologies if you’ve already stated this, is what differences have you accounted for within your budget from your squirrelling phase to your retirement phase?

    Interested as some folks report lower spending due to costs of commute etc whilst others budget for increases to hobbies with having more free time.
    • Terron
    • By Terron 2nd Jul 19, 9:44 PM
    • 534 Posts
    • 577 Thanks
    Terron
    We live on about 18 thousand a year. Everything else we earn is saved for FIRE (hopefully in about 5 years' time).

    We run two cars, have a pet, go on holidays and days out etc. easily on the 18 thousand.

    When I see people wanting retirement funds of 30 - 40 thousand a year I have no idea what they would spend the money on.
    Originally posted by Spider In The Bath

    When I was working I spent about £18k a yearsaving the rest as I knew my job was not going to last forever. After I lost it I was living on less for a while, but didn't enjoy it. Once I got my income back over £18k I found life reasonably comfortable again, but I couldn't treat myself much. Now I am about £25k and I can afford to eat out when I feel like it and I even took a holiday to Rome last year. I've have moved from my flat to a larger, but cheaper house on the edge of the Peak district. I have a decent internet connection and Sky (need to be able to watch the cricket). Very soon now my pensions should start paying out. They should push me up to at least £36k pa, so I need to figure out how to spend it. Travel looks the likely option.
    • DairyQueen
    • By DairyQueen 2nd Jul 19, 10:40 PM
    • 991 Posts
    • 1,764 Thanks
    DairyQueen
    We have recently calculated our number based on what we can afford rather than what what we need.

    Until I began seriously researching retirement finances and plans, I had followed the common approach of calculating three numbers: 1) minimum on which we could survive (18-25k); 2) adding a modicum of discretionary spends (25-30k); 3) comfortable (see below). All subjective values, and particular to our circumstances and aims.

    The more I have researched, the more our number has increased. We have been lifelong savers and i hadn't a clue just how far our savings would stretch until last year. The big differentiator was the realisation that we had been modelling income including taking only the natural yield from our investments. When we realised that we aimed to deplete the capital (doh) then we entered a different income league.

    Now we spend many happy hours discussing ways of spending the extra income.

    Two years ago, our highest (comfortable) number was in the region of £35-£40kp.a. If we manage to stay on track for another 21 months (OH's planned retirement date) we will actually achieve around £55-60k.

    We have been sleepwalking into a much more comfortable retirement than we realised. According to the media doom-mongers this makes us exceptional as, apparently, most sleep-walkers achieve the opposite. Do we intend to enjoy the additional spending? You betcha. Any chance of us spending less just because we don't need to? Errr.... nope.

    Anyone else in this happy, if unexpected, situation?
    • Audaxer
    • By Audaxer 2nd Jul 19, 10:58 PM
    • 1,900 Posts
    • 1,187 Thanks
    Audaxer
    Two years ago, our highest (comfortable) number was in the region of £35-£40kp.a. If we manage to stay on track for another 21 months (OH's planned retirement date) we will actually achieve around £55-60k.
    Originally posted by DairyQueen
    Wow, that's quite a jump. Is that achievable because you have DB pensions to cover your essential spend? With good DB pensions and State Pensions added on when received, that's the only way I can think of when you can be comfortable running down capital completely without the risk of leaving yourself short in later years.

    I'd love to know your strategy. To achieve that level of income have you gone for a very high equity percentage, and is your drawdown strategy a certain percentage every year increasing by inflation, or only drawing income in good years with a cash buffer for poor years?
    • jimi_man
    • By jimi_man 3rd Jul 19, 6:33 AM
    • 201 Posts
    • 230 Thanks
    jimi_man
    No idea who says it was wrong as it was not me.

    I have made no comment on what is right, or wrong.

    People are entitled to spend what they like. I just cannot work out what they are finding to spend it on.
    Originally posted by Spider In The Bath
    Sorry, no-one actually said it. Itís a figure of speech, maybe a poor choice of words on my part.

    Holidays and cars I imagine. Most people underestimate the cost of cars. Including fuel (10,000 miles a year say) and depreciation (say £800 a year average) then running a car can be over £3000 a year - double for two. If you donít do as many miles, do your own servicing and drive bangers then it can reduce this. But few people are so willing to do that as they get older so have to buy newer cars which increases the depreciation.

    Also itís interesting to note that a yearís running costs for a car are not representative. Over 10 years then there is likely to be a new clutch, probably four sets of tyres, brakes etc etc. These will all add up but may not feature in a yearís costs.

    Holidays can be expensive. Some people, if they go long haul, arenít prepared to travel economy and that adds up.

    So two reasonable cars and a couple of decent holidays is easily £12k a year.
    • Sea Shell
    • By Sea Shell 3rd Jul 19, 6:37 AM
    • 2,835 Posts
    • 5,085 Thanks
    Sea Shell
    Yes, sorry for going off topic Sea Shell.

