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Savings and Investments thread
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Anyone had any experience with Fisher Investments to manage a pension investment. Still 20+ years to retirement but I have hit their criteria for lower fees. I am not impressed with my current Scottish Widows stakeholder pension at present.0
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Definitely the way that it’s written. Now you’ve said it, I can see that the way Gov.uk have worded it does mean you can mix & match.Rob7Lee said:
Not entirely true (or maybe the way it's written?), whilst £20k is the limit you can mix and match, so you can have both cash and stocks and shares as long as you don't exceed £20k between them.TelMc32 said:
The limit is £20k per tax year and you’re limited to one choice per year between the cash, stocks & shares, innovative finance or lifetime allowance ISAs.Athletico Charlton said:Quick one
In one year how much can I put in a cash ISA (£30K I think); over and above this can I also put money into a stocks and shares ISA or is it one or the other?
Ps. Arsenal at 1/4 to finish in the Top4 would have been a safer way to make 25% than Metro I reckon, but well done to those that did!
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I should get a full report from them tomorrow, but will ask for an electronic version too. Thanks for message. Will drop you a note when I get it 👍🏻golfaddick said:
It really all depends on where you are invested. The more you have in Fixed Interest (Bonds) the worse the performance has been. In 2022 the average medium-risk portfolio (say 60% equities & 40% Bonds & Property) fell 10.2%. YTD you'll be lucky to be even. Last week the FTSE100 fell almost 3%.TelMc32 said:
Yep. I get the first year was an extraordinary one, but I haven’t been impressed with this last year. They’ve sent through a raft of recommendations to change, but I’m waiting to speak with her to discuss this further and clarify that big drop in the improvement a couple of weeks ago. I had intended to give them 3 years, but will review that over the next few weeks.Rob7Lee said:That’s crazy. Down 7.5% in 2 years. A FTSE100 tracker would be up 5%!
assume you aren’t contributing? If you are that’s even worse. I’d be changing advisor, or go it alone.
There are some on here like @Rob7Lee who really knows his onions and will trade in & out of stocks/funds and make a profit. Unfortunately, for the masses that is not usually possible as it takes time & a lot of knowledge. So, in essence, I wouldn't take much store by what some people on here say how their SIPP / ISA has performed as they may well be trading a lot more than the average man on the street.
FWIW - I would be interested to see where your pension portfolio is invested & happy to give a bit of guidance as to the make up of it & whether it should have done better than it has.1 -
Other than they always seem to pop up on LinkedIn can't say I do, but any website like that where there fee's aren't shown (I couldn't find them) I'd personally give a wide berth.BalladMan said:Anyone had any experience with Fisher Investments to manage a pension investment. Still 20+ years to retirement but I have hit their criteria for lower fees. I am not impressed with my current Scottish Widows stakeholder pension at present.
Doesn't make great reading, run forest run!
https://www.yodelar.com/insights/fisher-investments-review
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Whilst I’ve not hear great things about Fisher Investments, I would value a Yodelar “insight” about as much as I’d value a blind man’s views on Paint colours. Yodelar are nothing short of a scam outfit. If the regulator had any balls they would have been banned long ago.Rob7Lee said:
Other than they always seem to pop up on LinkedIn can't say I do, but any website like that where there fee's aren't shown (I couldn't find them) I'd personally give a wide berth.BalladMan said:Anyone had any experience with Fisher Investments to manage a pension investment. Still 20+ years to retirement but I have hit their criteria for lower fees. I am not impressed with my current Scottish Widows stakeholder pension at present.
Doesn't make great reading, run forest run!
https://www.yodelar.com/insights/fisher-investments-review0 -
My main question is why are they managing it from the US ? That would put me off for a start.BalladMan said:Anyone had any experience with Fisher Investments to manage a pension investment. Still 20+ years to retirement but I have hit their criteria for lower fees. I am not impressed with my current Scottish Widows stakeholder pension at present.
