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Retirement

How Much Do You Need In Retirement ????

For me i have been tracking my daily spending on an App for the past 9 years to help me answer this exact question. I have the App on both mine and the Mrs phones ands its linked via a Drop Box account.

I go for a pint its on the App " Drinks Alcohol". Go for a coffee its on the App " Drinks Coffee". Go shopping its in the App, buy something for the house its on the App, stick fuel in the car its on the App, you get the gist. I put everything on the App apart from bills so its basically mine and her daily spending.

After 9 years i now have a fairly detailed idea of how much i spend and also what i spend it on.

This is obviously going to help me answer the age old question of "how much do i need in retirement"

The App I am using is called SPENDING TRACKER
 

Copacabana said:
How Much Do You Need In Retirement ????

For me i have been tracking my daily spending on an App for the past 9 years to help me answer this exact question. I have the App on both mine and the Mrs phones ands its linked via a Drop Box account.

I go for a pint its on the App " Drinks Alcohol". Go for a coffee its on the App " Drinks Coffee". Go shopping its in the App, buy something for the house its on the App, stick fuel in the car its on the App, you get the gist. I put everything on the App apart from bills so its basically mine and her daily spending.

After 9 years i now have a fairly detailed idea of how much i spend and also what i spend it on.

This is obviously going to help me answer the age old question of "how much do i need in retirement"

The App I am using is called SPENDING TRACKER
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And people wonder why we like cash
 
Must be bored said:
But that assumes they're in the standard rate band when drawing the SIPP. If they're using the SIPP for a few years between retiring and drawing other pension income then a larger part of it would tax free against their personal allowance, so could reasonably see a decent amount of the 25% contribution benefit retained
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They have a decent civil service pension, which will be more than the personal allowance
Select coaches said:
And people wonder why we like cash
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What's that got to do with using cash?
 
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42 said:
They have a decent civil service pension, which will be more than the personal allowance


What's that got to do with using cash?
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I'd assumed this comment "My jib this weekend is to start a sipp for our 60-67 period as our pensions are all defined benefit." as meaning they wouldn't be taken income from other pensions during that time. Either way I'm sure their FA knows more about whats best for them than either of us
 
The only safe way is to become independent of the state and don’t rely on thinking you know the rules as they have a habit of changing them without any warning. Appreciate many rely on state pension, but many could save from earnings but seem to have a jam tomorrow attitude. Spend spend spend then winge when they are poor in old age. That new expensive lease car, exotic holiday, or new home with outside bar are all irrelevant when you’re 85 and can’t heat your home. The era of state support is over, time to take responsibility for yourself.
 
Must be bored said:
I'd assumed this comment "My jib this weekend is to start a sipp for our 60-67 period as our pensions are all defined benefit." as meaning they wouldn't be taken income from other pensions during that time. Either way I'm sure their FA knows more about whats best for them than either of us
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I just read it as using sipp for avcs bridging the gap for state pension. The DB pension can be taken at 60, and if they defer it until SPA, then just going to pay more tax on that, so it's just swings & roundabouts
 
Footyboots said:
The only safe way is to become independent of the state and don’t rely on thinking you know the rules as they have a habit of changing them without any warning. Appreciate many rely on state pension, but many could save from earnings but seem to have a jam tomorrow attitude. Spend spend spend then winge when they are poor in old age. That new expensive lease car, exotic holiday, or new home with outside bar are all irrelevant when you’re 85 and can’t heat your home. The era of state support is over, time to take responsibility for yourself.
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On the other hand, you would be daft to work far longer, assuming the state pension will completely disappear and then find out it has not. No government is going to completely pull the rug out from under pensioners and plunge them into poverty with no income.

Those in their 20s would be wise to plan now assuming it will be smaller. Those in their 50s are likely safe.

Many on this thread are saying £40k for a couple. The state pension is £11k, so couples need to find an extra £18k of income from state retirement age, and a £22k top up for every year they retire early.
 
Copacabana said:
How Much Do You Need In Retirement ????

