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How much monthly do you plan to live off of for retirement?

72 replies

Mamabear12 · 23/06/2019 15:16

I am curious, how much money do people think is okay to live off monthly for retirement. My dh never wants to talk about this and I do not work, so don't know if I will qualify for any money for retirement. My dh makes a good salary now, but his retirement isn't great he says.

So my plan is, we live in a house that has been rented out in the past for 4,000 GBP a month. I assume in 20-25 years, it would increase or lets just say it stays the same, would that be enough to live off, if we move somewhere else that isn't so expensive (currently live in London, but would not want to live here when we retire). We would also have a big chunk of savings in case of a rainy day (lets say a couple hundred thousand, but would not want to use that for living, only for example if we need to if the house is in between being rented a few months etc..or for any extra costs that might happen).

Does that seem like an okay plan? My parents had such a good retirement plan, I feel like we are screwed in retirement as we haven't really planned and these days retirement plans just aren't the same!

OP posts:
Mamabear12 · 23/06/2019 15:17

And also, I get that there are loads that live off far less, but I want to be comfortable in retirement...

OP posts:
MeanMrMustardSeed · 23/06/2019 15:22

As ever, it all depends on outgoings. Many people will need 2k a household to be comfortable, lots live on a lot less and some people will need an awful lot more!
MSE says plan to have half of your income for retirement. Sounds like a good plan to me, although for us that would mean having more disposable income than we have ever had as at the moment all our money goes on the children and mortgage.

TemporaryPermanent · 23/06/2019 15:23

I'm wondering if you a&e in the UK as I've never referred to a retirement plan, I would talk about pensions. So I wouldn't know the legal and financial in a and outs if you're not in the UK (and not much here!)

But one thing I know: 'dh never wants to talk about it' - NO. FUCK THAT.

You need to know everything about YOUR future. What are your shared financial goals? what will your income be? Where are those savings? Are you happy with what interest comes back from that? Life insurance? Death in service benefit? Tax liabilities? Wills?

Don't be one if those women who doesn't know. Get informed.

lifebegins50 · 23/06/2019 15:28

What age are you? What pensions do you both have?

Will you each inherit? 4k a month seems very comfortable. Why not book a pensions planning appointment and get the finance details from your dh if you don't know.

converseandjeans · 23/06/2019 15:31

If you can rent a property for 4K a month that is loads. We live off about 3k a month currently and have 1k a month mortgage. I presume you would be mortgage free. However I would not rely on someone else like that - if you are concerned you need to know what the plan is - but perhaps you should work and save your own pension pot too? Anything could happen - your DH could lose his job, he could fall ill, he could run off with his young secretary etc.... Take control yourself!

LoubyLou1234 · 23/06/2019 15:35

I wouldn't take no for an answer especially as you don't work! Are your finances shared? Are you in the uk have you worked enough to earn a state pension?
I'm 40 so not near enough to say how much we will have as pensions. Mortgage will be gone by 55 hopefully and we have no children. I want to live comfortably and have holidays. We both have NHS or local gov pensions. We will save also and hopefully the state pension too ( we will have worked over 35 years).
We don't earn loads now ( £55,000 joint) but have a comfy lifestyle now.

It also depends what kind of lifestyle you want in retirement?

DramaRamaLlama · 23/06/2019 15:36

I've taken my current income and subtracted mortgage and school fees. The sum left over is broadly what I'll require for a pension.

I don't want to curtail my hobbies/travel/interests as I get older.

RosaWaiting · 23/06/2019 15:43

well what is your state pension forecast? And how close are you to that? I don't expect it to be around by the time I'm pension age.

Also how much do you spend? I live frugally now and expect to spend less when older, but then have to adjust for possible care needs and things like help with cleaning.

suzy2b · 23/06/2019 15:52

All i will be getting is state pension

Knitclubchatter · 23/06/2019 16:03

You need to explain your situation a lot better, and if you don’t know the answer ask way more questions.
Do you outright own the rental that generates 4K a month? What fees come off of that? How many months a year is it vacant? How much maintenance does it need?
Do you own where your currently living? What is your current budget?

AquaPris · 23/06/2019 16:50

£4K a month?!? My sister rents a 2 bed in Leeds for £700.

Of course £4K is enough to live off of - it's triple my salary

Mamabear12 · 23/06/2019 16:53

lifebegins50 I am 36, I don't have a pension, as I don't work anymore. My dh has one, but not sure what it is and it does not sound great. I think I will need to book a pensions planning appointment. That will push dh to give me the info.

converseandjeans we don't rent, we own our house, but it can be rented out for 4k a month (as that is what it was rented for in the past by the previous owners). In a few years our mortgage will be payed off and we also plan to build a basement, so the house will be worth more money and probably be able to be rented out for more money in the future. As for working, I am pregnant with my third child and not planning to return to work for a mother few years and then I will only do part time until the child is older.

