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  • FIRST POST
    • Gatser
    • By Gatser 14th Dec 09, 12:44 PM
    • 588Posts
    • 220Thanks
    Gatser
    Pensions Planning: The NUMBER
    • #1
    • 14th Dec 09, 12:44 PM
    Pensions Planning: The NUMBER 14th Dec 09 at 12:44 PM
    The NUMBER is how much income you need to "live comfortably"
    So What's your number?
    Very important for pensions planning, to know what you are aiming for.

    My Number? (for a couple)
    I calculated: £22,000
    based on
    Food £5,000
    Car/transport £5,000
    Bills/Utilities £4,500
    Holidays/Leisure £4,500
    Clothing/Cash/Xmas/Other £2,000
    Repairs/replacements £1,000
Page 68
    • michaels
    • By michaels 29th Jan 19, 6:53 AM
    • 22,508 Posts
    • 103,492 Thanks
    michaels
    Please explain (I thought the max allowed was 100%) ?

    Scrounger
    Originally posted by Scrounger
    Salary sacrifice down to NMW.
    Cool heads and compromise
    • justme111
    • By justme111 29th Jan 19, 7:01 AM
    • 3,289 Posts
    • 3,167 Thanks
    justme111
    60%- pah, I put 450% of my pre tax income into pensions and only work 3.5 days a week.
    Originally posted by michaels
    Yours is bigger !
    Yes but it still is less than 100%- where did 450% came from ?
    • TBC15
    • By TBC15 29th Jan 19, 3:01 PM
    • 787 Posts
    • 469 Thanks
    TBC15
    Please explain (I thought the max allowed was 100%) ?

    Scrounger
    Originally posted by Scrounger
    Probably gets paid in Bitcoin where anything is possible.
    • gallygirl
    • By gallygirl 2nd Feb 19, 6:52 AM
    • 16,778 Posts
    • 110,555 Thanks
    gallygirl
    A combination of being an auditor and Virgo means I do have to sweat the small stuff . For a good number of years I had no option but to do this and then when things got easier I just kept going as I had this fanciful notion of retiring at 60. That notion appeared around the time my state pension age increased to 66 (now 67). Closely analysing my spending identified where I could make easy savings on things like not buying lunches at work etc. Slowly my savings % increased and when I got a 35% pay rise I didn't let 'lifestyle creep' occur and just increased my savings rate. I still spent on holidays but looked for cheap flights etc.

    The notion of retiring at 60 was indeed fanciful as I retired at 53 . No way could I have achieved that if I hadn't sweated the small stuff.

    Now I still monitor spending, allocate spends to different pots and compare to budgets. I'm not anal about it, there are a number of fairly large balancing items every month . It helps me see where the spends are creeping up etc, and helps me identify how much I can afford to spend on food parcels for the UK post-Brexit .

    To be honest, I still feel I'm treating myself when I have my once or twice daily coffee at €1 - 1.40 a go. I won't mention how much we spend on eating out every month .
    A positive attitude may not solve all your problems, but it will annoy enough people to make it worth the effort
    Mortgage Balance = £0
    "Do what others won't early in life so you can do what others can't later in life"
    • michaels
    • By michaels 2nd Feb 19, 9:46 AM
    • 22,508 Posts
    • 103,492 Thanks
    michaels
    A combination of being an auditor and Virgo means I do have to sweat the small stuff . For a good number of years I had no option but to do this and then when things got easier I just kept going as I had this fanciful notion of retiring at 60. That notion appeared around the time my state pension age increased to 66 (now 67). Closely analysing my spending identified where I could make easy savings on things like not buying lunches at work etc. Slowly my savings % increased and when I got a 35% pay rise I didn't let 'lifestyle creep' occur and just increased my savings rate. I still spent on holidays but looked for cheap flights etc.

    The notion of retiring at 60 was indeed fanciful as I retired at 53 . No way could I have achieved that if I hadn't sweated the small stuff.

