I'm looking at that option though it's a difficult balance regarding leveraging indulgence to about 70 ish & taper off as I think after 70 my paragliding & water skiing days will be over.I think the savings should be in the pension really.
How much per month would you say is enough?I can assure you that £1500 is not enough even with the state pension. -I retired 21 yrs ago on half pay pension- sounds a lot but I was a drone worker all my life so my paypacket wasn't a lot although it kept wife and myself self sufficient - I remember one year the local dustmen earned more than we did. Over the last 21 years we have seen our pensions drop compared to cost of living.
We have no mortgage or debts and a 11 yr old car. We have some saving but that's rainy day stuff and not having holidays. Every house I have bought I made sure we were in band B/C of council tax - water rates at lowest I could find but now I am having to put £460 a month into the budget account just to keep dry and warm -any other bills are extra like food.
You can not have enough stashed away for your pension and I am talking now of those of us who are on pensions well below the average wage.
Stick as much away as you can, you can't survive on state pension - The only people who can do that is the pro unemployed.
If you have a wife who doesn't pay tax then you can have her tax relief transfered to you - helps a little bit. We do not live in luxury but can afford the odd goodie.
Almost everyone I speak to about this who are retired say you spend less than you think when retired. Personally I would save at least £100 a month fuel + decadent lunches etc , it does cost to work, if that makes sense, though not a huge amount.Realistically speaking what outgoings are people expecting to be less in retirement and what are going to be more?
Less - mortgage free
More - everything else
So I'd want a similar level of income as to my working income. Unless you are planning on using all that free time sat in front of a screen on a couch.
Simply don't retire but go from working 5 days a week down to 2 days per week. That means your work income is dropping by 60% but a lot of that is made up by your taxes being less, so it's not a real 60% loss. Then you top that up with your pensions and passive income streams / savings. Remember you have 5 days off per week to enjoy life. That is plenty.
There are some folk though who get to retirement age and clearly aren't fit to work. Had an old Betty in an old office who was 4 years past retirement and she had fallen over at least 2 times in the office and was absolutely hopeless at everything. But if she did retire chances are she would never leave the house. So that probably won't be a real solution for everyone but they can always get a part time job somewhere like Asda if need be.
yepHow long is a piece of string?
You need to breakdown and calculate your known annual costs. Essentially the costs of surviving. See how much that comes to, then see how much you have left over to do things you enjoy, meals out, theater, holidays etc. If it's not enough then you'll be working longer. No one wants to sit in their house doing nothing when they retire.
So if you look at the regular known costs they generally are:
Electricity
Gas
Water
Internet
TV licence / Subscription TV
Mobile phone
Council tax
Car insurance
Car tax / servings
Insurance products (life etc)
Food
That would give you a good idea of what you'll have left over to 'live your life'.
How much per month would you say is enough?
Almost everyone I speak to about this who are retired say you spend less than you think when retired. Personally I would save at least £100 a month fuel + decadent lunches etc , it does cost to work, if that makes sense, though not a huge amount.
You've forgot to mention your legal-highs drug addiction and alcohol consumption
Yeah but surely you would spend that £100 a month fuel in your new spare time visiting friends, family, playing golf, going out? Lunches replaced with dining out when you are away playing golf, etc.
I can't imagine retiring then sitting at home watching TV all day and spending nothing like a lot of old folk do.
Yes cut backs will happen but I'd really not want to be earning less than what I was from my day job.
£200k in an ISA tracking an index would pay you £20k a year for instance (being conservative). Add that to your pensions and you are laughing. Best thing is it's all tax free. There could be dips in the market which means you don't get much one year but recoveries tend to be really quick.
£200k in an ISA is easily done over your working career I bet it would be less than £50 per month if you started from day one.
a guaranteed 10% on this ISA?
but anyways, its too late for that because I`m 60 atm.
10% is conservative. This year would be 20% and last year more like 40%.
Don't get sucked in. It's a PS patent pending investment method mostly into magic beans.Must be quite an element of risk there though (at risk of derailing the thread)