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  • FIRST POST
    • Alice Holt
    • By Alice Holt 19th Oct 19, 6:40 PM
    • 3,474Posts
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    Alice Holt
    What kind of lifestyle you could have in retirement.
    • #1
    • 19th Oct 19, 6:40 PM
    What kind of lifestyle you could have in retirement. 19th Oct 19 at 6:40 PM
    I came across this site:
    https://www.retirementlivingstandards.org.uk/

    "Retirement Living Standards - The standards show you what life in retirement looks like at three different levels, and what a range of common goods and services would cost for each level."
    They are " the starting point to help you engage with your future lifestyle needs."

    Apparently to have a comfortable lifestyle (for a single person), requires a (net after tax) income of 33k in retirement.
    This doesn't include housing costs (mortgage or rent), amongst other things. It's assumed the mortgage is paid.

    To achieve this comfortable retirement apparently requires (in addition to the State Pension), a DC pension fund of 587,116. This is shown on a separate table (click on See How much income you could need for each standard - on the detail page).

    I can't see any notes / reference to the effects of inflation on that final fund.

    I think I would be rather dispirited on starting a DC pension with, say, a salary of 30k (a figure above the average earnings number), if I was told I needed to accrue a sum equal to almost 20 times my annual salary to achieve a "comfortable" retirement.

    Be interested to hear the comments of others.
    Alice Holt Forest situated some 4 miles south of Farnham forms the most northerly gateway to the South Downs National Park.
Page 1
    • barnstar2077
    • By barnstar2077 19th Oct 19, 6:45 PM
    • 229 Posts
    • 384 Thanks
    barnstar2077
    • #2
    • 19th Oct 19, 6:45 PM
    • #2
    • 19th Oct 19, 6:45 PM
    I think there is already a thread going on this:

    https://forums.moneysavingexpert.com/showthread.php?t=6060190
    If you don't have your own plan, then you're following someone else's!
    • JoeEngland
    • By JoeEngland 19th Oct 19, 7:03 PM
    • 390 Posts
    • 815 Thanks
    JoeEngland
    • #3
    • 19th Oct 19, 7:03 PM
    • #3
    • 19th Oct 19, 7:03 PM
    I came across this site:
    https://www.retirementlivingstandards.org.uk/

    "Retirement Living Standards - The standards show you what life in retirement looks like at three different levels, and what a range of common goods and services would cost for each level."
    They are " the starting point to help you engage with your future lifestyle needs."

    Apparently to have a comfortable lifestyle (for a single person), requires a (net after tax) income of 33k in retirement.
    This doesn't include housing costs (mortgage or rent), amongst other things. It's assumed the mortgage is paid.

    To achieve this comfortable retirement apparently requires (in addition to the State Pension), a DC pension fund of 587,116. This is shown on a separate table (click on See How much income you could need for each standard - on the detail page).

    I can't see any notes / reference to the effects of inflation on that final fund.

    I think I would be rather dispirited on starting a DC pension with, say, a salary of 30k (a figure above the average earnings number), if I was told I needed to accrue a sum equal to almost 20 times my annual salary to achieve a "comfortable" retirement.

    Be interested to hear the comments of others.
    Originally posted by Alice Holt
    It depends on how you define comfortable. If I wanted a retirement income of 33k pa net I'd have to work well into my 60s. No thanks.
    • Audaxer
    • By Audaxer 19th Oct 19, 7:57 PM
    • 1,927 Posts
    • 1,194 Thanks
    Audaxer
    • #4
    • 19th Oct 19, 7:57 PM
    • #4
    • 19th Oct 19, 7:57 PM
    I think I would be rather dispirited on starting a DC pension with, say, a salary of 30k (a figure above the average earnings number), if I was told I needed to accrue a sum equal to almost 20 times my annual salary to achieve a "comfortable" retirement.

    Be interested to hear the comments of others.
    Originally posted by Alice Holt
    I think the figures for Comfortable (33,000 single, 47,500 couple) are way too high - in my opinion 35k for a couple would be fairly comfortable. I think that would be achievable if it includes State Pensions for both parties.

