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How much will retirement cost you?


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Vendetta

I’d like to retire in 10 years time.

57 years old then. 

Kids ‘should have’ flown the nest - and will be 21 and 23 respectively. 

We won’t have a mortgage - as don’t have one now. 

I’m wondering as a couple - outside London (NE England), how much one would need to live comfortably?

I saw this.
FD996C8C-89EB-431F-B668-3050F543B1DF.thumb.jpeg.bec385a26db8a8d5734f9ce0eb59ae0b.jpeg

Something to discuss?

Maybe it’s been done to death before? 

Is it a good estimate? 

What do your think a couple need to survive on? 

Council Tax (£3600 - and we won’t downsize), utilities, running 2 cars and food must cost £15k - £20k straight away - for a couple. Mind I must sit down and actually add it up proper. 

Anyone care to share their potential retirement living costs? 
 

 

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Chewing Grass
4 minutes ago, Vendetta said:

Kids ‘should have’ flown the nest - and will be 21 and 23 respectively.

xD That's what I thought, been raising kids for 30 years and the last one (of 3) is still at home.

In the chart the difference between moderate and 'comfortable' seems to be huge.

Edited by Chewing Grass
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Castlevania

Is that table before or after tax? And does it assume owning a house outright or not?

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Vendetta
Posted (edited)
9 minutes ago, Castlevania said:

Is that table before or after tax? And does it assume owning a house outright or not?

After tax..... (as it says ‘spend’) and 

.......It assumes you own your house.

 

75A15834-C31C-4AC2-B8D5-7E1715CB02D0.jpeg

Edited by Vendetta
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Bobthebuilder

As a couple living in London with no mortgage, I would be happy with the lowest £19,200 a year.

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Noallegiance

£450,000 allowing for a currency that's worth jack and the upkeep and rent of a small cardboard box for me, my wife and my three kids all in their thirties.

#winner

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stokiescum
3 minutes ago, Bobthebuilder said:

As a couple living in London with no mortgage, I would be happy with the lowest £19,200 a year.

A friend has got married to a woman

16 years younger than him he is 64 .his logic is simple he retires in 2 years she will be working until she is 67 that’s his pension sorted . It’s his house in return she can live in it after he has died until she dies then it’s sold and the money goes to his kids .I didn’t bother telling him about possible pitfalls to his master plan he gets to excited 

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Bobthebuilder
1 minute ago, stokiescum said:

A friend has got married to a woman

16 years younger than him he is 64 .his logic is simple he retires in 2 years she will be working until she is 67 that’s his pension sorted . It’s his house in return she can live in it after he has died until she dies then it’s sold and the money goes to his kids .I didn’t bother telling him about possible pitfalls to his master plan he gets to excited 

My wife is ten years younger than me Stokie. She fuckin wears me out.

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stokiescum
8 minutes ago, Bobthebuilder said:

My wife is ten years younger than me Stokie. She fuckin wears me out.

If you get on it can reap dividends I surpose for the man in the main financially maybe less so for the woman in the future.

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Castlevania

The £33k/£36k a year for a single person to be “Comfortable” is crazy in my opinion. That’s £2750/£3000 a month. I’d struggle to find ways of spending that much money.

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Chewing Grass
2 minutes ago, Castlevania said:

The £33k/£36k a year for a single person to be “Comfortable” is crazy in my opinion. That’s £2750/£3000 a month. I’d struggle to find ways of spending that much money.

Depends if you are still paying a mortgage and like fancy German cars like lots of senile middle-class pensioners do.

Audi Q7, 3000 miles per year, fill your boots.

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Chewing Grass
28 minutes ago, Bobthebuilder said:

My wife is ten years younger than me Stokie. She fuckin wears me out.

My wife is the same age as me, she is already worn out and I'm working on blowing her big-end.

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Talking Monkey
1 hour ago, Vendetta said:

After tax..... (as it says ‘spend’) and 

.......It assumes you own your house.

 

75A15834-C31C-4AC2-B8D5-7E1715CB02D0.jpeg

That comfortable column is a huge amount if no mortgage or kids to pay for

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Noallegiance
1 hour ago, Castlevania said:

The £33k/£36k a year for a single person to be “Comfortable” is crazy in my opinion. That’s £2750/£3000 a month. I’d struggle to find ways of spending that much money.

You clearly need more bad habits and have not embraced the environment of excess.

Tut tut.