However, SW Stakeholder is a very basic pension with not a lot of investment choice & a basic annual fee of 1%. If your pension pot is in excess of £100k you'll certainly get a better fee structure elsewhere. So I agree with moving it but not to Fisher.1 -
many thanks for the advice. Any suggestions for providers I should research further?golfaddick said:
My main question is why are they managing it from the US ? That would put me off for a start.BalladMan said:Anyone had any experience with Fisher Investments to manage a pension investment. Still 20+ years to retirement but I have hit their criteria for lower fees. I am not impressed with my current Scottish Widows stakeholder pension at present.
However, SW Stakeholder is a very basic pension with not a lot of investment choice & a basic annual fee of 1%. If your pension pot is in excess of £100k you'll certainly get a better fee structure elsewhere. So I agree with moving it but not to Fisher.0 -
Probably best to look at a platform. I'm biased as my employer "suggests" we use their one (Quilter) but Lifers on here use Hargreaves, Interactive Investor, Best Invest among others.BalladMan said:
many thanks for the advice. Any suggestions for providers I should research further?golfaddick said:
My main question is why are they managing it from the US ? That would put me off for a start.BalladMan said:Anyone had any experience with Fisher Investments to manage a pension investment. Still 20+ years to retirement but I have hit their criteria for lower fees. I am not impressed with my current Scottish Widows stakeholder pension at present.
However, SW Stakeholder is a very basic pension with not a lot of investment choice & a basic annual fee of 1%. If your pension pot is in excess of £100k you'll certainly get a better fee structure elsewhere. So I agree with moving it but not to Fisher.
Platform fees should be no more than 0.25% pa. Then fund charges should be below 1% for a fully funded, multi asset, multi manager portfolio. Of course, you could use a basic tracker fund from the likes of Vanguard (just don't use the Life Strategy 20 fund....eh @Pragueaddick 🙂). But like most things in life, you get what you pay for.1 -
Out of curiosity, do you have magic formula for calculating the right number needed for retirement?Rob7Lee said:
That made me chuckle!! 😂Fortune 82nd Minute said:
Better than a second job!!!Rob7Lee said:out at 57p, for once it was good for the train to be delayed 😂
watch it fly higher now, but I’ll take nearly £5.5k profit in a few days thanks.
My main SIPP seems to be making more than my main job currently, role on retirement!!
This is something I’m giving a lot of thought to right now but seems to be many differing approaches from the material I read0 -
jamescafc said:
Out of curiosity, do you have magic formula for calculating the right number needed for retirement?Rob7Lee said:
That made me chuckle!! 😂Fortune 82nd Minute said:
Better than a second job!!!Rob7Lee said:out at 57p, for once it was good for the train to be delayed 😂
watch it fly higher now, but I’ll take nearly £5.5k profit in a few days thanks.My main SIPP seems to be making more than my main job currently, role on retirement!!
This is something I’m giving a lot of thought to right now but seems to be many differing approaches from the material I readI don't think there's a magic formula as every case is unique - mortgage or not, renting so that continues to be an expense, grown children that you might want to help, grandchildren, and so on. Then there's the lifestyle you've been accustomed to - cars, holidays, eating out etc.... Do you want to cut back on those or maintain them.There was some research done (last year I think so already out of date what with inflation) that suggested annual income for a couple of £20k for minimum, £35k for moderate, and £55k for comfortable retirement.Ballpark figures I've seen is a retirement income of between 55% and 85% of pre-retirement income.3 - Sponsored links:
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Don't know about Magic and there's no one size fits all, but I've worked on the basis that we (wife and I) want 70% of our annual salaries up to age 75 then dropping to 50-60% thereafter with a bit of an increase each year. So just did a spreadsheet on that remembering to reduce private pension at 67/68 or whenever you get your state pension. I have investments outside of pension also and been filling my wife's so her pension especially with state will be double her current salary.jamescafc said:
Out of curiosity, do you have magic formula for calculating the right number needed for retirement?Rob7Lee said:
That made me chuckle!! 😂Fortune 82nd Minute said:
Better than a second job!!!Rob7Lee said:out at 57p, for once it was good for the train to be delayed 😂
watch it fly higher now, but I’ll take nearly £5.5k profit in a few days thanks.My main SIPP seems to be making more than my main job currently, role on retirement!!
