If you are thinking the annuity route then do consider how flexible they have become in recent years. As pointed out above you can split your pot between drawdown and annuity, you can also take a fixed period annuity. Maybe you will need more in the shorter term and less in the future, you could take an annuity over a fixed period of time, say 10 years, take a cash lump up front and pop it in an isa. After 20 years you should have state pension to go alongside what you have left over or saved.
One think to watch with annuities right now is the falling interest rate, I put in my current DC pot into the Legal & General calculator a few months ago (July?) and it offered me £60k upfront £14k pa for 10 years and £17k at the end of that period. The offer now is not nearly as generous.
This is part of the problem, you don’t know exactly what the financial situation will be when you take out an annuity.
Financial crashes aren’t unheard of and you probably don’t want to need to be taking an annuity then.
I expect when Barrings went pop there were a few unhappy retirees.
Don’t forgot the limits now that the U.K.Gov now covers banks for aren’t that great
When I started my pensions, I can actually remember laughing at picking the retirement age .
Which the government then stopped at a later date.
I’d always planned to live later life in Spain or France, it was usually something in the middle of nowhere in the the mountains , then of course you had Brexit which means you need a ‘lot’ more money behind you to do this.
Brexit would have caused issues second year NLV can require showing €72k in the bank for a couple so you’ve big pockets or sold up everything but Brexit wasn’t a thing I had to worry about until I did.
I suppose what I’m getting to is that its all a state of flux, there’s a bit more to retirement planning than the money side and timings everything and the world does whatever it wants.
I suppose the answer to how much money is enough to retire on is , just a little bit more 🙂
I do think at the end of the day it’s a matter of having to cut your cloth to what you have.
I was going to live up to my name and also mention that I’m aware of more unhappier people who didn’t make their retirement or didn’t have much of it as opposed to people retiring earlier and regretting.
DoD Dad wasn’t expecting a triple bypass and a stroke, he had retired early but tbh DoD mum was looking after DoD gran so they didn’t do what they were planning or the retirement they expected.
I think you have to factor this in as which is why YMMV vida tan dura 🙂
FYI:
I can’t get the quote to work but Brexit quadrupled the requirement for the main applicant
- Main Applicant: Must prove 400% of the annual IPREM.
- Each Additional Dependent (e.g., spouse): Must prove an additional 100% of the annual IPREM.
For those curious about annuity modelling I can strongly recommend the link below. The calculator lets you model pot size, age and a variety of annuity types (fixed etc) so will give you a good idea what you could get.
https://www.legalandgeneral.com/retirement/pension-annuity/pension-annuity-calculator/
Having revisited this thread recently, I have realised that there really is no answer to the question posed in the thread title. Many people have retired in their late 50’s with what some would see as a small pot, maybe around 200k. Others are unsure if they can afford to retire with a pot 4 times that size.
Setting up a tracker of all outgoings and looking at how those may change in 2/5/10 years has been very helpful advice for me, as suggested a few times by others.
I have concluded that at age 60 in 2 weeks time, and having taken an exit deal from work late summer, I could probably get by on what I have in pension and savings, along with my wife’s smallish part time income, but I’d like to be doing some high value part time work, a day or at max 2 days a week. That would bring in perhaps 25/30% in the income I would like in a month, be tax efficient and keep my gainfully occupied ! So that’s my current focus.
I'm certainly thinking about it come 60ish - currently 56. Son has moved out so we will see how that continues and I hope he can support himself. Some changes at work aren't going to improve so hanging on (new Finance system that's really impacting my ability to do my job as an accountant), and our Deputy finance Director has just retired at 60 - we'd know he'd go as he has a lot of service. A number of my colleagues have retired early, I'd like either a part time job or volunteer, but I'd do something like work in B&Q as I've an interest in DIY and gardening.
I've looked at the figures on my main pension and somewhere between now and 67 gives a decent figure.
