Savings in retirement-what do others do

[Warblerinwinter]

I retired about 2 years ago. Then earlier this year ended up divorcing which I hadn’t expected.
We split finances equitably and were fortunate enough to both leave with our pensions intact and “comfortable” and enough cash for each buying a smaller
What worries me is that whilst together we had considerable savings on top of our pensions. So, although we didn’t “save” money out of our pensions we felt secure that we had money for emergencies, new car replacements, kids events (weddings, grandkid arrival etc), and other big expenses for the rest of our lives. I know this is way more than most people have but being in that situation allowed us to retire early
Now I’m separated I don’t have much savings at all. And what I have is all the money I’ll ever have now going forward. It is making me a bit Anxious.. Whilst I’m trying to save around £150 per month form my pension income at that rate it would take me 2 years plus even to pay for a replacement boiler etc. It feels pretty exposing as I’ve not been in that situation for some years, and at the time I was working so there was always the opportunity of increasing my salary etc
So, how much savings do other have in retirement as their rainy day fund as equivalent of months pension or lump sum ? How comfortable or anxious are you with that? Do others fret about this, that any savings are all the money you’ll ever have to cover all your significant liabilities now

What happened to the significant savings you once had with ex Dh? Did you not get half of those?

How old are you, do you have any potential for part time work tosl supplement?

Savings were what we needed to buy 2 smaller homes once family home sold. Included in that were all removal costs, legal fees for those moves and divorce( though we did that amicably and didn’t spend much on j solicitors, 2 lots of stamp duty etc. I then had infected work on new house (sellers lied to solicitors about flooding) etc etc. I have work I knew about to do next year on house relating to roofs. After I pay for that my remaining savings will be very depleted. House turned out to be a bit of money sink. I can afford repairs but my savings will be small and it will take me years to save that back in

I retired early on grounds of ill health, I have some mental health issues . I could work …but I’m trying to gauge on here whether it’s just my anxiety being unreasonable about not having a good saving fund or whether I’m right to worry and will need to find a job…so at this stage I’m just asking

I was talking to a friend about this recently. We were saying that realistically after retirement the expensive years are the first 15 or 20 then after that people find they spend less and less. Partly because you do less, partly because you have most stuff you need...etc etc.

So if you are managing now, and can save a little just to have a buffer, then maybe don't worry too much.

Also if you need to could you find a job somewhere that doesn't involve much stress that gets you out so you aren't paying for heating and gives you a little bit more cash.

I think most people are in this situation whether they work or not ie unable to pay for a new boiler without saving for a few years. Continue saving what you need but realistically once you are in your 70s how much are you going to be travelling, needing new car etc. The most expensive years are now - but these are also your best years so you do need to enjoy them and not worry too much. Are you in receipt of the state pension yet as that will be extra. At some stage you may need to downsize further which would release funds. I know how you feel though - I’m divorced and have no expected inheritance so apart from my salary which I can’t increase this is it for me. I need to work with what I have. Perhaps delay getting the roof done for a few years?

@Feelingoktoday

I think most people are in this situation whether they work or not ie unable to pay for a new boiler without saving for a few years. Continue saving what you need but realistically once you are in your 70s how much are you going to be travelling, needing new car etc. The most expensive years are now - but these are also your best years so you do need to enjoy them and not worry too much. Are you in receipt of the state pension yet as that will be extra. At some stage you may need to downsize further which would release funds. I know how you feel though - I’m divorced and have no expected inheritance so apart from my salary which I can’t increase this is it for me. I need to work with what I have. Perhaps delay getting the roof done for a few years?

I did downsize😳 house prices went mental in May when I was buying …no alternative as neither of us could afford to stay in old house and have enough for other one to buy somewhere. yes our old home sold for more, but we both took a big hit out of savings to make up shortfalls for downsized properties. Literally this is my forever home…not what I imagined for sure and the best of a bunch in the market in May as anything halfway decent got snapped up in days. I am not moving agian unless in a coffin or with dementia to a home 🤣

Thanks for the advice…I never hear of people “running out” of funds in retirement. Yes, majority of OAPs are struggling on state pension and no savings so I know I’m still fortunate…but you just don’t hear much about people’s actual savings vs their pensions and whether folks ran out!

There was a which report as to how much we need in our retirement based on three levels of life style.

@Feelingoktoday

There was a which report as to how much we need in our retirement based on three levels of life style.

Yes, but this is savings needed to draw down pension. This is my point. I have a pension. It is other savings ..the rainy day pot..that is not used for drawing down pension.

Can you get a lodger?

Yes, majority of OAPs are struggling on state pension and no savings so I know I’m still fortunate well that's not neccesarily true though. i recently found out that the in-laws pension earns them a net income which is higher than DH's gross pay. soooo.... there you go.

Planning to take early retirement in 2027 when I will be 58 and OH will be 60.
We have a grear pension between us - both are in education.
We also have two rental properties that we have purchased over the years which we will be selling- one is currently MF and the other one has a couple of years left - we purchased one rental property in 2010 on a 15 year mortgage term. Planning to sell both before our retirement - this should give us a tidy £600k - planning to give DC some money to pay off their mortgages, leaving us with around £400k + plus pension to live on.

Life went a bit wrong for me so my current plan is to work until I hit the age of 67 (health permitting, and employers still employing me).

Im still paying off my mortgage, but my house is too big for me really. So I would like to move whilst I am still fit and healthy (Im early fifties). If I stay where I am and continue with my overpayments, my mortgage will be paid off by my late fifties.

I have job hopped, and had a number of years not working with health issues so I have a number of small private pension pots that currently amounts to about 45k.

I currently have about 8k in a S&S ISA, and £17k in savings. I will not inherit anything.

I won't have a lot of money, and if someone will continue to employ me, and I am still healthy, I may continue working past 67 as I would rather be comfortable financially.

I do buy lottery tickets sometimes. And I like to say 'that's my retirement plan' 😀

This may be because until relatively recently Final Salary pensions were the norm rather that the exception and that a lot of people (including me) have final salary pensions that won't run out.

How do retired people ,make the move from saving to spending? I am 62 still working full time and also now drawing 2 decent pensions. I know can financially retire, but I am still on saving mode and can't make the move psychologly to pull the trigger and retire and start spending money,instead of saving.

I can really relate to this. We are both retiring in the next year, aged 66 and 62. Eventually our pensions will equate to our current salary, but in the bridge years before my state pension kicks in, we will rely on our savings for big holidays, car purchases, big house repairs etc.

We're currently saving £600 per month, and I feel really secure because we can do this. To start drawing from these savings, and knowing that they will never be replaced, is so very scary.

On the other hand, we've just lost a good friend, aged 57 and very sudden. What is the point in having money in the bank?

I took early retirement and have always worked on the assumption that my savings have to last me the remainder of my life and were unlikely to be added to (unless my PB's do better than average!).
My pension comfortably covers my outgoings and in time (another 9-years) the SP will kick in.
Worked PT for a few months which provided a nice bit of additional income but I didn't like the work so took advantage of the fact that I didn't actually need to do it and quit.
My savings are not insignificant but I do have one or two significant purchases lined up (over and above the normal car/boiler/kitchen purchase) but I am sure I will be fine.