    I also think the figures for Minimum are far too low (10,200 single, 15,700 couple) as the 15,700 figure is less than two full State Pensions.
    • Alice Holt
    • By Alice Holt 19th Oct 19, 8:56 PM
    • 3,474 Posts
    • 4,034 Thanks
    Alice Holt
    • #5
    • 19th Oct 19, 8:56 PM
    • #5
    • 19th Oct 19, 8:56 PM
    I think the figures for Comfortable (33,000 single, 47,500 couple) are way too high - in my opinion 35k for a couple would be fairly comfortable. I think that would be achievable if it includes State Pensions for both parties.
    Originally posted by Audaxer
    Yes I'd agree.
    Especially as these don't include housing costs.

    It implies that a much, much higher than average salary for a working age person / couple is needed for them to be "comfortably off" - since costs at that stage in life would include mortgage repayments, pension contributions, commuting to work, and (maybe) bringing up a family.

    I fear that the thought of having to accrue such an (overly) large DC pension pot, to arrive at these numbers might dissuade people from trying. Whereas the more sensible number you quote could be achievable.


    I didn't spot the other thread on this topic- apologies for the duplication.
    Alice Holt Forest situated some 4 miles south of Farnham forms the most northerly gateway to the South Downs National Park.
    • JoeEngland
    • By JoeEngland 19th Oct 19, 9:03 PM
    • 390 Posts
    • 815 Thanks
    JoeEngland
    • #6
    • 19th Oct 19, 9:03 PM
    • #6
    • 19th Oct 19, 9:03 PM
    I think the figures for Comfortable (33,000 single, 47,500 couple) are way too high - in my opinion 35k for a couple would be fairly comfortable. I think that would be achievable if it includes State Pensions for both parties.

    I also think the figures for Minimum are far too low (10,200 single, 15,700 couple) as the 15,700 figure is less than two full State Pensions.
    Originally posted by Audaxer
    I couldn't work out why you need a budget of over 1k pa for clothes and shoes to be comfortable. I never spent anywhere near that much on those things even when I was earning good money.
    • stoozie1
    • By stoozie1 20th Oct 19, 1:30 PM
    • 643 Posts
    • 587 Thanks
    stoozie1
    • #7
    • 20th Oct 19, 1:30 PM
    • #7
    • 20th Oct 19, 1:30 PM
    @joeengland, I agreed with you until I read it includes all of this:

    Clothing and footwear budget
    Cosmetics, toothbrush, toothpaste, shaving supplies, hair styling, beauty treatments (if applicable), suitcases, umbrellas
    Dentist, opticians, podiatry, minor first aid (e.g. plasters, paracetamol)
    Save 12 k in 2018 challenge member #79
    Target 2018: 24k Jan 2018- 560 April 2670
    • bostonerimus
    • By bostonerimus 20th Oct 19, 3:09 PM
    • 3,482 Posts
    • 2,788 Thanks
    bostonerimus
    • #8
    • 20th Oct 19, 3:09 PM
    • #8
    • 20th Oct 19, 3:09 PM
    A successful retirement plan requires that you know your budget and have some spending discipline. We are all different and what is comfortable for one person might be penury for another. The amounts quoted in the article sound generous to me as I live on a lot less. However, being frugal while I was working as well as now that I'm retired means that I could live a caviar lifestyle with my pension pot, but I choose not to do that as I'm perfectly happy spending less and want to pass some money on to my heirs.
    Misanthrope in search of similar for mutual loathing
    • stronginthesun
    • By stronginthesun 20th Oct 19, 4:38 PM
    • 17 Posts
    • 18 Thanks
    stronginthesun
    • #9
    • 20th Oct 19, 4:38 PM
    • #9
    • 20th Oct 19, 4:38 PM
    ive budgeted 12000 a year when i go early 4 years short of retirement . single no mortgage no kids just bills . that figure includes holidays as well . once the state kicks in i should be well off .
    • JoeEngland
    • By JoeEngland 20th Oct 19, 5:58 PM
    • 390 Posts
    • 815 Thanks
    JoeEngland
    @joeengland, I agreed with you until I read it includes all of this:

    Clothing and footwear budget
    Cosmetics, toothbrush, toothpaste, shaving supplies, hair styling, beauty treatments (if applicable), suitcases, umbrellas
    Dentist, opticians, podiatry, minor first aid (e.g. plasters, paracetamol)
    Originally posted by stoozie1
    They have a strange definition of clothing and footwear!
    • Gin and Milk
    • By Gin and Milk 20th Oct 19, 7:10 PM
    • 293 Posts
    • 337 Thanks
    Gin and Milk
    ive budgeted 12000 a year when i go early 4 years short of retirement . single no mortgage no kids just bills . that figure includes holidays as well . once the state kicks in i should be well off .
    Originally posted by stronginthesun