This is something I’m giving a lot of thought to right now but seems to be many differing approaches from the material I read
As a SIPP I'll leave invested once in drawdown so also I've assumed a very low rate of growth once retired (1.5%) as will de-risk a lot.4 -
Rob7Lee said:
Don't know about Magic and there's no one size fits all, but I've worked on the basis that we (wife and I) want 70% of our annual salaries up to age 75 then dropping to 50-60% thereafter with a bit of an increase each year. So just did a spreadsheet on that remembering to reduce private pension at 67/68 or whenever you get your state pension. I have investments outside of pension also and been filling my wife's so her pension especially with state will be double her current salary.jamescafc said:
Out of curiosity, do you have magic formula for calculating the right number needed for retirement?Rob7Lee said:
That made me chuckle!! 😂Fortune 82nd Minute said:
Better than a second job!!!Rob7Lee said:out at 57p, for once it was good for the train to be delayed 😂
watch it fly higher now, but I’ll take nearly £5.5k profit in a few days thanks.My main SIPP seems to be making more than my main job currently, role on retirement!!
This is something I’m giving a lot of thought to right now but seems to be many differing approaches from the material I read
As a SIPP I'll leave invested once in drawdown so also I've assumed a very low rate of growth once retired (1.5%) as will de-risk a lot.That's a key point. Many people plan their retirement having a constant income for the rest of their lives (guessing what that will be of course) whereas front loading for the 'golden years' of maybe mid 60s to mid 70s is certainly our plan.Another factor that impacts on the level of retirement income is saving. You spend your working life using a fair chunk of your income for savings, investments and pensions - retirement is for spending those savings! For example, if you are fortunate enough to save 30% of your net income when working that means that on retirement you can cut your income to 70% and maintain the exact same lifestyle.Our plan is that our children inherit property, not cash, because we plan to spend it all!
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Thanks, these are the sort of numbers I’ve heard be mentioned a few times. Trigger for me is a few colleagues retired last year at 55-60. Caught up with them and asked if they regretted leaving work early. Their immediate reaction was, “we left too late” which made me wonder if we actually save much more than needed.bobmunro said:jamescafc said:
Out of curiosity, do you have magic formula for calculating the right number needed for retirement?Rob7Lee said:
That made me chuckle!! 😂Fortune 82nd Minute said:
Better than a second job!!!Rob7Lee said:out at 57p, for once it was good for the train to be delayed 😂
watch it fly higher now, but I’ll take nearly £5.5k profit in a few days thanks.My main SIPP seems to be making more than my main job currently, role on retirement!!
This is something I’m giving a lot of thought to right now but seems to be many differing approaches from the material I readI don't think there's a magic formula as every case is unique - mortgage or not, renting so that continues to be an expense, grown children that you might want to help, grandchildren, and so on. Then there's the lifestyle you've been accustomed to - cars, holidays, eating out etc.... Do you want to cut back on those or maintain them.There was some research done (last year I think so already out of date what with inflation) that suggested annual income for a couple of £20k for minimum, £35k for moderate, and £55k for comfortable retirement.Ballpark figures I've seen is a retirement income of between 55% and 85% of pre-retirement income.2 -
Need a bit of advice, I came into some inheritance recently that I've spoken to a financial advisor and it's now invested through them. It's above the ISA threshold so is split between stocks and shares ISA and a standard investment account.
I'll be getting some more soon and trying to figure out what best to do. I have a workplace pension so is it worth topping that up? A SIPP? Is it sensible to speak to another FA and invest through them just to spread the risk or go through the existing one?0 -
Age, income tax position (i.e. 20/40/45%). Also will depend on overall sums, looks/sounds like you are heavily into Stocks & Shares with the last chunk, maybe consider a bit in cash, premium bonds, make sure you top up your ISA each year. But will depend on overall holdings and what you currently have. Pension is sensible from a tax perspective but again depending on age you are tying up to at least 57.colthe3rd said:Need a bit of advice, I came into some inheritance recently that I've spoken to a financial advisor and it's now invested through them. It's above the ISA threshold so is split between stocks and shares ISA and a standard investment account.
