Enjoying Retirement

Enjoying Retirement

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GT3Manthey

Original Poster:

2,135 posts

26 months

Thursday 12th May
quotequote all
272BHP said:
One thing I cannot factor in is how my hobbies might change, Currently I don't have time for anything other than my own fitness stuff and gym.

On retirement I could maybe see myself joining maybe golf and tennis clubs and there will no doubt be associated costs there. My wife will surely do the same.

Lots of unknowns. Will I still have the urge to keep reasonably up to date tech wise with household electronics and purchases? - probably in the short term yes, longer term who knows?
My golf costs me £1200 a year for membership and the
wife’s gym will be £60 a month .
I guess is spend around another £700 a year having lunch etc there so it’s far from astronomical.

I’m not a member of a gym but I’ll cycle loads and maybe I join a gym for the classes to get fit .

Once I’ve done all that exercise I’ll have nothing left in the tanks for anything else !

OldSkoolRS

4,295 posts

156 months

Thursday 12th May
quotequote all
I have a slight concern that my hobbies could be impacted due to health: My parents both had problems with arthritis as they got older and my Mum stopped playing piano because of it. I play guitar in a band and we occasionally get paid gigs, so it's mostly self financing as a hobby. However, if I can't play anymore due to arthritis then it'll be a bummer. I do play drums as well, though I guess I could still struggle to hold the sticks properly. On the plus side Mum was in her 70s before it became a problem. Boring as it might sound I do enjoy gardening, or rather sitting down admiring my work with a coffee after I've done some gardening, so I'm sure I'll manage that as my Mum still does in her 80s now.

I'm feeling rather strange this evening, having returned from the office for the last time...I forgot my laptop, but I can manage the last few Teams calls and the odd email on my phone to save me going back again tomorrow. I've been handed an envelope with the instruction not to open it until I'm told: They have set up a final goodbye Teams call for Monday afternoon (our engineers are spread out all over UK & Ireland so weren't in the office today), so I guess I'll be asked to open it then, so will be interesting to see what it is: My colleague got a very nice Golf putter, but one of those wouldn't fit in the envelope, so I guess it's something else. biggrin

98elise

21,836 posts

138 months

Thursday 12th May
quotequote all
JeffreyD said:
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.
Absolutely this.

We did a week in Tenerife in March. Rented a studio apartment right next to the beach with a great sun terrace. Flights and accommodation was about £700 including extra leg room seats. Did it on the spur of moment

Like you say it wasn't the normal escape from the daily grind, it was just a week away to get some sun and a change of scenery. We didn't feel pressured to make the most of it because it's not our only chance to get away. Some of my previous holidays have been exhausting!




Jaguar steve

8,311 posts

187 months

Thursday 12th May
quotequote all
alscar said:
Another reason for not trying to project too many years ahead and keeping the budget spreadsheet updated only annually when the next years drawdown or income needed conversation starts.
Irrespective of each of our personal circumstances.
I know that for us the 3 biggest individual items as such are Cars ( all running costs inc petrol ) , housekeeping ( food plus all household items ) and then horses.
I doubt when we reach 75 any of those costs will be as much as they are now although would be great if the cars were !
Don't forget to factor in the state pension when you're making any retirement projections.

Currently for a fully paid up couple like us that'll be nudging £1500 a month when it eventually kicks in, and that's going to be the trigger point for us to start progressively transferring assets to the kids because we won't need the income they generate anymore.

Plan is to snuff it with no more assets than than half a bottle of a rather nice Malbec and a couple of rumpled twenties in my wallet... smile


Welshbeef

48,358 posts

175 months

Thursday 12th May
quotequote all
https://www.mirror.co.uk/3am/celebrity-news/breaki...

This is sadly a reminder no one knows how long they have so do the things you want to do / no regrets is key.

DT1975

90 posts

5 months

Thursday 12th May
quotequote all
We're mid / late 50's retired and net take home pensions are £4k....we're still saving £1200-£1500 a month despite nice holidays, treating the kids etc. We have two more pensions cutting in 5 years, state pensions 10 years so I might need to find a more expensive hobby as its going to be sloshing over.

