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  • FIRST POST
    Money Advice Service
    If you were to lose your job tomorrow, how long would your savings last you?
    • #1
    • 9th Nov 18, 12:38 PM
    If you were to lose your job tomorrow, how long would your savings last you? 9th Nov 18 at 12:38 PM
    Does it worry you?

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Page 2
    • Alexland
    • By Alexland 9th Nov 18, 8:03 PM
    • 4,702 Posts
    • 4,030 Thanks
    Alexland
    I wouldn't need to draw upon my savings as I would be happy for my wife to keep me. Perfect excuse.
    • Mnd
    • By Mnd 9th Nov 18, 8:35 PM
    • 1,107 Posts
    • 1,572 Thanks
    Mnd
    I wouldn't need to draw upon my savings as I would be happy for my wife to keep me. Perfect excuse.
    Originally posted by Alexland
    That's what I'm doing, I throughly recommend it
    • Snow Dog
    • By Snow Dog 9th Nov 18, 10:52 PM
    • 630 Posts
    • 323 Thanks
    Snow Dog
    Bit of a vague question I think. But will join in the fun. 2.5 years at no significant reduction in expenditure.


    Figure that will skew the results a teeny bit given the average household in the country probably runs at less than 6 months.


    Reading the rest of the answers on the thread MSEers are truly FinSavvy.
    • Apodemus
    • By Apodemus 10th Nov 18, 7:03 AM
    • 1,227 Posts
    • 1,028 Thanks
    Apodemus
    This is a disappointingly vague question from an organisation that should have a better understanding of the complexity of individual finances and life-choices, but I’ll bite!

    Assuming no redundancy payments, no other external support and wife also loses job on same day and under same assumptions...

    I could spend at current levels for 3.5 years.

    However, I would be more likely to retreat to core expenditure, at which I could maintain an acceptable, but frugal, life-style for 7.5 years.

    A statutory redundancy payment would add probably 7 months to the first scenario or 15 months to the second.

    EDIT: Just to make it clear, that the above periods are not due to any great wealth, but rather because of a preference for simple pleasures and a careful approach to finances!
    Last edited by Apodemus; 10-11-2018 at 7:15 AM.
    • masonic
    • By masonic 10th Nov 18, 7:34 AM
    • 11,358 Posts
    • 8,981 Thanks
    masonic
    At current levels, I could live off:

    cash reserves: about 2 years
    low risk investments: about 4 years
    higher risk investments: about 20 years
    At that point I could start taking income from my pension and then my Lifetime ISA and retire, but it would not be an ideal outcome as I'd have depleted a lot of the money I'd want to supplement my state pension.
    • Lomcevak
    • By Lomcevak 10th Nov 18, 8:14 AM
    • 797 Posts
    • 4,643 Thanks
    Lomcevak
    Unless we're constructing doomsday scenarios, forever:


    - We save more than 50% of joint income, so could live at current expenditure without any problems

    - I put a lot of effort into ensuring i'm employable, so I have very few concerns about finding another job. I (intentionally) work in areas where the demand for critical skills outstrips supply, have a good network of contacts, and put a lot of effort into keeping my skills current, so if I lost my job then I've done as much as I can to be able to pick up the phone and find something else.

    In the doomsday scenario where Mrs L. gets fired on the same day and there are no jobs anywhere to be seen...

    Cash would carry us through about 6 months at current spend rates, maybe twice that if we cut back expenditure hard. Then spending down the S&S ISAs would run another three years or so, assuming that shares hadn't collapsed in the zero-employment apocalypse. If neither of us found work in those four years then we'd have to downsize the house to carry us through to pension age, at which point we'd be frugal but comfortable.



    TL;DR - i've got 99 problems, but this ain't one...
    MFiT-T5#6, £50k to zero: £4,467/£49,907 (8.95%), 2019 MFW#8 £14,812.09/£30,000 (49.37%)
    £50k-in-’19#6 £20,557.90/£50,000 (41.12%)
    • Tarambor
    • By Tarambor 10th Nov 18, 9:37 AM
    • 4,690 Posts
    • 3,597 Thanks
    Tarambor
    Assuming absolutely no income whatsoever from anywhere, 18 months without altering my lifestyle at all.

    Assuming entitlement to benefits would extend that considerably. There would be a period where I'd not qualify for income based benefits until my savings dropped sufficiently but then topping up state benefits and taking into account lower costs for things like dental care, prescriptions, no longer commuting 17,000 miles a year to work then they'd probably do a decade.

    Fortunately though being a truck driver with over two decades experience I'm lucky enough to be in a position where I could leave a job on Friday, pick up the phone and be employed somewhere else on Monday such is the demand so the only reason for me not to have a job is ill health. As for self driving trucks, self driving vehicles are something I have an interest in and going on the state of some of the tech needed which is already fitted to the truck I drive,, which only this Thursday turned itself off because there had been a downpour with a lot of surface water and the spray preventing the sensors from working, it isn't going to be ready for use in this country until after I reach retirement.
    Last edited by Tarambor; 10-11-2018 at 9:41 AM.
    • Wizard of Id
    • By Wizard of Id 10th Nov 18, 9:38 AM
    • 5,493 Posts
    • 18,388 Thanks
    Wizard of Id
    The rest of my life.
    • PuzzledDave
    • By PuzzledDave 10th Nov 18, 9:44 AM
    • 160 Posts
    • 740 Thanks
    PuzzledDave
    Depends.

