How much do YOU need to retire, right here, right now in the current economic climate ?

[winkie]

7 minutes ago, micawber said:

It's so personal. I only needed half that in order to retire at 51. We're comfortable but don't discretionary spend to excess. The more easily you're pleased - the less you need. Don't forget to factor in any additional sums from downsizing and inheritance.

Will need less than think you will....downsizing doesn't always mean less space, can also mean more space but at less cost.

If now have more time can try to save on fuel and food costs, thus inflation by spending more time in a warmer, open and cheaper place....

It is the small things that matter, the birds, trees, flowers....walking barefoot on grass, sun on back.......open views.....not artificial environments.....staged......fancy foods, definitely not anywhere where someone pours your wine from behind you when least expect it...get off.....

Get me out of here.

[hotblack42]

It's impossible to get consensus on this because many perceive wants as needs "life isn't worth living without.."

Also can be difficult to agree what is essential if a partner is involved..

Roughly £2000pcm indexed

PS we have savings and investments that will cover major occasional spending like replacement car, appliances, beds, property maintenance.  Above figure is just routine ongoing spending on food, energy, clothes, holidays, council tax etc.

Edited April 20, 2023 by hotblack42

[Nomadd]

1 hour ago, micawber said:

I do like the fact that the more you can save for retirement, the less you get used to living on while working, the easier it is to retire early. Get used to living off a retirement level income in the 2/3 years before you pull the trigger.

This^

Retired at 56. Not had a single issue. Loving it. Had been living the "financial lifestyle" I wanted to live in retirement for the previous 10 years as practice. I'd also used those years to max my pension contributions in one last push to achieve my personal goals.

[winkie]

https://www.expressandstar.com/news/uk-news/2023/04/20/future-looks-risky-at-best-for-many-workers-hoping-for-comfortable-retirement/

Only in recent times had to opt out of putting away money into a pension...thousands working for small firms or self-employed have saved nothing or not nearly enough....asked them if putting something away would say yes, asked how much would say £40 a month!!!! That won't give enough to retire on.....this is the situation for so many, they needed the cash at the time, in twenties or thirties retirement is a lifetime away.....now it is here.

 

 

[Sackboii]

6 minutes ago, Nomadd said:

Had been living the "financial lifestyle" I wanted to live in retirement for the previous 10 years as practice. I'd also used those years to max my pension contributions in one last push to achieve my personal goals.

I've been doing the same really. Kids off my hands, settled in their own lives, downsized already (although one final move might happen at some point, we'll see..).

I've never been earing so much as I have in the last 10 years of my career, and at the same time living on increasingly smaller amounts because, well, didn't really need or want anything. As I said above, I'm now at about £1.5k a month total spend over the last 3.5 years, yes some months might be more (book a holiday, repair a roof..) but many others will be less. But that's the average. I'd also been pumping a load into pensions during this time.

Really, I'm 'there'. This is what I've been working towards because I knew it made sense. Now I'm 'here', the doubts creep in.

Good to see what I think I need matches what several of you are happily living decent lives on.

[LivingWithTheInlaws]

I'm 50 and could retire in 5 years, but my employer pays more into my pension the older I get. I think over 55 it's 25% and you can opt to increase it to 30 with a bit of salary sacrifice. So I'm reluctant to miss out on that and I also don't think it does you any good not to be working, unless you can replace it with something else. Instead, I've decided I need to make sure my role at work is comfortable. That I'm not taking on stress and responsibility that I don't need to. I may consider being part time if I find myself still here in my 60s. I also have a bit of work I do on the side which could replace my regular job in retirement.

[longgone]

No way i could retire at 55 i already feel like i have not paid much into the system already. I am hoping to work from 45 to 60 at least. About time i did some actual work 🤣

 

https://www.unbiased.co.uk/news/financial-adviser/one-in-six-over-55s-have-no-pension-savings-yet

[scottbeard]

1 hour ago, hotblack42 said:

It's impossible to get consensus on this because many perceive wants as needs "life isn't worth living without.."

But for them maybe it really isn't?

You can't say objectively that someone is "wrong" to not retire until they can afford to do XXX in retirement.

You also shouldn't look for consensus on this issue - it's an individual decision.  It would be like trying to reach a consensus on whether vanilla ice cream is better than chocolate.  Just eat the one you personally like best.

57 minutes ago, Sackboii said:

Really, I'm 'there'. This is what I've been working towards because I knew it made sense. Now I'm 'here', the doubts creep in.

Good to see what I think I need matches what several of you are happily living decent lives on.

I know people who have retired at all ages from 55 to 75.   The last three people to retire at my work, for example, were 60, 70 and 55.  The only thing all three had in common is that they had all decided it "felt like the right time".

It sounds like your head is saying you mathematically and financially can retire, but your heart isn't sure you want to, which means you shouldn't (yet).  The spreadsheets can tell you whether you CAN retire, but only your heart can tell you when you SHOULD.