I'll be getting some more soon and trying to figure out what best to do. I have a workplace pension so is it worth topping that up? A SIPP? Is it sensible to speak to another FA and invest through them just to spread the risk or go through the existing one?
Any debts?0 -
Exactly that for me to, I'll help mine onto the ladder but after that have told them to expect half the house when we pop our clogs but nothing else at that point!bobmunro said:Rob7Lee said:
Don't know about Magic and there's no one size fits all, but I've worked on the basis that we (wife and I) want 70% of our annual salaries up to age 75 then dropping to 50-60% thereafter with a bit of an increase each year. So just did a spreadsheet on that remembering to reduce private pension at 67/68 or whenever you get your state pension. I have investments outside of pension also and been filling my wife's so her pension especially with state will be double her current salary.jamescafc said:
Out of curiosity, do you have magic formula for calculating the right number needed for retirement?Rob7Lee said:
That made me chuckle!! 😂Fortune 82nd Minute said:
Better than a second job!!!Rob7Lee said:out at 57p, for once it was good for the train to be delayed 😂
watch it fly higher now, but I’ll take nearly £5.5k profit in a few days thanks.My main SIPP seems to be making more than my main job currently, role on retirement!!
This is something I’m giving a lot of thought to right now but seems to be many differing approaches from the material I read
As a SIPP I'll leave invested once in drawdown so also I've assumed a very low rate of growth once retired (1.5%) as will de-risk a lot.That's a key point. Many people plan their retirement having a constant income for the rest of their lives (guessing what that will be of course) whereas front loading for the 'golden years' of maybe mid 60s to mid 70s is certainly our plan.Another factor that impacts on the level of retirement income is saving. You spend your working life using a fair chunk of your income for savings, investments and pensions - retirement is for spending those savings! For example, if you are fortunate enough to save 30% of your net income when working that means that on retirement you can cut your income to 70% and maintain the exact same lifestyle.Our plan is that our children inherit property, not cash, because we plan to spend it all!0 -
39 40%. Yeah so the plan from the FA is to transfer from the investment account into my stocks and shares ISA each year so that relief is gone. I bought some premium bonds recently but only a small amount so could do that. Just a mortgage no other debt.Rob7Lee said:
Age, income tax position (i.e. 20/40/45%). Also will depend on overall sums, looks/sounds like you are heavily into Stocks & Shares with the last chunk, maybe consider a bit in cash, premium bonds, make sure you top up your ISA each year. But will depend on overall holdings and what you currently have. Pension is sensible from a tax perspective but again depending on age you are tying up to at least 57.colthe3rd said:Need a bit of advice, I came into some inheritance recently that I've spoken to a financial advisor and it's now invested through them. It's above the ISA threshold so is split between stocks and shares ISA and a standard investment account.
I'll be getting some more soon and trying to figure out what best to do. I have a workplace pension so is it worth topping that up? A SIPP? Is it sensible to speak to another FA and invest through them just to spread the risk or go through the existing one?
Any debts?0 -
Unless you are confident in achieving a greater return on investment than your mortgage rate, consistently, then my advice generally is to pay that down. With less monthly outgoing on a mortgage you can then use the additional income to invest/save/top up pension etc or reduce your mortgage term.colthe3rd said:
39 40%. Yeah so the plan from the FA is to transfer from the investment account into my stocks and shares ISA each year so that relief is gone. I bought some premium bonds recently but only a small amount so could do that. Just a mortgage no other debt.Rob7Lee said:
Age, income tax position (i.e. 20/40/45%). Also will depend on overall sums, looks/sounds like you are heavily into Stocks & Shares with the last chunk, maybe consider a bit in cash, premium bonds, make sure you top up your ISA each year. But will depend on overall holdings and what you currently have. Pension is sensible from a tax perspective but again depending on age you are tying up to at least 57.colthe3rd said:Need a bit of advice, I came into some inheritance recently that I've spoken to a financial advisor and it's now invested through them. It's above the ISA threshold so is split between stocks and shares ISA and a standard investment account.
