Can we retire please? How much money do you really need need?

[busby]

So you still have to pay rent out of your pension/savings? I thought that was the good thing about owning your house in retirement is not having a largish outlay each month for mortgage? I guess on your plus side any repairs that ned doing are covered by the housing authority.

Not sure I agree with the way you and others have done this as I feel the housing from local authorities are in such short supply that these should really be given to those in need not those who decide to sell up and spend their cash travelling while others are homeless, not a dig at you directly but more a moral to look after those who are maybe not so fortunate in life. I know its yours to do what you want with and agree with that as we will do with ours as we wish, though I do agree with the sentiment that you don't want to work all your life then because you were unfortunate to need help the government makes you sell your house to pay for it whilst others get it for free because they have either not accrued any assets or like yourself spent it all so the taxpayer will pick up the bill.

Housing for over 55s is not in short supply,,,it has quite a quick turnover.There are two empty flats in our small 16 flat community now and many housing associations regularly advertise for tenants for their properties.I moved from a 3 bed cottage into a 1 bed flat thus freeing up a family dwelling onto the housing market..Our property suits us as we can easily lock up and leave it,,no frightening repair/maintenance bills,,good parking for my car and motorhome and quiet neighbours,,,BUSBY.

 

[ElddisNotElvis]

So you still have to pay rent out of your pension/savings? I thought that was the good thing about owning your house in retirement is not having a largish outlay each month for mortgage? I guess on your plus side any repairs that ned doing are covered by the housing authority.

Yes - but partly covered by interest from ISA’s etc, and the rest from works pension. We don‘t touch our “savings” for living expenses, and yes, no upkeep. Also HA rent is considerably cheaper than private property renting.

Not sure I agree with the way you and others have done this as I feel the housing from local authorities are in such short supply that these should really be given to those in need not those who decide to sell up and spend their cash travelling while others are homeless, not a dig at you directly but more a moral to look after those who are maybe not so fortunate in life. I know its yours to do what you want with and agree with that as we will do with ours as we wish, though I do agree with the sentiment that you don't want to work all your life then because you were unfortunate to need help the government makes you sell your house to pay for it whilst others get it for free because they have either not accrued any assets or like yourself spent it all so the taxpayer will pick up the

Consider it our own Equity Release schemeand we get to keep everything. Why shouldn’t we be allowed to downsize to a Housing Association/Retirement Village because we have worked all our life. The HA obviously see us as good tenants otherwise they wouldn’t have let to us.

 

[ElddisNotElvis]

Housing for over 55s is not in short supply,,,it has quite a quick turnover.There are two empty flats in our small 16 flat community now and many housing associations regularly advertise for tenants for their properties.I moved from a 3 bed cottage into a 1 bed flat thus freeing up a family dwelling onto the housing market..Our property suits us as we can easily lock up and leave it,,no frightening repair/maintenance bills,,good parking for my car and motorhome and quiet neighbours,,,BUSBY.

Yes Busby. Very big turnover where we are, and two empty properties. Like you, it’s just a base for us with a bus stop outside when I’m too old to drive and 20 minutes walk to town.

 

[Deneb]

But why should you go without when your young fit and healthy to gamble on staying fit and living a long retirement..We always had good holidays with the kids and on our own when the kids left home,,,regulars in our village pub,,dined out regularly and tried to run decent cars whilst working..Luckily been retired 21 years now and enjoyed every bit of it and long may it last..Could have saved more money and gone without when younger but why ?? we dont need more,,,I dont want to be the richest one in the graveyard..BUSBY

Who said that our kids missed out on anything? Neither of us has ever wanted to be a regular in any pub, nor do we consider overpriced and ridiculously presented restaurant food to be either enjoyable or good value for money, particularly now most of them seem to insist on faffing about with everything beyond all recognition, making it nigh on impossible to get a decent basic or traditional meal. We've never felt a need to keep up with the Jones' or buy things to impress others, or as ostentatious displays of wealth that we don't actually possess. My methodology has simply been to ensure that we could maintain the same income and standard of living in retirement as we desired throughout the rest of our lives. I can think of nothing worse than having to scrimp and go without just because we've both given up work.

 

[bobnick]

Not and wont read the 363 ish post before this one.
The only advice i would like to add is whatever the calcs you have done no matter how you may think you have covered everything...........DOUBLE IT.

^{_{Subscribers  do not see these advertisements}}

 

[Garfields]

Not and wont read the 363 ish post before this one.
The only advice i would like to add is whatever the calcs you have done no matter how you may think you have covered everything...........DOUBLE IT.