    I'm genuinely intrigued as to how you could manage on this and have holidays too? I see a lot of threads posted by people who have huge pension pots and it makes me feel thoroughly inadequate!
    • Audaxer
    • By Audaxer 20th Oct 19, 7:41 PM
    • 1,927 Posts
    • 1,194 Thanks
    Audaxer
    ive budgeted 12000 a year when i go early 4 years short of retirement . single no mortgage no kids just bills . that figure includes holidays as well . once the state kicks in i should be well off .
    Originally posted by stronginthesun
    Well done, but I also don't know how you manage on that amount. Just wondering if you have a car?
    • Zero Sum
    • By Zero Sum 20th Oct 19, 7:50 PM
    • 1,397 Posts
    • 1,092 Thanks
    Zero Sum
    I'm genuinely intrigued as to how you could manage on this and have holidays too? I see a lot of threads posted by people who have huge pension pots and it makes me feel thoroughly inadequate!
    Originally posted by Gin and Milk
    I reckon a single person with house paid off only needs about 7k to get by.
    So an additional 5k would easily pay for holidays & a few luxuries
    • stoozie1
    • By stoozie1 20th Oct 19, 7:52 PM
    • 643 Posts
    • 587 Thanks
    stoozie1
    Seriously?!

    Just my council tax is 2180.
    Save 12 k in 2018 challenge member #79
    Target 2018: 24k Jan 2018- 560 April 2670
    • stoozie1
    • By stoozie1 20th Oct 19, 7:55 PM
    • 643 Posts
    • 587 Thanks
    stoozie1
    I'm quite surprised that the 'minimum' level of eating out is one restaurant meal and 2x takeaways monthly.
    Save 12 k in 2018 challenge member #79
    Target 2018: 24k Jan 2018- 560 April 2670
    • Marcon
    • By Marcon 20th Oct 19, 7:57 PM
    • 1,420 Posts
    • 1,133 Thanks
    Marcon
    I reckon a single person with house paid off only needs about 7k to get by.
    So an additional 5k would easily pay for holidays & a few luxuries
    Originally posted by Zero Sum
    Not if you live in a flat with a hefty service charge. Current service charge + council tax for me is 8K a year, and that's before you add in 'luxuries' like electricity, gas, telephone, insurance, water and food.
    • JoeCrystal
    • By JoeCrystal 20th Oct 19, 7:57 PM
    • 1,988 Posts
    • 1,412 Thanks
    JoeCrystal
    I reckon a single person with house paid off only needs about 7k to get by.
    So an additional 5k would easily pay for holidays & a few luxuries
    Originally posted by Zero Sum
    I agreed. Apart from the mortgage & pension payment, my monthly bills add up to 400 per month apart from holiday, shopping funs and so on.
    Last edited by JoeCrystal; 20-10-2019 at 8:00 PM.
    • westv
    • By westv 20th Oct 19, 8:39 PM
    • 4,915 Posts
    • 2,490 Thanks
    westv
    I'm quite surprised that the 'minimum' level of eating out is one restaurant meal and 2x takeaways monthly.
    Originally posted by stoozie1
    Sounds pretty basic to me.
    • Zero Sum
    • By Zero Sum 20th Oct 19, 9:26 PM
    • 1,397 Posts
    • 1,092 Thanks
    Zero Sum
    Not if you live in a flat with a hefty service charge. Current service charge + council tax for me is 8K a year, and that's before you add in 'luxuries' like electricity, gas, telephone, insurance, water and food.
    Originally posted by Marcon
    Then dont live in a flat with expensive service charges.

    My bills are just under 300 a month. If I were single that would drop to a bit under 250. Food for just me would be about 100 a month. So thats about 4k for the absolute basics.
    • fred246
    • By fred246 20th Oct 19, 9:57 PM
    • 1,894 Posts
    • 1,253 Thanks
    fred246
    I am interested that the 'minimum living standard' only includes contents insurance. I am no fan of paying for insurance I don't need but I see buildings insurance as pretty essential. I pay less than 100 a year for buildings & contents.
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