Enjoying Retirement
Discussion
272BHP said:
I have never bothered with any of this before but it does seem like the kind of thing that concentrates the mind once one delves into it.
Can anyone give a ballpark figure of what a couple with a child that has flown the nest could live comfortably on? I am talking pension income per year including the state pension before tax? My wife is a bit younger than me so I might have to keep her at the coal face and earning longer than she would might want to
So meals out once a week. Overseas Holidays 3 times a year. No restrictions on travel etc etc
Consensus seems to be in the range of £30k to £130k.Can anyone give a ballpark figure of what a couple with a child that has flown the nest could live comfortably on? I am talking pension income per year including the state pension before tax? My wife is a bit younger than me so I might have to keep her at the coal face and earning longer than she would might want to
So meals out once a week. Overseas Holidays 3 times a year. No restrictions on travel etc etc
I've been following this thread for a while and it's definitely been interesting. I'm a long way from retirement (I'm 34) but I'm trying to balance living for the now and making sure that I won't be living on beans on toast in retirement. I'm enrolled in my work pension it's nothing special though as my employer only contributes the bare minimum and I've got a BTL property which doesn't really bring much cash in at the moment but should give a nice passive income when it's all paid off in about 22 years.
Hang On said:
Consensus seems to be in the range of £30k to £130k.
Ok, I get you. I am clearly exposing my naivety about this stuff but money matters have never been my forte. My brain has to force itself to get over a 6ft wall to even start thinking about money stuff and I just can't ever find the energy for it.But 30k seems pretty low. A few holidays abroad will eat into half of that. I was thinking in my head that a ball park of about 60k before tax could possibly lead to a reasonably comfortable lifestyle so long as we don't go crazy.
272BHP said:
Hang On said:
Consensus seems to be in the range of £30k to £130k.
Ok, I get you. I am clearly exposing my naivety about this stuff but money matters have never been my forte. My brain has to force itself to get over a 6ft wall to even start thinking about money stuff and I just can't ever find the energy for it.But 30k seems pretty low. A few holidays abroad will eat into half of that. I was thinking in my head that a ball park of about 60k before tax could possibly lead to a reasonably comfortable lifestyle so long as we don't go crazy.
You can read many years of estimates at https://forums.moneysavingexpert.com/discussion/21... (maybe start at the end for recent numbers!), but the only answer for YOU is to know YOUR number!
I know people perfectly happy on under £2k pcm….and some who feel they need much more.
At 56 I’m starting to think that if I’m spared what will be needed, and when I’ll be able to stop work, at least full time. As far as outgoings, what are they just now? Start from there and remove those that go away, like commuting costs, and you’re probably not far off. You’ll still be eating the same, still have council tax, utilities (might be higher due to being at home), insurance etc. Everyone will be different.
abzmike said:
At 56 I’m starting to think that if I’m spared what will be needed, and when I’ll be able to stop work, at least full time. As far as outgoings, what are they just now? Start from there and remove those that go away, like commuting costs, and you’re probably not far off. You’ll still be eating the same, still have council tax, utilities (might be higher due to being at home), insurance etc. Everyone will be different.
This ^^^^ Everyone will be different in terms of outgoings and retirement expectations.
Inflation is currently a huge consideration & something that’s now making me stop and think even after I started this thread.
My forecast when starting this thread was for 5k net a month which included a provision for holidays and my daughter at uni but add on 20% and now it’s 6k .
Tbh if you can’t live on 72k net a year then I’d be super surprised but then others would argue with me .
We are toying with what we do property wise so that in itself will change things with regards what’s needed as a monthly draw.
272BHP said:
Hang On said:
Consensus seems to be in the range of £30k to £130k.
Ok, I get you. I am clearly exposing my naivety about this stuff but money matters have never been my forte. My brain has to force itself to get over a 6ft wall to even start thinking about money stuff and I just can't ever find the energy for it.But 30k seems pretty low. A few holidays abroad will eat into half of that. I was thinking in my head that a ball park of about 60k before tax could possibly lead to a reasonably comfortable lifestyle so long as we don't go crazy.