Don't really agree
You can spend a lot of time worrying about your sums
Doing fine on a lot less than expected though some of that is down to not getting about much in 2020

 

[busby]

And who said that our kids missed out on anything? Neither of us has ever wanted to be a regular in any pub, nor do we consider overpriced and ridiculously presented restaurant food to be either enjoyable or good value for money, particularly now most of them seem to insist on faffing about with everything beyond all recognition, making it nigh on impossible to get a decent basic or traditional meal. We've never felt a need to keep up with the Jones' or buy things to impress others, or as ostentatious displays of wealth that we don't actually possess. My methodology has simply been to ensure that we could maintain the same income and standard of living in retirement as we desired throughout the rest of our lives. I can think of nothing worse than having to scrimp and go without just because we've both given up work.who said we are having to scrimp and go without just because we have both retired ??

I didnt say your kids missed out on anything either or criticize your life style,,,i was stating my personal thoughts..Every one has their own ideas and beliefs..If we cannot comment without being jumped on there is not much point in this splendid forum. BUSBY

 

[Deneb]

busby not my intention to jump on you. Just stating my thoughts and reasoning too. You obviously like pubs and restaurants, but whilst there are a few pubs we might visit from time to time for lunch or a meal, they aren't a regular part of my life or somewhere I particularly miss in the current situation. Good job we're not all the same, or life would be boring and certain places very crowded

 

[Portland]

Help. We are looking for some real world advice on if we are near or have already reached the point of retirement.
I have 8 years to pension age the better half has 2 years and both of us have had enough of being beholden to work. The better half has a few issues we feel its time to enjoy life.

Being very lucky to have paid the mortgage and the motorhome and the bills are just everyday stuff from having a property. We don't really want to full time so having done the maths I think we can do it

Ive broken everything down that we can think of insurances, services to car and motorhome, gas electric etc multiplied and divided and computer says yes it can be done. Just.
Happy days.
But the question is? Is there an amount, a real world figure people have found they require. A couple we saw a few weeks back said friends of them had set a target of £15000 per year to live off and only spent £13000. This seems to match our figures. So is this figure realistic? Do you already live on a smaller budget?
New decade new life Any advice is helpful

I don't know your friends but, if they are able to live on £15,000 PA will they tell me, If you have a motorhome plus a car plus a house along with normal living costs I believe you will need more than £15000. What you must take into account is inflation! believe me whatever you think it will be at least double. Sorry to be a doom monger

 

[fullfat]

yawn

^{_{Subscribers  do not see these advertisements}}

 

[The Coops]

I was given the following advice which I think is quite prudent and from a pensions advisor many years ago Look at your lump sum and yearly income and predicted increases with inflation etc Take, a third to live on, a third to invest and a third to follow your dreams,( Holidays cars motorhomes etc) Then sit down and work out what you have coming in, what you want and if you can afford to do it go for it!

 

[gus-lopez]

There are two empty flats in our small 16 flat community now

My sister moved to one which has 10 apartments , 3 years ago. 6 of them are owned by people who live in spain& Greece & who she has never seen. 1 has recently died so then there was 3. It's also a mobile phone black spot has no bus service except once a day & is nearly 4 miles from town.No car ,you can't get anywhere.

I don't know your friends but, if they are able to live on £15,000 PA will they tell me, If you have a motorhome plus a car plus a house along with normal living costs I believe you will need more than £15000.

I manage here on less than one full state pension.Wife has nothing & another year to go. couldn't do it in the UK.

 

[TheMachMan]

Look up Mr Money Moustache very interesting. Looks at how to achieve Financial Independence and retire early.

 

[busby]

My sister moved to one which has 10 apartments , 3 years ago. 6 of them are owned by people who live in spain& Greece & who she has never seen. 1 has recently died so then there was 3. It's also a mobile phone black spot has no bus service except once a day & is nearly 4 miles from town.No car ,you can't get anywhere.

I manage here on less than one full state pension.Wife has nothing & another year to go. couldn't do it in the UK.

We are very lucky with location Gus,,on a very good bus route,,Nottm and Derby direct plus local towns. Three local open all hours shops within 300 yds,, Large Nisa 500 yds,, small Coop about half a mile and Lidle,Aldi,Tesco and Sainsbury's all in an easy walkable 3 miles...Decent phone signal also.BUSBY.

