Enjoying Retirement

Enjoying Retirement

Author
Discussion

GT3Manthey

Original Poster:

2,161 posts

26 months

Wednesday 19th January
quotequote all
I’m roughly a year away .

Whilst I don’t think I’d struggle to fill my time I do wonder what people feel they need per month to live a ‘ comfortable’ life .

I’ll only have one child at uni to support and no debts.

Having ran this past various friends and peers the range is between 2-6k per month net .

My thinking is somewhere in the middle of this range & I appreciate it depends on plans in retirement such as travelling , meals out etc.

Interested in gathering retirees thoughts and actual experience of people on here that have retired .

PM3

301 posts

37 months

Wednesday 19th January
quotequote all
I'm a year in ( and a bit ) not initially planned but now I'm done with actual employment (late 50s )

No debt, home owned , one child finished Uni and operating independently since last year
Run 2 cars ( a daily and an unnecessary extravagance) have some costly near future plans but that will come out of savings/investments
Oh and very importantly , a relatively low maintenance wife !!!

Monthly :
I NEED 1,500 ( I have upped this number to reflect what I expect next year )
I typically use 2,300 max
I put aside another ~500 ( don't actually its just there ) for unexpected like replacements, unexpected, smaller maintenance to add to 6k a year
I assign another 1K a month to add up to 12K a year for holiday or something wife and I want to do

lets say comfortable enough with a steady 2,800 and happy to know that 4,000 is more than enough to have a modest comfortable time where any bigger extras are entirely at our discretion. In practice , spare money is adding to investments /cash savings every month

GT3Manthey

Original Poster:

2,161 posts

26 months

Wednesday 19th January
quotequote all
PM3 said:
I'm a year in ( and a bit ) not initially planned but now I'm done with actual employment (late 50s )

No debt, home owned , one child finished Uni and operating independently since last year
Run 2 cars ( a daily and an unnecessary extravagance) have some costly near future plans but that will come out of savings/investments
Oh and very importantly , a relatively low maintenance wife !!!

Monthly :
I NEED 1,500 ( I have upped this number to reflect what I expect next year )
I typically use 2,300 max
I put aside another ~500 ( don't actually its just there ) for unexpected like replacements, unexpected, smaller maintenance to add to 6k a year
I assign another 1K a month to add up to 12K a year for holiday or something wife and I want to do

lets say comfortable enough with a steady 2,800 and happy to know that 4,000 is more than enough to have a modest comfortable time where any bigger extras are entirely at our discretion. In practice , spare money is adding to investments /cash savings every month
Fantastic post many Tks for sharing your experiences

dingg

3,295 posts

196 months

Wednesday 19th January
quotequote all
Not a perfect companion as we're in Portugal where 'council tax' is negligible and booze and eating out are cheaper than the UK, but we draw 30k pa (tax free for another 7 years) and could make do on much less.

Cars are very very expensive here.

GT3Manthey

Original Poster:

2,161 posts

26 months

Wednesday 19th January
quotequote all
dingg said:
Not a perfect companion as we're in Portugal where 'council tax' is negligible and booze and eating out are cheaper than the UK, but we draw 30k pa (tax free for another 7 years) and could make do on much less.

Cars are very very expensive here.
Funny enough I have a work colleague that lives in Portugal who say the same about cars.

He’s around 15 minutes drive from the coast so I’m assuming the costs of a property & cost of living is cheaper and certainly a lot cheaper than the UK ?

dingg

3,295 posts

196 months

Wednesday 19th January
quotequote all
GT3Manthey said:
Funny enough I have a work colleague that lives in Portugal who say the same about cars.

He’s around 15 minutes drive from the coast so I’m assuming the costs of a property & cost of living is cheaper and certainly a lot cheaper than the UK ?
Cost of living is quite similar, eating out and booze much cheaper though, so you do it more often.

House council tax much much cheaper probably by a reduction of 90% , property you get a lot more for your money, energy costs a bit more than UK, retire here and obtain nhr status and then there's very beneficial tax breaks which makes all the difference plus its 300 days of sunshine.

