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How much do you need for comfortable existence in retirement.

Discussion in 'General Discussion' started by newbiejim, 13 Sep 2021.

  1. EddScott

    Sgarrista

    Joined: 18 Oct 2002

    Posts: 8,536

    Location: Pembrokeshire

    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.
     
  2. Kreeeee

    Man of Honour

    Joined: 13 Jul 2004

    Posts: 43,864

    Location: /* */

    Just to expand on this:

    In retirement you won’t be saving towards your retirement. I save a bit over 50% of my income each month towards early retirement, so I only need to withdraw just under 50% of my current earnings to have the same real spending power in retirement that I have now.
     
  3. robj20

    Capodecina

    Joined: 9 Apr 2007

    Posts: 10,797

    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.
     
  4. Psycho Sonny

    Caporegime

    Joined: 21 Jun 2006

    Posts: 37,821

    Don't need to accuse you. I have quoted it above for you.
     
  5. PermaChanged

    Mobster

    Joined: 19 Jan 2006

    Posts: 4,120

    Yet still say "loose" over "lose" :( - https://forums.overclockers.co.uk/posts/33461294/
     
  6. booyaka

    Capodecina

    Joined: 19 Jan 2006

    Posts: 13,992

  7. Bald-Eagle22

    Wise Guy

    Joined: 30 Mar 2007

    Posts: 2,307

    Location: Essex

    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 .
     
  8. SexyGreyFox

    Man of Honour

    Joined: 29 Mar 2003

    Posts: 53,038

    Location: Stoke on Trent

    After tax I get around £1000 a month and when I retire I'll get way more than that.
     
  9. dirtychinchilla

    Capodecina

    Joined: 2 May 2011

    Posts: 10,548

    Location: Woking, Surrey

    Sorry to hear that
     
  10. dLockers

    Sgarrista

    Joined: 21 Jan 2010

    Posts: 7,637

    Savvy enough to have secured themselves a decent retirement, but still puts a baffling space before full stops.
     
  11. nine_tails

    Hitman

    Joined: 7 Mar 2015

    Posts: 903

    Rent -free ? I think £2-3K a month to feel secure. I could really get by under £500 tbh if i cut out all the things i like.
     
  12. ianh

    Soldato

    Joined: 12 Jul 2007

    Posts: 6,109

    Location: Saudi and occasionally Stoke.

    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).
     
  13. newbiejim

    Mobster

    Joined: 22 Jun 2004

    Posts: 2,553

    Location: South Scotland


    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.
     
  14. Martynt74

    Capodecina

    Joined: 20 Feb 2004

    Posts: 17,358

    Location: Higher Walton

    You've not seen my parents eating/drinking out spending then :p
     
  15. Freddie1980

    Sgarrista

    Joined: 25 Sep 2009

    Posts: 7,613

    Location: Billericay, UK

    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.
     
  16. HACO

    Wise Guy

    Joined: 6 Oct 2009

    Posts: 2,294

    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.
     
  17. dirtychinchilla

    Capodecina

    Joined: 2 May 2011

    Posts: 10,548

    Location: Woking, Surrey

    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.

    No intention of judging your lifestyle, but £5k seems like an awful lot of money to have assuming no mortgage etc.
     
  18. HACO

    Wise Guy

    Joined: 6 Oct 2009

    Posts: 2,294

    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.
     
  19. dirtychinchilla

    Capodecina

    Joined: 2 May 2011

    Posts: 10,548

    Location: Woking, Surrey

    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.
     
  20. HACO

    Wise Guy

    Joined: 6 Oct 2009

    Posts: 2,294

    I'm guessing £1000 a month, plus a £10k excess/deductible is what it would cost for people in their late 70s and 80s.