For me i have been tracking my daily spending on an App for the past 9 years to help me answer this exact question. I have the App on both mine and the Mrs phones ands its linked via a Drop Box account.

I go for a pint its on the App " Drinks Alcohol". Go for a coffee its on the App " Drinks Coffee". Go shopping its in the App, buy something for the house its on the App, stick fuel in the car its on the App, you get the gist. I put everything on the App apart from bills so its basically mine and her daily spending.

After 9 years i now have a fairly detailed idea of how much i spend and also what i spend it on.

This is obviously going to help me answer the age old question of "how much do i need in retirement"

The App I am using is called SPENDING TRACKER
Click to expand...
Your basic spending may stay the same, utilities, insurance, council tax, food etc but what you spend your disposable income on will change in retirement. My biggest monthly bills food, council tax, Gas/Electric and TV/Broadband are the same but holiday, entertaining, pastime costs are higher. In saying that they say you need 2/3 of your net income in retirement.
 
SurreyMackem said:
Your basic spending may stay the same, utilities, insurance, council tax, food etc but what you spend your disposable income on will change in retirement. My biggest monthly bills food, council tax, Gas/Electric and TV/Broadband are the same but holiday, entertaining, pastime costs are higher. In saying that they say you need 2/3 of your net income in retirement.
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Working that around the other way, if about £40k is the magic figure for a comfortable couple, and that is 2/3 of your net income, then that is a net income of £60k. As a beer mat calculation, I often guess take home pay as about 72-75% of salary, after pension, tax, MI etc. That is a join household salary of £83k before retirement to retire on £40k, which is a bit over £40k each you should both be on if split equally.
 
Nookie Bear said:
Just flagging that the minimum pension age is going to rise to 57 in a couple of years so some here may need to factor that into plans
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It still hasn’t been decided (in teaching at least) whether someone with a pension in the final salary and career average scheme will be able to take their final salary segment at 55 even if they are 55 after 6th April 2028.
If people are denied the chance to do this, expect a McCloud type law case. IF people on this scenario were told to withdraw from the teachers pension scheme prior to the move to career average they would be able to take their final salary pot (which will be the vast majority of their annual total) at 55 post 6th April 2028.
Nobody was told this at the time hence the nailed on court case should people be forced to wait until 57.
 
Copacabana said:
How Much Do You Need In Retirement ????

For me i have been tracking my daily spending on an App for the past 9 years to help me answer this exact question. I have the App on both mine and the Mrs phones ands its linked via a Drop Box account.

I go for a pint its on the App " Drinks Alcohol". Go for a coffee its on the App " Drinks Coffee". Go shopping its in the App, buy something for the house its on the App, stick fuel in the car its on the App, you get the gist. I put everything on the App apart from bills so its basically mine and her daily spending.

After 9 years i now have a fairly detailed idea of how much i spend and also what i spend it on.

This is obviously going to help me answer the age old question of "how much do i need in retirement"

The App I am using is called SPENDING TRACKER
Click to expand...

Assumes, of course, that your spending habits will be the same in retirement as when working.
 
Darlo1973 said:
Assumes, of course, that your spending habits will be the same in retirement as when working.
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I'm hoping that I will be able to pay off my mortgage on retirement, probably by selling my current house (thank god!) and moving to Northumberland and also downsizing. Both will mean a cheaper house so long as Robson Bastard Green stops making his "isn't it lovely up here" programmes. Shuttup man Robson!!! Or it will turn out like The Peak District, The Cotswolds and Norfolk. Came through again this morning on the Harry Kane from Edinburgh and was reminded how lovely it is - the coast, The Cheviots, the bridges on The Tyne, Durham Cathedral and Castle etc.
 