I'll be getting some more soon and trying to figure out what best to do. I have a workplace pension so is it worth topping that up? A SIPP? Is it sensible to speak to another FA and invest through them just to spread the risk or go through the existing one?
Any debts?
An alternative, is max out your pension and take advantage of that tax relief and in 17/18 years time take the cash free element to pay off your mortgage, but that takes some planning and likely you'd only want an interest only mortgage and not without risk as who knows what the pension landscape will look like in 18 years time and you need to consider likely overall pot size. But can be very tax efficient, as I've said a couple of times on here, getting 40% relief on additional pension contributions means in broad terms the government pays off 40% of your mortgage for you.
All in it's about making the best use of what you have, another mortgage consideration could be to switch to an offset mortgage and offset cash savings (inheritance) to either pay it off quicker by maintaining the same monthly payment or reducing payment to keep the same term but have more disposable income.
Lastly, don't forget that you can actually spend some! I learnt from parents/grand parents/in laws that life can be short with them dying between the ages of 41 and 75. So whilst of course it's right to plan on the basis you hopefully live to a ripe old age, don't have regrets in years to come about not doing something you really wanted to.
It's a balance, and a nice problem to have, good luck!8 -
Cheers really useful. And yes very good last point.Rob7Lee said:
Unless you are confident in achieving a greater return on investment than your mortgage rate, consistently, then my advice generally is to pay that down. With less monthly outgoing on a mortgage you can then use the additional income to invest/save/top up pension etc or reduce your mortgage term.colthe3rd said:
39 40%. Yeah so the plan from the FA is to transfer from the investment account into my stocks and shares ISA each year so that relief is gone. I bought some premium bonds recently but only a small amount so could do that. Just a mortgage no other debt.Rob7Lee said:
Age, income tax position (i.e. 20/40/45%). Also will depend on overall sums, looks/sounds like you are heavily into Stocks & Shares with the last chunk, maybe consider a bit in cash, premium bonds, make sure you top up your ISA each year. But will depend on overall holdings and what you currently have. Pension is sensible from a tax perspective but again depending on age you are tying up to at least 57.colthe3rd said:Need a bit of advice, I came into some inheritance recently that I've spoken to a financial advisor and it's now invested through them. It's above the ISA threshold so is split between stocks and shares ISA and a standard investment account.
I'll be getting some more soon and trying to figure out what best to do. I have a workplace pension so is it worth topping that up? A SIPP? Is it sensible to speak to another FA and invest through them just to spread the risk or go through the existing one?
Any debts?
An alternative, is max out your pension and take advantage of that tax relief and in 17/18 years time take the cash free element to pay off your mortgage, but that takes some planning and likely you'd only want an interest only mortgage and not without risk as who knows what the pension landscape will look like in 18 years time and you need to consider likely overall pot size. But can be very tax efficient, as I've said a couple of times on here, getting 40% relief on additional pension contributions means in broad terms the government pays off 40% of your mortgage for you.
All in it's about making the best use of what you have, another mortgage consideration could be to switch to an offset mortgage and offset cash savings (inheritance) to either pay it off quicker by maintaining the same monthly payment or reducing payment to keep the same term but have more disposable income.
Lastly, don't forget that you can actually spend some! I learnt from parents/grand parents/in laws that life can be short with them dying between the ages of 41 and 75. So whilst of course it's right to plan on the basis you hopefully live to a ripe old age, don't have regrets in years to come about not doing something you really wanted to.
It's a balance, and a nice problem to have, good luck!3 -
In my 30 years experience I have found that if you are in a good final salary pension then you should have sufficient enough income to live comfortably.
Certainly all the Doctors I know who retire on c£40k-£50k pa have excess income every month......and thats before they get the State Pension.
I generally find that c£20k annual pension (before the State one) should be adequate enough to live on. Should you want 3 holidays a year then you'll probably need more. But I find most peoples day-to-day expenditure is usually no more than £1k pm. Add in holiday spending money, season tickets & take always then £1500pm is usually well ok.
