Enjoying Retirement

[ARHarh]

Jim on the hill said:

DeuceDeuce said:

I’m another one of those people that keeps a spreadsheet for pretty much everything. In no particular order, our (two people) annual expenditure looks like this:


Council Tax £3,360
Electricity £1,920
Water £480
BB/Phone/TV £1,440
Dentist £600
Gate service £180
Chimney sweep £70
Eco Dan Service £400
Car 1 serv & MOT £540
Car 2 Serv & MOT £1,080
Mobile phones £360
Wine & Spirits £2,400
Food shopping £6,000
Pet Insurance £240
Pet supplies. £1,200
Petrol £3,600
Iron & dry cleaning £480
Pub/dinners out £7,200
Clothes £2,400
Logs £240
Car Insurance £1,200
Home Insurance £720
Memberships/subs £3,600
Road Tax £825
Misc gifts. £1,200
Salon appts. £1,800
Other. £4,000
Totals £47,535

Including ongoing holidays, occasional car changes and household maintenance/improvements probably doubles this.

How can you eat £500 a month of food excluding booze? I thought I ate alot

Make that £1100 including food in the pub. That's like £35 a day.

The 2 of us spend £200 a month and eat well for that.

[ray von]

croyde said:

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

Some of the amounts being bandied about on here are absolutely mind boggling to me.
I'm going to have to downgrade my opinion of my own financial status from doing ok to being on the bones of my arse

[GT3Manthey]

Armitage.Shanks said:

Reading the replies it's difficult to get an ideal 'figure' as everyone's needs are different.

I will have been retired 4 years next month and I'm still 10years off the OAP but rely on a FS pension, AVC pension and a part time job that let's me turn up when I want without any real ties or commitment for the next 2yrs. Wife was a stay at home mum so only the OAP to wait for.

At the moment with a daughter at Uni with 18 months to go I'm funding her accommodation, car etc but other than this we are debt free having paid off the mortgage 15 years ago. The only thing the part time job gives me is enough extra income so that I don't need to draw down on my savings and investments - something I'll have to do when I finish although at a pinch we could survive on just the pension. At this point you can effectively set your income for the year by how much you draw down and how many years your savings will last.

None of us know how long we have but in your 50s there's not a lot of point saving your money to spend in your 80s! I reckon I've got another 15-20yrs purposeful time left (hopefully with good health) to enjoy what we have.

If I rule out £1,800pa on Salon Appts (and I hope at those prices they come with a happy ending) I could probably muster £60k net pa as a future 'income' for the next 15-20yrs but just know I wouldn't have cause to spend that much.

This is where I’m at , not knowing how much is enough .

Yes I can run through all my expenditure but it gets worrying when the range for some is between £1200 to in excess of 6k a month. Obviously life expectancy is the unknown and all the planning might be blown apart. One never quite knows.

I’ve said to the wife , if we can’t live nicely on 5k net per month we are doing something wrong .

Including supporting the youngest at uni I’ve calculated our outgoings at £3200 a month which includes leisure activities.

Once she finishes uni and starts work this will drop to £2500 per month.

Bottom line I think I’ll be taking a part time job just to cover incidentals and inflation !

Once again. Thanks for all the replies

[GT3Manthey]

DeuceDeuce said:

I’m another one of those people that keeps a spreadsheet for pretty much everything. In no particular order, our (two people) annual expenditure looks like this:


Council Tax £3,360
Electricity £1,920
Water £480
BB/Phone/TV £1,440
Dentist £600
Gate service £180
Chimney sweep £70
Eco Dan Service £400
Car 1 serv & MOT £540
Car 2 Serv & MOT £1,080
Mobile phones £360
Wine & Spirits £2,400
Food shopping £6,000
Pet Insurance £240
Pet supplies. £1,200
Petrol £3,600
Iron & dry cleaning £480
Pub/dinners out £7,200
Clothes £2,400
Logs £240
Car Insurance £1,200
Home Insurance £720
Memberships/subs £3,600
Road Tax £825
Misc gifts. £1,200
Salon appts. £1,800
Other. £4,000
Totals £47,535

Including ongoing holidays, occasional car changes and household maintenance/improvements probably doubles this.

Fair enough, everyone’s different.

8k a month including holidays/ car changes etc .

[Shnozz]

PF62 said:

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.

Years ago I met a couple from Scotland who were in the Canary Islands for a few months over winter. Admittedly it wasn't a five star hotel but they were retired and told me that what their two month cost them (all inclusive) was paid for by the saving in their winter heating bill, let alone the additional saving in food and drink for two months.

To a lesser extent, but myself and my partner spend as much winter as we can in my Spanish home and whilst there save a chunk of cash. Benefit from lower energy use in UK property and cost of living being far lower, plus we tend to go out far less oddly. Either way, tend to find we spend 50% of what we do when in the UK.

