Will £42k a year support my current lifestyle in retirement?

[Nefar]

I live in rural village in home counties, 61 yrs old and thinking about how much I will need to retire comfortably. Looking for personal experiences of other older mumsnetters. Media tools say 45K is suffice ( my pension is currently £42k) but i really want to keep current lifestyle and is this enough? Many people suggest you don't spend as much when retired. I just don't want to retire and then regret it due to financil contraints.

House paid for but band G so council tax so pricey. No debt but I love eating out and three holdays abroad per annum . Single, socially busy and happy to remain so.

Yes, totally agree with you.

Personal experiences only please. Scroll on if you have nothing constructive to offer.

Is that a defined benefit of DC? As in, is income fixed or variable?

I would suggest a larger saving pot for car, house repair and if pension returns take a dip and you need to supplement income.

Do you have any ISAs?

When I considered retiring I looked at how much I spent per month and how much per annum for insurance on car, house, holidays, etc.
After tax on £43K, you can judge the answer.

I got the same sort of shit when I posted a similar thread a few months ago @Nefar How very dare you have so much income.

I’m constantly making lists of standing orders etc. and working out how much should be left at the end of each month. As a pensioner I have no way of increasing my income.

What's your current take home pay and do you spend it all or save some?
What expenses will you no longer have eg commuting costs, professional clothing?
What new costs will you have eg additional hobbies, more travel or socialising?

Its a fairly easy question to answer since you're not planning to change lifestyle.

It is an amount I'd expect a person to live very comfortably on but it depends on your preferences.

Well OP, if you want the same lifestyle then it will cost you the same as it does now and you know the figures.
I know you said you are single but do you have children/grandchildren that you want to gift money to?
My experience and that of my friends is generally that eventually they don’t go up with the cost of living but you will get your state pension in a few years.
I am generally against people taking early retirement. This is because for us, just working a couple of years after retirement did wonders for our finances. We just assume if you work less the reverse is true.

I wondered this too - OP is a teacher according to a post at beginning of Sept.

Ignore the sarcastic comments OP, sounds like you’ve worked hard for many years to achieve your pension. I bet all those negatively commenting are subsidised by the state through Universal credit and will then get a state funded place in a care home in years to come, whilst others like the OP will have to self fund.

Some posters need to remember not to bite the hand that feeds them.

Work out your outgoings. Work out your income. See what’s left to put in pot for savings, holidays and rainy day etc. sorted.

you may want to go to Butlins on holiday or 5* ultra luxury so that element is very subjective.

OP surely you're better off posting this sort of thing in MoneySavingExpert forums? They are more about finances and less ideologically driven than here. Of course the best idea is to pay a personal IFA.

I wouldn't worry at all if that's your expected pension, especially with add state pension. Also, remember that although most people assume they'll be traveling well into 70s and 80s, that is rarely the case due to health issues, etc, so you'll need less in those later years.

If she only has savings of 20K then she won’t be completely self funding - unless of course she owns her own house outright.
I'm surprised that a teacher with that size pension has only managed to save such a small amount tbh. My teachers pension is under half that amount but I’ve saved a 5 figure amount too.

House was paid off 30 years ago. Teaching salary has been my only income for 30 yrs. No grandchildren thusfar- ever hopeful.

£45 K sounds fine to me. You don't have to waste money on commuting, lunches, keeping up your appearance all of which are necessary expenses if you work outside the home. It would depend upon whether you wanted to have luxury holidays, entertain, and so on.

i have slightly more than that coming in PCM from state and private pensions. I also have additional income from side hustles and manage fine. However its fair to say I no longer travel, buy new clothes or entertain. So I don't have to keep up my appearance. The extra money goes on taxis (I don't drive and have regular hospital apts) utilities (I need a warm temperature) private medications and household maintenance. I also pay a cleaner and a gardener.

How much were you earning as a teacher that this sum seems small? That’s what I made before tax as a deputy editor at a multinational newspaper

I don't think it will be enough for 3 holidays abroad. And there will be income tax to pay. Or is that net.

the state pension is going to end up means tested. It’s not possible demographic wise to support it & the cost of public sector pensions.

You will be fine.

We do have a much higher combined income but regardless we spent about that last year as two retirees. Our Christmas and cosmetics outlay is however much smaller. You can go on holiday out of season now you are out of education, we are on holiday now and it is much cheaper plus far less crowded. We went on a boat trip today and saw humpback whales, had dinner out and went to a bar for a quick after dinner drink.

For someone with a mortgage paid off years ago my one comment is that your pot of savings is very small or is it just your emergency fund and there is another stash.

Wow!!

I'm sure you'll scrape by OP ;)
( I'm just jealous) x

I got retired early because of ill health (50 years old). I've got a fairly nice bank balance too. I currently take home 3k. Its okay. It wouldn't do you for a 5* holiday but it's fine. I'll be better off when I get the state pension.

Could you do without the botox?!

DH and myself are basically retired, and we're living on his pension of £2,200pm. No mortgage/rent, but this covers all bills, groceries, running car, clothes, gym/exercise classes, we're into UK mini breaks so have 4/5 a year and 2/3 x a week will have coffee/cake out or lunch.

First time in 18 months, we took £14k out of savings to cover new car and a holiday abroad. We're not worried about this, as I still have a mini pension to take and when we get our old age pensions, we're going to have a large excess for us which we can save.

I guess you or DH will have a lump sum at some point on retirement, which can be added to savings as a back up. All you need to do is add up how much you spend on everything and see if is comes in below £42k.