    Now I still monitor spending, allocate spends to different pots and compare to budgets. I'm not anal about it, there are a number of fairly large balancing items every month . It helps me see where the spends are creeping up etc, and helps me identify how much I can afford to spend on food parcels for the UK post-Brexit .

    To be honest, I still feel I'm treating myself when I have my once or twice daily coffee at €1 - 1.40 a go. I won't mention how much we spend on eating out every month .
    Originally posted by gallygirl
    To me this is what makes sense, knowing where it goes and that you can afford it. It seems the majority are blissfully unaware how much bigger a mortgage or nicer a holiday they could afford if they didn't spend 2 quid on a coffee.....times twice a day .....times 5 days a week.....times 50 weeks a year.
    Cool heads and compromise
    • Terron
    • By Terron 2nd Feb 19, 10:39 AM
    • 455 Posts
    • 468 Thanks
    Terron
    The notion of retiring at 60 was indeed fanciful as I retired at 53 . No way could I have achieved that if I hadn't sweated the small stuff.
    .
    Originally posted by gallygirl

    I planned to stop working at 60 from when I first took out a pension in my mid-20s, but I never "sweated the small stuff". I just saved a lot and only spent what was left. As my pay increased so did my spending, but not as fast When I was 53 I lost my job and then I looked at how much I had and found that I could retire then,.


    However living off my capital didn't feel right so I went into BTL and have been living off the income from that, which by the third year was greater than I would have been spening according if I was living off the capital. This year I turn 60 so can take my pensions as originally planned. (I did dip into my SIPP last year for my first proper holiday in 5 years and a new bathroom).
    • Thrugelmir
    • By Thrugelmir 2nd Feb 19, 10:47 AM
    • 63,435 Posts
    • 56,259 Thanks
    Thrugelmir
    To me this is what makes sense, knowing where it goes and that you can afford it. It seems the majority are blissfully unaware how much bigger a mortgage or nicer a holiday they could afford if they didn't spend 2 quid on a coffee.....times twice a day .....times 5 days a week.....times 50 weeks a year.
    Originally posted by michaels
    Or the £39 a month spent on a contract to have the latest rendition of the iPhone. While not having time in the mornings to make lunch for work. Instead spending several £'s a day on a meal.

    Then complain endlessly about the lack of a decent annual payrise.......
    “The stock market is a device for transferring money from the impatient to the patient.” – Warren Buffett
    • cfw1994
    • By cfw1994 20th May 19, 8:01 AM
    • 307 Posts
    • 232 Thanks
    cfw1994
    Probs time to resurrect this great thread for newer fans of this forum!
    <snip>
    However living off my capital didn't feel right so I went into BTL and have been living off the income from that, which by the third year was greater than I would have been spening according if I was living off the capital. This year I turn 60 so can take my pensions as originally planned. (I did dip into my SIPP last year for my first proper holiday in 5 years and a new bathroom).
    Originally posted by Terron
    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!!

    A combination of being an auditor and Virgo means I do have to sweat the small stuff
    <snip>

    The notion of retiring at 60 was indeed fanciful as I retired at 53 . No way could I have achieved that if I hadn't sweated the small stuff.

    Now I still monitor spending, allocate spends to different pots and compare to budgets. I'm not anal about it, there are a number of fairly large balancing items every month . It helps me see where the spends are creeping up etc, and helps me identify how much I can afford to spend on food parcels for the UK post-Brexit .

    To be honest, I still feel I'm treating myself when I have my once or twice daily coffee at €1 - 1.40 a go. I won't mention how much we spend on eating out every month .
    Originally posted by gallygirl
    Whereabouts is the coffee that cheap? I’m guessing not UK!

    My challenge, I suspect, will be curbing the larger purchases. I do “sweat the small stuff” a lot, but whilst earning I find it is easy to make those purchases without too much hassle....

    Back on topic (The Number)...I like crv1963’s take (on a rogue parallel thread!!):
    Bearing in mind no mortgage, reduced work costs- as it will be minus NI, Pension Saving and work travel costs- our targets all after tax are-

    1) 1500 pm= reasonable living retirement, includes a UK holiday.
    2) 2000 pm= pleasant retirement, includes an EU holiday.
    3) 2500 pm= pleasant retirement, includes some wider World travel.
    4) 3000 pm= very pleasant retirement, do almost everything we want.
    5) 5000 pm= luxury retirement.

