So you are mid Fifties and put on the Scrap Heap... (1 Viewer)

[Minxy]

We live on around £1000 a month / £12,000 a year and that include holidays etc, the only thing it doesn't include is buying cars or motorhomes (ie very large expenses). The problem we have is knowing what to spend our savings on ... after a life time of not doing so it's difficult to do it now!

... and no, I'm NOT looking for someone to spend it for me!

 

[andyman]

It isn't about spending £500k!!

It's about using it to generate an income, whilst maintaining or growing the capital.

But thats not what the OP's question was.
He asked how much money / income to keep you going until you draw your pensions.
I would have thought £25000 ie £25k a year would be more than enough.

 

[CazPaul]

Its the income that's important, you will go through savings like a dose of salts without an income, believe me.

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[chaser]

Its the income that's important, you will go through savings like a dose of salts without an income, believe me.

That's what I always get pulled up about on here, tight , miser , miserable, but when I mention anything to do with money I am only trying to save folks from wasting money on stuff you don't need, believe me I have had to do it all my life, it's the easiest thing in the world to spend money, but the hardest to get it back again, and anyone who isn't earning somewhere along the line is doomed unless they hold back on the spending, when it's gone it's gone , as they say.

 

[Dartagnan]

That's what I always get pulled up about on here, tight , miser , miserable, but when I mention anything to do with money I am only trying to save folks from wasting money on stuff you don't need, believe me I have had to do it all my life, it's the easiest thing in the world to spend money, but the hardest to get it back again, and anyone who isn't earning somewhere along the line is doomed unless they hold back on the spending, when it's gone it's gone , as they say.

Totally agree. Deplete your capital and it is gone forever without funds to replenish it. Spend only the natural yield from your investment or savings and the capital remains in tact.

 

[MillieMoocher]

@chaser and @Dartagnan you are of course right about eroding capatal and when it's gone it's gone.

But the other side of the coin is what's the point in dying with a "big" capital base behind you, having denied yourself some opportunities just to avoid eroding the capital?

Our position is we have no children, I have 1 older sister who has 2 children. So in reality we've nobody to leave anything to, so plan to use the capital rather than leave it to the tax man when the last of us dies.

That's the real problem, nobody knows when that day will be, so some caution should be exercised so you can provide or yourself long term - but then again you could die today.

Our approach is much more enjoy things while we have our health...

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[irnbru]

That's what I always get pulled up about on here, tight , miser , miserable

Funnily enough I do too but to me it's not being tight or miserable it's living within my means, and if that means having more cut cloth than someone else then so be it.

To the OP get rid of all the unnecessary bills and you will find you can live quite cheaply. Sky, broadband, mobile packages etc, there's always workarounds and for me iboost and Fon are one of them.

I'm with @milliethehymer on this.

 

[Minxy]

Totally agree ref capital being 'gone' once you've spent it but so long as we have sufficient to be able to change the camper/car if needs be (not necessarily new and selling our existing ones wouldn't need a massive capital input, just the 'difference to change' amount) and a cushion to cover any unexpected expenses (like finding woodworm in the fl@ming roof!) we don't need a massive amount. Once hubby gets his (reduced) work pension at 60, he'll get just over £17,000 after taking the lump sum so nearly 50% more than we need to live on ... gawd knows what we'll do with it!

 

[Lenny HB]

I've never earnt much, the company I was working for went bump 10 years ago when I was 57, I was only earning around 18K. Best thing that ever happened to me I built up the bit & pieces I was selling on ebay into a part time business, picked up contract work and was earning far more for a few years and only working 5 - 10 days a month. Wife carried on working part time until she was 65 but had one small pension at 55 and another at 60 and I took my small one at 62. Now both 67 living of 24-25k in pensions and a few k from investments. Contract work dried up last year but it was down to 2-4k a year.
Always been very careful all our lives so saved a bit and over the last 9 years managed to afford 3 new Hymers. Managed to give one daughter the deposit for her house & the other one expects the same which we are happy to do.
Last year was the first time since we were young where our expenses exceeded our income by 1k but we did spend over 4 months in foreign parts in the van and 4½k visiting our daughter in Thailand for 6 weeks & gave other daughter 4k towards her wedding (just done the same for other daughter getting married on Saterday).

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[The Wino]

I think the questionhow you want to live assumes you will survive on th estate pension once you can draw it so the money is just to get there.Whether that is enough or not depends on how you want to live!. Buy to lets aren't so good now no facility to reclaim loans to buy against tax and stamp duty on purchase but a good return and probably safer than the stock market we let 2 flats and luckily always occupied and regular payers one for 10 years!. Managment agents are an unecessary expense!. I misread the original quaestion as how much would you nedd to fund the rest of your life to the standard you would like thats a different question!!!