    One question I was meaning to ask, apologies if youíve already stated this, is what differences have you accounted for within your budget from your squirrelling phase to your retirement phase?

    Interested as some folks report lower spending due to costs of commute etc whilst others budget for increases to hobbies with having more free time.
    Originally posted by Anonymous101
    To be honest I think the two will balance each other out. Our hobbies are mainly outdoorsy, walking/hiking, sightseeing etc. We do plan to buy a National Trust membership. Our petrol costs will go up a bit, but again mostly offset my no more commuting. And to be fair, we're not going to be out and about every day, probably once a fortnight for specific day trips and once a month for longer (approx 7 months of the year) Mainly UK short breaks. Unless in rains all year and we'll stay put!!!!

    It's all a bit suck it and see !!!! - who want's to plan life to the minute detail anyway. We'll do what feels right, and see where that takes us.
    " That pound I saved yesterday, is a pound I don't have to earn tomorrow " JOB DONE!!
    This should now read "It's time to start digging up those Squirrelled Nuts"!!!
    • Sea Shell
    • By Sea Shell 3rd Jul 19, 6:56 AM
    • 2,835 Posts
    • 5,085 Thanks
    Sea Shell
    The big differentiator was the realisation that we had been modelling income including taking only the natural yield from our investments. When we realised that we aimed to deplete the capital (doh) then we entered a different income league.

    Anyone else in this happy, if unexpected, situation?
    Originally posted by DairyQueen
    This is where we hope to be. We have no reason NOT to deplete the capital, BUT, we've been working to the model of what natural yield our pot might generate, and it only needs to consistently give 4%, to give us £20k. However, if we decided to run the pot into the ground, then blimey, we could blow through £40k pa for 12 years, and then plead poverty!!!

    This is, of course, that we don't suddenly go through a major crash, and lose a substantial chunk of that overnight!! (It'll happen the day after I finish work you know - be warned!)

    Our rough plan is this...

    next 2 years spending cash - £30k
    Capital expenditure / Emergency cash - £70,000 (to be drawn on in a downturn)
    £436k @ 60% ave. exposure to Equities = £261k, which if it lost 50% value, would reduce that part of the pot by £130k = £306,000, of which 4% of that still gives £14,500.

    Also, we're the sort that if we did go though a major equity crash, we WOULD rain in our spending, we are just not the type to just blindly carry on spending in those circumstances, 4% "rule" or not!!
    " That pound I saved yesterday, is a pound I don't have to earn tomorrow " JOB DONE!!
    This should now read "It's time to start digging up those Squirrelled Nuts"!!!
    • jimi_man
    • By jimi_man 3rd Jul 19, 8:28 AM
    • 201 Posts
    • 230 Thanks
    jimi_man
    I'm interested in this. How do you deal with, psychologically, the process of decumulation? I think from a personal point of view, this is something that I would struggle with and the whole concept of draining funds and thus gradually reducing wealth, I'd find quite scary. My retirement plan (virtually all DB based) still has a proportion of saving built in and once the state pensions kick in we'll have more than we need and will save a fair amount.
    • Anonymous101
    • By Anonymous101 3rd Jul 19, 8:33 AM
    • 1,435 Posts
    • 1,174 Thanks
    Anonymous101
    To be honest I think the two will balance each other out. Our hobbies are mainly outdoorsy, walking/hiking, sightseeing etc. We do plan to buy a National Trust membership. Our petrol costs will go up a bit, but again mostly offset my no more commuting. And to be fair, we're not going to be out and about every day, probably once a fortnight for specific day trips and once a month for longer (approx 7 months of the year) Mainly UK short breaks. Unless in rains all year and we'll stay put!!!!

    It's all a bit suck it and see !!!! - who want's to plan life to the minute detail anyway. We'll do what feels right, and see where that takes us.
    Originally posted by Sea Shell


    I agree its totally "suck it and see" and planning life out to the N'th degree would be very boring. For me its just an estimate, if you know you've got an expensive hobby that you'll be doing more of then its wise to budget accordingly. Likewise if you plan on doing a lot of travelling etc. Although in retirement there are a lot of angles you can work to reduce the cost.
    A National Trust membership would certainly be on my list... very good value.
    • cloud_dog
    • By cloud_dog 3rd Jul 19, 8:44 AM
    • 4,619 Posts
    • 2,893 Thanks
    cloud_dog
    Hi Sea Shell

    I can't remember but how much of your income will be from investments, or what percentage will be from guaranteed sources (FS/SP), pre SPa and post SPA?

    Capital expenditure / Emergency cash - £70,000 (to be drawn on in a downturn)
    Originally posted by Sea Shell
    What are your plans regarding your £70k emergency pot? Are you going to have X% always available and then the rest in a savings ladder?