I'll be looking to drop to 3 days a week at sixty, 53 now. I'd rather do that then resign and find a part time job, predecessors have done the same so it won't be out of the question. Fortunately I enjoy what I do, it's stress free and interesting, which is a large part of the battle.
TBH, I would have been interested in a 3 day week but tbh they would have probably expected 5 days work in 3 days.
The issue I had was after a load of buyout,restructuring shanigans I ended up in a role that isn’t really what I’d want to do ,more dev-ops than the usual development role.
I doubt you’d call it stress free, I’m a cool cookie thou (but tbh it’s not real life or death) but I’m finding that it’s tiring.
As I always say you can’t assume the future will play out as you wish,the job you’ve got now may not be the same.
I suppose it depends what you want, I won’t be changing my car every 3 years or going on a cruise but I’m living in Spain and tbh hammering my old Smart car around is way more fun than my rather more expensive one and my fully inclusive weeks holiday is about €500 for mi y senorita DoD.
(Mojacar playa - If you want to know where someone who lives in a holiday destination goes for holiday)
Oddly I can apply for discounted holiday rates in my area and in a few years can get a big discount on rail travel.
It does irk me that Brexit stops a lot of people from doing what I’ve done, as having the weather and great playground is nice and if you were living in a caravan in the U.K. you may as well live in a caravan in Spain.
Well the big 60 was last week, and I’m still considering various part time options having bailed out of corporate life 6 months ago. Sadly my mum passed away last week, not unexpected at 93 after a great life, nonetheless..
The upshot will be a chunk of inheritance towards the end of the year once the estate is sorted out, which will mean that we could get by ok without me working, however having spent quite a lot of the past year doing stuff for my mum, I realise that I’m shortly going to have a surplus of time, both actual time and thinking time.
I have just taken on a Board Trustee role with a great charity, focusing on sport and movement for young people. I’d like to now pick up some similar, but paid non executive director type stuff and have applied for some, ideally ending up with a day and a half a week or so of interesting work.
Gym, swim, Wattbike and outdoor rides are great, but with my wife still working for the foreseeable I feel it’s a bit early to stop entirely..
This has been a useful thread.
We will both have retired by April. I'm looking forward to long bike tours and travel in general.
After a month being moderately ill, it definitely comes down to how much healthy time you have over all the money.
I won't get acess to state pension until 68, my dad carked it at 72... granted he retired at about 50yo, but it puts things into perspective... stuff working into my late 50's/into my 60's.
This has been a useful thread.
We will both have retired by April. I'm looking forward to long bike tours and travel in general.
After a month being moderately ill, it definitely comes down to how much healthy time you have over all the money.
Very much this, Ive a few friends with loads of money in the bank/pension who worked until mid 60's and have now sadly got ill and gone downhill health wise and mentally. Were all going to die or get horribly ill and none of us know when. For me better to retire as early as possible and have some quality time than sitting round in a chair for a decade being wealthy waiting for death.
We’re all going to die or get horribly ill and none of us know when. For me better to retire as early as possible and have some quality time than sitting round in a chair for a decade being wealthy waiting for death.
This makes entire sense of course, however what happens when you retire at 60 with a modest pot, have a full 10 yrs, say, and at 70 have very little savings/pension left bar your state pension, yet are fortunate to still have great health and desire to maintain your active lifestyle ?
you cut you cloth according to your means and make sure you haven't spent everything
We’re all going to die or get horribly ill and none of us know when. For me better to retire as early as possible and have some quality time than sitting round in a chair for a decade being wealthy waiting for death.
This makes entire sense of course, however what happens when you retire at 60 with a modest pot, have a full 10 yrs, say, and at 70 have very little savings/pension left bar your state pension, yet are fortunate to still have great health and desire to maintain your active lifestyle ?
This is a thing. My dad was active and relatively healthy into his 80s. Still bivvying in the mountains in late 70s. Walking round the golf course in his 80s. As I have said before IMO the ideal balance if you can't retire early with full financial confidence is part time. Enough time to enjoy hobbies and a bit of cash still coming in.