 

[Minxy]

Buy to let residential property isn't as good as it was but the holiday rental market is better as there are more tax 'perks' which is why we bought a couple of lodges which are rented out giving a 8% gross yield!

 

[Infinity31]

It isn't about spending £500k!!

It's about using it to generate an income, whilst maintaining or growing the capital.

That's so true. At the end of July we're coming up to 1yr with no work for both of us. We had £500k in a mix of savings and investments a year ago.
We've spent approx 30K from that in the last year, being careful because it was a leap into the unknown, but still more or less maintaining the same standard of living as previously.
Now our savings and investments are slightly more than the £500k we had originally. Of course the investment side could lose a big %age overnight, but with wise investing that can be minimised.

I'm coming up to 64 and my wife is 60, we both have the prospect of state and final salary pensions phasing in over the next 6yrs, that should provide for us in our 'old age'.
Our savings and a SIPP we can drawdown as and when required will be used to enjoy ourselves while we can, a new van is imminent, as is a trip to New Zealand.

Personally I don't think I would be happy with £300k, it would be doable but would mean compromises in terms of lifestyle.
Our reason for stopping work was that it was getting in the way of all the things we wanted to do, our enjoyment of life, so as little compromise as possible was our aim.

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[Yorick]

It all depends on where you live. In the UK we used to bring in £5,000+ per month and managed OK

But we are now retired in Lanzarote with 5 bed villa. We get by on £1,000 per month. The UK can be an expensive place to live.

 

[mikebeaches]

That's so true. At the end of July we're coming up to 1yr with no work for both of us. We had £500k in a mix of savings and investments a year ago.
We've spent approx 30K from that in the last year, being careful because it was a leap into the unknown, but still more or less maintaining the same standard of living as previously.
Now our savings and investments are slightly more than the £500k we had originally. Of course the investment side could lose a big %age overnight, but with wise investing that can be minimised.

I'm coming up to 64 and my wife is 60, we both have the prospect of state and final salary pensions phasing in over the next 6yrs, that should provide for us in our 'old age'.
Our savings and a SIPP we can drawdown as and when required will be used to enjoy ourselves while we can, a new van is imminent, as is a trip to New Zealand.

Personally I don't think I would be happy with £300k, it would be doable but would mean compromises in terms of lifestyle.
Our reason for stopping work was that it was getting in the way of all the things we wanted to do, our enjoyment of life, so as little compromise as possible was our aim.

Spot on and well done!

Remember, even if there is a stock market crash, provided you sit tight your dividend income will still keep flowing. And if you can be patient (and not panic sell at a loss), your capital value should return in time, and hopefully then grow further.

 

[Rosemary1]

We live on around £1000 a month / £12,000 a year and that include holidays etc, the only thing it doesn't include is buying cars or motorhomes (ie very large expenses). The problem we have is knowing what to spend our savings on ... after a life time of not doing so it's difficult to do it now!

... and no, I'm NOT looking for someone to spend it for me!

I know what you mean - after saving and putting money away for the future - it was difficult and strange to be thinking of spending it. However I have soon got into the swing of it and am going through it quite happily

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[2657]

So 83.6% of polling funsters have higher expectations and presumably more cash than I........wonder how I've managed for 9 years

 

[ufitsy]

Got back from the doctors last night with the news that I have to take tablets for the rest of my life, he only gave me 3. I'll get me coat.

 

[Infinity31]

We live on around £1000 a month / £12,000 a year and that include holidays etc, the only thing it doesn't include is buying cars or motorhomes (ie very large expenses). The problem we have is knowing what to spend our savings on ... after a life time of not doing so it's difficult to do it now!

... and no, I'm NOT looking for someone to spend it for me!

I need some tips Our monthly outgoings for rates, water, gas & electric, TV, tel/broadband, car and van insurance come to about £500/month.

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[Minxy]

I need some tips Our monthly outgoings for rates, water, gas & electric, TV, tel/broadband, car and van insurance come to about £500/month.

Cancel your TV service, and telephone/broadband and replace with cheaper versions! Use less gas and electric and wash less!

 

[irnbru]

Cancel your TV service, and telephone/broadband and replace with cheaper versions! Use less gas and electric and wash less!

I second this.. My sky package plus internet was over £40 per month, mobile package £30 per month. Nowadays its no sky and iboost instead for internet and a £5.50 family friend package from Talktalk for mobile . A saving of £64.50 per month Soon adds up over the year and its easy to readjust.

 

[Silver-Fox]

Im still trying to understand why people want to maintain a large capital.

Is it because they want to leave a lump of cash to their children/relatives?

If not the Government of the day when you pop off will be well happy

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[On the road again]

Im still trying to understand why people want to maintain a large capital.

Is it because they want to leave a lump of cash to their children/relatives?

If not the Government of the day when you pop off will be well happy

That's the 'comfort zone' kicking in.