LoubyLou1234 we are in the UK and no I only worked for 3 years here, but perhaps if I work more years later I could qualify. I need to look that up...how many years working and amount per year to qualify.

RosaWaiting Ive got no clue. I guess I am lucky in that I have never had to pay attention to my outgoings...which I guess could make things tricky when I retire. However, I have never been a big spender, like some friends, who spend on expensive clothes or bags. I have always had simple tastes. If you ask what we spend a week for groceries, I couldn't tell you. I go to the store daily and buy what I want think we need...we probably waste a lot as well, as a lot of food gets thrown out (I know - bad am I am trying to plan better). At the moment, the only thing I pay attention to for outings, is the amount we spend on cleaner and au pair, as I have to pay them weekly. Although, I feel we waste a lot of money on the cleaner...so am thinking we should probably cut back (3 times a week).

Knitclubchatter, sorry for the confusion, we live in the place that I plan to rent out in the future. In a few years it will be paid off. We would then move to somewhere that is not crazy expensive (we live in London). The house is in good condition, but as with all London homes, something always comes up (a minor leak here or there). We don't currently have a budget. We just spend as we need to. My dh never wants to talk about budgeting. However, we have more then enough, no credit card debt (actually, I have not used a credit card in years, but my dh does, but all paid off). We have a big chunk of savings as well. However, I still worry and like to plan for the future.

His inheritance, if divided fairly amongst him and his brothers would be good. However, his parents always seem to give so much to his brothers and not much to my dh (probably because he is the most successful out of the 3 - one had never worked, depends completely on the parents and is in his late 40s!!!! He is capable of working, but just doesn't). But this also scares me, as it would help if they would be fair and distribute inheritance equally....but to be honest, not counting on it so don't use that in my vision for the future. From my side, I will inherit everything, which includes a house fully paid for and whatever savings.

I guess, what I am saying is, we are incredibly lucky now and very comfortable....however, I worry about the future, as there are no plans really. My plan is to arrange an appointment with an advisor, which will get my dh to think about things.

OP posts:
Singlenotsingle · 23/06/2019 17:00

You are still reasonably young, certainly in plenty of time to start up a pension plan. But you do need to see a financial adviser.

RosaWaiting · 23/06/2019 17:00

it's good that you are worrying

you seem to have no idea what your outgoings actually are!

time to get head out of the sand and start making plans.

Mamabear12 · 23/06/2019 17:40

RosaWaiting yea, I should probably get an idea of spending. I guess, I could look at my debit card, that would be a good indication of what I spend a month...but doesn't help with budgeting, as we just spend what we want. I know when we are older with no income we would not be doing that! We would pay more attention to what we spend on food etc. And that is exactly right, time to get my head of the sand and make plans!

OP posts:
DramaRamaLlama · 23/06/2019 18:44

mamabear12 how can you not know what you spend in a month?

I'm pretty relaxed about spending, I don't budget and tend only to consult DH on big ticket items but even I have a rough idea of how much is going in and out each mth.

Either your DH is earning well into 7 figures in which case funding a pension shouldn't be a big issue or you don't have any visibility over your accounts in which case I'd be concerned your DH is financially abusive.

DramaRamaLlama · 23/06/2019 18:45

Oh and if you really spend what you want and f course £4K is not going to be enough for the two of you to live on unless your naturally quite frugal Confused

DramaRamaLlama · 23/06/2019 18:46

of course

HollowTalk · 23/06/2019 18:48

At the very minimum you should be paying NI so that you get a state pension.

What do you plan to do with the mortgage money when the mortgage on your current house is paid off?

TalkinAboutManetManet · 23/06/2019 18:52

My dh never wants to talk about this and I do not work, so don't know if I will qualify for any money for retirement

I’m sorry but I just can’t get past this.

How do you sleep at night, not knowing what (if anything!) you’ll have for retirement.

What if your marriage breaks down?

Is your husband being honest with you? If he’s a high earner, it doesn’t make sense that he isn’t contributing well to a pension.

smallereveryday · 23/06/2019 19:01

If you get child benefit in your name then your pension is protected through the HRP (home responsibilities plan) ..

lljkk · 23/06/2019 19:06

After rent I know I can get by on £600 a month or so.

choirmumoftwo · 23/06/2019 19:23

Also worth remembering that inheritance is far from guaranteed and may be swallowed up in care fees.

Finfintytint · 23/06/2019 19:32

Are you trying to mini boast here? “We earn so much I’m truly shit at keeping track?”
Don’t be a fucking loon if this is true and start planning for the future properly. If you don’t work then be prepared to be shafted in the future.
Stop playing at being the dumb housewife. You must be better than that.

TheABC · 23/06/2019 19:33

I am slightly stunned that you never plan to work again in your 30s. At the very least, I hope you have some hobbies or voluntary outlets that keeps up the social side of things. Its not pleasant to think about, but it's always worth having a financial plan B in case of death, disability or divorce - a pension for yourself, life insurance for him, etc.

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