Most of the respondents to this thread will say that a spending budget of £53k with no child support costs is more than adequate for a comfortable life. With 15k allocated for holidays though you are left with just 38k to spend domestically. For me that would be a good 10k short of comfortable but ymmv.
272BHP said:
Ok, I get you. I am clearly exposing my naivety about this stuff but money matters have never been my forte. My brain has to force itself to get over a 6ft wall to even start thinking about money stuff and I just can't ever find the energy for it.
But 30k seems pretty low. A few holidays abroad will eat into half of that. I was thinking in my head that a ball park of about 60k before tax could possibly lead to a reasonably comfortable lifestyle so long as we don't go crazy.
One thing to consider is that at the point of retirement you may well be debt free which certainly changes the monthly commitment somewhat. If you won’t be debt free then you do need to factor this in. But 30k seems pretty low. A few holidays abroad will eat into half of that. I was thinking in my head that a ball park of about 60k before tax could possibly lead to a reasonably comfortable lifestyle so long as we don't go crazy.
As others have said, work backwards. And don’t cheat, this really is a case of only cheating yourself.
GT3Manthey said:
This is exactly it Steve.
Mother thinks “ he’s earning a wage so let him pay “
And rightly so, I loved taking my old dear for lunch and treating her. She put in a lot of effort raising me and instilling decent morals and values. I never begrudged the old girl a good meal out or trip to the theatre. Mother thinks “ he’s earning a wage so let him pay “
The really hard part is figuring out / accepting how your spending will decline as you age (later life care excluded)
For example, you want 3 holidays per year now - will you still want that at 70, 75, 80, 85 etc ?
Even though I know it's true, it took me some time to properly accept how little time I have left for things like skiing. I then had to take a proper look at other people and accept that you're horizons generally shrink. There are exceptions, but by 85 most people are happy with a comfy chair and the TV.
I drove my wife nuts for several months - after I'd run through everyone I knew, every time we were out, I would point to people and ask how old she thought they were.
I'm front loading mine and have awarded myself a 500 per month pay cut every 5 years until 85.
For example, you want 3 holidays per year now - will you still want that at 70, 75, 80, 85 etc ?
Even though I know it's true, it took me some time to properly accept how little time I have left for things like skiing. I then had to take a proper look at other people and accept that you're horizons generally shrink. There are exceptions, but by 85 most people are happy with a comfy chair and the TV.
I drove my wife nuts for several months - after I'd run through everyone I knew, every time we were out, I would point to people and ask how old she thought they were.
I'm front loading mine and have awarded myself a 500 per month pay cut every 5 years until 85.
Regarding the holidays - holidays for two taken whenever you want are significantly cheaper than when you are restricted to certain times and have dependents.
We are going away next week - don't even really know where yet but if I had the kids and had to fit work and school holidays around it the costs would be much more.
Also for many - a holiday is an escape from the daily grind, which you won't be doing anymore.
We are going away next week - don't even really know where yet but if I had the kids and had to fit work and school holidays around it the costs would be much more.
Also for many - a holiday is an escape from the daily grind, which you won't be doing anymore.
GT03ROB said:
Welshbeef said:
Hang On said:
Welshbeef said:
What date does the forecast update to capture the 2021/22 year and lock it as a credited year.
Just checked mine as stating not available yet.
My 21/22 year is not yet closed either. From memory, last years closed about 8 weeks after the tax year finished.Just checked mine as stating not available yet.
It’s decades ago but actually frustrating that firstly not made aware and secondly that I cannot have the option to buy back the missing years - though I’ll clear the 35 years with ease. Just annoying
GT03ROB said:
Welshbeef said:
Hang On said:
Welshbeef said:
What date does the forecast update to capture the 2021/22 year and lock it as a credited year.
Just checked mine as stating not available yet.
My 21/22 year is not yet closed either. From memory, last years closed about 8 weeks after the tax year finished.Just checked mine as stating not available yet.