I am 65 and currently have no aches or pains and am not on any meds. Moderately active perhaps 5 days a week. Though not doing the volume of stuff I did a decade or two ago. Working average 3 days a week with uneven pattern so I get frequent full weeks off.
I am considering full retiral April 27 - 9 months before I get my OAP but another idea is go from fixed part time to bank only. This would give the option of less work in summer and a bit more in the dark/wet half of the year if I felt like it.
We have enough for now aged 60 and 56.
Two state pensions coming our way at 67 plus at least one small inheritance.
For most you spend less as you age (not withstanding care)
We did a number crunch for my Mum aged 85 last year. Own house, car etc
Annual outgoings 14,000!
It's not been an option in recent jobs but cutting hours and easing into retirement could be one to consider. It's certainly on my mind.
Your saving rate drops. But you aren't drawing on any savings so gives more options.
My dad died within 2 years of retirement at 65. Similar thing happened to my FiL all be it younger.
you cut you cloth according to your means and make sure you haven't spent everything
my daily Pret filter coffee at 99p is making a bit of a dent into my kitty.
at this rate i may have to take some part time work when i get to 75................. ;o)
We’re all going to die or get horribly ill and none of us know when. For me better to retire as early as possible and have some quality time than sitting round in a chair for a decade being wealthy waiting for death.
This makes entire sense of course, however what happens when you retire at 60 with a modest pot, have a full 10 yrs, say, and at 70 have very little savings/pension left bar your state pension, yet are fortunate to still have great health and desire to maintain your active lifestyle ?
I'll sell my house and rent a retirement flat and carry on. What you'll do I have no idea I'm afraid. Tj is right for once 🙂 were all different and all gambling on our future selves.
Indeed, and for those of us with partners we’re most likely gambling for 2.
NO need even to sell your house - equity release. You are sitting on an assett worth a lot of money if push comes to shove.
The Health trade off was certainly one of my top 3 considerations - a stressful job which wasn't a problem 20 years ago - was increasingly a problem in the last 2-5 years. My ability to deal with the corporate levels of expectation forced me to start taking pensions and retirement planning more seriously - my exit at 60 was in Oct. We are living on a lot less than we thought we would need and still enjoy our time. My Dad died at 70 after 40 years down the pit, his body was broken when he retired. Spending is U shape (apparently) high when you first retire, low as health problems arise and as a consequence you do less, and high when you need care. We have things we want to do before we hit the trough in the U.
Well nearly coming to the end of my first week of retirement and the weathers been storm warnings all week so not much ride time(literally none), but tbh it’s been 20c and sunny but the 70-80kmh winds sort of puts a downer on it.
I did have a sandwich though which was pretty much 2 slices of brioche bread about each 1.5 inches thick toasted with mind blowing cheese and onion sauce in between.
Having the time to actually enjoy spain as opposed to just be literally in the same room doing 9-5 is well cool.
it’s weird this retirement thing, my last day at work felt like that last day at school ,before you went to university or off to work, that shift when your not a school kid anymore.
We’re all going to die or get horribly ill and none of us know when. For me better to retire as early as possible and have some quality time than sitting round in a chair for a decade being wealthy waiting for death.
This makes entire sense of course, however what happens when you retire at 60 with a modest pot, have a full 10 yrs, say, and at 70 have very little savings/pension left bar your state pension, yet are fortunate to still have great health and desire to maintain your active lifestyle ?
I'll sell my house and rent a retirement flat and carry on. What you'll do I have no idea I'm afraid. Tj is right for once 🙂 were all different and all gambling on our future selves.
This is the whole issue with retirement , we are all so different so YMMV.
I’m not sure a healthy lifestyle actually needs a fortune to maintain,its the unhealthy lifestyle that costs.
The alternative is to gamble on health and wealth at a future date instead of the health and wealth you have now, yes you may have more pension wealth but at a cost of time,you can’t buy time.
