Enjoying Retirement

Enjoying Retirement

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Kwackersaki

1,180 posts

205 months

Wednesday 19th January
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Isaac Hunt said:
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...
That’s pretty good if you’re running 4 cars.

I hope to retire in a few months and we sat down at the weekend to work out what we’d need.

Came to £1600 a month to include 2 cars and rounding up all expenses.

GT3Manthey

Original Poster:

2,135 posts

26 months

Wednesday 19th January
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croyde said:
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
Hi Croyde , this is the thing , there is no one size fits all .


Shnozz

25,087 posts

248 months

Wednesday 19th January
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gotoPzero said:
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.
Intrigued by this but the link doesn't work for me?

GT3Manthey

Original Poster:

2,135 posts

26 months

Wednesday 19th January
quotequote all
Wacky Racer said:
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
I’m unlikely to work part time although I do potentially have a self employed role with a family member in the future but that’s not part of my current calculations.

Car wise it’ll be one family car and a small starter car for our daughter at uni .

We will be around 80 miles from London but costs will be equivalent to what we have now for everyday goods and services.

Idea is golf for me , gym for the wife .
Eat out once a week & for me learn to cook !

Generally a bottle of wine split most evenings too .

Most of the time will be spent doing gently exercise, walking , golf & cycling .

Yes we’ll have sky tv and 3 mobiles to pay for .

Guess b’days & Xmas costs on top too.

What I do know is that i feel ive done my time in the current business so for my own health it’s time to set an end date

mikeiow

3,744 posts

107 months

Wednesday 19th January
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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’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 .
2-6k covers a BIG range hehe
Everyone needs to figure out their own number - The Number thread on MSE here is a beast that covers 10 years of views on this!
Clearly Powerfully Built PH Directors will have much larger numbers!

For us: we have under a grand in monthly 'essential' outgoings. Perhaps £500 in food: we mostly eat veggie food. 3 vehicles come in under £300pcm on average. The electric one (used for 80%+ of our miles) means the running costs are kept down.
So £2k pcm covers the 'essentials'. We have never had monster extravagant holidays, aside from a month long US family trip some years back - I figure our 'number' really sits somewhere between £3-4k.

10 months in, not regretted a moment!
Work now consists of maintenance and managing a holiday cottage we have. It doesn't really make a lot of money - washes it's face, but has the occasional major expense to use up any saved profits.
Fun - cycling, walking, volleyball, reading, films, festivals, comedy shows & beers with pals.
Travel will return in some future: MrsMikeIOW spends a lot of time helping care for her elderly frail mum. We are skiing for a fortnight in March (only ever done 1 week in the past), & did get to Scotland 4 times last year (kids were up there) and IOW for 5 trips (much work in the 'garden gym' at the cottage).

GT3Manthey said:
Generally a bottle of wine split most evenings too .

Most of the time will be spent doing gently exercise, walking , golf & cycling .
What I do know is that i feel I've done my time in the current business so for my own health it’s time to set an end date
If your health is a number one goal, I'd suggest you reign in ideas of a bottle of wine each night!
We have the odd binge out with pals, but at home now rarely drink more than the occasional beer....




gotoPzero

14,191 posts

166 months

Wednesday 19th January
quotequote all
Shnozz said:
gotoPzero said:
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.
Intrigued by this but the link doesn't work for me?
Weird

Click this link and select "spreadsheet version"

https://www.moneysavingexpert.com/banking/budget-p...


UnclePat

466 posts

64 months

Wednesday 19th January
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croyde said:
It's a relief to read this after the usual PH stuff of £6k a month.
I’ve read varying figures about what the average UK pension pot currently is, usually in the range £50k - £70k, with many of the articles stating that’s as at retirement age.

The average UK salary is circa £31k (I think), which equates to around £2k per month after tax, from which rent, mortgage, work commuting costs, childcare, pension, savings etc. must be deducted.

Most of the population is therefore existing just fine on much less than £6k a month, and few will enjoy £6k a month in retirement either.

It does all depend upon individual circumstances of course - what one’s living standards are now, and whether they will continue into retirement; dependants; mortgage/debt; other income streams; inheritance etc.

Bravo to anyone with the means to enjoy a very comfortable retirement, new cars, holidays, travel etc. - more power to them, I don’t doubt they’ll have worked hard to achieve it, and a big part of it is knowing in advance what you want for retirement and planning for it years ahead (many don’t). It’s good to aspire to better, thriving rather than surviving.

It just won’t be the reality for the majority, I fear.

