Do you think 2k a month is enough to live off for the next 40yrs?

[Rheese]

If you don't need to pay a mortgage but you have all the expenses of running a house/repairs etc, plus car. Could you live comfortably off 2k a month for the rest of your life? Today 2k is a lot but in 20 or 30yrs time it might be peanuts. I am not entitled to the state pension so this will be all I have. I know I could live frugally off this but I don't want to be frugal for forever more, I'd like to be comfortable.

I don't really understand planning to spend the next 40 years without employment. Are you fit and well? Can you work (part time maybe) for another 10 years?

How are you invested? Cash? Look at the 4% rule.

You need to tell us more about the £2k, where it's coming from?

Is it currently a lump sum you can invest so the money can hopefully grow and keep pace with inflation? Or something else?

How old are you and do you have money that you could pay into a pension to take advantage of tax relief?

Why are you not entitled to the state pension and is there anything you can do to change that such as buying added years?

With energy bills reaching £800 per month and climbing, I sadly think not

I don't think so in 20 or 30 years time, could live on it now.

Genuine question - how are your bills £300 pm? Council tax, gas, elec, water, broadband?

Yes, but I'd put £500 in a pension so in 20 years time you'd have an income for the last 20 years

Where is the money now? And how much?
Lump sum / trust fund / inheritance?
Depending on how much, you can invest it to give an income and beat inflation. Tricky time to invest now though if you need it in the short term,
I wouldn’t be comfortable just eroding capital over 40 years (though, again, depends on how much you have to start with).

No.

You could manage on that today, and probably for another 15 years, but unless you have this money from investments that will match the cost of living your capital will be sorely depleted. You will not be able to live on this amount in 30 years time.

It's the equivalent of having 1/4 of this amount in 30-40 years time. So the £2000 a month would be the equivalent of £500 a month now. Could you live on £500 a month now? If no, the £2000 won't be enough in 30-40 years.

Get good investment advice for long term shares and bonds and increase your capital. You can draw down an income when you can no longer work.

My father had £375k in stocks and shares and had an extra £20k a year income from this to top up his pension. There are lots of ways to do this.

Find good financial advice.

It'll be worth a hell of a lot less near the end of 40 years than it will at the beginning??

Genuine question - how are your bills £300 pm? Council tax, gas, elec, water, broadband

Us (after recent price rises)
Council tax: £105
G&E: £170
Water: £40 - we could lower this if the pipes were suitable for a meter, but they're not.
Broadband: £38 - we could do it for less but it's for fast fibre broadband and a landline as we can't make phone calls on the shit signal in our house.

Total so £353 pm and we could cut it down if we didn't have high end broadband, was a bit more careful with utilities, got a water meter and presumably the PP is a single person, so would pay less council tax.

We also pay about £20 pm for two mobiles and usually have one or two of Now/Prime/Netflix but we always have a deal (except Netflix, which I've never seen available) so it's usually only an extra tenner a month.

If you're careful with the basics it leaves more left over for general living and nice things.

For myself, my tween and two dogs I have three budgets. Scraping by (£1400 pcm. No luxuries for me and very few for my child) Just About Managing (£1900. Most of what my kid wants, a few small luxuries for me. Some emergency savings, but no pension contributions, big gifts or holidays) and Living (£2700 a month. Includes some spending money for me, a bigger budget for Christmas and birthdays, some pension contributions and a cheap holiday) but it doesn’t include any big ticket items like house repairs or upgrades, new cars or sofas or anything)

It’s after tax, includes running a (fairly expensive to run) car which is owned outright and a smallish mortgage of £360 a month).

I’d say no, unless you can guard against inflation. Probably just enough if you can, but not necessarily a contented retirement.

As you get the older and can’t manage the house, garden, laundry, cooking and need a bit of help how would you manage.

Why won't you have a state pension? And when are you retiring? Where is the £2K a month coming from?

Do you have a partner? Will they have a pension?

I have an income currently of £1400 pcm £900 of that is occupational pension which is index linked. £250 is ESA as I remain unwell. I receive £250 PIP also. Next year I turn 66 and will get my state pension of £185 a week but ESA will stop. This will leave me with almost £2000 a month. Since all inflation proofed I am happy with that. I understand there is something of an amnesty at the moment where you can now purchase additional years NI contributions. Not sure how long that lasts.

You will do it comfortably today but you need to find a way to Inflation proof your funds. In 10 or 20 years time you will struggle.

Our essential bills are about £300.

3wildones, does that include council tax, running a car, water and fuel?

It depends on outgoings etc. You’d have to live quite frugally, I’d think.

Council tax, gas, electricity, water & phone/Internet. Not running a car as I don't.

Same here. Council tax is £90 (band A, single person discount) energy bill is £140 (just increased from £70), water is £30, TV and internet package £68. Just under £300pm. With mobile phone bill added it's £330. Don't own a car.

That doesn't necessarily happen with everyone. My elderly grandfather is capable of doing all that himself.

Well if Pension Credit still exists in 40 years time, you might be OK, but * wouldn't count on it!

It depends how you want to live out your retirement. Exist and watch every penny, or have a life and the freedom to go on holiday, treat yourself and others etc
I think 2k per month seems on the low end. My retired parents says they need 2.5k now and they don't have lavish lifestyles.
Plus the unknowns of how much prices will go up and how will you cope with the unexpected bills, eg. boiler needs replacing.
If you're in a position to work a bit longer and/or generate some more income that you could put in an ISA etc, it may be a good idea.

Is the £2k a month provided from drawing down on a SIPP or other investment? To get £2k a month you'd need to take out £24k a year and I think the current recommendation for this type of scheme is to draw down 5% a year. So you'd need a fund of about £480k. The theory is that you withdraw once a year, then leave the lump to grow again ready for the next year.
If it's not important to try to leave inheritances for family you may wish to wind the actual investment down by taking more.
Remember that as we age our spending choices - our optional expenses - are likely to decrease, those like clothes, holidays, social engagement, club memberships. But some may rise such as electricity, heating, TV services as we spend more time at home.
And no-one is guaranteed 40 years of retirement. We just have to take a chance that we'll get a few decades.