A lot of people wont have anywhere near this, but I do find many people over estimate how much they do need in retirement & I'm often saying to clients to retire earlier than they plan and to not work until they drop just because they fear not having enough money in retirement.9 - Sponsored links:
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I've started to look at preference shares as an investment element as the yields are up somewhere around 7% for blue chips such as BP, Aviva and RSA. If interest rates are peaking there should also be the potential for a little bit of capital growth, and as far as I'm aware they can be held in an ISA, so a useful diversification.Does anyone have a view on this logic, or indeed buy these themselves?0
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When speaking to the FA they asked my goals and all I had was I want to retire as young as possible. I wish I had a final salary pension.golfaddick said:In my 30 years experience I have found that if you are in a good final salary pension then you should have sufficient enough income to live comfortably.
Certainly all the Doctors I know who retire on c£40k-£50k pa have excess income every month......and thats before they get the State Pension.
I generally find that c£20k annual pension (before the State one) should be adequate enough to live on. Should you want 3 holidays a year then you'll probably need more. But I find most peoples day-to-day expenditure is usually no more than £1k pm. Add in holiday spending money, season tickets & take always then £1500pm is usually well ok.
A lot of people wont have anywhere near this, but I do find many people over estimate how much they do need in retirement & I'm often saying to clients to retire earlier than they plan and to not work until they drop just because they fear not having enough money in retirement.0 -
More savings if you live in a London Borough with the 60+ Oyster card Free transport in London. A third of rail fares. My journey to Heathrow is free on the Elizabeth line.golfaddick said:In my 30 years experience I have found that if you are in a good final salary pension then you should have sufficient enough income to live comfortably.
Certainly all the Doctors I know who retire on c£40k-£50k pa have excess income every month......and thats before they get the State Pension.
I generally find that c£20k annual pension (before the State one) should be adequate enough to live on. Should you want 3 holidays a year then you'll probably need more. But I find most peoples day-to-day expenditure is usually no more than £1k pm. Add in holiday spending money, season tickets & take always then £1500pm is usually well ok.
A lot of people wont have anywhere near this, but I do find many people over estimate how much they do need in retirement & I'm often saying to clients to retire earlier than they plan and to not work until they drop just because they fear not having enough money in retirement.And free prescriptions!2 -
Are those figures gross or net? Single person or couple?golfaddick said:In my 30 years experience I have found that if you are in a good final salary pension then you should have sufficient enough income to live comfortably.
Certainly all the Doctors I know who retire on c£40k-£50k pa have excess income every month......and thats before they get the State Pension.
I generally find that c£20k annual pension (before the State one) should be adequate enough to live on. Should you want 3 holidays a year then you'll probably need more. But I find most peoples day-to-day expenditure is usually no more than £1k pm. Add in holiday spending money, season tickets & take always then £1500pm is usually well ok.
A lot of people wont have anywhere near this, but I do find many people over estimate how much they do need in retirement & I'm often saying to clients to retire earlier than they plan and to not work until they drop just because they fear not having enough money in retirement.
£1k pm day to day expenditure? Really?
Utilities (electric/gas/water/sewage), house and contents insurance, running a small car (with tax, insurance, fuel, servicing), house repairs and maintenance (things go wrong), council tax - oh and food and household consumables! I find that hard to add up to just £1k per month.
I don't disagree that people fall into the trap of working until they almost drop because of fear of not having enough income to retire - when they actually have more than enough, but those figures are just plain wrong.4 -
Your comment “ Remembering to reduce private pension at 67/68” . Yes, this is something I think a lot of people are not aware of. The DB scheme “SPD State Pension Deduction” I will get my state pension from this month.Rob7Lee said:
Don't know about Magic and there's no one size fits all, but I've worked on the basis that we (wife and I) want 70% of our annual salaries up to age 75 then dropping to 50-60% thereafter with a bit of an increase each year. So just did a spreadsheet on that remembering to reduce private pension at 67/68 or whenever you get your state pension. I have investments outside of pension also and been filling my wife's so her pension especially with state will be double her current salary.jamescafc said:
Out of curiosity, do you have magic formula for calculating the right number needed for retirement?Rob7Lee said:
That made me chuckle!! 😂Fortune 82nd Minute said:
Better than a second job!!!Rob7Lee said:out at 57p, for once it was good for the train to be delayed 😂
watch it fly higher now, but I’ll take nearly £5.5k profit in a few days thanks.My main SIPP seems to be making more than my main job currently, role on retirement!!
