Retirement, how much?

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Dirk

If 6 Was 9
Location
Watchet
I'm now in receipt of 3 pensions - 2 private and 1 state.
MrsD has her private one and gets her state pension in 4 months time.
Total household income is now more than when we were at work. :thumbsup:
Everything's paid for and we don't have a mortgage or owe anyone.
Oh.......and I've just inherited 175K.
Life is sweet. ^_^
 

Drago

Legendary Member
My pension, my injury award (whichnis tax free), Mrs D's Pension, Mrs D's salary. Even though the rental income has stopped we're comfortably saving 2 gees a month, but still living well, eating out at least once a week, stuff like that. When we get state pension that'll rise even further

Losing the rental income wasn't an issue and it swelled the bank account by quarter of a mill, so thats nice.

Im as comfortable as a I need to be, don't fret about paying a mortgage, don't owe anyone anything. Occasionally i'll dip in to buy something, but not often and never large amounts, most recent being 2 gees for a puppy.

Aim is to save as much as possible so if Mini D has issues with employment when she grows up (shes high functioning autistic) then she will have the wherewithal to survive without having to work. Her big sister the accountant will administer it on my behalf for he when I pop me clogs.
 

byegad

Legendary Member
Location
NE England
An income of 40k is more than enough for two people to retire on, IFF your house is paid for and you don't want to own a second home, and/or take 3 cruises per year and/or run two flashy new cars.
We both have expensive hobbies and frankly don't stint ourselves.
 

Ming the Merciless

There is no mercy
Location
Inside my skull
I stumbled on this thread again today. I was just clinging on financially when the thread was started over 4 years ago, and wondering how I would even get to pension age. Well, somehow I have just about made it - my pension will be with me before the end of this winter.

My outgoings last year were still about £10k but I suppose rising prices (especially for fuel) will push that nearer to £11k in the coming year. Still, the latest figures are that my income will be nearly £14k from pensions plus housing benefit. And I may earn a small income on top of that. After years of scrimping, it will be nice not to have to worry about money anymore!

I think it would be interesting to see what your answers to @oldfatfool's questions are now...


:whistle:?

Is that including the state pension? You’ll just have to be wary of any unexpected major expenses, and what will happen with fuel prices. I heard on radio today that bills can be expected to rise 50% in April and possibly another 22% on top of that next October. It’s the pension that needs to keep pace with rising expenses. Hence the term fuel poverty where it’s a choice between heat or food. Pensions can easily be worn away by inflation to take you from comfortable to difficult choices.
 

Drago

Legendary Member
I wish!
 

SpokeyDokey

67, & my GP says I will officially be old at 70!
Moderator
Excluding any big ticket items (holidays, larger house projects etc) and with no debt (apart from the car which we have on PCP as it was 0% and the cash we would've spent would obviously earn us more in savings income) we only get through £17k pa.

That's a reasonable baseline imo and then the skies the limit thereafter.

Currently one (good) company pension coming in, 2 States (mine is this year) and some private ones to follow.

The pensions are nice to have but we decided to accumulate enough savings to easily see us out rather than be dependent on pensions. The savings also generate a lot of income in their own right too.
 

Milkfloat

An Peanut
Location
Midlands
The bumping of this thread has made me look at my possibilities to retire at 55. I am 46 right now and have been lucky with a good job and early stock options when the company I worked for had a very good IPO. I have been looking at a lot of retirement predictors online but they all vary significantly, some telling me I can retire easily and some predicting doom and gloom. Have any of you got some links to good ones that you found to be accurate. I am looking for ones that take my pension pot, savings and state pensions into account and are specific in terms of the questions they ask for example - they all say current income but is that the gross salary, salary after the 30% I am putting into my pension or net salary after all deductions.
 

ColinJ

Puzzle game procrastinator!
Is that including the state pension? You’ll just have to be wary of any unexpected major expenses, and what will happen with fuel prices.
Yes, that is everything including housing benefit and council tax benefit, which I would be entitled to. Speaking of 'entitled to'... entitledto.co.uk has a calculator that is great for working out pensions/incomes/benefits/tax combinations.

I don't drive so that is why I can manage on such a small sum - I walk or cycle to most places that I go to. On top of that probably a few hundred pounds on rail fares. I don't eat meat, drink alcohol, or smoke, so those are more big savings.

It had looked like I might have about £3.5K spending money this year but inflation (especially those fuel increases) could gobble up 1/3 of that.
 
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Ming the Merciless

There is no mercy
Location
Inside my skull
Yes, that is everything including housing benefit and council tax benefit, which I would be entitled to. Speaking of 'entitled to'... entitledto.co.uk has a calculator that is great for working out pensions/incomes/benefits/tax combinations.

I don't drive so that is why I can manage on such a small sum - I walk or cycle to most places that I go to. On top of that probably a few hundred pounds on rail fares. I don't eat meat, drink alcohol, or smoke, so those are more big savings.

It had looked like I might have about £3.5K spending money this year but inflation (especially those fuel increases) could gobble up 1/3 of that.

Always worth keeping a bit of buffer and if it’s not used great, have a little treat like an extra trip on the train somewhere. Try and save what you can whilst still having a retirement you can enjoy.

Sounds like you’ve had to really work hard on your budgeting these past 4 years and more. That means you’ll be better placed than most for really understanding your spending. Those who’ve had a good income and buy things on credit and not done much about paying into a pension.; will get a shock when they retire.
 

Oldhippy

Cynical idealist
It's all relative I guess. I will be retiring on a narrow boat and as self sufficient as possible so my needs will be miniscule compared to some and should easily enable me to quit by 60.
 

Slick

Guru
Excluding any big ticket items (holidays, larger house projects etc) and with no debt (apart from the car which we have on PCP as it was 0% and the cash we would've spent would obviously earn us more in savings income) we only get through £17k pa.

That's a reasonable baseline imo and then the skies the limit thereafter.

Currently one (good) company pension coming in, 2 States (mine is this year) and some private ones to follow.

The pensions are nice to have but we decided to accumulate enough savings to easily see us out rather than be dependent on pensions. The savings also generate a lot of income in their own right too.
I think that's a more reasonable estimate. Thanks for that. :okay:
 
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