For my own purposes, assuming children all through Uni, mortgage free etc., in retirement (20 years away, hopefully less) I think I’d need (all figures as at today’s costs and needing future adjustment therefore, after taxes) £1,000 per month to survive, £1,500 would be comfortable, £2,000 adds scope for more travel & meals out, at £2,500 I’d want for little. All based on mostly preserving the pot capital and using State Pension, small DB scheme & likely Drawdown on main DC pot.

That’s based on my current living standards. Quite sensible, but still living in a nice house in a nice area (not London!), half-decent car, lots of low-key travel & meals/drinks out, with a frivolous spending habit on watches & pens.

Having a partner to share retirement costs with will make a big difference to budgets too.

I deliberately haven’t touched on care costs on old age, but that’s another matter to consider.





gotoPzero

14,191 posts

166 months

Wednesday 19th January
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UnclePat said:
Having a partner to share retirement costs with will make a big difference to budgets too.
A massive factor IMHO.

In the 70s only around 50% of women had a job. Now its closing in on 75%.

Its even more stark when you look at full time working. In the 70s only 20% ish had a full time job. Now its over 45%.

timberman

1,002 posts

192 months

Wednesday 19th January
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I'm mid 50's and have been retired nearly a year and my wife about 18 months,

we don't have any debt at all and in the last year we've probably spent about £50k, which probably sounds a lot, but we haven't exactly been very careful money wise and could have survived on much less.

A lot of this I put down to the fact that we've made a big change to our lives from both working full time and being pretty busy to not working at all and needing some time to adjust,

out of the £50k I think we've given our daughter about £10K, we spent at least a few thousand ( I haven't kept count ) on the house, had a holiday and a lot of days out, quite a few of which have been for the purpose of house hunting,

in fact due to the house hunting, and also wanting to find things to fill our days up now we're not working,
we've roughly doubled our typical annual mileage,
this has obviously also had an effect on our monthly fuel bill which would be higher even on our typical mileage just because of increasing fuel prices.

If we were to cut right back and try to budget more we could probably survive quite comfortably on about £2.5k a month (possibly less) and still enjoy a fair few days out and at least one holiday a year,

and If we ever manage to find a house we like that we can actually afford, we're going to have to start cutting back a bit and try to base our outgoings and lifestyle on whatever our pension funds manage to return.

We hadn't planned retiring till we reached 60 but decided that we couldn't really think of a good reason to put it off any longer and just went for it, I haven't for one minute regretted our decision and would recommend it to anyone feeling the same way.


rigga

7,550 posts

178 months

Wednesday 19th January
quotequote all
Retired end of last march 21, so almost a year into it. No mortgage, no kids at home, regular bills for me is £900 a month, my railway pension is £1100, and I draw £500 out of my investments from my lump sum, so £1600 every 4 weeks.

Two cars, and 3 bikes., and am just about to trade one of them in for a new one. Holidays are several times a year in cornwall, as we have two dogs , and wife still works as she's 8 year's. Younger than me, I'm 56.

Enjoying the luxury on not working nights, and up for 04.45 for day shifts.

Loving it.

GT3Manthey

Original Poster:

2,135 posts

26 months

Wednesday 19th January
quotequote all
rigga said:
Retired end of last march 21, so almost a year into it. No mortgage, no kids at home, regular bills for me is £900 a month, my railway pension is £1100, and I draw £500 out of my investments from my lump sum, so £1600 every 4 weeks.

Two cars, and 3 bikes., and am just about to trade one of them in for a new one. Holidays are several times a year in cornwall, as we have two dogs , and wife still works as she's 8 year's. Younger than me, I'm 56.

Enjoying the luxury on not working nights, and up for 04.45 for day shifts.

Loving it.
Great to hear very pleased for you .

I think im overestimating what we’ll need ( well I hope So at least) and we’ll settle into the retirement set .

Like you the luxury of not having to get dragged out of bed is what I want the most

PF62

2,508 posts

150 months

Wednesday 19th January
quotequote all
GT3Manthey said:
I think im overestimating what we’ll need ( well I hope So at least)


Quite possibly.

Both my wife and I took voluntary redundancy just over a year ago and both being in our late 50s decided that this was early retirement, especially as we were able to use the voluntary redundancy payments to receive our index linked Defined Benefit pensions immediately without any reduction in them.

The surprising thing was that our 'take home pay' hardly changed between working and getting paid to receiving a pension. Once we stopped paying National Insurance, pension contributions, a stupid amount on two train season tickets and parking at the station, the difference was pretty minimal.