 

[dabhand]

So I guess we are straying from the OP’s question:-

But the question is? Is there an amount, a real world figure people have found they require. A couple we saw a few weeks back said friends of them had set a target of £15000 per year to live off and only spent £13000. This seems to match our figures. So is this figure realistic? Do you already live on a smaller budget?
New decade new life Any advice is helpful

For me during lockdown maybe, travelling about as is my want highly unlikely

^{_{Subscribers  do not see these advertisements}}

 

[Deneb]

So I guess we are straying from the OP’s question:-



For me during lockdown maybe, travelling about as is my want highly unlikely

Well, the answer to that is very much dependant on the individual or family involved. Look at your current outgoings, decide what is necessary or desirable to maintain and what you can go without, budget for things that you may want or need in retirement that you don't budget for now - additional holidays, larger heating bills if you are at home all day, additional clothing if your work wear was previously provided for you, etc. - what size of a "rainy day" fund or emergency savings you require, your plane to keep up with inflation, etc.

Two people are very unlikely to come up with the same answer.

Retireeasy has already been mentioned as a pretty good retirement calculator for non-financial professionals. I used it when I was planning our retirement. You can plan out different scenarios, including the effects of different inflation rates, future income, etc. Of course, some of that is (reasonable) guesswork, but it would be foolish not to at least think about the possibilities and whether you need to adjust your finances or expectations accordingly.

 

[bigtwin]

Help. We are looking for some real world advice on if we are near or have already reached the point of retirement.

But the question is? Is there an amount, a real world figure people have found they require. A couple we saw a few weeks back said friends of them had set a target of £15000 per year to live off and only spent £13000. This seems to match our figures. So is this figure realistic? Do you already live on a smaller budget?

So I guess we are straying from the OP’s question:-



For me during lockdown maybe, travelling about as is my want highly unlikely

Many people have answered the OP’s question on this thread:

The number.

Get reading!

 

[dabhand]

Nah , more have posted what they need

 

[St Piran]

Well we’ve just done it and retired at 56 and 60. Hopefully we will live long enough to enjoy the things we want to do....who knows! First nine days have been successful
As far as our money goes Im going to spend it and if it all goes to plan the last cheque I write will be to the undertaker and it will bounce....

To my knowledge no-one has ever been left on top!!

 

[Odd-no-more]

Well we’ve just done it and retired at 56 and 60. Hopefully we will live long enough to enjoy the things we want to do....who knows! First nine days have been successful
As far as our money goes Im going to spend it and if it all goes to plan the last cheque I write will be to the undertaker and it will bounce....

To my knowledge no-one has ever been left on top!!

Good luck and enjoy your retirement. So far I am enjoying mine, 1 year, most of it in lockdown, but it's still better than having to go to work every day.

^{_{Subscribers  do not see these advertisements}}

 

[Cheshirecat57]

Depends if you want to leave your heirs any money I suppose

We are not particularly bothered about that, we wont see them enjoying it.

When our “pot” runs out ( and our intention is to run it out) we will either
Take a pill
Let the state pay

 

[Garfields]

I don't know your friends but, if they are able to live on £15,000 PA will they tell me, If you have a motorhome plus a car plus a house along with normal living costs I believe you will need more than £15000. What you must take into account is inflation! believe me whatever you think it will be at least double. Sorry to be a doom monger

Day to day £15000 should I expect cover a lot of peoples expenses
Where it is tight is for luxury's replacing a car, new kitchen, holidays etc
Every one is different
While most of my work was fine it was a good time to finish and while Covid and a bit of a health issue put a spanner in the works I have never thought it was the wrong decision to go.
I have only met one person that has said he wished he had not retired that had the choice
Different ball game if you are relying just on a state pension

 

[Otter Spotter]

For various retirement/invest/cashflow/tax calculators have a look at www.invidion.uk some of you may find these useful as I have over the years when I wasn't using proprietary cash flow/retirement planning software.

 

[Fragle]

Day to day £15000 should I expect cover a lot of peoples expenses
Where it is tight is for luxury's replacing a car, new kitchen, holidays etc
Every one is different
While most of my work was fine it was a good time to finish and while Covid and a bit of a health issue put a spanner in the works I have never thought it was the wrong decision to go.
I have only met one person that has said he wished he had not retired that had the choice
Different ball game if you are relying just on a state pension

Whilst still doing a continuous review of costs £15k is very achievable I believe. Nothing special though but then again we don't have a morgage we are not interested in buying a new car every other year and to be honest we sit 5 mins walk to 3 24hr shops and all the facilities we could ever need and we have a brand new motorhome for any motoring needs. I am in the process of updating/replacing kitchen and the house is mostly up to date and as a Gas Safe installer I cover all our odd job costs
As far as holidays cost that's the motorhome, GB and anywhere in EU we can get too is more than enough we also love using free camping and aires alongside some campsites. We have no desire to fly anywhere we love the motorhome freedom.