What's not to like? Probably the biggest pain is the variable bureaucracy depending on which day of the week it is and how the person your dealing with
Either a got out of bed this morning
Or b takes a dislike to your face.

Its all part of the experience though

Best thing we did 3 years ago was filling up the car and not turning back :-)

GT3Manthey

Original Poster:

2,161 posts

26 months

Wednesday 19th January
quotequote all
dingg said:
Cost of living is quite similar, eating out and booze much cheaper though, so you do it more often.

House council tax much much cheaper probably by a reduction of 90% , property you get a lot more for your money, energy costs a bit more than UK, retire here and obtain nhr status and then there's very beneficial tax breaks which makes all the difference plus its 300 days of sunshine.

What's not to like? Probably the biggest pain is the variable bureaucracy depending on which day of the week it is and how the person your dealing with
Either a got out of bed this morning
Or b takes a dislike to your face.

Its all part of the experience though

Best thing we did 3 years ago was filling up the car and not turning back :-)
Good to know .

He sold up UK property back in 2004 & bought the house in Portugal .
Not sure how property has moved in that time UK Vs Portugal?

I’d consider it myself but the missus is rooted in the UK .

UK costs of living sometimes worries me although I’m very close to the end of school fees

alscar

888 posts

190 months

Wednesday 19th January
quotequote all
Only 1 month in and still very much in holiday mode.
I think it all depends on what you need to maintain a similar lifestyle if that’s what is intended.
I am sad so kept a budget spreadsheet prior to decision which then updated post working ie deleted all work costs and added new personal ones such as paying for private health insurance etc.
To new budget total added 5%.
Answer was circa £ 72k pa and am taking that from my pension funds with any over / under either coming from other cash / investments or going into same.
Will reevaluate in say 12 months time.
Best of Iuck and if like me your last year will fly by.

GT3Manthey

Original Poster:

2,161 posts

26 months

Wednesday 19th January
quotequote all
alscar said:
Only 1 month in and still very much in holiday mode.
I think it all depends on what you need to maintain a similar lifestyle if that’s what is intended.
I am sad so kept a budget spreadsheet prior to decision which then updated post working ie deleted all work costs and added new personal ones such as paying for private health insurance etc.
To new budget total added 5%.
Answer was circa £ 72k pa and am taking that from my pension funds with any over / under either coming from other cash / investments or going into same.
Will reevaluate in say 12 months time.
Best of Iuck and if like me your last year will fly by.
Many Tks . Pls keep us updated .

Assuming your 72k includes holidays ?

Very much hoping this next year flys !




Edited by GT3Manthey on Wednesday 19th January 10:53

alscar

888 posts

190 months

Wednesday 19th January
quotequote all
It did to an extent - although “ big “ holidays would come from other funds.
Only 1 child (23 )at home now ( and wouldn’t be coming on any holidays - he wouldn’t want to !
All running costs of all cars ( 4) also included but again expenditure for any new would come from other funds.

ARHarh

1,998 posts

84 months

Wednesday 19th January
quotequote all
After 3 years of not working, Myself and the wife can survive on £1.2k a month easily. House paid for, cars paid for and fix stuff myself and do all DIY around the house, we normally spend more than this but that is an amount we can lead a nice life on, no luxuries but also no scrimping.

dingg

3,295 posts

196 months

Wednesday 19th January
quotequote all
dingg said:
Not a perfect companion as we're in Portugal where 'council tax' is negligible and booze and eating out are cheaper than the UK, but we draw 30k pa (tax free for another 7 years) and could make do on much less.

Cars are very very expensive here.
Comparison, auto correct bollix

GT3Manthey

Original Poster:

2,161 posts

26 months

Wednesday 19th January
quotequote all
alscar said:
It did to an extent - although “ big “ holidays would come from other funds.
Only 1 child (23 )at home now ( and wouldn’t be coming on any holidays - he wouldn’t want to !
All running costs of all cars ( 4) also included but again expenditure for any new would come from other funds.
Tks .

Car wise it’ll be 2 to maintain and Maybe a little summer drop too for local trips which may or may not be part of the equation.

Holidays- the wife & I aren’t really that bothered but for memories with the kids we’ll do one a year.