I retired at 55 and have had some consultancy income until, at 61, I stopped doing that. We live on 18k per year PLUS holidays and have budgeted 20kp.a. for them for the next 8 years. Then. last month, at 64, I bought a MH and dented the capital a bit although, with a drawdown pension, at the moment I have 40k more than I started with and had 2 years drawdown from it.


The 18k includes Sky, broadband, rates, and all living ex's including annual stuff- insurance, HLP, car service etc.

The MH will, of course, add to the annual costs but lower the holiday spend (well a bit!)

 

[Minxy]

Judging by what some people spend on here I need to up my game dramatically ... I've been working out what our income will be next year once hubby gets his pension and it's a hell of a lot more than we expected! I have trouble spending at the best of times as I've never been used to being able to do so other than the odd car and motorhome, no fancy clothes, haircuts, make-up etc ... might have to treat myself to something ... hmmmm ... errrrr ... ooo, I know ... a 'teddy doughnut' ... haven't had one for years ... I used to love biting the legs and arms off!!!

 

[Yorick]

Im still trying to understand why people want to maintain a large capital.

Is it because they want to leave a lump of cash to their children/relatives?

If not the Government of the day when you pop off will be well happy

We're keeping about £300,000 just in case. If we get ill, we go private, no probs. If somebody in our family needs help, the same.

We worked out in 5 years we'll have pensions up and above our property income. But we left the big amount, just in case.

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[Infinity31]

Cancel your TV service, and telephone/broadband and replace with cheaper versions! Use less gas and electric and wash less!

The £30k we spent in the last year was our total expenditure, what 'living' for a year cost us. I only have a TV licence, no package, mobile is PAYG, a couple of quid a week if that but do shower quickly once a day so could save a few pence there.
If you add the £350/month we spend on food/household expenses to the bills mentioned £1000/month would suffice, but that's just existing, we wouldn't leave the house much and the van would sit on the drive

Im still trying to understand why people want to maintain a large capital.

Is it because they want to leave a lump of cash to their children/relatives?

If not the Government of the day when you pop off will be well happy

No kids here and we don't plan on leaving much to the government. As mentioned you need a certain amount as a buffer just in case. If you knew when you were going to snuff it it would be easy to make the last cheque you write bounce.
Realistically at 60 you can expect another 20+ yrs so we plan to gradually diminish our 'pot' while we are fit and healthy enough to enjoy it, then rely on pensions later.

Our problem is the equity in the house we own, full timing is an option we're considering, then we would only the van to leave

 

[MillieMoocher]

Of course one option open to people like us (I.e Swmbo and I, no kids to leave stuff to) is to sell the house when we get to our mid 70's and move to rented (probably sheltered) accommodation. That will give us another pretty big capital injection to pay for the rent and anything else that might happen to us in what realistically will be our last 10 years.

So we sort of look on current capital funds as spendable over the next 15 years, then the value of the house as potentially spendable over the next 10 years. Plus of course pension income from private and in latter stages state pensions.

It's very easy to overlook the capital that's in any house you own but it is releasable at some future point depending on your views towards potential beneficiaries of your estate ( in our case, HMRC)

 

[Infinity31]

Nice one, on a quick calculation I reckon the proceeds from the sale of our house would pay for rented accommodation for over 15yrs

Well worth some serious consideration.

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[mikebeaches]

Im still trying to understand why people want to maintain a large capital.

Is it because they want to leave a lump of cash to their children/relatives?

If not the Government of the day when you pop off will be well happy

In three words, 'Peace of mind'.

It could provide choices for how you spend later life, and not be completely dependent on the state.

There could be medical issues that requires attention, and with the NHS under so much strain...

Having the ability to help family members out if needed.

If either, or both of us, have to go into care, it would be good to have some choice in the type of place in which to live and spend our final years.

It would be nice - if there's anything left - to leave something for the kids and grandchildren.

Nothing in life is certain, apart from death and taxes, so the saying goes... but, ultimately, I guess - whatever the sum - it might provide some personal insurance to try to take care of any eventuality.

 

[Hils and Glenns]

Nice one, on a quick calculation I reckon the proceeds from the sale of our house would pay for rented accommodation for over 15yrs

Well worth some serious consideration.

When my mum had a stroke and needed care, we sold her house and the income from the money paid her rent in sheltered housing and her care. It was a no brainer. No more worrying about the garden and house maintenance and she was well looked after.

 

[andyman]

Im still trying to understand why people want to maintain a large capital.

Is it because they want to leave a lump of cash to their children/relatives?

If not the Government of the day when you pop off will be well happy

I'm with you on this. If you have capital available now that will last until you draw your private and state pension why do some see it as a big issue.
We all save for a rainy day and maybe retiring early and spending it is the rainy day.
We are almost in a position to do the above but the thing I will find hard is actually doing it.

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