Income in retirement

[gymgoals2024]

If you are retired, eat well, have some inexpensive hobbies, travel lots as cheaply as possible abroad, keep fit, what is your annual income?

Approximately £70pa. I don't need or use this much money to live on though. I gift money to my 3 DC. My DH has separate finances. He's retired too since the end of March. He has approximately £39kpa. We go on two overseas holidays each year. 1 of those holidays is usually a 14 day cruise. We have a holiday home in France we go to a couple of times a year too. We have to pay taxes on the French house. We paid our mortgage off on our UK house. We eat out 2 or 3 times a week. Often it's just a pub lunch or a breakfast out. We are not extravagant people. Our car is old. Our hobbies are watching cricket so we have a county membership. We have National Trust membership we go on days out. DH has an annual cinema pass. We will occasionally have a spa day but haven't been to the fpa together yet as DH only just retired. We save quite a bit of money. I suspect both DH and I could live quite well on £50k between us.

This is a useful example
https://www.retirementlivingstandards.org.uk/

I've kept a note of my basic expenditure for the last few years in preparation for retirement, and it's easily under £20k in total for just DH and me (although our actual expenditure has been much higher, with two student children to subsidise).

This base level includes running a couple of cars and having a few weekends away. This is low because we don't drink, don't buy many clothes and have an allotment so we eat well, but food costs are low. We also enjoy doing our own DIY. Then there would be occasional capital costs to factor in, like a new car.

I suggest you do a spreadsheet of your expenditure so you can work out how much you'd need, as we're happy with very little. We live cheaply, but just one expensive meal out every week would mean our costs would shoot up massively! Plus do you want a pet?

Doesn't really matter what other people spend it's your expenditure that's important. Write a list of your living costs, bear in mind that people tend to spend more in the early years of retirement and taper off. You will also spend on different things, less on work clothes and commuting for instance. You cut your coat to fit your cloth.

I think this gives a realistic view of how much it might cost in various scenarios. You also need to consider if you have rent or mortgage to pay or not because that obviously makes a huge difference. You can go on cheaper holidays out of school holiday dates.

Funnily enough I've actually worked this out today wondering if I can afford to run a campervan. Ive added up all grocery spends for a year, utilities, internet, TV licence, car costs. Of course a lot depends on your house/car etc. I'm 3 bed mid terraced and small newish car and outgoings for the year, excluding holidays as I haven't been for years, was approximately £12,500. That is feeding three adults as two of my sons living with me at present.

@caringcarer thats helpful thanks.

Joint pension of 70k (plus interest from investments), we eat well and eat out a lot, expensive hobbies (golf and posh spa memberships). Over half the income goes on holidays plus we still have adult DC at home. We could definitely have a really fab life on half that amount.

Is that including all your bills and running your car? That's incredible! I spend about 12k a year just on food for 2 adults! I need to look at where to economise.

Why do people feel the need to share details of their affluent lifestyles?

I honestly think , even if I was loaded, I'd avoid saying too much for fear of upsetting others.

We have 26 K a year. Sounds a lot, goes nowhere.

The OP asked the question and people answered it from their own perspective. If you find that ‘upsetting’ then, respectfully, either develop a thicker skin or don’t look at social media.

I expect you are right, Thanks

On £15k and no mortgage I run a v modest car, have gym membership, go on modestly priced evenings out about once a week, go camping, go on a cheap European holiday about twice in 3 years , buy clothes (high st not designer) when I need to. I eat fresh food but don’t do big shops in M&S. I have cinema membership for free and cheap films and use Friday rush and seat filling sites to get cheap theatre tickets.

I have premium bonds and other modest savings to fund new boiler / next cheap 2nd hand car. Had new roof 2 years ago so hope this one will see me out.

I worry about heating bills once I get older and frailer and feel the cold. Last winter I had the heating in for 1 hour in the morning and 2 max in the evening and managed without in the day.

I have a busy happy life.

Wow- most can only dream of such a vast amount to retire on. I imagine very few get more than what most get in full time work. It’s reassuring to see that others have retired on far,far less and can have a happy, fulfilled and contented life.

Friday rush and seat filling sites to get cheap theatre tickets

I need to wise up to these and also the Meercat cheap cinema scheme.

Money sure as hell isn't everything and you realise that more and more as you age.
I enjoy yoga, playing music, swimming. All modest costs. Its the winter that does for me unfortunately.

I am a little way off retirement but have been saving since I was 23 and saw my grandparents spending every winter in the sun!
I read something interesting the other day about retirement spending being a U shape, higher in the early years when you're hopefully fit and out-and-about and higher if you need care costs at the end, then somewhat lower when less mobile. I'd projected it flat but I really don't need to factor in the costs of having a horse when I'm 80 so need to put a bit more planning into it!

Saving, a wonderful idea. Hindsight is so annoying.

@Lemonmeringue76 yes that's all bills including car tax, insurance, petrol but car and house are owned outright. I don't skimp on food, ( too many years when they were little struggling to make ends meet to do that now i can afford it)! I get large ocado delivery with m & s meat & fish (and fair bit of wine🤪) plus anything my two sons request once a month with all the heavy stuff, then top up shops at asda as walking distance. About £6k per year for three adults (I still write everything down so know that's correct, old habits die hard🤭) so I don't know what you are spending £12k a year on for two unless your having lots of takeaways and ready meals in that, i do cook from scratch including bread/cakes/sauces but we like quality and my sons drink loads of fresh juices/smoothies/bottled water and some craft ales for that too. I'd try writing everything you spend down for a month or two and see where its all going💐

State pension is now around £12k pa if you have full qualifying years.

If you can get another £8k - £10kpa from other sources then that should see you ok.

Obviously you wont be able to drive anew car every few years or go abroad 3 times a year, but can still live a decent life on a net monthly income of £1500pm.

Really depends on what you are used to & what you expect.

Great, helpful post.