[hotchy]

Even still having a mortgage i can survive on £1k let alone some who need 8k a month. Now remember your now old, so probably not as active. You'll spend your days with sore bones stuck on a sofa when some of this money could've been blown when fit and able. The taxman will just take 40% anyway after already taking 40% to earn the stuff. Thats if your mind doesn't go and the carehome eats up all your assets.

I seen it happen to a very good customer of mine mid 50s. Within a few months he went from perfect to not understanding the cost of a paper and getting angry and then me having to take him home because he forgot how to get home. He lived 1 Street away. So while your saving, remember to still live.

[GT3Manthey]

Shnozz said:

Years ago I met a couple from Scotland who were in the Canary Islands for a few months over winter. Admittedly it wasn't a five star hotel but they were retired and told me that what their two month cost them (all inclusive) was paid for by the saving in their winter heating bill, let alone the additional saving in food and drink for two months.

To a lesser extent, but myself and my partner spend as much winter as we can in my Spanish home and whilst there save a chunk of cash. Benefit from lower energy use in UK property and cost of living being far lower, plus we tend to go out far less oddly. Either way, tend to find we spend 50% of what we do when in the UK.

I know if a retired couple that have a flat in Frinton on sea ( north Essex coast) that they live in during our summer months & a flat in Tenerife where they spend the winter .
I can see the value in doing this especially now where UK fuel bills are set to rise dramatically

[Shnozz]

GT3Manthey said:

Shnozz said:

Years ago I met a couple from Scotland who were in the Canary Islands for a few months over winter. Admittedly it wasn't a five star hotel but they were retired and told me that what their two month cost them (all inclusive) was paid for by the saving in their winter heating bill, let alone the additional saving in food and drink for two months.

To a lesser extent, but myself and my partner spend as much winter as we can in my Spanish home and whilst there save a chunk of cash. Benefit from lower energy use in UK property and cost of living being far lower, plus we tend to go out far less oddly. Either way, tend to find we spend 50% of what we do when in the UK.

I know if a retired couple that have a flat in Frinton on sea ( north Essex coast) that they live in during our summer months & a flat in Tenerife where they spend the winter .
I can see the value in doing this especially now where UK fuel bills are set to rise dramatically

They won't be doing that post-Brexit though sadly (unless they have an Irish/EU passport). One big fly in the ointment for the "winter swallows".

But yes, the offset in winter energy bills is huge. Our UK apartment consumes £400 PCM in winter. By contrast we have been at my Spanish place since 20th December and even in an abnormally cold January so far have spent €80 on electric for the air con to warm 2 offices for me and the Mrs and then another €70 on wood for the log burner.

[GT3Manthey]

Shnozz said:

They won't be doing that post-Brexit though sadly (unless they have an Irish/EU passport). One big fly in the ointment for the "winter swallows".

But yes, the offset in winter energy bills is huge. Our UK apartment consumes £400 PCM in winter. By contrast we have been at my Spanish place since 20th December and even in an abnormally cold January so far have spent €80 on electric for the air con to warm 2 offices for me and the Mrs and then another €70 on wood for the log burner.

Indeed Brexit totally changed his previous arrangement.

He did mention there was a discussing to reverse this rule eventually . Also Covid tests have added to their recent costs but that’s another subject entirely.

I’m sticking with my guns on required monthly draw and anticipate 5k is more than enough.

Car wise I suspect it’ll be one family wagon and a small run around

[gotoPzero]

I think somewhere you can save quite a chunk once retired is the small things you can do yourself as you now have time.

I binned the window cleaner last year - was costing about £200 a year. Bought a pole set up for about £120 and do them myself now about once a month.

I actually find it quite nice to go out and spend an hour messing about - which is scary to say LOL I think it shows you are getting old.

There are a few things you can DIY once you have the time.

Something else is travel. We hope to travel quite a bit but we will do so off season. We will probably also use airbnb quite a bit and hoping to do some long term rentals over winter which if you book the year before you can get some really good deals. Same with flights, if you book in the black Friday sales for the following year you can get some much cheaper prices.

Its not like we will have to work the dates around work or anything!!

[GT3Manthey]

gotoPzero said:

I think somewhere you can save quite a chunk once retired is the small things you can do yourself as you now have time.

I binned the window cleaner last year - was costing about £200 a year. Bought a pole set up for about £120 and do them myself now about once a month.

I actually find it quite nice to go out and spend an hour messing about - which is scary to say LOL I think it shows you are getting old.

There are a few things you can DIY once you have the time.

Something else is travel. We hope to travel quite a bit but we will do so off season. We will probably also use airbnb quite a bit and hoping to do some long term rentals over winter which if you book the year before you can get some really good deals. Same with flights, if you book in the black Friday sales for the following year you can get some much cheaper prices.