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ILikeCake
2 hours ago, Noallegiance said:

£450,000 allowing for a currency that's worth jack and the upkeep and rent of a small cardboard box for me, my wife and my three kids all in their thirties.

#winner

Might just about cover the council tax.

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Hancock
2 hours ago, Castlevania said:

The £33k/£36k a year for a single person to be “Comfortable” is crazy in my opinion. That’s £2750/£3000 a month. I’d struggle to find ways of spending that much money.

I dont even spend the 10.2k on myself in a year.

Once accommodation is paid, i dont see why people in London need more money as food and bills are the same everywhere.

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wherebee
2 minutes ago, Hancock said:

I dont even spend the 10.2k on myself in a year.

Once accommodation is paid, i dont see why people in London need more money as food and bills are the same everywhere.

no, food is more expensive, even something as simple as going to the shops to buy something might incur a parking fee whereas it's free in other parts of the country.  Plus, insurance much higher for car, house, etc etc.

London is a money pit.




Re the how much to retire: As said elsewhere, the major, huge, immense fixed cost you cannot control is the council tax theft.  really makes my piss boil, and I don't even have to pay it here in Oz on the same level you slaves do.

So - surely one goal should be to have as many assets and income 'off grid' as possible, so you qualify for the council tax relief?

 

Screen Shot 2021-03-15 at 9.41.58 am.png

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Wight Flight
1 hour ago, wherebee said:

no, food is more expensive, even something as simple as going to the shops to buy something might incur a parking fee whereas it's free in other parts of the country.  Plus, insurance much higher for car, house, etc etc.

No.

You don't need a car in London and you have brilliant free transport.

Also access to huge amounts of free entertainment.

If your housing is covered, London is possibly the cheapest place to be a pensioner.

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wherebee
2 hours ago, Wight Flight said:

No.

You don't need a car in London and you have brilliant free transport.

Also access to huge amounts of free entertainment.

If your housing is covered, London is possibly the cheapest place to be a pensioner.

Yeah, I suspect you haven't thought about that one.

public transport is OK for commuting into the centre.  You want to go from, say, Tooting to Kingston, you're on a bus for over an hour (with free stabbings on the way back at night) or on a train into London and out again.

Contrast with whether one of my aged relatives lives in sussex - walk into the village for shops and pub, local church organises day trips, insurance and other costs low, etc etc.

I think London and other big cities are the worst places to be if you are old and do not have a butler and a chauffeur.

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Frank Hovis
10 hours ago, Castlevania said:

The £33k/£36k a year for a single person to be “Comfortable” is crazy in my opinion. That’s £2750/£3000 a month. I’d struggle to find ways of spending that much money.

Yes, that's lighting cigars with fifty pound notes money.

I've had this in real time over the last year but it has been a very unusual one as all the times I would be going to places haven't been happening.

I've spent £8k all in and if pushed could have taken that down to £6k but keeping at that level would wear me down long term though isn't that far away from just having a state pension.

£10,200 would be plenty as simple revenue income, i.e. money to spend.

What you also want IMO is capital over and above your house in case you want to do something outwith your normal run of activities be that a world cruise, second home, fancy car, boat, move to a more expensive area etc.

In having this potential freedom to change you acquire more peace of mind and that in itself means you have less of the spending bug which can emanate from feeling trapped within a limited set of circumstances that you cannot change.

Or rather it's not just about the spending money it's also having a cash reserve.

When comparing myself to people I know I don't have takeaways, primarily because I don't like them or trust their hygiene standards and secondarily because they seem a waste of money, and I also don't buy an endless stream of unnecessary tat off the internet.

If I did those two things I would probably have hit the £10k this year and exceeded it in a year when pub meals, day trips and holidays are returned to us.

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Innkeeper

Wife and I live in the southwest and we have 30k net income and I would say that means ‘comfortable’.  Council Tax and Insurance (thatched house - only for the brave...) and two cars (10 and 15 years old of course :ph34r:)do swallow a lot of that.  Exotic holidays and any serious purchases have to come from my trading profits thanks to this site xD

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CVG
5 hours ago, wherebee said:

Yeah, I suspect you haven't thought about that one.

public transport is OK for commuting into the centre.  You want to go from, say, Tooting to Kingston, you're on a bus for over an hour (with free stabbings on the way back at night) or on a train into London and out again.

Contrast with whether one of my aged relatives lives in sussex - walk into the village for shops and pub, local church organises day trips, insurance and other costs low, etc etc.