Arsed post
Indeed time can't be bought. Travelling is not expensive unless you like flash hotels and a tour guide bossing you about. Two months cycling in S America just cost me about the same as a month at home. I'll take the hit on pensions and savings now as I doubt I could do it when I'm 70. If Im alive and well at 70 I'll settle for tootling down the local coastline and be happy with that. Gambled and won!
For those taking the ‘live it now’ option, it’d be interesting to hear how many are on your own, and how many are with a wife/partner ?
tj, ton, richpips - not meaning you as you have mentioned in previous posts.
For those taking the ‘live it now’ option, it’d be interesting to hear how many are on your own, and how many are with a wife/partner ?
I have a wife, she stopped working the same time as me, she was always the principal earner in our marriage.
I made the executive decision to retire about 18 months ago, without specifically considering the impact on Mrs Vlad (who is 3yrs younger than me).
BUT:
(a) She'd already told me she doesn't want to retire until she's 60 as she enjoys her low-stress job and her work colleagues and
(b) She was paid considerably more than me AND has two Defined Benefit pensions to look forward to anyway when's she's 60 which will provide her with about 60% of her net income anyway* (then a few government pensions at 65 and 67)
I most definitely wasn't gonna carry on working in a job I grew to hate just because she enjoyed work!! Nor did I consider that it was "unfair" that I retired before her. (She could retire early if she wanted)
So, for us, it's a non-issue
* And I've told her that I can make up any shortfall between her immediate retirement income and her government pensions kicking in, though tbh, if she stops buying the amount of crap off Amazon she does, 60% income will be plenty
All my great grandfathers and grandfathers and mothers on both sides lived well into their 90's - my dad is 99 this year. I'll have to work in a DIY store until I'm 75. Eeek.
For those taking the ‘live it now’ option, it’d be interesting to hear how many are on your own, and how many are with a wife/partner ?
It's an interesting one - I plan to go at 60 in just over 3 years time. Youngest will be through uni, my parents will either be dead or spending their money on care by that point, and I want to have a few active years to enjoy things I want to do.
MrsMC is two years younger and expects to work till she is 60 - however, the long term effect of her cerebral palsy is taking it's toll on her joints and she may need to go earlier to be able to do the things that she wants to do before it's too late.
Already starting to get into the mindset that if we have the money, we should do what we want now while we get the chance, looks like both of us are looking at separate "main" holidays this year to tick our own boxes and then a few short breaks together.
For those taking the ‘live it now’ option, it’d be interesting to hear how many are on your own, and how many are with a wife/partner ?
It's an interesting one - I plan to go at 60 in just over 3 years time. Youngest will be through uni, my parents will either be dead or spending their money on care by that point, and I want to have a few active years to enjoy things I want to do. If I end up having to do 2-3 days part time shelf stacking or whtever then so be it
MrsMC is two years younger and expects to work till she is 60 - however, the long term effect of her cerebral palsy is taking it's toll on her joints and she may need to go earlier to be able to do the things that she wants to do before it's too late.
Already starting to get into the mindset that if we have the money, we should do what we want now while we get the chance, looks like both of us are looking at separate "main" holidays this year to tick our own boxes and then a few short breaks together.
my daily Pret filter coffee at 99p is making a bit of a dent into my kitty.
You shouldn't have sold that Aeropress then...... 😉 . Missed seeing you in ODG last weekend?
I'm going at 60, Mrs 100th in the same year will be retiring at 55. A teaching and police pension. We're in the spend it camp.
My parents are early mid 80s, dad has dementia. They could buy my 3 bed house with cash from savings and their bank account is only going up every month. I can't help but feel they've failed to take advantage of the hard work they did. They would be sitting pretty on their current account balance. I do wish they'd spoiled themselves a great deal more.
We don't have kids our estate is going 50% family the rest charity.
^^ sorry to read that Tony 😢. My mum passed away last Monday, probably why I’m posting so much on this, it all seems very real all of a sudden…
lost me mum a couple of weeks ago mate. just didnt feel up to it really.