    I am always interested in the conversations of how people will manage their decumulation but feel there needs some context of any guaranteed income; which can greatly alter how you manage/treat investments /cash.
    Personal Responsibility - Sad but True

    Sometimes.... I am like a dog with a bone
    • Suffolk lass
    • By Suffolk lass 3rd Jul 19, 10:07 AM
    • 3,375 Posts
    • 29,820 Thanks
    Suffolk lass
    Yes, it easily mounts up. When I looked at you food bill for the month at £300, including a meal out, that seemed low compared to our supermarket spend, which is usually over £400 but then realised ours includes non-food items like toilet rolls, kitchen rolls, shower gel, deodorant, various cleaning products etc. Have you accounted for these sort of things somewhere else?

    On my spend spreadsheet I also have a column for Cash withdrawn. That is less than it used to be when I was working, but we still need to withdraw cash a few times a month so it counts as part of our monthly spend.
    Originally posted by Audaxer
    Audaxer, if you want some tips on reducing that housekeeping bill, you could check out the Old-style Moneysaving part of the Forum.

    I first started when our overall spending housekeeping hit £700 per month over a three month period. Over the next several years my housekeeping budget has reduced every year and is now £3000 per annum. As you suggest, this includes all the store-cupboard items, toiletries and cleaning products, and all the pet supplies I buy (my other half occasionally buys cat litter somewhere else and it goes into his credit card spending) - I work on £200 per month plus a stores budget (£400) and a doubling to £400 for December. With a bit of extra effort I have not paid full price for any of the non-perishables you list for at least five years, and buy a few when they are on offer to maintain my stash and brands I love. Conversely I have used up the Bogoff (no pun intented) supplies of toilet rolls (and other stuff) I had when I started, TR numbered close to 100 - rolls, not packs

    As Sea Shell knows, it is about both sides of the equation - save well, spend well
    Save £12k in 2019 - #68 £8,973.49/£7,000 after Oct
    OS Grocery Challenge 2019 target £2067.30/£3k - 68.91% after October
    Mortgage Free Wannabes 2019 #37 109.23% £43,693/£40k so far
    MFIT T5 No 2 £42,188/£59,998 or 70.32% paid after Q3
    My DFD is here
    • DairyQueen
    • By DairyQueen 3rd Jul 19, 10:51 AM
    • 991 Posts
    • 1,764 Thanks
    DairyQueen
    Wow, that's quite a jump. Is that achievable because you have DB pensions to cover your essential spend? With good DB pensions and State Pensions added on when received, that's the only way I can think of when you can be comfortable running down capital completely without the risk of leaving yourself short in later years.
    Originally posted by Audaxer
    You hit the nail on the head. However, happenstance has worked in our favour. Pension freedoms, the nSP, and the opportunity to transfer-out of my DB, all worked to our benefit.

    Having said that, the biggest impact on our projected retirement income is the result of an unforeseen change in our circumstances. We met and married in later life and joining finances accounts for the big jump. Two can live cheaper than one. Married couples have methods of optimising tax across their savings and income that aren't available to singles. Our income and savings will stretch further now they are shared.

    This wasn't a carefully crafted plan but demonstrates the benefit of each individual accumulating sufficient pension savings to cover their own basic living expenses regardless of whether they are one of a couple.

    It is also an example of how sacrificing standard of living when working benefits retirement. You become used to enjoying life without spending loads of cash. You lose the need to impress via consumption. It makes for a less complicated and cheaper lifestyle.

    seashell has used the same strategy but I am amazed at how she and OH live so well on £12k-£15k p.a. It would be do-able for me as a single but OH's spending would never reach such an exemplary level. He has definitely improved since marrying me

    I'd love to know your strategy. To achieve that level of income have you gone for a very high equity percentage, and is your drawdown strategy a certain percentage every year increasing by inflation, or only drawing income in good years with a cash buffer for poor years?
    Originally posted by Audaxer
    OH and I shared the same strategy before we met - i.e. we were each aiming for guaranteed income that would cover all of our projected, non-discretionary expenses in retirement. We were each prepared to reduce our standard of living if necessary to ensure that primary aim was met. Had there been insufficient SP/DB, despite reducing expenses to the bone in retirement, then we would have purchased annuities sufficient to plug that gap before considering drawdown despite the lousy rates. It was worth the peace of mind.

    This level of income has been achieved by a combination of factors.

    Firstly, we max'ed-out any sources of guaranteed income:
    - We have deferred OH's DB for three years. This has increased his DB income by 20%.
    - OH will work an extra two years beyond his scheme NRA to max-out his SP. This also enables us to stash more cash for later drawdown/bridge to SP.
    - I paid sufficient voluntary contributions to receive the max SP.