So hopefully buy doing the groundwork now. We will have enough

Just for info. I went through all our bills that we have and broke them down so we understand our spend. The whole lot everything we could think of including insurances, services on motorhome, phones, data we might need etc £6500 per year for the lot.
All we have to add is food and fuel. This has been looked at during lockdown and we have also been surprised how little we can live on whilst eating very well because you have more time to do meals ate a lot less and healthier. lockdown was very useful as a precursor to retirement. I had 3 months on furlough and loved every minute. life at a slower pace time to be together and think what we want also time to realise you only live once!

Since going back to work I must admit Ive had a different outlook. No rushing around now and at the moment as this covid thing won't clear for most of this year we may as well keep earning the cash as we are almost at the savings we require as my pension won't kick in until 2028. Then when we get our freedoms back we can enjoy traveling. Saying that if they give me redundancy tomorrow. I'll snap there hands off

 

[Portland]

Well done for those of you that are able to do this but I still maintain its tight, When my farther had an offer to buy him out by the firm we did the haulage for, he was offered a job by them to manage the transport. He told me what the pay was, thinking it was OK, until I pointed out he spent more on fuel and cigarettes. What I'm saying there are many thing's we take for granted without realising the cost. another example is that I have had to spend £350 on the heating in December which was an unexpected cost so budget for them

^{_{Subscribers  do not see these advertisements}}

 

[Al n Val]

After reading this thread i’m feel a bit better, not a lot just a bit so why do I feel like I do?

We are 67 & 69 and have really only just started enjoying ourselves as in motorhoming, this being our 3rd year.

I’ve just added up our assets, we get just over £25k a year in pensions, have £350K+ in the banks. We have circa £850K in property 2 of which bring in £450 a month rent.

No mortgages, don’t smoke but like a drink. A BMW and a £90K motorhome

I still run my own business although tailoring it down to fit in more with our travelling which earns me after tax around £65K per

i’m frightened to death of running out of money and regret massively not retiring fully and years ago so we had more time to enjoy it

Why do I feel like I do?

Please no smart wisecrack answers, i've grafted to get where I am but can’t seem to be able to stop

 

[busby]

After reading this thread i’m feel a bit better, not a lot just a bit so why do I feel like I do?

We are 67 & 69 and have really only just started enjoying ourselves as in motorhoming, this being our 3rd year.

I’ve just added up our assets, we get just over £25k a year in pensions, have £350K+ in the banks. We have circa £850K in property 2 of which bring in £450 a month rent.

No mortgages, don’t smoke but like a drink. A BMW and a £90K motorhome

I still run my own business although tailoring it down to fit in more with our travelling which earns me after tax around £65K per

i’m frightened to death of running out of money and regret massively not retiring fully and years ago so we had more time to enjoy it

Why do I feel like I do?

Please no smart wisecrack answers, i've grafted to get where I am but can’t seem to be able to stop

You don't have a worry in the world..I have been retired 21 years and for 18 years of that have travelled for 6 months every year..Have got nowhere near the savings pensions and assetts you have and my only worry in the world is when can I get a ferry to Spain again..Life is too short to start making plans at 60 plus,,just live it.

 

[Cheshirecat57]

Sobering thought, the average pension pot in UK ( retiring today) is £50 to £60k...total

I perceive from the posts on here that most funsters have way more than that and are asset rich

 

[Al n Val]

You don't have a worry in the world..I have been retired 21 years and for 18 years of that have travelled for 6 months every year..Have got nowhere near the savings pensions and assetts you have and my only worry in the world is when can I get a ferry to Spain again..Life is too short to start making plans at 60 plus,,just live it.

we never got to have that pint at Bennicasim did we , hopefully next time and thanks for the comment

Al

 

[St Piran]

After reading this thread i’m feel a bit better, not a lot just a bit so why do I feel like I do?

We are 67 & 69 and have really only just started enjoying ourselves as in motorhoming, this being our 3rd year.

I’ve just added up our assets, we get just over £25k a year in pensions, have £350K+ in the banks. We have circa £850K in property 2 of which bring in £450 a month rent.

No mortgages, don’t smoke but like a drink. A BMW and a £90K motorhome

I still run my own business although tailoring it down to fit in more with our travelling which earns me after tax around £65K per

i’m 25k pensionfrightened to death of running out of money and regret massively not retiring fully and years ago so we had more time to enjoy it

Why do I feel like I do?

Please no smart wisecrack answers, i've grafted to get where I am but can’t seem to be able to stop

Good luck and enjoy your retirement. So far I am enjoying mine, 1 year, most of it in lockdown, but it's still better than having to go to work every day.

Many thanks, we intend too.

^{_{Subscribers  do not see these advertisements}}