Sorry to hear that Tony. The ODG is always open and it's always a good ride to there. Happy to join you for a pint, whenever. Thirty years since I lost my mum - still think about her most days.
+1 for all the comments being useful / insightful as to what people are thinking, both those who bailed out early and those not fortunate to be able to.
Jan 2027 for Mrs, end of March 2027 (end of tax year) for me is how we're currently planning. We'll be 58. I can get ad-hoc consulting work beyond that, no difficulty.
But I want time to take the dawgie for more long walks whilst he's in his prime, ride all the bikes I have a lot more, get some proper fitness back before too late, so dome travelling around Europe, play the guitar with time to do it. Sort the garden. Etc etc..all the things compromised by having to go to work..
Those thinking of slipping to part time. Think it depends on the job and what you do. I know one or two who went to a 4 day week and effectively just took a 20% pay cut, whilst still doing a 6 day week because of their commitment to a project/ bunch of people.
If you're working in a place where the hours have cut-offs and you can't take it home or stay late, maybe that could be easier to have demarcation. I went to 4 days about 18 months ago. Still end up working the occasional 5th day or even 6. But try to claim the time back as lieu / extra holiday. Luckily I have a good boss who isnt the one expecting me to do the extra hours, its more my own obligation to the customers I work for (that Ive know for years or even decades, and like). Especially if its because we're battling obstructive gegative #££%&#@ in a Government owned body - I'll go the extra mile so the obstructive @£%#&@ don't stop progress!
We are 11 months into it , how time flies.
We retired together and are enjoying every minute of it.
Spending the time travelling, gym, mountain biking, hiking and Northern Soul events.
Not needed as much money as we thought we would need.
So glad we did it now whilst we are active.
Very similar to Tracey for us, we are about 11 months in too. Not so much travelling here, although I am at Cork airport this morning for a trip to Somerset but we have sort of left the UK for Ireland with no plans for any substantive return and are fairly busy over here. Lots more hiking, gym and back on the road bikes. Mrs Kilo seems to also have yoga and pilates every other day as well.
Day to day expenditure is down a lot from both of us working in central London. Utilities are similar and car costs have really increased but our annual mileage has gone from about 2.5k to 13k - we are in a remoteish area, nearest proper shops are 12km.
We have also abandoned getting up at 06.30, nine is now pretty much my default and we can actually enjoy going out of an evening not having to get up early next day. We have also lost the feeling of having to cram leisure things into our day as we have the free time to spread things out rather than thinking i’ve only got a weekend before I’m back at work so I can’t do this if i want to fit something else in.
I went back to consult at work for a very short period before Christmas, there requested not mine but that wasn’t something i want to repeat and Mrs Kilo has been offered consulting work but declined.
So far it’s going great, and the big benefit has been the reduction in stress to us both. Our cat has also emigrated with us and has gone from town cat to having a couple of acres to play in and is in seventh heaven.
Mrs DoD ‘retired’ about 5 years ago(She’s currently daddy day care 3 days a week with her dad) we left during Brexit/covid to be in position in Spain and I retired last week, both of us are still completing the paperwork.
We’ve both got residency(with work rights) in Spain and our costs of living are definitely lower than U.K.
We’d bought a house here a long time back,so we’d already been planning a trajectory from work to something different over the last 10-15 years ago.
I suppose the take home is that there are other things you can be thinking of in advance and having a few chess pieces on the board give you flexibility, it’s not all about pensions and attempting to plan your life and death in great detail.
There’s enough doom and gloom in both our families that place our focus on health not wealth.
The slider may be slid to health but unfortunately you do need some of the other, which is the big YMMV.
Those thinking of slipping to part time. Think it depends on the job and what you do. I know one or two who went to a 4 day week and effectively just took a 20% pay cut, whilst still doing a 6 day week because of their commitment to a project/ bunch of people.
This is also my take on part time,it’s not really part time if your doing the same amount of work.