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Kent_Mackem said:
I'm hoping that I will be able to pay off my mortgage on retirement, probably by selling my current house (thank god!) and moving to Northumberland and also downsizing. Both will mean a cheaper house so long as Robson Bastard Green stops making his "isn't it lovely up here" programmes. Shuttup man Robson!!! Or it will turn out like The Peak District, The Cotswolds and Norfolk. Came through again this morning on the Harry Kane from Edinburgh and was reminded how lovely it is - the coast, The Cheviots, the bridges on The Tyne, Durham Cathedral and Castle etc.
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I'm in mixed minds. On one hand, every time I'm up in the NE I think how wonderful the countryside is (compared to the flatlands of East Anglia), how cheap the housing is and how (mostly) how sociable the natives are but then, after 30 years of living in the south I get a little itchy about how isolated the NE is. I've just got used to being able to pop into London or get to a major airport within a couple of hours. Most of my friends are now within the orbit of London - there's a gravitational pull here which means that once you enter the zone it's hard to reach escape velocity.
 
Darlo1973 said:
I'm in mixed minds. On one hand, every time I'm up in the NE I think how wonderful the countryside is (compared to the flatlands of East Anglia), how cheap the housing is and how (mostly) how sociable the natives are but then, after 30 years of living in the south I get a little itchy about how isolated the NE is. I've just got used to being able to pop into London or get to a major airport within a couple of hours. Most of my friends are now within the orbit of London - there's a gravitational pull here which means that once you enter the zone it's hard to reach escape velocity.
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I get that totally. I'll miss my friends from where I live. But the pull of being away from people is enormously strong. So many people are selfish and/or annoying and I'm just sick of having to politely ignore it at work and out of work, on trains and planes, in shops and pubs, on the roads and even out on dog walks. I can't wait to be able to live in a cottage or even a farm house if I can afford it when the time comes in Northumberland. I just hope I live long enough to get a few years out of it. Reading and writing books by a blazing log fire. Helping out on dig sites. Growing my own fruit and veg. Walking in the sunshine away from noisy cars and lorries, boring and selfish people, crime, litter, graffiti, people shouting away in foreign languages, chav-speak, drunk people being sick on the pavement or looking for fights. I'm just so sick of it all.

I want to hear cows and sheep, curlews, the low flying odd fighter jet, skylarks and oyster catchers as I am out on walks. I've become a proper grumpy old bastard desperate for peace and quite of a hermit's life. I won't fecking miss society when I do move. :D

But yes, I get the downsides of transport, closeness to London and beyond.
 
Kent_Mackem said:
I get that totally. I'll miss my friends from where I live. But the pull of being away from people is enormously strong. So many people are selfish and/or annoying and I'm just sick of having to politely ignore it at work and out of work, on trains and planes, in shops and pubs, on the roads and even out on dog walks. I can't wait to be able to live in a cottage or even a farm house if I can afford it when the time comes in Northumberland. I just hope I live long enough to get a few years out of it. Reading and writing books by a blazing log fire. Helping out on dig sites. Growing my own fruit and veg. Walking in the sunshine away from noisy cars and lorries, boring and selfish people, crime, litter, graffiti, people shouting away in foreign languages, chav-speak, drunk people being sick on the pavement or looking for fights. I'm just so sick of it all.

I want to hear cows and sheep, curlews, the low flying odd fighter jet, skylarks and oyster catchers as I am out on walks. I've become a proper grumpy old bastard desperate for peace and quite of a hermit's life. I won't fecking miss society when I do move. :D

But yes, I get the downsides of transport, closeness to London and beyond.
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You paint a beautiful picture of your goal there. Hope you get it👍
 
Don't take this as advice, but I was always told that this is the way to put money aside for your pension.

When you start putting money away, you work out the percentage as half your age when you start.
So..
You start at 30, you should put away 15% (in total) every month for the rest or your working life.
You start at 40, then it's 20% and so on.
This is the total, so if you start at 30 and work puts in 5%, you need to put in 10%

When you come to retire, you should aim for 10x your final salary in your pot.
So you finish on 40k pa, you should have 400k in your pension
You finish on 50k pa, you should have 500k in your pension and so on.

Obviously you need to factor in your personal circumstances, debts, mortgage etc, but it's a handy guide.
 
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