    Savings alone: 2 1/2 years

    Savings + guaranteed income (e.g. child benefit, bank interest): 5-6 years.


    Increase both of these by 50% if you would include some cutbacks such as no longer paying into private pensions/charity donations e.t.c.
    • Alice Holt
    • By Alice Holt 10th Nov 18, 11:02 AM
    • 2,878 Posts
    • 3,359 Thanks
    Alice Holt
    ... but then topping up state benefits and taking into account lower costs for things like dental care, prescriptions, no longer commuting 17,000 miles a year to work then they'd probably do a decade......
    Originally posted by Tarambor
    I'm afraid that many people will be surprised by just how limited state benefits can be.
    Job seekers allowance (and Universal Credit) is £73 a week - and contribution-based JSA is limited to 6 months - a total of £1,900.
    After that the household is subject to means-testing and if the partner is working more than 24hrs a week, no further payments are payable.
    Help with mortgage interest is deferred for 39 weeks, and now is a loan chargeable on the property to be repaid on sale.
    For those having to exit the labour market due to ill-health, the outlook on current benefits is very bleak. If found unfit for work (here is the assessment - https://www.benefitsandwork.co.uk/employment-and-support-allowance/start-the-esa-test ) the claimant will receive a contribution-based payment of £73 a week for one year.
    Alice Holt Forest situated some 4 miles south of Farnham forms the most northerly gateway to the South Downs National Park.
    • timmy963
    • By timmy963 10th Nov 18, 11:10 AM
    • 83 Posts
    • 64 Thanks
    timmy963
    A calculator I found said 20 years for me, assuming saving rates keep with inflation.
    • Bravepants
    • By Bravepants 10th Nov 18, 11:27 AM
    • 577 Posts
    • 780 Thanks
    Bravepants
    I will be 51 in May next year. If I lost my job with redundancy because of Brexit that will be me done with the world of full time work. I will burn down ISA, then move to SIPP and actuarially reduced pension from 55. I would be more comfortable if I lost it a year later, assuming it will take 12 months for my organisation to realise the full impact of Brexit. I feel I've got to plan for uncertainty.
    • amistupid
    • By amistupid 10th Nov 18, 12:20 PM
    • 52,667 Posts
    • 167,914 Thanks
    amistupid
    Around 630,726,057.14 seconds (to the nearest hundredth of a second).
    Originally posted by karlie88
    205,532,891.27 seconds if it's no deal.
    In memory of Chris Hyde #867
    • MisterMotivated
    • By MisterMotivated 10th Nov 18, 1:36 PM
    • 278 Posts
    • 260 Thanks
    MisterMotivated
    Assuming absolutely all my income stopped, then about 2 years at current spending level, though like others have said, I'd probably cut back to 'core' spending, giving me about 4 years. If income generating investments continued, then I should be able to survive indefinitely.
    • sevenhills
    • By sevenhills 10th Nov 18, 4:24 PM
    • 2,229 Posts
    • 818 Thanks
    sevenhills
    My savings certainly add up to less than my 12 months salary, I have very little cash.
    Actual cash, less than £2k, shares £2k

    I have £6k available in a pension pot and around £70k in equity in my house.

    • TBC15
    • By TBC15 10th Nov 18, 4:33 PM
    • 776 Posts
    • 426 Thanks
    TBC15
    So when will the wisdom of the OP be revealed?
    • Glen Clark
    • By Glen Clark 10th Nov 18, 6:22 PM
    • 4,306 Posts
    • 3,329 Thanks
    Glen Clark
    As for the question raised by the topic: forever, because I would get another job before they ran out.
    Originally posted by Malthusian
    Lucky you - but that would not be your savings lasting you forever.
    Which was the question asked.
    “It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair
    • Dorian1958
    • By Dorian1958 10th Nov 18, 6:25 PM
    • 189 Posts
    • 155 Thanks
    Dorian1958
    I left my job in April 2 weeks after my 60th birthday with enough pension to last me to 100 plus. Assuming I had no pensions, I have savings to cover 6 years of expenditure, if I was prudent (there would be no change there). I have avoided the smell of new car leather and truly enjoyed many caravan seaside holidays. Only regret is realising I could have left earlier. I started saving when I was 18.
    • Alexland
    • By Alexland 10th Nov 18, 6:40 PM
    • 4,702 Posts
    • 4,030 Thanks
    Alexland
    I have avoided the smell of new car leather
    Originally posted by Dorian1958
    You can get that smell a lot cheaper than buying a new car

    https://www.clarks.co.uk/shoe-care

    Alex
    • Former MSE Andrea
    • By Former MSE Andrea 15th Nov 18, 1:53 PM
    • 9,419 Posts
    • 22,327 Thanks
    Former MSE Andrea
    Hi, we've removed some off topic posts.
    Could you do with a Money Makeover?


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