After redundancy 31st December I too am a member of this club. I've managed to stay relatively occupied but the weather has been been pants so am eager to get out and about more with the pooch up the hills. At 53 I wasn't exactly sure whether I would stop altogether or not however a contact has approached me and I've accepted a part time role doing just 2 days a week in my area of expertise. For the moment, I feel this is pretty much perfect as it enables me to taper from full time work for the last 32 years on my terms in a role that has been created specifically for me. My wife is loving her role at the moment and expects to continue for 3ish years so this will hopefully support her and enable me to slow down and spend more quality time with our 13 year old daughter.
I feel very fortunate in many ways.
I have no dependents but I do save so not a live it now but a finish early. If I run out of money and still have my health a quick phone call could secure some work as Im in construction on the tools so not a big drama.
My friend has just given his two sons the deposit for a house each and told them buy a house, piss it up the wall your choice but theres no more money coming as him and his partner have packed up the van and driven into the sunset.
The thread should be my retirement and how much money I've got. Were all different and all accept diffdrent levels of risk in life.
Well my early retirement plan hasn't worked out too well so far 🙁
Moved to the Rhondda Valley (Fawr) nearly four years ago, released about £180k from the house in doing so.
The idea was to mountina bike more and play golf.
Spent the first summer doing DIY round the house and rebuilding the raised decking area.
Next summer was building a summerhouse and some other bits.
Then visited a guy who I used to buy loudspeakers from - Stirling Broadcast.
Found out he was getting Alzheimers and had built up a lot of stock in his workshop that he hadn't been selling as his dealer network was non-functional - related to his Alzheimers.
Took on the task of selling the loudspeakers as I am particularly enthused about one of the models he does.
Still doing it nearly 2 years later, unfortunately his alzheimers meant there were errors in most of the loudspeakers so I've had to tear down the ones that were built anyway. Sold £263k ex-VAT of speakers, another £30k maybe to go.
Spent £35k on new crossovers and other bits, carrying £2.5k in expenses myself, worked 92 long days in his workshop, loads of time at home on speaker conversions, invoicing, answering emails, 6.5k plus of miles on my car.
Working for free, had some complementary speakers and crossovers to compensate, will claim some expenses to offset wear on car, etc.
Managed to squeeze some golf in and a fair bit of hiking, and also rucking.
Just hoping that I am earning some karma to ward off my alzheimers 🙁
Trying to stick to £2k a month of income, use Voyant Go to plan to 99 (!) whcih is probably very unrealistic because of my diet.
Probably will have to downsize the house again in my late 70s.
Some actual numbers for monthly costs per person would be really useful.
Because I don't believe in the million pound minimum , or even the £3k pcm for a couple, £2k pcm for a single person numbers for early retirement. I strongly believe these figures are all finance industry led who need millions of people investing millions of pounds a month to pay for their wages and overheads.
The investment market still seems to charge on relentlessly. In 2026 my meagre portfolio has gained 5x what I've earned so far . I am also aware trumpification could delete that and more overnight
Some actual numbers for monthly costs per person would be really useful
there are a lot of those numbers earlier in the thread, I think back around page 8 - 10 area from memory ?
I resurrected the thread late June last year to try and get exactly that type of info to guide me.
Mrs Zips cousin reckons she needs 30 k a year. She is a single homeowner who holidays well and plays golf.
Don’t forgot the limits now that the U.K.Gov now covers banks for aren’t that great
That limit doesn't apply to annuity policies.
Most 50+ not considering annuities, | FSCS
"Annuities that are provided by UK-regulated insurers are fully protected by FSCS, so the Scheme can pay compensation to eligible customers with no upper limit if the annuity provider goes bust."
Annuities are certainly looking more attractive - rates are at 17 year high and a healthy 60 year old could get about £5,000 of index linked income per annum (increases with inflation),per £100,000 of pension pot. An unhealthy 60 year old would get more :-).
Mrs Zips cousin reckons she needs 30 k a year. She is a single homeowner who holidays well and plays golf
My SO tells me that at 2026 values we could be OK with £60k pa. I see more work in my future.