This is something I’m giving a lot of thought to right now but seems to be many differing approaches from the material I read
As a SIPP I'll leave invested once in drawdown so also I've assumed a very low rate of growth once retired (1.5%) as will de-risk a lot.As a result of this various portions of my LLOYDS BANK GROUP DB pension are now attracting different rates of increase. From a couple thousand at nil, another couple at CPI a remainder at RPI (cap5%). However, what really pisses me off is that the pension itself is reduced by £2053 per annum.
Not sure if this is generic across all DB schemes, but worth being aware of.0 -
We find we need about 3k pm to pay all bills and live as we do. We could certainly cut back on certain things but we don't want to compromise on our lifestyle. Everyone's circumstances are different so there is no real answer. For example we have two dogs and their insurance is about £140pm but we are not going to compromise on that.bobmunro said:
Are those figures gross or net? Single person or couple?golfaddick said:In my 30 years experience I have found that if you are in a good final salary pension then you should have sufficient enough income to live comfortably.
Certainly all the Doctors I know who retire on c£40k-£50k pa have excess income every month......and thats before they get the State Pension.
I generally find that c£20k annual pension (before the State one) should be adequate enough to live on. Should you want 3 holidays a year then you'll probably need more. But I find most peoples day-to-day expenditure is usually no more than £1k pm. Add in holiday spending money, season tickets & take always then £1500pm is usually well ok.
A lot of people wont have anywhere near this, but I do find many people over estimate how much they do need in retirement & I'm often saying to clients to retire earlier than they plan and to not work until they drop just because they fear not having enough money in retirement.
£1k pm day to day expenditure? Really?
Utilities (electric/gas/water/sewage), house and contents insurance, running a small car (with tax, insurance, fuel, servicing), house repairs and maintenance (things go wrong), council tax - oh and food and household consumables! I find that hard to add up to just £1k per month.
I don't disagree that people fall into the trap of working until they almost drop because of fear of not having enough income to retire - when they actually have more than enough, but those figures are just plain wrong.
1.5k pm per person isn't that far off the mark I wouldn't have thought. A doctor however and you'd need to a least double that I'd think.0 -
I agree we can live comfortably on £3k / month (total for both of us), also we could reduce that amount by around £500 if and when we need to, biggest expense is the car (which I’m still for) and food which have escalated a lot recently, heating and lighting also a fair bit but just been informed I’m about £600 in credit which is nice with winter starting,0
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LargeAddick said:
We find we need about 3k pm to pay all bills and live as we do. We could certainly cut back on certain things but we don't want to compromise on our lifestyle. Everyone's circumstances are different so there is no real answer. For example we have two dogs and their insurance is about £140pm but we are not going to compromise on that.bobmunro said:
Are those figures gross or net? Single person or couple?golfaddick said:In my 30 years experience I have found that if you are in a good final salary pension then you should have sufficient enough income to live comfortably.
Certainly all the Doctors I know who retire on c£40k-£50k pa have excess income every month......and thats before they get the State Pension.
I generally find that c£20k annual pension (before the State one) should be adequate enough to live on. Should you want 3 holidays a year then you'll probably need more. But I find most peoples day-to-day expenditure is usually no more than £1k pm. Add in holiday spending money, season tickets & take always then £1500pm is usually well ok.
A lot of people wont have anywhere near this, but I do find many people over estimate how much they do need in retirement & I'm often saying to clients to retire earlier than they plan and to not work until they drop just because they fear not having enough money in retirement.
£1k pm day to day expenditure? Really?
Utilities (electric/gas/water/sewage), house and contents insurance, running a small car (with tax, insurance, fuel, servicing), house repairs and maintenance (things go wrong), council tax - oh and food and household consumables! I find that hard to add up to just £1k per month.
I don't disagree that people fall into the trap of working until they almost drop because of fear of not having enough income to retire - when they actually have more than enough, but those figures are just plain wrong.