    We will never increase our basic expenses beyond guaranteed income order to hedge against first death, sequence of returns risk and changes in the political climate (e.g., dare I say, a Corbyn government?).

    Secondly, we used tax-efficient vehicles to increase the amount available for drawdown, especially SIPPs:
    - OH paid HRT so his pension was stuffed with our cash savings (bolstered by unused previous year allowances).
    - I am a non-earner so each year we have transferred the max £2880 net into my SIPP. We will continue to do this until I reach 75.
    - I transferred-out of my DB after receiving a positive recommendation.
    - We use ISAs and also seek-out the best returns for unwrapped cash.

    This squirrelling has come at a cost. OH drives a 10-year-old car. Mine is now 7 years old. Nothing flash. We own two, modest homes to facilitate OH working whilst I continue to support elderly parents. We have taken only one longish holiday overseas since we married 5 years ago. We have depleted our unwrapped cash reserves. We have foregone £5k of guaranteed income (but mostly non-indexed once in payment).

    However, in those 5 years our portfolio (ex property equity) has increased from £300k to £700k. The markets have been kind - so far. Happenstance again but the markets could crash at any point.

    We intend to take the max TFC and then drawdown at a flexible rate. This will be determined by striking a balance between prudence and desire. We will hold sufficient cash in reserve to provide an additional index-linked £9k p.a. income for three years in addition to emergency cash. This will allow us to suspend drawdown completely should the markets crunch in a big way whilst still maintaining a higher standard of living.

    In normal times, and when all guaranteed income is in payment, we will drawdown at a rate of 2-2.5%. Prior to that (whilst bridging to DB/SP), and In good market years thereafter, we will increase the percentage relative to our needs and wants.

    We have divided and allocated the portfolio around three investment periods:
    Access in < 5 years = All cash.
    Access in 5-10 years = 60/40 Equities/Fixed Interest
    Access >10 years = 95/5 Equities/Fixed Interest (although I am querying the wisdom of that 5% given that it will hardly dampen volatility).
    • Sea Shell
    • By Sea Shell 3rd Jul 19, 2:49 PM
    • 2,835 Posts
    • 5,085 Thanks
    Sea Shell
    I'm interested in this. How do you deal with, psychologically, the process of decumulation? I think from a personal point of view, this is something that I would struggle with and the whole concept of draining funds and thus gradually reducing wealth, I'd find quite scary. My retirement plan (virtually all DB based) still has a proportion of saving built in and once the state pensions kick in we'll have more than we need and will save a fair amount.
    Originally posted by jimi_man
    Good question! Ask me again in a year's time.

    It's going to feel very different, that's for sure. All those years watching the pot grow and now...???

    I think we're ready....but I might hyperventilate and have a full on panic and ask for my old job back.

    For us it does help that I've only been bringing in £750 pm for the last 2 years, so it's not like I'm walking away from a £3000pm salary!!

    I'll keep this thread updated with the emotional, not just hard figures, too.
    " That pound I saved yesterday, is a pound I don't have to earn tomorrow " JOB DONE!!
    This should now read "It's time to start digging up those Squirrelled Nuts"!!!
    • Sea Shell
    • By Sea Shell 4th Jul 19, 6:35 AM
    • 2,835 Posts
    • 5,085 Thanks
    Sea Shell
    Hi Sea Shell

    I can't remember but how much of your income will be from investments, or what percentage will be from guaranteed sources (FS/SP), pre SPa and post SPA?

    What are your plans regarding your £70k emergency pot? Are you going to have X% always available and then the rest in a savings ladder?

    I am always interested in the conversations of how people will manage their decumulation but feel there needs some context of any guaranteed income; which can greatly alter how you manage/treat investments /cash.
    Originally posted by cloud_dog
    DH will get 2 DB Final Salary pensions (combined) of approx. £8300 in todays money (pension is indexed), in late 2031 (65). We'll both, eventually, get SP's too, but not until 2033 and 2039 (67) ?? We're both a bit short, but currently at approx. £7000 pa (we'll probably make them up much nearer the time.) So in about 20 years time we'll have £22,300 pa in todays money.

    So one could argue that we only need to fund those 20 years, out of our own total pot of £536,000.

    Our £70k emergency/contingency fund, we'll probably keep at a similar level, maybe a little less, as time goes on, and we see where we're at. But we want at least 4 times annual living expenses, so anywhere between £50-£70k feels about right, with some capital expenditure wiggle room in there too. Probably about £10-20k of that as instant access cash.

    For the far future, our MF house is worth approx. £360k, so there's always the option to downsize eventually.

    Hope that answers your questions.
    " That pound I saved yesterday, is a pound I don't have to earn tomorrow " JOB DONE!!
    This should now read "It's time to start digging up those Squirrelled Nuts"!!!
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

2,160Posts Today

7,573Users online

Martin's Twitter