Re: What annual income for retirement?

And some have worked long hours for very little money. Or had sickness or others to care for over the years.

Re: What annual income for retirement?

I think the 2/3rds estimate is what financial advisers tell us, orangutan, but it can only be a very rough guide I think.

I agree that the calculator is basic Grumblewagon but it was one of the most simple I could find. I was surprised to see that the amount for basic living expenses was only £10,000, but that is for one person - it goes up to £14,500 for two people. When I clicked on it and expanded it it did seem to cover quite a lot of costs.

I think at the end of the day even when we plan things they do not always work out as we hope they will. I know several people who saved for their retirement only to find that when they had to buy their annuities they were not nearly as much as had been originally projected. I am sure luck/a measure of good fortune and timing, together with opportunity must be important factors influencing how we find ourselves financially when we are ready to retire. I know we have found that because we don't have the expenses we used to have when we were working, e.g. the responsibility of children, mortgages, etc. we do manage. The only thing is that apart from increases in what they tell us inflation is, what we now have in retirement won't increase very much(unless investments and savings do) and the opportunity to earn more by working has largely disappeared.

Re: What annual income for retirement?

Not on an open forum oragutan.

As I said, I have the figures now and I now that my wife and I will probably wind-down on holidays as we both decided overseas holidays will A, get harder to afford and B, it will become much harder due to arthritis - both of us - and my asthma amongst other things!

Gotta be sensible really so we'll do what we always say we should do and explore the UK a bit more with maybe tours or something easy-going in the near continent rather than the Costa Dorada / Costa Brava, Cyprus, Tenerife or Malta, our favourite places so far.

Quite looking forward to that too but it is such a pity that UK holidays can be as expensive as foreign holidays without the almost guaranteed sun!

I'd just like to say that I think the vast majority of us here have all worked bl**dy hard for about 40+ years but not all of us have had enough at times to put money away and many of us have had relatives to care for etcetera which is always a drain on your finances; we've already had experience of homes for the elderly - money pits all of 'em!

My wife and I have been very unlucky for most of our married life, despite doing everything we could to try to provide a bit extra for our retirement years, but we are happy with our lot now and quite used to budgeting! stevmk2

Re: What annual income for retirement?

Not everyone earns enough to pay the bills let alone save.

Re: What annual income for retirement?

"Some people, not all by any means, have spent their money very unwisely during their younger years".

I don't hink willow is saying that everyone does that - but I know people, too, who could have saved and/or paid more super and didn't and then find it hard to live on a pension. That's not the same as people who have a low income and can't save. And some people are better budgeters and better forward planners than others - we're all very different.

My retirement income is about 2/3 of my previous salary and we live very comfortably, with overseas trips every year. I was lucky - and I understand that not everyone is - I taught in govt schools for 40 years and super was compulsory and taken out of your salary and what you didn't get you didn't miss. I have nothing but sympathy for those people who worked all their lives in low income jobs - every job should be sufficiently well paid for people to have a reasonable retirement.

Re: What annual income for retirement?

As I said SOME, NOT ALL, people spent their money unwisely, then of course I meant it was only SOME. Thanks for pointing that out.

Re: What annual income for retirement?

Is that then your Teachers pension, if so , you also get State pension, £107 per week, or are you not yet a pensioner?

Re: What annual income for retirement?

I'm in Australia so it's a bit different. I meant my total retirement income is 2/3 and I am pension age. My life pension is from 40 years of teaching - I had a few years out to have my children but worked about 40 years out of 45. Here we also get some government pension. It's means tested against your other income based on a proportion of the full pension so I get $200 (£136) a week from the federal govt.

Re: What annual income for retirement?

O K I understand now, think thats a bit bad having your State pension means tested against other income.

Re: What annual income for retirement?

I am in a similar position to Jaywalker but disagree with you on that. Our pension is not contributory the only requirement to get a pension is 10 years residence so it seems fair to means test it.

Even fairer because your house is not counted as an asset and the pension (and lump sum withdrawals) from superannuation is completely tax free. The asset allowances before they start affecting your pension are pretty generous.

I think it is a very fair system