Even an increase in our leisure expense hasn't really hit. Eating out for frequent pub lunches has been offset by not buying overpriced sandwiches and coffee in London. The numerous UK and overseas holidays we have taken in the last year have been cheaper because we could stay or fly midweek or pick up last minute deals.

Because they are DB pensions the money just keeps flowing into the bank account each month, then it needs to be spent. And the challenge at the moment is we are not keeping up with it (not a boast, just a fact).

That combined with no children, means we have to spend it and all the savings we have - and as we will both be receiving full state pensions in just under a decade, then that additional £18k a year before tax will need to be spent as well.

And to that end we disappeared off last week to the Canary Islands to spend a couple of months there in order to avoid the rest of the damp and cold UK winter.

GT3Manthey said:
the luxury of not having to get dragged out of bed is what I want the most
Yep. No more standing at the station in the freezing cold at 'silly o'clock' listening to some pathetic excuse why the train isn't coming.

Isaac Hunt

14,174 posts

188 months

Wednesday 19th January
quotequote all
GT3Manthey said:
Like you the luxury of not having to get dragged out of bed is what I want the most
I am getting the best sleep in years.

I think it is a combination of not having work problems rattling around in my brain and worrying about not hearing the alarm.

Sometimes I don't wake up until 8.00 am.

Isaac Hunt

14,174 posts

188 months

Wednesday 19th January
quotequote all
I did struggle initially with not working and took a part time job, just eight hours a week. However, I discovered that I now have zero tolerance for dealing with cockwombles and work problems were invading my sleep and the luxury of being spontaneous. Nothing like deciding to take a trip out the same day because the weather is fine.

rigga

7,550 posts

178 months

Wednesday 19th January
quotequote all
I have also found, sleeping once retired, is vastly improved.

GT3Manthey

Original Poster:

2,135 posts

26 months

Wednesday 19th January
quotequote all
Isaac Hunt said:
I am getting the best sleep in years.

I think it is a combination of not having work problems rattling around in my brain and worrying about not hearing the alarm.

Sometimes I don't wake up until 8.00 am.
This was me this morning at 5.20am .
All manner of st going thru my mind and all I could think of was having a cuppa and going back to sleep !

I even looked today & not discounting days off I’ve got 407 days left !

I’ve always said ( back in the day ) That on the first day of retirement I’d get a hammer from the garage and smash the alarm clock to pieces .
Maybe I won’t do that now with my new iPhone.

Tks for all the replies, it’s massively helping in my decision making process

Hang On

458 posts

57 months

Wednesday 19th January
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I’ve been retired 10 years. Wife also retired. No kids. House owned. Two cars, no debt. Couple of pets so no holidays to speak of. No expensive hobbies (unless you count servicing and consumables for the second car).

We spend between £45k and £60k each year. Usually nearer to the higher amount but last year with minimal eating out, closer to the lower amount.

I reckon we could live on £30k if we had to but living off savings, until we reach pension age, having retired into a long bull market means that we spend more. The confidence effect of market performance has a big impact on consumer confidence and we, evidently, are not immune to that.

I think it’s best to have a wide range to your acceptable budget and be flexible enough to cope with swings and roundabouts.

Edited by Hang On on Wednesday 19th January 21:06

Arranguez

307 posts

50 months

Wednesday 19th January
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I’m 10 years off when I want to retire and doing my sums I’m expecting to be on between £6-7k a month net.

The plan will be to have fabulous holidays so a portion will be saved for that. We are not particularly extravagant mind you so what isn’t spent will be left in investments and I’d be surprised if we spent that much. I do plan to drink very nice wines and am building a cellar at the moment to plan for that.


Isaac Hunt

14,174 posts

188 months

Wednesday 19th January
quotequote all
GT3Manthey said:
Tks for all the replies, it’s massively helping in my decision making process
In all honesty, we were not planning to retire for another couple of years. Then covid happened and we stopped spending money and then Boris offered £15k saving off stamp duty. We were planning to move down market and got £35k more for our house. It was a no brainer.

croyde

19,450 posts

207 months

Wednesday 19th January
quotequote all
Interesting thread as it has got me thinking.

I'm guessing most of you will have somewhere to live mortgage free. I didn't really factor that in.

Currently my work is in London, it's well paid but most of it is taken by rent on a small 2 bed.

Within 5 years I should get half the equity from the ex marital home which should buy me a small cottage well out of London.

So that's the £1500 a month rent I will no longer have to find. So take that and child maintenance off my current take home and it appears that I live on £800 a month.

That covers bills, food, council tax and looks after 2 cars and a 300cc Vespa.

So there is hope yet smile