Pensions Planning: The NUMBER
Comments
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banged the numbers into retireeasy
and we came up with £23k a year
we have £35k sorted for nett income ....so should be OK as long as don't get run over by bus
/stay healthy etc .....good thread quite helpful and thought provoking.well done!!0 -
Ours is £30k with some provision for the occasional extra dip into the piggy bank for the odd big ticket item.
I have been using the retireeasy site as well. Very useful.0 -
I'm really unsure what my number is despite having tracked my spend over the last few years as so much of our spend seems to be quite random and unexpected.
My 12 month moving average (excluding mortgage payments which finish in next couple of months) has varied between £26k and £36k. I am pleased to say it's currrently about £27k and I still think there is room for improvement when we finally retire in March next year to get it down to about £24k.
Using retireeasy suggests we won't run out of funds in the next 40 years even if our required income exceeded £40k so I think we are safe but being a naturally cautious person I still need the reassurance of working a further 6 months just to be safe!!!0 -
Our number is so high I am embarrassed to say lol.
But for those of you (esp Missyr) who are worried about setting yoru number and wondering abt holidays etc- if you can live on 20K now, and pay a mtg, a pension, and savings later and other expenses you wont have) then you will be able to live on less as you wont be paying a mtg, pension etc in retirement. Other costs may go down such as commuting, clothing etc.0 -
..for the record my number is about £24k, with an occasional "extra" spend of £4k every 3 years or so, assume3.5% average inflation, and 1.5% interest on any savings...then dying peacefully in sleep at about 91.5 (its a Monday I think..
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I keep changing my inflation and investments % returns but currently using 3% inflation and 2% returns... so cautious (I hope!)maximumgardener wrote: »banged the numbers into retireeasy and we came up with £23k a year
we have £35k sorted for nett income ....so should be OK as long as don't get run over by bus
/stay healthy etc .....good thread quite helpful and thought provoking.well done!!
...and thanks to everyone who keeps this thread going!
I have recently set up an Auto Enrolment pension scheme for a company and the amount of pension saving apathy is shocking.
Even after 6 months, the majority of employees have not even logged on to their pension account to look at their "wealth"!
Too many people sweep retirement saving under the "Lets live for today" carpet... and they will be the one's with hard luck moans in the future... Thank goodness we are converts to THE NUMBER !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)0 -
MrsFingersCrossed wrote: »Great to see this thread keeps being revived and other people are finding it as helpful as I did (and still do). We've just downsized our home in the run up to retirement and I've been rethinking our sums. With a simpler life I think £20 - £22,000 income per year will be manageable and is what I would like to aim for us as a modest-spending couple. It think it will be fun making do and shopping at markets and growing our own where we can.
After about 5 years, our NUMBER has hardly changed. :T
We have spent too many years living below our means which is a great way to save for retirement but it does make spending in retirement more of a challenge!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)0 -
But for those of you (esp Missyr) who are worried about setting yoru number and wondering abt holidays etc- if you can live on 20K now, and pay a mtg, a pension, and savings later and other expenses you wont have) then you will be able to live on less as you wont be paying a mtg, pension etc in retirement. Other costs may go down such as commuting, clothing etc.
Yes, that is probably very true.:)0 -
Spot on - I've got around seven years to go before I can afford to retire and I've got plenty of plans for then, very little of which involve sitting around watching TV.
Well, I never did get around to working out my NUMBER but I carried on with my forecasting spreadsheet and, due to an unplanned change of circumstances, the reason for which was not welcome but the results of which were (i.e. an inheritance), my thousands of numbers have added up to one very important number, 30092015.
That is the date on which I will cease to work for a living and head off for the next big adventure, a life hopefully more of Riley than of penury. The first few weeks will be spent getting my assets realised and suitably relocated in such a way that I can prove to estate agents that I am proceedable but without showing them my entire hand (i.e. not all in one or even two bank accounts and only show them the statements that cover what I want to spend) and finishing preparing my flat for sale, then I can head off on my house-hunting shopping trip in Cumbria.
:beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer:0 -
I have recently set up an Auto Enrolment pension scheme for a company and the amount of pension saving apathy is shocking. Even after 6 months, the majority of employees have not even logged on to their pension account to look at their "wealth"!
Well, at least there is an minority to bother to look hmm and hopefully they didn't opt out? So that is still good!
Anyway, at this point of time, 2% as minimum or even 3% of the salary doesn't really come to much. My other pension scheme I was auto enrolled into only got total contribution of amazing £1200 paid into over twenty months.
Maybe the reason they don't check is because they know it is so small? I wonder if a pension scheme you set up for a company even offer to bother match the employee contribution at much higher level?
Maybe it would be more noticeable when the contribution levels is increased during 2018.
As for my NUMBER with thirty years to go until retirement is bit up in the air but £22,000 would be rather nice indeed. 0 -
gadgetmind wrote: »I can't speak for others, but I want to be able to ride nice bicycles, buy decent cars, take good holidays, enjoy the sports I like, eat out without guilt, go to concerts, and generally enjoy life without having to watch the pennies all the time.
You had me right up to concerts.:)0
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