I think London and other big cities are the worst places to be if you are old and do not have a butler and a chauffeur.

On balance, I'm in Wight's camp. That free transport and entertainment is worth a huge amount.

Worrying about stabbings is just paranoia. I'm still going out to gigs in large towns, London and festivals and rarely see a minor scuffle let alone a knife.

London CT is usually lower than the regions. Healthcare is usually much superior.

But there are substantial costs that people may not be considering if they want all angles covered in retirement. I save for everything including solicitors fees to renew wills every ten years, passports, driving licences, weddings, grandchildren, electrical replacements, 1% of house value in maintenance costs.

One dog for one year cost around £1K. 2 cost £2K etc. So much depends on hobbies and interests.

 

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Bobthebuilder
6 hours ago, wherebee said:

Yeah, I suspect you haven't thought about that one.

public transport is OK for commuting into the centre.  You want to go from, say, Tooting to Kingston, you're on a bus for over an hour (with free stabbings on the way back at night) or on a train into London and out again.

Contrast with whether one of my aged relatives lives in sussex - walk into the village for shops and pub, local church organises day trips, insurance and other costs low, etc etc.

I think London and other big cities are the worst places to be if you are old and do not have a butler and a chauffeur.

One of the major advantages for me in London now I have semi retired is earning money. I drive around mending / servicing boilers 1,2 or 3 days a week. I could do more if I wanted but pass other work on to mates who then pass on the smaller jobs back to me. I know plenty of tradesmen in the shires who wish they could operate like that, but not enough work about to support it.

I would keep a car in retirement for trips, shopping etc. Insurance is not that expensive, I pay £360 fully comp a year.

Loads of free stuff museums etc. We have Aldi, Lidl etc same as everywhere else.

No one has ever tried to stab me.

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Lightscribe
14 hours ago, Vendetta said:

I’d like to retire in 10 years time.

57 years old then. 

Kids ‘should have’ flown the nest - and will be 21 and 23 respectively. 

We won’t have a mortgage - as don’t have one now. 

I’m wondering as a couple - outside London (NE England), how much one would need to live comfortably?

I saw this.
FD996C8C-89EB-431F-B668-3050F543B1DF.thumb.jpeg.bec385a26db8a8d5734f9ce0eb59ae0b.jpeg

Something to discuss?

Maybe it’s been done to death before? 

Is it a good estimate? 

What do your think a couple need to survive on? 

Council Tax (£3600 - and we won’t downsize), utilities, running 2 cars and food must cost £15k - £20k straight away - for a couple. Mind I must sit down and actually add it up proper. 

Anyone care to share their potential retirement living costs? 
 

 

https://www.thesun.co.uk/money/14335425/state-pension-warning-not-enough-retirement-boost-pot/

The thing is with this article, that it puts emphasis on the compulsory work place pension contributions of 1-3% highlighting the fact that the state pension won’t be enough. It then spouts figures like below, which the average person on a defined contribution pension wouldn’t have a hope in hell of building up.

People in general are shit at maths and/or don’t want to think about pensions or that far ahead. Automatic generous workplace pensions are a thing of the past and the majority of the masses will be vastly underfunded at pension age with 40 year mortgages.

Thats before you take into account the retirees of the next decade on automatic scheme allocation towards bonds that will be ripped a new one because of inflation.

‘If your current pension pot is small, or doesn't exist at all, you'll first need to work out how much you need to save.

If you want a comfortable retirement, you'll need to build up a pot of £587,116 per person - £355,856 if you're in a couple, according to research.

This is if you want to turn your pension into an annuity, which pays you a guaranteed annual income for life in retirement.

An annuity isn't always the right option for every in retirement - you could leave the cash invested or take out lump sums as and when you need to.’

 

 

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The Idiocrat
On 14/03/2021 at 18:49, Vendetta said:


FD996C8C-89EB-431F-B668-3050F543B1DF.thumb.jpeg.bec385a26db8a8d5734f9ce0eb59ae0b.jpeg

 

Funnily enough I've been aiming for almost exactly those numbers (on my own) through my SIPP and ISA, with the Moderate level my main target for early retirement at 60 (I'm ahead of the game due to the Reflation thread and hope to get there by 58 now), and the Comfortable level as my target at 67 including the state pension and a small company pension. There's no way I could spend the Comfortable level unless I am reckless enough to shack up with a burd, so anything left my kids can inherit or I can help them out if need be.

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