It’s decades ago but actually frustrating that firstly not made aware and secondly that I cannot have the option to buy back the missing years - though I’ll clear the 35 years with ease. Just annoying
Welshbeef said:
If in full time education - which uni is then the NI credits are a given.
That isn't correct.To quote from Steve Webb, a previous Minister of State for Pensions -
Steve Webb said:
In April 1975, the Government of the day introduced what were called 'starting credits', which began in the financial year in which you turned 16.
Under the starting credits system, you were awarded a free year on your National Insurance record for the year in which you turned 16 and the two following years.
These credits were awarded even if you were still in education.
The idea was to make sure that people who stayed at school beyond minimum school leaving age did not lose out in terms of their NI record.
So as not to discourage those who studied abroad, you did not even have to be in the UK to benefit from starting credits. The system of starting credits ran for several decades but was abolished for those reaching 16 from 6 April 2010 onwards.
For those in university education there is no special system of NI credits (apart from any overlap with the period covered by starting credits).
Some people at university could build up credits if they happen to do part-time work or have caring responsibilities, but in most cases these years will indeed show as a gap in their NI record.
https://www.thisismoney.co.uk/money/pensions/artic...Under the starting credits system, you were awarded a free year on your National Insurance record for the year in which you turned 16 and the two following years.
These credits were awarded even if you were still in education.
The idea was to make sure that people who stayed at school beyond minimum school leaving age did not lose out in terms of their NI record.
So as not to discourage those who studied abroad, you did not even have to be in the UK to benefit from starting credits. The system of starting credits ran for several decades but was abolished for those reaching 16 from 6 April 2010 onwards.
For those in university education there is no special system of NI credits (apart from any overlap with the period covered by starting credits).
Some people at university could build up credits if they happen to do part-time work or have caring responsibilities, but in most cases these years will indeed show as a gap in their NI record.
Re holidays as we all age, wife and I are 79, and we retired at age 61. Pre Covid we always had at least 2 UK holidays and another 2 abroad each year. This year we have planned 3 in the UK (mainland & Jersey) and one in Italy. All of these are for about a week....we now prefer shortish holidays rather than say 3 weeks.
Since we retired we have been to Italy at least twice a year pre Covid, but not since 2019, so we are itching to get back there.
One thing to note. Pre retirement we always had a main holiday for up to three weeks somewhere long haul, club class, thanks to BA Avios as they now are. We have seen many parts of the World, but we never really holidayed in Europe, which we now do predominately. This sort of plan has worked very well for us because age brings infirmity etc so shorter flights means the holidays are not spoilt by uncomfortable long haul flights.
By the way, this has to be the best ever thread on PH. I have read it all as things have been posted. Congratulations to GT3M for starting it and for all the other posters for keeping it going, all on a nice friendly basis. Seems us old folk have respect for all, unlike on some other PH threads!
Given I had a career over 45 years in what might be called "the pensions industry" it is about time I made a more detailed post of my professional learnings and pre/post retirement expectations/experiences etc. I will get this done soon-ish.
R
Since we retired we have been to Italy at least twice a year pre Covid, but not since 2019, so we are itching to get back there.
One thing to note. Pre retirement we always had a main holiday for up to three weeks somewhere long haul, club class, thanks to BA Avios as they now are. We have seen many parts of the World, but we never really holidayed in Europe, which we now do predominately. This sort of plan has worked very well for us because age brings infirmity etc so shorter flights means the holidays are not spoilt by uncomfortable long haul flights.
By the way, this has to be the best ever thread on PH. I have read it all as things have been posted. Congratulations to GT3M for starting it and for all the other posters for keeping it going, all on a nice friendly basis. Seems us old folk have respect for all, unlike on some other PH threads!
Given I had a career over 45 years in what might be called "the pensions industry" it is about time I made a more detailed post of my professional learnings and pre/post retirement expectations/experiences etc. I will get this done soon-ish.
