Pensions Planning: The NUMBER

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  • houseboatdream
    houseboatdream Posts: 101 Forumite
    First Anniversary Combo Breaker
    So shall we continue the discussion?:T

    My figure is £20k based on:

    Bills & utilities £3700 (current costs - we have v small property!)
    Food £5200
    Pocket money and personal stuff £3800 (for 2)
    Vehicle £1500 - not factored in replacing it, something to think about..
    Holidays £3000 (campervan)
    Repairs £1000
    Pets £1000
    thats £19200 which I round up to £20k

    So, I'm thinking £20 - 22 is where to aim. I know we can live on a lot less. When we travelled round europe we lived on £10k per year, but we did not have the house costs to pay. Scary though, not having a house...

    Someone made interesting point that to have net £22k you need gross £25k. That raises the issue of tax, because it seems that you need to manage your retirement funds to pay the minimum tax possible, especially if you retire before proper pensionable age becasue you won't get the enhanced personal allowance until then.

    Our issue is that we will be OK once I reach 65, but by then OH will be 73. There's lots of things we want to do before then. I am the main earner in the household and want to retire in 10 years time when I will be 55. Question is how to bridge the gap between 55 and 65. Thats where my "Retire ten years early" thing comes from.
    Back after 9 years in France ... starting again
  • Gatser
    Gatser Posts: 624 Forumite
    Photogenic First Post First Anniversary
    We appear to be roughly on the same lines HOUSEBOATDREAM.

    I had great plans until I was "politically removed" from my job after 20 years.
    However, thanks to my spreadsheet and calculated NUMBER, I have worked out how to get back on course.....eventually.

    Interesting to hear your plans.
    I am 52 and hope to start working less time at 55.

    Tax is certainly an important factor in the whole equation.
    I am trying to get the balance right between Pension & Savings (ISA's) so that income can be split between OH & myself and make full use of our individual tax allowances.

    I realise in my NUMBER calculation, I have been prudent in my estimate of future bills, food costs etc but its always best to have some "fat" in the figures....just in case interest rates stay at 0.25%! :rotfl:
    THE NUMBER is how much you need to live comfortably: very IMPORTANT as part 1 of Retirement Planning. (Average response to my thread is £26k pa)
  • Rob_Marx
    Rob_Marx Posts: 116 Forumite
    i would need £250k a year just enough to keep attract 21 year old blondes and replacing them every 2 years
  • whiteflag_3
    whiteflag_3 Posts: 1,395 Forumite
    edited 20 December 2009 at 5:47PM
    Rob_Marx wrote: »
    i would need £250k a year just enough to keep attract 21 year old blondes and replacing them every 2 years

    you are correct Rob, its all about lifestyle. Everyone is different therefore it doesnt make sense to use what others on here are doing as a benchmark for your own planning.

    Btw Gatser I knew I had come across you before and I see being discourteous isnt a new thing for you - although I have to say this old thread was most entertaining- did you ever post whose SIPP you went with?

    http://forums.moneysavingexpert.com/showthread.html?t=991161
  • silvercar
    silvercar Posts: 46,945 Ambassador
    Academoney Grad Name Dropper Photogenic First Anniversary
    Maybe I'm missing something, my NUMBER is too high. I am working on having the same standard of living but more free time means more holidays. I'm including things like still running two newish cars, keeping living in the family home, so expenses like a gardener.
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  • Gatser
    Gatser Posts: 624 Forumite
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    whiteflag wrote: »
    Everyone is different therefore it doesnt make sense to use what others on here are doing as a benchmark for your own planning.

    I prefer to listen to the experience of others and learn from them.
    Others may similarly learn from my mistakes (I am not perfect either, WhiteFlag :rolleyes:)
    Therefore.....I disagree with your view.
    whiteflag wrote: »
    Btw Gatser I knew I had come across you before and I see being discourteous isnt a new thing for you

    Diskertius? Moi?? I cannot even spell it!
    Perhaps you are a sensitive soul... My humble and unreserved apology if anyone is upset by my comments.... who else have I upset I now wonder?

