How much do you need for comfortable existence in retirement.

Martynt74 said:
I think there's a difference between being satisfied and being able to. My post about being able to cope on the state pension would have me fairly miserable because i have a few hobbies that i hope i can continue to enjoy into my old age. However given they're all outdoor activity based i hope i don't end up a cripple and suddenly find myself unable to do anything!

That said i agree with the £1500 a month (currently) being a reasonable amount once mortgage is paid off. I'd rather retire at 55 with "only" £1500 a month as a projected income, than carry on for another 10 years and end up with £2500 a month.
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Exactly my thoughts, I've heard lots of stories of people dropping dead in their 60's. Also my dad had prostate cancer (is fine now), so there's always that to look forward too, not sure if it's hereditary.
 
danielanthony said:
Have now diversified a bit but am concerned about the lifetime allowance as I'll be well over it in 16 years time even if I don't contribute another penny. Good position to be in I suppose but I don't think 55% tax is fair.
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The LTA threshold might increase over time but I wouldn't bet on it keeping up with investment returns or even inflation. I view it as the point where you stop getting free money for saving into a pension (tax relief and no national insurance contributions), and the 55% charge to take any excess above the LTA as cash essentially cancels out these benefits. Whether it's fair or not is debateable, but if you have reached the LTA it means you'll have got the maximum 'top up' possible. TBH I'd get some professional financial advice on pensions/tax/inheritance - putting more money into the pension might not be the best plan.
 
Im a bit of a hermit so 1500 a month is more than enough lol, house paid off and put 20k in vanguards vusa every year since it opened, these last 3 years of an insane market bull run have knocked 10 years of my retirement wooo!
 
If I live that long I plan on the majority of my "pension" just being what I inherit from my parents in terms of assets. They're not rich by any means, their parents are dead and that's how they could afford to pay off their mortgage and buy a property abroad. I could be dead before then so who knows.
 
Mint8 said:
The real issue is guaging how much to spend given that you dont actually know how long you will live.

I took early retirement in Dec 19 (dont laugh) so have spent the first couple of years in a global pandemic - it was easy, certainly in the first year, not to spend very much.

My pension pot is sat there growing slowly (again for obvious reasons) and picking up now. I worked at the same company for 30 years -so the surrender value was sizeable. Its just comes down to how much I feel I should take as a monthly income and/or spend now - which isnt easy. I could start splashing the cash while I am still young and fit enough to enjoy it - but on the other hand it may have to last 30 years plus. Currently paying myself a bit less than my actual early retirement pension would have been which obviously is a bit daft but still a reflection of the situation we currently live in. i.e still being a bit cautious travelling/eating out etc.

As a poster above said - the lifetime allowance is also an issue. I use a financial management company which moves investments around on a quarterly basis and is making good use of the tax free portion etc
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Is it really that complicated? To me, the complicated part is figuring out what to invest during working life. Once you hit retirement you're stuck with the pot you've got and the choices seem straight forward unless you want to start gambling - take a sustainable drawdown like 4%, perhaps adjusting a little if it helped avoid any nearby tax thresholds. Perhaps avoid drawing down/drawing down as much on particularly bad stock market years.
 
I could easily live comfortably with £1,500 per month with no mortgage.

For me to retire tomorrow, I’d need £1m worth of Coca Cola stock and that would do me. I’d live off the give or take £25k of dividends each year.
 
As ive said beforei can live off very little im on ssp at the moment, but if i lose my ability to walk and surf in my old age it would be nice to do what my parents do ie cruises, iceland, carribbian ect ect
I am sure most of you are more clued up than me on pensions, its an area that really confuses me, this guy has useful stuff (to me) in his vids(ie why i shouldnt draw a lump sum and stick in an isa)
Need to sort all my lumps out, ones a section 32.....

 
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You know, so long as me and my family are healthy, and I have enough money to keep a roof over my head, clothes on my back and food in my belly I'll be happy.

The best holidays we've had have been the cheapest ones.
 
TheOracle said:
You know, so long as me and my family are healthy, and I have enough money to keep a roof over my head, clothes on my back and food in my belly I'll be happy.

The best holidays we've had have been the cheapest ones.
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100%. Fond memories of our holiday in Florida where we my parents and my brother and I shared a twin room with a coin operated TV and ate KFC most nights to be able to afford the theme parks. By day 5 my Dad had to sell our tickets to Busch Gardens so we could afford to eat the next day :D
 
Martynt74 said:
Disagree, out of all my holidays i preferred the Maldives the most :p
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Oh snap, also 100% :cry:

Although that was a poverty holiday too. We lived on Wagyu beef burgers as they were the cheapest thing on the menu, and exploiting my Hilton Platinum membership for free high-tea and free drinks at happy hour. At breakfast we made sure to pinch enough food for lunch.
 
dLockers said:
100%. Fond memories of our holiday in Florida where we my parents and my brother and I shared a twin room with a coin operated TV and ate KFC most nights to be able to afford the theme parks. By day 5 my Dad had to sell our tickets to Busch Gardens so we could afford to eat the next day :D
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Florida doesn't like a budget destnatio to begin with, what was wrong with Skegness? :D
 
Ah see, now you were at the Hilton so that means it's not poverty. Were you at the one with the underwater restaurant? That place is on my bucket list!

I was slumming it in a Thomas Cook resort. We also got offered a load of free stuff (Boat trips/private meal on the beach) if we stayed in a slightly ropey room (possibly even staff accommodation!) the first night as they'd overbooked the water villas.

Seemed a no brainer since after a 13 hour flight i'm sure we'd have slept on the beach itself! I still remember one couple complaining that they'd even been asked.
 
Martynt74 said:
Ah see, now you were at the Hilton so that means it's not poverty. Were you at the one with the underwater restaurant? That place is on my bucket list!

I was slumming it in a Thomas Cook resort. We also got offered a load of free stuff (Boat trips/private meal on the beach) if we stayed in a slightly ropey room (possibly even staff accommodation!) the first night as they'd overbooked the water villas.

Seemed a no brainer since after a 13 hour flight i'm sure we'd have slept on the beach itself! I still remember one couple complaining that they'd even been asked.
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Sure was. Although I couldn't afford to eat there, so we just had day-time snacks or whatever it was called. Still a hundie each IIRC. I remember being shocked at the cost of the seaplane (£1k each IIRC) and asking for the boat pricing. They said they would happily charter us a boat at £7k :D:cry:

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