[FANG]

1 hour ago, Sackboii said:

I've been doing the same really. Kids off my hands, settled in their own lives, downsized already (although one final move might happen at some point, we'll see..).

I've never been earing so much as I have in the last 10 years of my career, and at the same time living on increasingly smaller amounts because, well, didn't really need or want anything. As I said above, I'm now at about £1.5k a month total spend over the last 3.5 years, yes some months might be more (book a holiday, repair a roof..) but many others will be less. But that's the average. I'd also been pumping a load into pensions during this time.

Really, I'm 'there'. This is what I've been working towards because I knew it made sense. Now I'm 'here', the doubts creep in.

Good to see what I think I need matches what several of you are happily living decent lives on.

I did it 2 years ago and my life has never been better. My only one complaint is that the weeks now fly by. 

It seems like you have trialled tailoring your spending and have enough cash to match your new life style change. 

After working 40 years I just cannot put a price on the time and freedom I have gained and wished that I had done this earlier. 

You could be dead or suffer a life changing illness in a number of years.

So do it now as you cannot get these years back and make the most of them for yourself and your family.

Good luck   

[winkie]

16 minutes ago, scottbeard said:

But for them maybe it really isn't?

You can't say objectively that someone is "wrong" to not retire until they can afford to do XXX in retirement.

You also shouldn't look for consensus on this issue - it's an individual decision.  It would be like trying to reach a consensus on whether vanilla ice cream is better than chocolate.  Just eat the one you personally like best.

I know people who have retired at all ages from 55 to 75.   The last three people to retire at my work, for example, were 60, 70 and 55.  The only thing all three had in common is that they had all decided it "felt like the right time".

It sounds like your head is saying you mathematically and financially can retire, but your heart isn't sure you want to, which means you shouldn't (yet).  The spreadsheets can tell you whether you CAN retire, but only your heart can tell you when you SHOULD.

Very true....for some their work is their worth, who they are and identify with.....some think they would not know what to do with the time ahead of them, maybe a lack of imagination....so often you see people who were once somebody in their job, still act as they are when retired.

[scottbeard]

16 minutes ago, winkie said:

Very true....for some their work is their worth, who they are and identify with.....some think they would not know what to do with the time ahead of them, maybe a lack of imagination....so often you see people who were once somebody in their job, still act as they are when retired.

Or maybe they just really enjoy their job, both for the self-worth it gives and the intellectual challenge.

Why retire and then do crosswords and Su Doku to stimulate your brain, when you can do part-time productive work instead?!

[winkie]

12 minutes ago, scottbeard said:

Or maybe they just really enjoy their job, both for the self-worth it gives and the intellectual challenge.

Why retire and then do crosswords and Su Doku to stimulate your brain, when you can do part-time productive work instead?!

True...... part-time productive work comes in all guises, money earned does not have to be a part of it.....

We all work doing something even posting on here 

So much needs doing...so much work needs to be done.

What is stopping anyone doing voluntarily work or studying something new and interesting?

Yes get it there are those safe in what they know and have always done, nothing wrong with that either....my father worked well into his 80s.....giving up work would have been bad for his health, thankfully he cut down on the hours, purely because of age of body, not mind.

 

[winkie]

Big news....always had respect for AD.....worth listening to.

https://news.sky.com/story/cost-of-living-news-latest-pension-age-may-rise-to-70-conservatory-could-knock-large-amount-off-house-value-12615118

 

https://ifs.org.uk/publications/challenges-uk-pension-system-case-pensions-review

Edited April 20, 2023 by winkie

[Sackboii]

Won't affect me I don't think/hope.

Is there still a plan to increase the age at which to access the pension pots from 55 to 57 by 2028 ?

[Bear Necessities]

My wife's mother died suddenly at 56, father at 72, and my friend's dad died this week at 70.

Also found out this week that an old primary school classmate (who I had long since lost contact with) died a few months ago at the age of 40 and another classmate had a heart attack at 39!

Really puts things in perspective and makes me feel that early retirement (at 55 (or even at 50) when the kids have flown the nest ) is the way forward, to make the most of things.  

Looking at where the state pension age is headed, by the time we are eligible for that it will probably be 70 or 72 at least, so I think I'll have to plan on not getting that and try to make the most of the 20 years before it!

 None of the people I mentioned got that many years out of their state (and some not anything) 😕

 

 

 

Edited April 21, 2023 by Bear Necessities

[JDI]

1 hour ago, Bear Necessities said:

My wife's mother died suddenly at 56, father at 72, and my friend's dad died this week at 70.

Also found out this week that an old primary school classmate (who I had long since lost contact with) died a few months ago at the age of 40 and another classmate had a heart attack at 39!

Really puts things in perspective and makes me feel that early retirement (at 55 (or even at 50) when the kids have flown the nest ) is the way forward, to make the most of things.  