1.5k pm per person isn't that far off the mark I wouldn't have thought. A doctor however and you'd need to a least double that I'd think.
If Golfie meant per person in a couple then I agree - but someone living alone would struggle, certainly at £1k pm.
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Yes sorry, I meant as a single person. A couple don't need double though & £2,500 pm is usually ample. Perhaps my clients are just more frugal than the norm.
And these are net figures.0 -
bobmunro said:LargeAddick said:
We find we need about 3k pm to pay all bills and live as we do. We could certainly cut back on certain things but we don't want to compromise on our lifestyle. Everyone's circumstances are different so there is no real answer. For example we have two dogs and their insurance is about £140pm but we are not going to compromise on that.bobmunro said:
Are those figures gross or net? Single person or couple?golfaddick said:In my 30 years experience I have found that if you are in a good final salary pension then you should have sufficient enough income to live comfortably.
Certainly all the Doctors I know who retire on c£40k-£50k pa have excess income every month......and thats before they get the State Pension.
I generally find that c£20k annual pension (before the State one) should be adequate enough to live on. Should you want 3 holidays a year then you'll probably need more. But I find most peoples day-to-day expenditure is usually no more than £1k pm. Add in holiday spending money, season tickets & take always then £1500pm is usually well ok.
A lot of people wont have anywhere near this, but I do find many people over estimate how much they do need in retirement & I'm often saying to clients to retire earlier than they plan and to not work until they drop just because they fear not having enough money in retirement.
£1k pm day to day expenditure? Really?
Utilities (electric/gas/water/sewage), house and contents insurance, running a small car (with tax, insurance, fuel, servicing), house repairs and maintenance (things go wrong), council tax - oh and food and household consumables! I find that hard to add up to just £1k per month.
I don't disagree that people fall into the trap of working until they almost drop because of fear of not having enough income to retire - when they actually have more than enough, but those figures are just plain wrong.
1.5k pm per person isn't that far off the mark I wouldn't have thought. A doctor however and you'd need to a least double that I'd think.
If Golfie meant per person in a couple then I agree - but someone living alone would struggle, certainly at £1k pm.
Not in my (30 years) experience. But then, as I said, perhaps some of my clients are more frugal. And before cost of living / inflation has increased many things. But I see a lot of clients 65+ who have excess income every month & it just builds up in their current account.......until I come along, scoop it all up & put it in their ISA every year.bobmunro said:LargeAddick said:
We find we need about 3k pm to pay all bills and live as we do. We could certainly cut back on certain things but we don't want to compromise on our lifestyle. Everyone's circumstances are different so there is no real answer. For example we have two dogs and their insurance is about £140pm but we are not going to compromise on that.bobmunro said:
Are those figures gross or net? Single person or couple?golfaddick said:In my 30 years experience I have found that if you are in a good final salary pension then you should have sufficient enough income to live comfortably.
Certainly all the Doctors I know who retire on c£40k-£50k pa have excess income every month......and thats before they get the State Pension.
I generally find that c£20k annual pension (before the State one) should be adequate enough to live on. Should you want 3 holidays a year then you'll probably need more. But I find most peoples day-to-day expenditure is usually no more than £1k pm. Add in holiday spending money, season tickets & take always then £1500pm is usually well ok.
A lot of people wont have anywhere near this, but I do find many people over estimate how much they do need in retirement & I'm often saying to clients to retire earlier than they plan and to not work until they drop just because they fear not having enough money in retirement.
£1k pm day to day expenditure? Really?
Utilities (electric/gas/water/sewage), house and contents insurance, running a small car (with tax, insurance, fuel, servicing), house repairs and maintenance (things go wrong), council tax - oh and food and household consumables! I find that hard to add up to just £1k per month.
I don't disagree that people fall into the trap of working until they almost drop because of fear of not having enough income to retire - when they actually have more than enough, but those figures are just plain wrong.
1.5k pm per person isn't that far off the mark I wouldn't have thought. A doctor however and you'd need to a least double that I'd think.
If Golfie meant per person in a couple then I agree - but someone living alone would struggle, certainly at £1k pm.1
