Bad news re what I spend

justme111
justme111 Posts: 3,508 Forumite
First Post First Anniversary Combo Breaker I've been Money Tipped!
in Pensions, annuities & retirement planning
As I have been avregilar reader of this board for a few of years I feel I can complaint on it about it. In real life really there us nobody but my partner I could whinge about about it to :
Just tracked my expense and it looks like the part of my expenses that would stay after retirement is much higher than I thought it would be - I would need for everything to be the same to have 28 k net in retirement which is completely non realistic so I would need to do something , otherwise I would not be able to retire ever
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.
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Comments

  • lisyloo
    lisyloo Posts: 29,609 Forumite
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    Will you be paying mortgage/rent in retirement?
    Presumably you won’t be paying a pension?
    Is that for one person or for two?
  • Alexland
    Alexland Posts: 9,653 Forumite
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    £28k pa doesn't seem unreasonable for a couple to maintain a good standard of living in retirement once you factor in the cost of maintaining a modest property and running a car. If you both get full SP then that would cover nearly 2/3 of the value so requiring your personal pensions to make up the remaining 1/3. Plus some consideration to what would happen for the one that lived longer. Why is this unrealistic?

    Alex
  • justme111
    justme111 Posts: 3,508 Forumite
    First Post First Anniversary Combo Breaker I've been Money Tipped!
    It is for one person , not a couple. I live in a couple but we have different budgets. Yes I accounted for no mortgage spending and no pension savings :(
    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.
  • Alexland
    Alexland Posts: 9,653 Forumite
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    justme111 wrote: »
    It is for one person , not a couple.

    Crikey what on earth do you spend over £2.3k per month on???

    Alex
  • Dox
    Dox Posts: 3,116 Forumite
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    justme111 wrote: »
    I live in a couple but we have different budgets.

    Doesn't sound as if you are living as a couple (or not as most people would understand that word) - perhaps talking to your partner might be better than posting here?
  • Marcon
    Marcon Posts: 10,626 Forumite
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    Either spend less or earn more - or a combination of the two. Not much point whinging about it, either here or to your partner.
    Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!  
  • Sea_Shell
    Sea_Shell Posts: 9,350 Forumite
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    Maybe post a SOA if you want us to look at your planned budget with fresh eyes. However, it sounds like you might have to compromise your "lifestyle" in retirement somewhat if you feel you're not going to be able to sustain £28k p.a. spend. Especially if that already doesn't include a Mortgage.
    How's it going, AKA, Nutwatch? - 12 month spends to date = 2.31% of current retirement "pot" (as at end March 2024)
  • Spreadsheetman
    Spreadsheetman Posts: 436 Forumite
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    justme111 wrote: »
    It is for one person , not a couple. I live in a couple but we have different budgets. Yes I accounted for no mortgage spending and no pension savings :(
    On the positive side, the fact that you have finally tracked it means you must know where the money is all going, so making the necessary savings should now be possible.

    Tracking the budget properly was the very first thing I did when I could no longer stick my head in the sand re. retirement. Shortly followed by a massive cull of unnecessary spending and years of intensive saving to get where I needed to be to be able to afford my basic lifestyle.

    My wife has her own budget too, but that fits in the big picture we planned together.
  • Mnd
    Mnd Posts: 1,699 Forumite
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    We are planning on £25k net a year as a couple.no mortgage or debt
    Roughly 5k on food. 5k on bills..15k as everything else. I really dont know how I would spend 28k on my own
    As others have suggested. Do a SOA and work out your realistic budget
    No.79 save £12k in 2020. Total end May £11610
    Annual target £24000
  • k6chris
    k6chris Posts: 738 Forumite
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    Working out how much you spend is a very important first step. Next you need to break it down into more detail; petrol, eating out, coffees, clothes, wine, hobbies, etc etc. This can be split into 'work related' and 'personal' too. Then try and rank it into 'have to', 'want to' and 'just doing it'. This may sound a lot of work, but it will help plan where you can eliminate cost (stop doing it) or reduce costs (find a lower cost way of doing it or do less of it) or decide you need / want to keep doing it (so need more money).


    Most people have no idea what they spend their money on, so you are making great progress! Good luck.
    "For every complicated problem, there is always a simple, wrong answer"
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