Not read the whole thread but I'm just revaluating my company pension contributions and the online guide is projecting that if my pension does moderately well i could take around 24k a year from age 67 to age 84
Currently I'm contributing 12.75% a month and my company pays 12.25% so a total of 25% of my wage a month
My normal practice is each year when there is a pay rise whatever the pay rise is i put that percentage into the company pension so I'm no better off each month but it helps build my pension pot
This is the first year I'm considering not adding the pay rise into the pension but keeping it in my wage due all the price increases with day to day stuff
Take the pay and put it in an ISA. Tax free growth and accessible if needed.
Take the pay and put it in an ISA. Tax free growth and accessible if needed.
Maybe. If you think tax free growth beats the tax benefits of gross contributions to a pension. 20% ‘extra’ straight up for a basic rate tax payer.
edit obviously not flexibly accessible if it is put in a pension.
Annuities are certainly looking more attractive - rates are at 17 year high and a healthy 60 year old could get about £5,000 of index linked income per annum (increases with inflation),per £100,000 of pension pot. An unhealthy 60 year old would get more :-).
Ex smokers here who stopped 10+ years ago. 6.89% is what we were quoted for a joint lifetime fixed annuity.
Looks about right, but fixed has an obvious drawback.
TBH don’t forget you’ll get your state pension when you hit that age so yes your bang per buck will decrease but then you’ll get a little boost when that comes in.
OK with £60k pa
Hahaha.....
Sod that.
Don't you have to add 25% as it's the maths done in reverse?
Not your amount plus the tax , but the whole amount brought down to the actual numbers.
O level maths failure here so I am probably wrong
If you're really cheeky, you take up smoking and heavy drinking and get fat before getting an enhanced annuity rate then go on a health kick when accepted 😉
Don't you have to add 25% as it's the maths done in reverse?
Not your amount plus the tax , but the whole amount brought down to the actual numbers
Could you give more context/ detail as I'm not sure what this is about
I think he's assuming that £60k is net, and what would be the gross figure...
Take the pay and put it in an ISA. Tax free growth and accessible if needed.
Maybe. If you think tax free growth beats the tax benefits of gross contributions to a pension. 20% ‘extra’ straight up for a basic rate tax payer.
edit obviously not flexibly accessible if it is put in a pension.
....but taxable when you take it, @effective 15%
,^^either way, it's easy more than I need, before or after tax.....
60k, I really can't think how we'd spend that. Madame is happy with a horse, she doesn't want a ranch, I already have too many bikes. Holidays are hassle and need recovery time, I'm just too old and lazy to spend that kind of money.
Don't you have to add 25% as it's the maths done in reverse?
Not your amount plus the tax , but the whole amount brought down to the actual numbers
Could you give more context/ detail as I'm not sure what this is about
I think this is pointing out that the percentage is different when tax relief is applied.
£100 less 20% tax = £80
To get you back up to your £100 via tax relief, that £20 is now 25% of the £80 you put in.
Either way, it would help everyone who is commenting on how much money they have to live on or hope/need to live on, if they just used net figures. We can't avoid tax* and we don't all have they same circumstances so have different tax arrangements
*I'm assuming there's no billionaires living in the Caymans on STW
*I'm assuming there's no billionaires living in the Caymans on STW
Presumably we can check by searching the epstein files for mention of STW.
[edit - I just did, no mention of STW. He did buy two mountain bikes at one point]
Ignore - I misunderstood your question
*I'm assuming there's no billionaires living in the Caymans on STW
Presumably we can check by searching the epstein files for mention of STW.
[edit - I just did, no mention of STW. He did buy two mountain bikes at one point]
Probably rides an Apollo... I don't think you'll find many of that persuasion here 😆
Some actual numbers for monthly costs per person would be really useful.
Around £1400 pcm which I find plenty for everyday life
£1900 per month for me and Mrs ton. and we never spend it all.