    Let's try to stick to the thread shall we....
    THE NUMBER is how much you need to live comfortably: very IMPORTANT as part 1 of Retirement Planning. (Average response to my thread is £26k pa)
  • Gatser
    Gatser Posts: 624 Forumite
    Photogenic First Post First Anniversary
    silvercar wrote: »
    Maybe I'm missing something, my NUMBER is too high. I am working on having the same standard of living but more free time means more holidays. I'm including things like still running two newish cars, keeping living in the family home, so expenses like a gardener.

    Everyone's NUMBER is fine...if it can be achieved.
    The point of calculating your NUMBER is to know where you should be aiming, not to try and match someone else's.

    I put £5k in for food.
    Others may shop at Waitrose/M&S and need £10k.

    As I talk to (semi/retired) friends they tell me its possible to survive on less than we first think... but I have never had a gardener so thats a luxury I will have to forego. (but good luck to you)
    Same with cars... I have never been motivated by cars but thats a personal choice, if you can include them in your NUMBER and afford it, Great!

    I guess your NUMBER is nearer £40k?
    THE NUMBER is how much you need to live comfortably: very IMPORTANT as part 1 of Retirement Planning. (Average response to my thread is £26k pa)
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    silvercar wrote: »
    Maybe I'm missing something, my NUMBER is too high. I am working on having the same standard of living but more free time means more holidays. I'm including things like still running two newish cars, keeping living in the family home, so expenses like a gardener.

    Quite a lot of costs go down = no NI, no pension payments, no transport costs to work, no 'incidentals' (lunches coffees gifts,drinks etc) related to work. No need for expensive work clothes. Tax allowances go up quite a lot after 65. You may find the free bus pass is a moneysaver, depending on where you live, along with the senior railcard. There are various other freebies such as prescriptions.It all mounts up.

    Some costs rise, eg utilities, if you are at home all day, but winter fuel allowance helps with that. Being around at quiet times means you have access to plenty of bargains in the shops.There are discounts for retired people at many museums, theatres,galleries, etc.

    I'd say costs definitely go down after retirement comparing like for like, but some people do adopt a more expensive lifestyle, catching up with travel and leisure activities they put off when working, and this can be more expensive.
    Trying to keep it simple...;)
  • whiteflag_3
    whiteflag_3 Posts: 1,395 Forumite
    silvercar wrote: »
    Maybe I'm missing something, my NUMBER is too high. I am working on having the same standard of living but more free time means more holidays. I'm including things like still running two newish cars, keeping living in the family home, so expenses like a gardener.

    no silvercar, luckily for you, you have not missed anything. Your number is your number- if thats what it takes then thats what you should aim for.

    Life isnt a dress rehearsal, theres no point in lying on your death bed regretting not doing all the things you could have done. If you know what you want ( and I can see from other threads you are making plans) then plan to achieve it. :T
  • whiteflag_3
    whiteflag_3 Posts: 1,395 Forumite
    edited 20 December 2009 at 10:26PM
    I prefer to listen to the experience of others and learn from them.
    Others may similarly learn from my mistakes (I am not perfect either, WhiteFlag :rolleyes:)
    Therefore.....I disagree with your view.

    No surprise there then! After all I only spend all day everyday helping people understand their financial situation, how to make the most of their life and how to arrive at their "Number" using the most sophisticated cashflow forecasting tools available to financial planners:confused: Oh and they happily pay a fee at the end and ask what they need to do to be able to ensure they are on track in the future.




    It amazes me that you started "The Number" thread yet dont get it yourself.

    Let's try to stick to the thread shall we....

    yes lets so without wanting to sound like a stuck record ,why then did you call my first post sarcastic and what did you hope to gain?
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