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.

Jesus read the room.

Youll spend far less on work clothes, cosmetics, beauty treatments, daily commuting , meals out etc as you get older. Youll spend more on opticians, dentists, private medicine, house repairs, paying a cleaner are expenses to factor in. Travel in term time is much cheaper and nicer. Yes you'll be able to have a nice lifestyle but it wont always stay the same.

Since only you know your current lifestyle only you can say

the only reliable way is to list all current expenses, allow for inflation, add in all the extras you want and take out all the stuff you no longer need and see if it works

in terms of extras - you have more time so you may choose to fill it - perhaps eating out more

typical retirement is expensive to start with energy to travel and do things , then cheaper as you do less and then more expensive as you need more help in the home and you give up your car for a taxi

people who spend less in retirement typically do less ( some retire to watch tv) or pay off their mortgage with a lump sum and so have less expenses or had crazy commuting and work wardrobe costs that they can lose - if you have an 8k a year season ticket that’s a big saving

I wouldn’t be comfortable retiring with only £20k in savings, I would probably hold off a couple of years to get a bit of a buffer (assuming you’re earning well currently for £43k to be your pension) unless there’s a way to review lump sum vs annual amount?

You need to do a full check on what your current lifestyle is costing you, including day to day bills and annual/irregular spending. How much is your current salary and are you spending it all each month or are you building up savings? If you're currently earning more than £42k and spending it all, then obviously you can't afford to retire and keep the same lifestyle, but you do have options.

Have a look at

Budget Planner: how to manage your money - MoneySavingExpert and if necessary, follow some of the tips to trim your outgoings.

That should help you see whether you need to carry on working or can afford to retire even if it means spending a bit less. Or is downsizing a possibility seeing as you must be in a large and/or expensive property - this would have the dual advantage of releasing equity and reducing your bills especially if you choose somewhere that's well insulated, accessible to amenities etc. What is your preference if you can't retire on your current income? Keep on working or move to a cheaper home seeing as you've said you want to keep your current lifestyle. Could you retire but supplement your income with exam marking, the odd bit of supply teaching etc?

You only have to get through the next few years before your income is boosted by £12k pa at today's prices when you receive the state pension. Whether £20k is enough depends on whether you're adding to it or spending from it. Are you expecting any large purchases like home improvements or car replacement?

I'd not worry too much about numbers on the internet, they can only be very general and might not apply to someone who's already living the lifestyle of a younger retiree. You've mentioned several things that you're already doing, what do you expect to change? More holidays than the three you've mentioned? Could any costs go down? Commuting, clothes, professional fees?