Retirement

[42]

I've just seen a report in today’s I paper.
Apparently Hargreaves Lansdown are saying that single people need over £26,000 a year and couples over £38,000 to have a comfortable retirement.

I remember seeing this a few months ago and thinking how unrealistic it seemed:

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Who compiles these figures ?
Elon Musk ?
Jeff Bezos ?
Jacob Rees-Mogg ?

The pension companies make more money, the bigger the fund you have. It's in their interest for you to put more away

I suspect these also have an element of London bias, but it's the same with the poverty charities in what they claim is basic costs being more than I currently spend on certain things. As long as you know exactly how much you spend on stuff, and take it from there.

 

[DaveH]

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Interesting, I didn’t know that was a thing.

 

[cfg]

I’m 75 and packed in my main career at 61, still work on my terms as an expert witness and must say even at my age I enjoy working with the lawyers, the cut n thrust of defending my report is rewarding. Suppose really everyone is different, do what suits you.

 

[Town End Farmer Giles]

I've just seen a report in today’s I paper.
Apparently Hargreaves Lansdown are saying that single people need over £26,000 a year and couples over £38,000 to have a comfortable retirement.

I remember seeing this a few months ago and thinking how unrealistic it seemed:

You must be logged on to see external links

Who compiles these figures ?

People with a vested interest in encouraging people to invest more perhaps?

 

[DaveH]

I've just seen a report in today’s I paper.
Apparently Hargreaves Lansdown are saying that single people need over £26,000 a year and couples over £38,000 to have a comfortable retirement.

I remember seeing this a few months ago and thinking how unrealistic it seemed:

You must be logged on to see external links

Who compiles these figures ?
Elon Musk ?
Jeff Bezos ?
Jacob Rees-Mogg ?

Unrealistic high or low?

£40k for couples seems to be a common number and what I'm trying to plan towards.

 

[douggie]

I see HMRC have announced work to b done to remove the emergency taxing of new pensioners removing the need to claim back tax when your not assigned a personal allowance code.

 

[Fletch]

Unrealistic high or low?

£40k for couples seems to be a common number and what I'm trying to plan towards.

I would say that also to be fair

 

[Nookie Bear]

I've just seen a report in today’s I paper.
Apparently Hargreaves Lansdown are saying that single people need over £26,000 a year and couples over £38,000 to have a comfortable retirement.

I remember seeing this a few months ago and thinking how unrealistic it seemed:

You must be logged on to see external links

Who compiles these figures ?
Elon Musk ?
Jeff Bezos ?
Jacob Rees-Mogg ?

I don’t think it’s that unrealistic tbh and reassured that the £24k I’m aiming for from 55 will provide a reasonable lifestyle

 

[Qwerty]

Expenses that will go up: holidays
Expenses that will go down: kids finished uni, go down to 1 car, contributions to pension, eventually down size house

When I retire I'll be able to go on twice as many holidays for the same price.

 

[Devil71]

Unrealistic high or low?

£40k for couples seems to be a common number and what I'm trying to plan towards.

Maybe it's just me and my pittance of a salary then

 

[DaveI]

When I retire I'll be able to go on twice as many holidays for the same price.

Aye, my OH is teacher. The ability to go away in June or September will be a financial boon.

 

[ivanthereasonable]

Interesting, I didn’t know that was a thing.

Sorry, i should be quoting Surreymackem, but i've just dropped in and don't want to read whole thread. But i agree with you on the above. I've not heard of that before. I'll look it up.

 

[Kobayashi]

Aye, my OH is teacher. The ability to go away in June or September will be a financial boon.

Yes, my good lady (no) is also a teacher but worse, my work shuts down the week before August bank holiday here. The most expensive week of the year for holidays. Will be bliss when both retired.

 

[ivanthereasonable]

Unrealistic high or low?

£40k for couples seems to be a common number and what I'm trying to plan towards.

My wife and i both retired early and she handles all our finances. She recently calculated what our net cost of living per year was, and it was in that sort £40k area.

 

[Nero the dog]

Unrealistic high or low?

£40k for couples seems to be a common number and what I'm trying to plan towards.

If you’ve got no mortgage why would you need that much?
As a couple, with 2 adult kids still at home, living in a standard semi. Our bills/food etc comes to around £1500 a month. So that’s £18k to survive. Then it’s just a case of how many luxuries we want on top of that.

 

[SurreyMackem]

If you’ve got no mortgage why would you need that much?
As a couple, with 2 adult kids still at home, living in a standard semi. Our bills/food etc comes to around £1500 a month. So that’s £18k to survive. Then it’s just a case of how many luxuries we want on top of that.

Not saying they are correct figures but the comfortable one probably includes a new car every 2-3 years, several holidays and £1000 a year on clothes

 

[Matt Hopkins]

Maybe it's just me and my pittance of a salary then

I wouldn't worry about what other people have or want. As @42 says work out what you need/want and go from there. Do yourself a spreadsheet and see how much you spend it makes it far easier. Mine goes back about 11 years now, sounds sad but it's a big help.
Must admit though I like to look at the PLSA stuff gives me a giggle-£100 a month to take other people out for a meal. 12 gifts of £50 each for birthdays and Xmas, I don't even know 12 people

 

[Devil71]

Like I said earlier, I've never earned fantastic money but never been out of work either since I left school.

I did actually sit down a while back and go through what we'd have coming in, and all our outgoings.

We've been shovelling any spare cash away for quite a while, have always budgeted carefully and come to the conclusion that the biggest change to our lifestyle would be having to start dipping in to our savings instead of frantically adding to them.

I think we'll be OK but figures like those quoted do make me worry (probably unnecessarily).

 

[Tuono]

If you’ve got no mortgage why would you need that much?
As a couple, with 2 adult kids still at home, living in a standard semi. Our bills/food etc comes to around £1500 a month. So that’s £18k to survive. Then it’s just a case of how many luxuries we want on top of that.

Mine works out at about £16,000. Single, no mortgage, band D home. £26,000 would be comfortable.

If you’ve got no mortgage why would you need that much?
As a couple, with 2 adult kids still at home, living in a standard semi. Our bills/food etc comes to around £1500 a month. So that’s £18k to survive. Then it’s just a case of how many luxuries we want on top of that.

Mine works out at about £16,000. Single, no mortgage, band D home. £26,000 would be comfortable.

 

[42]

Like I said earlier, I've never earned fantastic money but never been out of work either since I left school.

I did actually sit down a while back and go through what we'd have coming in, and all our outgoings.

We've been shovelling any spare cash away for quite a while, have always budgeted carefully and come to the conclusion that the biggest change to our lifestyle would be having to start dipping in to our savings instead of frantically adding to them.

I think we'll be OK but figures like those quoted do make me worry (probably unnecessarily).

Just for a bit of contrary anecdotal commentary.

My inlaws have always been very much in the low earning demographic. They're now both drawing state pension. So get jointly £23k tax free between them, and it's more than they've ever had & can't spend it as they've never known any different. So for the first time in their lives they actually have savings.

Your income largely dictates your lifestyle, so if you've never been a big spender, you'll be fine. The ones who do need to worry is those who do earn middle class salaries & only putting in the bare minimum on auto enrolment, as they'll see the biggest down shift in living standards once state pension is factored in, if not budgeted correctly.