Looking at where the state pension age is headed, by the time we are eligible for that it will probably be 70 or 72 at least, so I think I'll have to plan on not getting that and try to make the most of the 20 years before it!

 None of the people I mentioned got that many years out of their state (and some not anything) 😕

 

 

 

Life experiences make a huge part in decisions like this.

My father retired in his early 50's, and died of cancer at 59.  He said that early retirement was one of the best decisions he made.

My fiancée passed away after a short illness at 40.

As you say, it puts things into perspective.

[scottbeard]

4 minutes ago, Just_Do_It said:

Life experiences make a huge part in decisions like this.

My father retired in his early 50's, and died of cancer at 59.  He said that early retirement was one of the best decisions he made.

My fiancée passed away after a short illness at 40.

As you say, it puts things into perspective.

I'm so so sorry to hear that

I have a similar,ar experience in my 30s losing a girlfriend I would have married

It's awful and it does in time make you far less worried about the smaller things in life andnfar keener to make use of your time

[Bear Necessities]

On 21/04/2023 at 19:08, scottbeard said:

I'm so so sorry to hear that

I have a similar,ar experience in my 30s losing a girlfriend I would have married

It's awful and it does in time make you far less worried about the smaller things in life andnfar keener to make use of your time

 

On 21/04/2023 at 19:03, Just_Do_It said:

Life experiences make a huge part in decisions like this.

My father retired in his early 50's, and died of cancer at 59.  He said that early retirement was one of the best decisions he made.

My fiancée passed away after a short illness at 40.

As you say, it puts things into perspective.

I'm so sorry to hear these experiences you've both had.

I can't even imagine.

[Sackboii]

Also sorry to hear of the above fellow members’ losses.

I’ve not experienced it personally, but a former colleague lost his girlfriend (who he was going to marry) at a young age (she was late 30’s, early 40’s I don’t recall exactly) and I witnessed the devastation that caused.

Personally, I lost my father when he was 72. He was absolutely fit as a fiddle all his life, until a run of feeling ‘under the weather’ for several weeks eventually made him visit his GP. Long story short - cancer - six months later he was gone.

Another thing to add to the list of ‘expenses’ to cover when retired - haircuts. Had my monthly or 6 weekly trim at the weekend. Inflation is ravaging barber shops too…

[winkie]

4 minutes ago, Sackboii said:

Also sorry to hear of the above fellow members’ losses.

I’ve not experienced it personally, but a former colleague lost his girlfriend (who he was going to marry) at a young age (she was late 30’s, early 40’s I don’t recall exactly) and I witnessed the devastation that caused.

Personally, I lost my father when he was 72. He was absolutely fit as a fiddle all his life, until a run of feeling ‘under the weather’ for several weeks eventually made him visit his GP. Long story short - cancer - six months later he was gone.

Another thing to add to the list of ‘expenses’ to cover when retired - haircuts. Had my monthly or 6 weekly trim at the weekend. Inflation is ravaging barber shops too…

Haircuts are one thing you shouldn't have to pay for in retirement......let it grow or get a kindly person to do it for you number 4 all over.

[Bear Necessities]

7 hours ago, Sackboii said:

Also sorry to hear of the above fellow members’ losses.

I’ve not experienced it personally, but a former colleague lost his girlfriend (who he was going to marry) at a young age (she was late 30’s, early 40’s I don’t recall exactly) and I witnessed the devastation that caused.

Personally, I lost my father when he was 72. He was absolutely fit as a fiddle all his life, until a run of feeling ‘under the weather’ for several weeks eventually made him visit his GP. Long story short - cancer - six months later he was gone.

Another thing to add to the list of ‘expenses’ to cover when retired - haircuts. Had my monthly or 6 weekly trim at the weekend. Inflation is ravaging barber shops too…

In the various forums I've lurked on in my life and twitter etc, I've been guilty of a pretty snarky attitude to people (must be why I'm lacking in friends) but I think part of it is the anonymity of people online, seeing them as just some lines of text and not as other human beings.  Posts like yours and those above really drive home that whatever people's personalities and opinions are on here and elsewhere, I would do well to remember that I have no clue what sh*t has happened to them in their lives, and what they've gone through or seen others go through.   I should remember that, although I know I won't and I'll be calling someone a pr*ck a few hours later.  

 

Regarding haircuts.  I'm such a scruffy mess I can easily go 10 weeks without a barber visit.  During lockdown my wife did my hair and I did the kids' hair, dare say nobody noticed the difference. (My wife very wisely wouldn't let me anywhere near hers)

My brother-in-law gets his even cheaper as he's bald, so just bics his own head at home!

[Bear Necessities]

7 hours ago, winkie said:

Haircuts are one thing you shouldn't have to pay for in retirement......let it grow or get a kindly person to do it for you number 4 all over.

Yes that's going to be my strategy. My wife won't let me reciprocate though.