What I would say this is throughout my career we were mortgaged to the hilt, we were super careful and I'm sure this attitude has carried on into retirement.
We did however marry young, get on the housing ladder young and moved up when we could and stayed together of course.

However when you have spare money you then get engrossed in savings / Investments, its a nice comfort blanket but at some point I've got to think 'what exactly are we saving for' ...we've far exceeded any emergency pot.

I wasn't sure if to post this. I'm aware many will be under our take home and many will be over. I think what I'm trying to say is that now we're both retired we could live on £2.5k a month very comfortably, less if necessary. As we get older cars and materialistic stuff seem to be less attractive. Could this be that we've left the workplace environment, far less interaction with others and the need to 'keep up'...I dunno.

Edited by DT1975 on Thursday 12th May 21:49

Carbon Sasquatch

3,536 posts

41 months

Thursday 12th May
quotequote all
Sounds like you should have retired even earlier.

Agree that you need more expensive hobbies smile - or an inheritance tax strategy.

Thank you for the data point - it's fascinating the range that different people have - but I guess it shouldn't be, there are people on a similar range of incomes.


mikeiow

3,744 posts

107 months

Thursday 12th May
quotequote all
monkfish1 said:
Carbon Sasquatch said:
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.
Interesting stuff. Thats pretty much what the "die with zero" book (recommended by someone a few pages back) was suggesting. I was thinking that way, but reading that brings it into focus. As do your comments.

Its interesting as my FA concerns himself with living to 100 and having money left to pay for care. Im sure he is supposed to do that because the FCA tell him too, but frankly, no! Dont spend money when you can benefit from that just so you can keep it for your 9 month stay in care before you pop off. Not likely!

He has however pleastly surprised me with whats possible.
I always feel there is an element of requirement with IFAs, not by the FCA, to keep spare cash around.
It would be horrendous for their business should a client run out of money...therefore there will inevitably be an onus on keeping spare money around.
A side benefit, of course, being they will make more if their fees are based on a percentage under management wink
Then you get older and there will be there feeling that the client isn't spending all the money they 'should'.

Carbon Sasquatch said:
Ecosseven said:
According to Which?........
Not that one again smile

The article has plenty of inconsistencies in it & some of their budget numbers are questionable. Not a bad starting point, but always comes back to you needing to understand your own spending requirements.
Another study by Loughborough Uni: https://www.lboro.ac.uk/subjects/social-policy-stu... (full report there):

"For a Minimum Retirement Living Standard, a single person would need £10,900, while a couple needs £16,700. For a Moderate Retirement Living Standard, one person would need £20,800 and a couple would need £30,600. Finally, for a Comfortable Retirement Living Standard, the annual budget needed by one person is £33,600 in 2021 and £49,700 for a couple."

OldSkoolRS said:
I have a slight concern that my hobbies could be impacted due to health: My parents both had problems with arthritis as they got older and my Mum stopped playing piano because of it. I play guitar in a band and we occasionally get paid gigs, so it's mostly self financing as a hobby. However, if I can't play anymore due to arthritis then it'll be a bummer. I do play drums as well, though I guess I could still struggle to hold the sticks properly. On the plus side Mum was in her 70s before it became a problem. Boring as it might sound I do enjoy gardening, or rather sitting down admiring my work with a coffee after I've done some gardening, so I'm sure I'll manage that as my Mum still does in her 80s now.

I'm feeling rather strange this evening, having returned from the office for the last time...I forgot my laptop, but I can manage the last few Teams calls and the odd email on my phone to save me going back again tomorrow. I've been handed an envelope with the instruction not to open it until I'm told: They have set up a final goodbye Teams call for Monday afternoon (our engineers are spread out all over UK & Ireland so weren't in the office today), so I guess I'll be asked to open it then, so will be interesting to see what it is: My colleague got a very nice Golf putter, but one of those wouldn't fit in the envelope, so I guess it's something else. biggrin
It's bound to feel a bit strange.....must say, after mostly working from home even before Covid, I was perhaps a bit more relaxed about things....good luck!!