Its not like we will have to work the dates around work or anything!!

Yes , little jobs you might once of paid for you can now tackle yourself.

I’m pretty useless at DIY but I’m sure painting the house I can attempt myself along with gardening etc .
Not that I enjoy gardening particularly

[Skyedriver]

ARHarh said:

Jim on the hill said:

DeuceDeuce said:

I’m another one of those people that keeps a spreadsheet for pretty much everything. In no particular order, our (two people) annual expenditure looks like this:


Council Tax £3,360
Electricity £1,920
Water £480
BB/Phone/TV £1,440
Dentist £600
Gate service £180
Chimney sweep £70
Eco Dan Service £400
Car 1 serv & MOT £540
Car 2 Serv & MOT £1,080
Mobile phones £360
Wine & Spirits £2,400
Food shopping £6,000
Pet Insurance £240
Pet supplies. £1,200
Petrol £3,600
Iron & dry cleaning £480
Pub/dinners out £7,200
Clothes £2,400
Logs £240
Car Insurance £1,200
Home Insurance £720
Memberships/subs £3,600
Road Tax £825
Misc gifts. £1,200
Salon appts. £1,800
Other. £4,000
Totals £47,535

Including ongoing holidays, occasional car changes and household maintenance/improvements probably doubles this.

How can you eat £500 a month of food excluding booze? I thought I ate alot

Make that £1100 including food in the pub. That's like £35 a day.

The 2 of us spend £200 a month and eat well for that.

Looking at some of those expenditures - Salon, Mic Gifts Memberships etc I'm on another planet. My house insurance is around £135!

[GT3Manthey]

Skyedriver said:

Looking at some of those expenditures - Salon, Mic Gifts Memberships etc I'm on another planet. My house insurance is around £135!

I think we pay around £600 but I’d be wanting to shop around more plus the wife has some big old jewellery !

[anonymous-user]

It’s interesting that people are recommending tightening the belts when you retire. Things like “switch to a gifgaf phone and save £20 a month”. Why don’t you just live like that in the first place and retire earlier or with more money?

[Welshbeef]

For those retired you should be spending your cash first then stocks all before drawing your pension (private).

This is because of your estate is above inheritance thresholds your pension pot can transfer tax free you your nominated people via your will.

[GT3Manthey]

bulldong said:

It’s interesting that people are recommending tightening the belts when you retire. Things like “switch to a gifgaf phone and save £20 a month”. Why don’t you just live like that in the first place and retire earlier or with more money?

I guess when you retire you have more time to nail down the expenses more especially when you know you have a set income .

Maybe we’re lazy for now but point taken

[Welshbeef]

GT3Manthey said:

I guess when you retire you have more time to nail down the expenses more especially when you know you have a set income .

Maybe we’re lazy for now but point taken

Older people tend to eat smaller portions too
More time to cook in batches meaning the effective cost per portion is lower still.

Likewise they have more time to be in the garden and grow veg. Even though (runner beans aside) the a cost to grow doesn’t really make financial sense but the joy of growing veg and the freshness / no pesticides etc is a feeling hard to beat.

[Jon39]

You should be able to save that £240 on logs.

Even poor old me has a wooded area in my parkland grounds. My butler/gardner goes to cut down some small trees, then puts them through the log splitter machine.

I spotted the post about two people eating £200 of food each month.
Just £25 grocery bill per person per week. I must be eating too much.
Should I be shopping at one of those Litdl shops?
Do they do home deliveries ?

[GT3Manthey]

Jon39 said:

You should be able to save that £240 on logs.

Even poor old me has a wooded area in my parkland grounds. My butler/gardner goes to cut down some small trees, then puts them through the log splitter machine.

I spotted the post about two people eating £200 of food each month.
Just £25 grocery bill per person per week. I must be eating too much.
Should I be shopping at one of those Litdl shops?
Do they do home deliveries ?

We’ve allocated £900 a month for food & wine .
They’ll be 2/3 of us and I’d say that’s realistic but might be able to cut that down somewhat

[LeoSayer]

Welshbeef said:

For those retired you should be spending your cash first then stocks all before drawing your pension (private).

This is because of your estate is above inheritance thresholds your pension pot can transfer tax free you your nominated people via your will.

This is a good rule of thumb for tax efficiency but it means you miss the opportunity to drawdown within the personal allowance (ie. tax free) in the early years of retirement. Once you start receiving state pension, that opportunity is largely gone.

For those with some of the high-spending plans being discussed here, a strategy that avoids paying 40% tax on drawdowns may well be the most prudent, unless inheritance is the absolute priority.

Pension lifetime allowance charges are also a consideration, especially not that it has been frozen for 5 years. Generally, drawing down early helps to mitigate that.