Got an email last month about a person who i've know for years, a stalwart of our running club. A lovely bloke always out there doing something getting a life time club membership.
He retired from work a month ago.
An email today that he had passed albeit out there doing something.
£1900 per month for me and Mrs ton. and we never spend it all
£1850 for me and Mrs Surfer for our spending money after our bills and expenses are paid each month.
We also have 12 months of our mortgage left but it is on a lower rate for around 10 of those months as Mrs Surfer worked for a bank. Not worth changing it for the remaining few payments or paying it off. I keep a years cash in an ISA from my SIPP then withdraw my monthly "salary" on the same date so all of the DD etc go out as they did when I was working. On top of that we put around £600 away each month for holidays and expenses such as car/van servicing, xmas, birthdays, vets costs etc. I manage this so the interest I earn on this doesn't breach the tax threshold. I could leave it in the ISA but as long as I am not financially at a loss I find some of these habits are psychologically helpful.
keep a years cash in an ISA from my SIPP then withdraw my monthly "salary"
how does that work ? I thought you could only transfer 20k per annum into an ISA ?
keep a years cash in an ISA from my SIPP then withdraw my monthly "salary"
how does that work ? I thought you could only transfer 20k per annum into an ISA ?
Well, £1850 between them would leave about £18,000 to cover bills between them - under £20k if split equally?
Ah, I think I misread it, thanks
Single, no dependants, house paid for & need fund for 5 years until state pension.
Am I right in thinking set my SIPP up to give me an income of £12570 per year.
Use £1000 personal savings interest allowance from savings.
Use additional £5000 starting rate for savings interest allowance for income under £17570.
Giving £338 per week & paying zero tax.
Full pot of premium bonds winnings for holidays etc.
I'm rarely spending £1500 a month over the last 18 months so should be OK.
Yes - all of that is correct.
Am I right in thinking set my SIPP up to give me an income of £12570 per year.
If you haven't yet taken your PCLS you will get £4190 tax free on top of that £12570
£1900 per month for me and Mrs ton.
Is that each or combined?
I am 59 this summer and have started working out what I think we would need to live on in retirement. We are 'fortunate' in that our mortgage will be fully paid off a few months before I hit 67, and my wife is 9 years younger than me so she may carry on working for a bit (yet to have a proper conversation about how that will look – ie, if she wants to retire at the same time as I do).
However, by far the biggest outgoings, which we can't really change much, are the cost of council tax and gas & electricity, which is currently a combined £660 a month for our four-bed detached house. I really can't see past the obvious solution of downsizing and reducing both of those costs – which will also free up a reasonable amount of money for us to enjoy.
My neighbour is looking to retire early next year. He has gone from a full-time job to working 3 days a week doing deliveries for which he gets pretty well paid.
His Wife retired a few years ago after leaving her job & intending to get another one, but then deciding she quite liked doing nothing so never found another job.
I was chatting about retirement with him over a pint last week & he reckoned that when he finally gives his job up they will have around £1800/month to live on until their state pension kicks in.
2 kids who've left home & no mortgage.
They do have a penchant for holidays and trips to London to watch shows etc. so I guess they might have to peg this back a bit.
Our basic direct debits, before food, come to around £1300. That’s Council tax, utilities, Sky, pet insurance, gym membership. Ok, the David Lloyd gym at £150 is a luxury, and Sky at £120, but even without it’s still a good bit over a grand. That’s a 4 bed modern house so no real way to reduce much.
we currently have our 2 adult boys still at home, so big food bills etc but that will come down in a few years when they move on.. My reckoning is that currently we spend between 2.8 and 3.2k per month, once we include for food, house insurance and birthday presents etc.
adding in for car insurance, repair and replacement funds, house repairs and maintenance, clothes and some regular spending money, a couple of weeks of holiday cottage breaks, that is more like 5k, which we will aim to cover between my wife working part time and me drawing down on investments and savings until I need to then access my SIPP. Having just turned 60 I’d like to pad it out with some part time interesting work a day a week or so.