DT1975 said:
We're mid / late 50's retired and net take home pensions are £4k....we're still saving £1200-£1500 a month despite nice holidays, treating the kids etc. We have two more pensions cutting in 5 years, state pensions 10 years so I might need to find a more expensive hobby as its going to be sloshing over.

What I would say this is throughout my career we were mortgaged to the hilt, we were super careful and I'm sure this attitude has carried on into retirement.
We did however marry young, get on the housing ladder young and moved up when we could and stayed together of course.

However when you have spare money you then get engrossed in savings / Investments, its a nice comfort blanket but at some point I've got to think 'what exactly are we saving for' ...we've far exceeded any emergency pot.

I wasn't sure if to post this. I'm aware many will be under our take home and many will be over. I think what I'm trying to say is that now we're both retired we could live on £2.5k a month very comfortably.
I'm glad you did - it sounds perfectly reasonable to me!



Carbon Sasquatch

3,536 posts

41 months

Thursday 12th May
quotequote all
mikeiow said:

Carbon Sasquatch said:
Ecosseven said:
According to Which?........
Not that one again smile

The article has plenty of inconsistencies in it & some of their budget numbers are questionable. Not a bad starting point, but always comes back to you needing to understand your own spending requirements.
Another study by Loughborough Uni: https://www.lboro.ac.uk/subjects/social-policy-stu... (full report there):

"For a Minimum Retirement Living Standard, a single person would need £10,900, while a couple needs £16,700. For a Moderate Retirement Living Standard, one person would need £20,800 and a couple would need £30,600. Finally, for a Comfortable Retirement Living Standard, the annual budget needed by one person is £33,600 in 2021 and £49,700 for a couple."
I prefer Loughboroughs naming convention - Minimum / Moderate / Comfortable seems closer to those numbers. Which went with Essential / Comfortable / Luxury for broadly the same numbers.

Armitage.Shanks

1,329 posts

62 months

Thursday 12th May
quotequote all
mikeiow said:
Its interesting as my FA concerns himself with living to 100 and having money left to pay for care. Im sure he is supposed to do that because the FCA tell him too, but frankly, no! Dont spend money when you can benefit from that just so you can keep it for your 9 month stay in care before you pop off. Not likely!
My IFA told me to spend more money now in my 50s/60s and whilst not necessarily taking more holidays per year but 'upgrade' them with good hotels, business class flights etc. Trouble is as I've got older I like the more simple stuff and enjoy several short 3-5 day EU city breaks serviced by budget airlines. I've had to rein in a few as it was felling too much like work having to plan them all and being away from home too much!

gotoPzero

14,191 posts

166 months

Friday 13th May
quotequote all
Armitage.Shanks said:
My IFA told me to spend more money now in my 50s/60s and whilst not necessarily taking more holidays per year but 'upgrade' them with good hotels, business class flights etc. Trouble is as I've got older I like the more simple stuff and enjoy several short 3-5 day EU city breaks serviced by budget airlines. I've had to rein in a few as it was felling too much like work having to plan them all and being away from home too much!
Excellent example of why I want to have most of my more adventurous travels done and dusted by late 50s.

I did a 4 week road trip round the west coast last year and it was very tiring. I cant imagine wanting to do that in my 60s.

Like you say the planning was like a military operation too, especially with covid. I am glad we went, but it was hard work.


Carbon Sasquatch

3,536 posts

41 months

Friday 13th May
quotequote all
I just read - well skimmed - the Loughborough research and found it quite amusing.