    All of the above with a 20k savings pot set aside for emergencies.
    Originally posted by crv1963
    I fully expect to stop the daily grind before I hit 56, & am targeting £2.5-3k pcm as a decent sum to play with in general (which I think would allow us still to help our “kids” out as they finish uni education)
    ....plus I have some numbers above and below for “more luxurious” & “more frugal” years.
    Seeing as a chunk of ours will be from DC schemes, it feels right to be flexible in that regard: if markets take a big hammering, then some part-time work and perhaps scaling back travel would be needed.
    • Brilley
    • By Brilley 20th May 19, 8:33 AM
    • 24 Posts
    • 19 Thanks
    Brilley
    ..a great thread and well worth a re-boot.

    We went a couple of years ago, (58), initially very much a bit of worry regarding "have we got enough". 20+ year of recording expenditure indicated we were spending an average of £24k per year. Factoring in the occasional "big spend" (eg car), increased this to an overall average of £26k. However when you are both working full time you don't get the time to spend it! My OH has now started taking their works pension which has taken the pressure of drawing down our savings pre SPs in another 5 five years.

    My long term budget suggests we could spend considerably more (£35k+), but after years of "saving" we are finding it a difficult habit too break!
    • crv1963
    • By crv1963 20th May 19, 8:44 AM
    • 873 Posts
    • 1,987 Thanks
    crv1963
    Probs time to resurrect this great thread for newer fans of this forum!


    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!!



    Whereabouts is the coffee that cheap? I’m guessing not UK!

    My challenge, I suspect, will be curbing the larger purchases. I do “sweat the small stuff” a lot, but whilst earning I find it is easy to make those purchases without too much hassle....

    Back on topic (The Number)...I like crv1963’s take (on a rogue parallel thread!!):


    I fully expect to stop the daily grind before I hit 56, & am targeting £2.5-3k pcm as a decent sum to play with in general (which I think would allow us still to help our “kids” out as they finish uni education)
    ....plus I have some numbers above and below for “more luxurious” & “more frugal” years.
    Seeing as a chunk of ours will be from DC schemes, it feels right to be flexible in that regard: if markets take a big hammering, then some part-time work and perhaps scaling back travel would be needed.
    Originally posted by cfw1994
    Making purchases whilst earning does make it seem easier, we are trying to make the big ticket items whilst working. All about balance, I just hope we are getting it right.

    We are trying to help my sons out a bit but they are also quite clued up on savings/ pensions/ saving to buy a house.

    Our main thrust is of course putting as much as we can into Mrs CRV SIPP, and build a cash fund to fall back on in the event which will come of a down turn so making draw down need to reduce or stop until the markets recover.
    CRV1963- Light bulb moment Sept 15- Planning the great escape- aka retirement!
    • gallygirl
    • By gallygirl 26th May 19, 9:22 PM
    • 16,778 Posts
    • 110,555 Thanks
    gallygirl


    Whereabouts is the coffee that cheap? I’m guessing not UK!
    Originally posted by cfw1994
    No, in Spain
    A positive attitude may not solve all your problems, but it will annoy enough people to make it worth the effort
    Mortgage Balance = £0
    "Do what others won't early in life so you can do what others can't later in life"
    • rnj
    • By rnj 26th May 19, 10:47 PM
    • 27 Posts
    • 22 Thanks
    rnj
    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!
    • enthusiasticsaver
    • By enthusiasticsaver 26th May 19, 11:17 PM
    • 8,526 Posts
    • 19,792 Thanks
    enthusiasticsaver
    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!
    Originally posted by rnj
    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 forumteam@moneysavingexpert.com
    • Terron
    • By Terron 27th May 19, 12:11 AM
    • 455 Posts
    • 468 Thanks
    Terron
    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!!
    Originally posted by cfw1994

    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.
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