R
The Leaper said:
Re holidays as we all age, wife and I are 79, and we retired at age 61. Pre Covid we always had at least 2 UK holidays and another 2 abroad each year. This year we have planned 3 in the UK (mainland & Jersey) and one in Italy. All of these are for about a week....we now prefer shortish holidays rather than say 3 weeks.
Since we retired we have been to Italy at least twice a year pre Covid, but not since 2019, so we are itching to get back there.
One thing to note. Pre retirement we always had a main holiday for up to three weeks somewhere long haul, club class, thanks to BA Avios as they now are. We have seen many parts of the World, but we never really holidayed in Europe, which we now do predominately. This sort of plan has worked very well for us because age brings infirmity etc so shorter flights means the holidays are not spoilt by uncomfortable long haul flights.
By the way, this has to be the best ever thread on PH. I have read it all as things have been posted. Congratulations to GT3M for starting it and for all the other posters for keeping it going, all on a nice friendly basis. Seems us old folk have respect for all, unlike on some other PH threads!
Given I had a career over 45 years in what might be called "the pensions industry" it is about time I made a more detailed post of my professional learnings and pre/post retirement expectations/experiences etc. I will get this done soon-ish.
R
Hi Leaper glad you’re enjoying the thread & yes we’d love to hear of your actual real life experience of retirement. Since we retired we have been to Italy at least twice a year pre Covid, but not since 2019, so we are itching to get back there.
One thing to note. Pre retirement we always had a main holiday for up to three weeks somewhere long haul, club class, thanks to BA Avios as they now are. We have seen many parts of the World, but we never really holidayed in Europe, which we now do predominately. This sort of plan has worked very well for us because age brings infirmity etc so shorter flights means the holidays are not spoilt by uncomfortable long haul flights.
By the way, this has to be the best ever thread on PH. I have read it all as things have been posted. Congratulations to GT3M for starting it and for all the other posters for keeping it going, all on a nice friendly basis. Seems us old folk have respect for all, unlike on some other PH threads!
Given I had a career over 45 years in what might be called "the pensions industry" it is about time I made a more detailed post of my professional learnings and pre/post retirement expectations/experiences etc. I will get this done soon-ish.
R
Hang On said:
Net income from 60k depends on how it is split between the two of you. If it is 30k each then your combined net will be approx 53k (some forget there’s no NI to pay). I’d suggest you start thinking net rather than gross btw.
Most of the respondents to this thread will say that a spending budget of £53k with no child support costs is more than adequate for a comfortable life. With 15k allocated for holidays though you are left with just 38k to spend domestically. For me that would be a good 10k short of comfortable but ymmv.
Clearly I ltve a very different life to most on here. Since I retired I haven't paid any tax. The first year we lived off savings. as much as anything else to see what we spent that year. After that we have drawn down the maximum we can without paying tax plus the 25% tax free for that amount. (My wife has no pension of her own until she gets her state pension 7 years time)Most of the respondents to this thread will say that a spending budget of £53k with no child support costs is more than adequate for a comfortable life. With 15k allocated for holidays though you are left with just 38k to spend domestically. For me that would be a good 10k short of comfortable but ymmv.
Oh we did have to dip into our savings last year to the sum of under £100
Edited by Drumroll on Thursday 12th May 10:38
tertius said:
^ but that is why everyone has to answer for themselves and their circumstances… what is right for one will not be right for another.
E.g. the poster who was expecting to spend £15k a year on holidays - it’s hard to imagine anything I am less likely to spend 15 grand on!
Once our kids are self dependant they won’t want to be going on holiday with mum and dad so our holiday bills will be far cheaper . E.g. the poster who was expecting to spend £15k a year on holidays - it’s hard to imagine anything I am less likely to spend 15 grand on!
I’d be surprised i we spend half of the 15k suggested at that stage but it’s each to their own
The wife and I aren’t big on travel tbh so it’s not a concern or us but others will feel differently I’m sure.
Cheap days out , short trips out of season will be more us
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