Retirement Spreadsheet

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LokiJoe
LokiJoe Posts: 33 Forumite
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in Pensions, annuities & retirement planning
Hi All
I'm looking to create a simple spreadsheet to track my retirement plans, I did look on the forum first I may have missed something so if I can ask your advice how to create one what essentials to include etc.
I have an average ability with Excel and my pension plans and circumstances are not too complex so hopefully I can create something that's suitable, just not too sure what to start with and what to actually include.
Would be most grateful for any advice and guidance.
Thank-you

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  • chucknorris
    chucknorris Posts: 10,786 Forumite
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    LokiJoe wrote: »
    Hi All
    I'm looking to create a simple spreadsheet to track my retirement plans, I did look on the forum first I may have missed something so if I can ask your advice how to create one what essentials to include etc.
    I have an average ability with Excel and my pension plans and circumstances are not too complex so hopefully I can create something that's suitable, just not too sure what to start with and what to actually include.
    Would be most grateful for any advice and guidance.
    Thank-you

    I just realised (about 30 mins ago) that my spreadsheet had a huge inconsistency in it, I had valued my SIPP, prudential pension fund and DB pension at their gross values. Which when you consider my ISA value is not subject to tax, and I had already deducted CGT from my investment property equity, then the above pensions should have been included at their net value. Although technically I am no worse off (obviously I knew that I would have to pay tax), it reduced my portfolio value by over £350k!
    Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop
  • Paul_Herring
    Paul_Herring Posts: 7,481 Forumite
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    one what essentials to include etc.

    Usual sources of expected income (projected expectations of all pensions, and income from them, at what ages,) but also expenditure.

    i.e. what you've got in your current budget spreadsheet/planner/whatever - what you've spent recently, spending now, likely to spend in the near future, then adapt/project that to what you think you may need to spend on in retirement.

    Naturally, some things you won't be spending on then that you are now (transport to work, pension contributions,) and some things you will be spending on that you don't now (hobbies.)
    Conjugating the verb 'to be":
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  • DT2001
    DT2001 Posts: 723 Forumite
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    I tend to create separate worksheets for various components (pensions, ISA’s, bank accounts/savings, expenditure) and then have an easy to view summary.
    This then allows me to add various scenarios for performance.
    You can, if you do not already, monitor your expenditure for the next 12 months and build a fairly reliable estimate of what you need to cover essentials. I have split my requirements (not nearly as accurately as some on this forum) into basic and potentials. Whilst some have a figure for holidays etc I am working on the theory that I’ll have a pot which will depend on the performance of my investments. Some years will be lean but it allows me peace of mind about preserving capital to cope with potentially needing retirement income for 30+ years. What you place in basic is subjective.
    Forecasting forward for pensions is not too difficult and here I tend to have 3 scenarios which allows me to see what effect low or high growth has on potential income or retirement date.
    Once sorted you can update every so often.
    If you’re having problems with any areas just ask on here and you’ll get some good advice.
  • LokiJoe
    LokiJoe Posts: 33 Forumite
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    Thanks all for contributing, got some good info here
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    chucknorris wrote: »
    I just realised (about 30 mins ago) that my spreadsheet had a huge inconsistency in it, I had valued my SIPP, prudential pension fund and DB pension at their gross values. Which when you consider my ISA value is not subject to tax, and I had already deducted CGT from my investment property equity, then the above pensions should have been included at their net value. Although technically I am no worse off (obviously I knew that I would have to pay tax), it reduced my portfolio value by over £350k!

    Chuck, why don't you spend a tenner with retire easy which will let you map stuff out and show income, tax etc in an easy to visualise way ?
  • JoeCrystal
    JoeCrystal Posts: 3,013 Forumite
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    Generally speaking, I look at how much I need to retire at; first, the various goals to aim for. I typically use my life expectancy from ONS, so I am assuming that I will die at 89 (not taking into account of drinking & smoking though). As for inflation, I am thinking 2.7% inflation.

    1st Goal: Assuming I want to retire at 68 when the state pension kick in at £12,000 per year, I would need £98,000 to top up my income to drawdown in full to cover until I am 89.

    2nd Goal: Assuming I want to retire at 55 and the fact state pension is sufficient enough to cover my living expense, I only need to cover 13 years gap and using the state pension figures as a benchmark, I would need to have a pension pot of £134,000 to drawdown in full by the time the state pension kicks in.

    3rd Goal: The best scenario is assuming I want to retire at a lavish £12,000 per year (to avoid paying any income taxes) from 55 with the full state pension with the remaining top up from the pension pot, I would need a pension pot of £332,000.

    I prefer to use a goal rather than predicting the returns for the next twenty to thirty years. Unfortunately, I still haven't reached the first goal yet.
  • chucknorris
    chucknorris Posts: 10,786 Forumite
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    AnotherJoe wrote: »
    Chuck, why don't you spend a tenner with retire easy which will let you map stuff out and show income, tax etc in an easy to visualise way ?

    I actually like doing it all myself.
    Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    I'd say its worth checking out RE to see the way they present data and that would give you a good place to start to build a decent spreadsheet by looking at what it does. Then move to your own. Its per month so you'd probably only be with it a month or two. I was with it for a year or so whilst it was free stopped when they went to pay but by then I'd got the most out of it.
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