I’m thinking 5k a month would cover it for us with no debt and wanting a chilled life .

As you say it varies .
Do keep us updated

gotoPzero

14,236 posts

166 months

Wednesday 19th January
quotequote all
£30k ish.
Of which £17-18k would be normal costs of living (incl 1 shared car).
Leaving £12k ish for travel, entertainment, hobbies and incidentals.

FWIW this figure 3 years ago was closer to 25k...

There is a really good excel sheet online that lets you calculate everything let me find it.

omniflow

2,058 posts

128 months

Wednesday 19th January
quotequote all
I'm going through exactly the same thought process at the moment.

Council tax doesn't go away when you pay off your mortgage or retire - it still needs paying every month
Energy bills don't disappear - and will potentially increase if you're spending more time at home
You'll probably still want a mobile phone (each), but maybe switch to Giff Gaff and save £20 / month
You'll probably still want broadband
Unless you're making lifestyle changes, then groceries, wine, car servicing, non work related petrol, insurance etc probably won't change from how it is today
Commuting costs will obviously disappear, as will any other incidental costs that arise from going to the office. How much difference that makes will vary massively from person to person.
Meals out and other entertainment - will that change when you retire? Will it be more, or less? My thinking is that it will be pretty much unchanged, but your mileage may vary.

That then gives you a baseline to start to add in all of the irregular spending. You need to start with a baseline based on how you live life. The best place to start with this is to download 3 months worth of bank statements / credit card statements and allocate a category to every line. Probably best to not to have December in that analysis, as it will most likely skew everything.

The one thing that I have found though, is that my attitude to money and my ability to spend money changes massively when I don't have an earned income. I toyed with retirement in May 2020 and probably acted as if I was retired for about 14 months - but it was during various lockdowns so I don't think it was representative. During that time I found it very hard to spend money, and would take ages to weigh up buying anything discretionary. Maybe this will change when I actually retire.


gotoPzero

14,236 posts

166 months

Wednesday 19th January
quotequote all
https://view.officeapps.live.com/op/view.aspx?src=...

Just ignore the "what do you earn tab" and go straight to the what do you spend tab.

GT3Manthey

Original Poster:

2,161 posts

26 months

Wednesday 19th January
quotequote all
Many Tks for the above replies

Wacky Racer

35,636 posts

224 months

Wednesday 19th January
quotequote all
GT3Manthey said:
I’m roughly a year away .

Whilst I don’t think I’d struggle to fill my time I do wonder what people feel they need per month to live a ‘ comfortable’ life .
I'm like you, a year off, although I have only worked three days a week for the past five years.

I think there are too many variables, do you run one car, two cars, three cars, a motorhome, no cars?

Do you live in London or Mablethorpe?

My three lads are all in their thirties and are doing well.

Good luck, you have worked hard...enjoy it. smile

Isaac Hunt

14,215 posts

188 months

Wednesday 19th January
quotequote all
We need about £1,500 a month.

This runs four cars - Jag XF, MX5 and two TVRs and a four bed house with no gas.

This does not include extras such as holidays as this hasn't happened for two years.

We are not great takeaway merchants and currently eat out twice a month.

NB, one of the TVRs was supposed to be sold when we retired, but over a year later, it is still in the garage...

croyde

19,488 posts

207 months

Wednesday 19th January
quotequote all
ARHarh said:
After 3 years of not working, Myself and the wife can survive on £1.2k a month easily. House paid for, cars paid for and fix stuff myself and do all DIY around the house, we normally spend more than this but that is an amount we can lead a nice life on, no luxuries but also no scrimping.
It's a relief to read this after the usual PH stuff of £6k a month.

I'm 59 and sick of working but will have to soldier on til 67, and maybe beyond.

My state pension may just kiss £800 a month whilst my private ones may add maybe £500 a month.

I need to use current investments to buy somewhere to live though as rents are so eye watering. Obviously living in London doesn't help but work is here.

Once retired I can move to the ass end of nowhere, as long as I don't need a hospital nearby.

Looking at what I've written and as I'm fairly healthy now, maybe I should just splurge on nice cars and good holidays and then just depend on the State when my time comes hehe