Pensions Planning: The NUMBER

A question about : Pensions Planning: The NUMBER

The NUMBER is how much income you need to live comfortably
So What's your number?
Very important for pensions planning, to know what you are aiming for.

My Number? (for a couple)
I calculated: Ј22,000
based on
Food Ј5,000
Car/transport Ј5,000
Bills/Utilities Ј4,500
Holidays/Leisure Ј4,500
Clothing/Cash/Xmas/Other Ј2,000
Repairs/replacements Ј1,000

Best answers:

• What about the cost of your home. Rates, water, power, TV, phone, ins? Good for another Ј5k.
• QUOTE "Whether it'll happen or not, I'll tell you in 35 years. We won't be typing into keyboards then I suspect!"
  PLEASE tell me now... my financial planning spreadsheet says I will not be here in 35 years time! (...and I follow it religiously)
  Pleased we all agree....so far....
  (Thanks for your reply on household costs...spot on!)
• Your number will be different depending on where you are in life.
  For me, the number is around Ј2700-Ј3000 per month after tax, and having my property paid for. It is also completely before my private pension plan becomes accessible in a few years later, hopefully adding another Ј1500 per month income to the pot.
  But, of course, for me this won't be about retiring in the UK. It will be in Thailand.
• My figure tapers down from a larger income in the early years of retirement when I'm more active to the latter years when I'm slowing down. Given that I won't have a mortgage, pension payments and work related expenses but will have all the other expenses such as council tax, insurances, vehicle expenses, utilities (some of which will be more expensive if I'm at home more), I think the first 10 years of retirement would require 2/3rds of my current salary, tapering down to 50% of my current salary for the next 10 years and moving down to 25% on my current salary as I quietly approach death.
• That is a key question Gatser and one that I have been pondering for a while...now that we are debt free, mortgage free and dependant free it is time for us to give very serious attention to the Retirement Question. Pensions have never seemed so interesting!!!
  I have been keeping very detailed budgets and accounts for the last couple of years so I know that our current requirements for a comfortable lifestyle is Ј20k per annum. That sees us living our current property, running a small car, and motorhome (and associated holidays in it) plus pocket money, presents etc.
  I recently did a review of our finances and reckon that if I can carry on working and saving for another ten years we'll have enough to retire. Not sure I can stand it that long, so I'm aiming for a frugal five years of saving to make it even quicker - bit like those guys over on MFW and DFW. I did think of posting a "Retire 10 years early thread" but its a bit serious over here on the pensions board.......
• Still have not got the foggiest. My current statement states as it stands when i retire in 29 years (though more likely 32) i will have a pension of Ј9500 a year plus a lump sum from my AVC of Ј20000 plus the state pension on top if that still exists in the year 2042 (I won't hold my breath). Mortgage should be paid off by then etc and aim to be debt free so who knows that maybe enough. Im just concentrating on as much as possible with realistic targets. My contributions should increase each year as should my AVC contributions. Im paying in Ј9 a week on my AVC and my first main target is to be paying Ј20 a week into it by the time im 35 in 4 years.
• My number based upon my current investments is NOT Enough. I have created a plan to increase my pension contirbutions by an average of 3% a year by natural wage inflation and pumping up my AVC yearly by a five spot each year. I currently pay Ј13pcm but this will be going up to Ј20 next summer, then the additional fiver annually.
  The minimum aim is to have at least Two-thirdsof of my income as a pension on retirement plus various other savings/investments.
  I am not banking on a state pension to suppliment this either.
• What does this refer to please?
• totally agree Harry.
  If more folks maintained a "Lifetime spreadsheet", they could see how their spending / saving / pensions were progressing and test this against their "NUMBER" to see if they were on target.
  Sadly....most just leave things until its too late to do anything about it, or (worse) do no planning whatsoever and just spend! (head in sand policy)