Loughborough research paper said:
A minimum retirement living standard
Female hairdressing: £15 for a dry cut every 6 weeks Male hairdressing: £8 a month
£25 per person, per year for perfume/aftershave
A moderate retirement living standard
Female hairdressing: £35 every 6 weeks, plus £10 for home colour Male hairdressing: £12 a month
Female: £20 a month for beauty treatments
£60 per person, per year for perfume/aftershave
A comfortable retirement living standard
Female hairdressing: £90 every 6 weeks for cut and colour
Male hairdressing: £15 a month
Female: £35 per month for beauty treatments e.g. nails and/or eyebrow threading/waxing £120 per person, per year for perfume/aftershave
Loughborough research paper said:
A minimum retirement living standard
Bus: Free bus pass
Rail: £100 per person per year, PLUS £30 senior railcard (and rail fare for holiday each year)
A moderate retirement living standard
Rail: £100 per person per year, PLUS £30 senior railcard (and rail fare for holiday each year) Car: 3 year old Ford Focus, replaced every 10 years
£60 per person, per year for perfume/aftershave
A comfortable retirement living standard
Rail: £200 per year per person, PLUS £30 senior railcard
Car: Couple: 5 year old mid-range SUV (Nissan Qashqai) replace every 5 years, PLUS older second car, smaller run around (Ford Fiesta) 8 years old, replace after 5 years; Single: 2 year old mid-range SUV (Nissan Qashqai) replace every 5 years
https://www.retirementlivingstandards.org.uk/Retirement-living-standards-in-the-UK-in-2021.pdf


As has been said repeatedly - you need your own expenditure list smile

Edited by Carbon Sasquatch on Friday 13th May 11:59

Fusion777

588 posts

25 months

Friday 13th May
quotequote all
Carbon Sasquatch said:
I just read - well skimmed - the Loughborough research and found it quite amusing.
Those aspects you've quoted are the reality for lots of retired people though (I assume you're alluding to the lack of glamour)- not Porsches and yachts.

Carbon Sasquatch

3,536 posts

41 months

Friday 13th May
quotequote all
Fusion777 said:
Those aspects you've quoted are the reality for lots of retired people though (I assume you're alluding to the lack of glamour)- not Porsches and yachts.
An aftershave allowance in the minimum spend ticked me - as did eyebrow threading (comfortable)

I think the Loughborough naming is better than Which who called their top tier Luxury.

Really it just made me think how far off my own spending levels & priorities most of the examples were.

Fusion777

588 posts

25 months

Friday 13th May
quotequote all
Carbon Sasquatch said:
An aftershave allowance in the minimum spend ticked me - as did eyebrow threading (comfortable)

I think the Loughborough naming is better than Which who called their top tier Luxury.

Really it just made me think how far off my own spending levels & priorities most of the examples were.
Yeah, the aftershave inclusion is a bit odd. Personally I'd say there's a case for alcohol and holidays not to be included if we're talking a "minimum" level. They are niceties rather than essentials, but where do you draw the line?

They've explained their methodology and surveyed a good sample size of people, so it's a reasonable survey. It also illustrates how different perspectives can be. Personally I and many others find PH to be quite distorted in what's viewed as "typical" (the director stereotype that we all chuckle at, but there's a grain of truth in it).

ARHarh

1,980 posts

84 months

Friday 13th May
quotequote all
Carbon Sasquatch said:
I just read - well skimmed - the Loughborough research and found it quite amusing.

