How much do you need for comfortable existence in retirement.

robj20 said:
Are there any easy to use service for saving, i noticed Aegon Retiready to an ISA but i'm not used to that sort where they charge fees and what not.
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Those that have no need or don't want to use an adviser would usually be pointed towards Vanguard. Cheap platform and fund charges.

Being "in the game" dealing with some of the providers, Standard Life (or whatever silly name they want to call themselves now) Aegon (nee Cofunds) Aviva Wrap, their administration is a lesson in pure incompetence.
 
EddScott said:
Those that have no need or don't want to use an adviser would usually be pointed towards Vanguard. Cheap platform and fund charges.

Being "in the game" dealing with some of the providers, Standard Life (or whatever silly name they want to call themselves now) Aegon (nee Cofunds) Aviva Wrap, their administration is a lesson in pure incompetence.
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Thanks ill take a look, looks like their fees are a fair bit lower than Retiready 0.15% vs 0.5%

There isnt loads in that one but it grew about 12% last 6 months.
 
booyaka said:
I do this on a daily/weekly basis for my clients, and have been for 20 years or so now, recommending drawdown products and strategies to maximise income and tax efficiency in retirement.

But wouldn't want to be accused of "salty" comments towards you, so probably best I just say nothing.......
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Don't need to accuse you. I have quoted it above for you.
 
Retirement, yea right .

Thanks to a pull my pants down divorce I had to start again at 34 - now 52 . Ploughed all my spare cash into BTL .

My state pension is £192 a week , state plus sp2 , £10,000 a year
Forces pension - index linked at 60 £3,500 a year
BTL , really depends on what I decide to do , have 4 but might sell them , depends how tax efficient they might be when I reach state pension age but gross profit is £12,500
Think I have about 40k in odd pension funds here and there .


So around £27,000 a year with no mortgage I suppose . No NI payments so with a tax allowance of £12500 and the rest at 20% about £2,000 a month .
 
Bald-Eagle22 said:
Retirement, yea right .

Thanks to a pull my pants down divorce I had to start again at 34 - now 52 . Ploughed all my spare cash into BTL .

My state pension is £192 a week , state plus sp2 , £10,000 a year
Forces pension - index linked at 60 £3,500 a year
BTL , really depends on what I decide to do , have 4 but might sell them , depends how tax efficient they might be when I reach state pension age but gross profit is £12,500
Think I have about 40k in odd pension funds here and there .


So around £27,000 a year with no mortgage I suppose . No NI payments so with a tax allowance of £12500 and the rest at 20% about £2,000 a month .
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Savvy enough to have secured themselves a decent retirement, but still puts a baffling space before full stops.
 
Chatting to my advisor was a little sobering, he recommended that a private pension (not Gov one) would ned to pay out a minimum of £10k a year for someone with no debts/mortgages etc to be "OK", not comfortable, just OK which would give you around £19k a year (Gov + £10k private pension) which also doesn't include things like inflation, holidays or big items like "new" cars, house repairs etc.

That works out very close to the OP's £1500 a month.

It also means that you'd need about a £250k pension pot if you followed that plan for most people - £10k x 25 years (to age 90).
 
ianh said:
Chatting to my advisor was a little sobering, he recommended that a private pension (not Gov one) would ned to pay out a minimum of £10k a year for someone with no debts/mortgages etc to be "OK", not comfortable, just OK which would give you around £19k a year (Gov + £10k private pension) which also doesn't include things like inflation, holidays or big items like "new" cars, house repairs etc.

That works out very close to the OP's £1500 a month.

It also means that you'd need about a £250k pension pot if you followed that plan for most people - £10k x 25 years (to age 90).
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I think I need to engage an IFA, another facet of this is, to what age do you "front load" your retirement, I was thinking till 75, meaning use more cash till then , then taper off.
 
newbiejim said:
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.
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You've not seen my parents eating/drinking out spending then :p
 
Retire, I just hope I won't die at my desk. :( I've seen too many people die before their time recently (non COVID related) I hope I don't share their fate.

Assuming I go on to live a ripe old age somewhere I will probably have around £800K by the time I'm 60 at 4% draw down that's £32k which should be more then enough with no mortgage commitments. Work a few years until state retirement age (66?) i would have £1.2m in the pot which would be ample. Tbh I more interesting is keeping as much of the pot of money to myself and out the hands of pension companies as I would like to leave it for my kids or grand children and live of the returns.
 
Assuming there won't be NHS or state pension by the time I retire as they won't remain solvent in their current form by then, I'd probably need £5000 (in today's money) per month. That means £60k a year, or about £100k a year in pre-tax income (assuming private pensions are still taxed the same way).

To have a £100k a year income pre-tax (or £60k after tax), assuming a safe withdrawal rate of 3%, I'd need £3.3 million (untaxed), or £2 million (taxed), or realistically a combination of both. That's how much.
 
Freddie1980 said:
Retire, I just hope I won't die at my desk. :( I've seen too many people die before their time recently (non COVID related) I hope I don't share their fate.

Assuming I go on to live a ripe old age somewhere I will probably have around £800K by the time I'm 60 at 4% draw down that's £32k which should be more then enough with no mortgage commitments. Work a few years until state retirement age (66?) i would have £1.2m in the pot which would be ample. Tbh I more interesting is keeping as much of the pot of money to myself and out the hands of pension companies as I would like to leave it for my kids or grand children and live of the returns.
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I'm expecting to hit that at my current rate, assuming pay rises in line with inflation and a 4% interest rate (pulled that figure out of the air). I don't know what the drawn down would be in reality. Seems like a reasonable sum, though.

HACO said:
Assuming there won't be NHS or state pension by the time I retire as they won't remain solvent in their current form by then, I'd probably need £5000 (in today's money) per month. That means £60k a year, or about £100k a year in pre-tax income (assuming private pensions are still taxed the same way).

To have a £100k a year income pre-tax (or £60k after tax), assuming a safe withdrawal rate of 3%, I'd need £3.3 million (untaxed), or £2 million (taxed), or realistically a combination of both. That's how much.
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No intention of judging your lifestyle, but £5k seems like an awful lot of money to have assuming no mortgage etc.
 
dirtychinchilla said:
No intention of judging your lifestyle, but £5k seems like an awful lot of money to have assuming no mortgage etc.
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Like I said, that was assuming no NHS or social care, as I don't have any confidence that it will still exist in 35 years, so I left a £25k a year for my healthcare costs, that's what Americans are recommended to do.

I always plan for the worst, and hope for the best.
 
HACO said:
Like I said, that was assuming no NHS or social care, as I don't have any confidence that it will still exist in 35 years, so I left a £25k a year for my healthcare costs, that's what Americans are recommended to do.

I always plan for the worst, and hope for the best.
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Fair enough. I would hope private healthcare even here wouldn't be £25k because insurance should cover a chunk of that. I suppose, in America, that's a few day trips out in an ambulance.
 
dirtychinchilla said:
Fair enough. I would hope private healthcare even here wouldn't be £25k because insurance should cover a chunk of that. I suppose, in America, that's a few day trips out in an ambulance.
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I'm guessing £1000 a month, plus a £10k excess/deductible is what it would cost for people in their late 70s and 80s.
 
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