Loughborough research paper said:
A minimum retirement living standard
Female hairdressing: £15 for a dry cut every 6 weeks Male hairdressing: £8 a month
£25 per person, per year for perfume/aftershave
A moderate retirement living standard
Female hairdressing: £35 every 6 weeks, plus £10 for home colour Male hairdressing: £12 a month
Female: £20 a month for beauty treatments
£60 per person, per year for perfume/aftershave
A comfortable retirement living standard
Female hairdressing: £90 every 6 weeks for cut and colour
Male hairdressing: £15 a month
Female: £35 per month for beauty treatments e.g. nails and/or eyebrow threading/waxing £120 per person, per year for perfume/aftershave
Loughborough research paper said:
A minimum retirement living standard
Bus: Free bus pass
Rail: £100 per person per year, PLUS £30 senior railcard (and rail fare for holiday each year)
A moderate retirement living standard
Rail: £100 per person per year, PLUS £30 senior railcard (and rail fare for holiday each year) Car: 3 year old Ford Focus, replaced every 10 years
£60 per person, per year for perfume/aftershave
A comfortable retirement living standard
Rail: £200 per year per person, PLUS £30 senior railcard
Car: Couple: 5 year old mid-range SUV (Nissan Qashqai) replace every 5 years, PLUS older second car, smaller run around (Ford Fiesta) 8 years old, replace after 5 years; Single: 2 year old mid-range SUV (Nissan Qashqai) replace every 5 years
https://www.retirementlivingstandards.org.uk/Retirement-living-standards-in-the-UK-in-2021.pdf


As has been said repeatedly - you need your own expenditure list smile

Edited by Carbon Sasquatch on Friday 13th May 11:59
This probably explains why I managed to retire at 55. I have not paid for a hair cut since 1996, I have not paid for a train journey since 1979, (except preserved railways). My cars are far older than 5 years and I maintain them myself. smile

okgo

33,452 posts

175 months

Friday 13th May
quotequote all
Those haircut prices are hilarious. My wife just got back from hers, it was more than all of the ones mentioned in every standard of living added together.

OldSkoolRS

4,295 posts

156 months

Friday 13th May
quotequote all
ARHarh said:
This probably explains why I managed to retire at 55. I have not paid for a hair cut since 1996, I have not paid for a train journey since 1979, (except preserved railways). My cars are far older than 5 years and I maintain them myself. smile
I will still need a haircut, but the train journey and car age/self maintenance is definitely me. In fact DIY generally has probably saved me thousands over the years and I'm still more than capable of doing it now (maybe even part time as a 'handy man' if I really wanted some extra cash).

Fusion777 said:
Personally I and many others find PH to be quite distorted in what's viewed as "typical" (the director stereotype that we all chuckle at, but there's a grain of truth in it).
Seeing some of the posts even on this (very friendly) thread has some people planning to retire on more than I earned and I thought I had a fairly decent job and was in the 40% tax bracket for the last 10 years or so.

I've lived well within my means apart from a brief period 25 years ago post divorce where things were really tight for a while paying a mortgage on my own. Because of this I'm already living off far less than my wage was and just allowing it to build up: This is what I'll be 'drawing down' on for the next few years/until I trigger my various pensions (non of which are huge or even enough to reach the tax threshold).

I think I also realised some things during Covid (though I was out working on site myself at the time), more about making memories than vacuous spending on things that I didn't really need and keeping our spending for more 'bucket list' type things, such as special holidays to places we really want to go to rather than just to 'get away from work'. Thankfully we have relatives in some of these places, so will be able to stay with them (as they have with us) and not worry about the long haul flights as I won't be back at work straight after. Booking well in advance and out of usual school holiday seasons also helps keep the costs down on these trips too.

We both have hobbies that we can occupy ourselves for free at home, so even if it doesn't seem very PH Director level it's stuff we like to do and haven't had the time to do properly when working.

As said above though; everyone has to work out their own requirements.

gotoPzero

14,191 posts

166 months

Friday 13th May
quotequote all
okgo said:
Those haircut prices are hilarious. My wife just got back from hers, it was more than all of the ones mentioned in every standard of living added together.
Its an old report.

Now a basic gents hair cut in somewhere thats stabby is £10 ish.

I have mates who spend £20-£30 for a normal trim in town.
They get a "free" coffee and a hair cut from someone who looks like they should be in ZZTop though.

Meanwhile I go and see my man Omar, who is £9 plus £1 tip. I sit down, I shut up and I leave without getting anything for "free" other than his bad attitude.

Carbon Sasquatch

3,536 posts

41 months

Friday 13th May
quotequote all
gotoPzero said:
Its an old report.
I know we're in an inflationary period, but October 2021....