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How much do you need in savings to feel comfortable?


sugarfree
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[quote user="sugarfree"]

Why do you think it's a wind-up?  I'm genuinely curious what other people think is a good level of savings for THEM.  Not for myself.  As has been pointed out, no one can possibly make that kind of assessment for someone else because there are too many unknown factors.

Forgive me if I'm being nosey (I am) but since this is all anonymous, I didn't think people would mind giving a ballpark figure. 

[/quote]

Is any forum truly anonymous?  I am often amazed at the amount of personal information some people give away [blink]

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[quote user="sugarfree"]

Simon, I'm not asking for a 13-year projection.

Forget about me.  Just tell me what you personally consider a good level of savings for yourself.

I realise this is terribly nosey but what can I say?  I'm female.

[/quote]

Very personal question sugarfree, you now have some numbers, that's it is it not?

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[quote user="sugarfree"]

Moved back to Ireland where I'm currently working as a reflexologist.  Nice work, but not very highly paid, I'm afraid.

 

[/quote]

I'm sure George Tron would be happy to give you some hard figures.[6]

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What an utterly futile question.

How can a certain fixed level of savings at a certain point in time make you feel comfortable or uncomfortable? Your savings are just one part of an equation that involves your income, your outgoings, your investments, how well insured you and your possessions are, etc, etc, etc. If I had 20 euros in the bank and I was pretty confident that I would never need to take it out because I lived very simply, was insured up to the eyeballs and was in a position be able to add to my savings each year, I'd be comfortable with that. If I had 200,000 euros in the bank, but this time last year I'd had 250,000, and all gone on day to day living with no prospect of bringing the figure back up, I'd be very uncomfortable indeed.

You say you have a good pension, is it enough to live on? Will you be able to put a bit aside? Only you know that sort of thing so only you can answer your question meaningfully, it is pointless asking people who may be in a different boat altogether. It's not hard, you just need to guess how many years you will have left, work out how much you will spend per year, make a list of one-off expenses you might need to cover during your lifetime, add on a chunk in case you go ga-ga and need nursing care, and that's the answer.

Charles Dickens:

"Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery."
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There seem to be some very waspish people out there today!

It seemed to me a very sensible question to ask others' opinions on, if you're contemplating such a major step at some point in the future. OK it's difficult to answer, and everybody's circumstances are different, but there's no harm starting the thought processes now for a move in 13 years' time.

I did a 30-year projection before we moved to France (courtesy Excel spreadsheet) to make sure we could survive, or at least know what could de-rail us. After 15 years, last time I checked we were 30% down on savings (thanks to the stock market since year 2000), but very close on income and better (lower) on cost of living after 15 years inflation. We're currently contemplating a move back to UK for family reasons which b*****s the figures somewhat!

When you see some people who move out having no idea how they will make a living after 12 months, surely we shouldn't criticise someone for thinking well ahead?

Good luck to the OP.

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The original question sounds like a tax man/woman who thinks they may have missed something, snooping about peoples financial situations. Don't forget folks it's not unknown for the "licenced muggers" to read shop notice boards to see who is doing a bit of gardening on the side.
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I think that to be able to answer your question in a meaningful way you need to say:

1) How much will your pension be?

2) How much money do you have in savings?

3) Do you own your own house and what is it worth?

4) What is your current annual expenditure?
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It depends if you gamble much on things like poker or have expensive habits - know what I mean...

In France 20k per annum buys a reasonable life for two, 30k would be nice, 40k enjoyable, 50K reasonably luxurious, 100k would nearly buy some happiness, 250k getting interesting, 500k you might be better moving to Monaco or Switzerland.

I reckon I could live happily with a tent on 5k a year. You pays yer money and takes yey choice.

I reckon if you spend to much time thinking you will never do anything! It is better to have lived and lost than never to have lived at all.

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I retired at 51, with possibly (according to actuaries) another 35-40 years to live, and no prospect of earning more serious money. Why wouldn't I think 30 years ahead? You would be a fool not to - but then again there are plenty around!

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[quote user="Mikep"]I retired at 51, with possibly (according to actuaries) another 35-40 years to live, and no prospect of earning more serious money. Why wouldn't I think 30 years ahead? You would be a fool not to - but then again there are plenty around!
[/quote]

Just because some people have a different outlook on life, the future and risk to yourself why do you think they are fools?

I stepped off the merry go round 7 years before you did, I dont call it retirement just a change of lifestyle and would never be so down-beat as to say there is no chance of earning further money, serious or otherwise. Why would you want serious money when you have already walked away from it?

I did next to no planning, financial or otherwise, I just said to myself well I have a fair bit by my modest standards, that should last for a while, if it doesnt then I will find a way to top it up, truth be known if I had done the calculation I would have realised that I fell short of realising my ambition by a huge amount, would not be here at all and still in the UK on the consumerist treadmill so whilst it is your perogative to consider people like me  fools I for one am proud to be one.

My savings are now well below my comfort level and whilst I am not going to divulge the amount to the world I reckon it is far less than what most others would wish to maintain, it would only take a couple of things to happen to turn things upside down but hey-ho thats life and I dont forget that the majority of people live the whole of their like this without far fewer options than I have, when people enquire I just laugh and say that I will start worrying when I am down to my last million [:D]

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[quote user="kimg"]it all depends upon when you are planning to die
[/quote]I have no plans to die but I know I will some day. So just now I concentrate on enjoying each day I have in good health so when I am older and not so well I will have a rich store of happy memories
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[quote user="Chancer"]

[quote user="Mikep"]I retired at 51, with possibly (according to actuaries) another 35-40 years to live, and no prospect of earning more serious money. Why wouldn't I think 30 years ahead? You would be a fool not to - but then again there are plenty around!
[/quote]

Just because some people have a different outlook on life, the future and risk to yourself why do you think they are fools?

I stepped off the merry go round 7 years before you did, I dont call it retirement just a change of lifestyle and would never be so down-beat as to say there is no chance of earning further money, serious or otherwise. Why would you want serious money when you have already walked away from it?

I did next to no planning, financial or otherwise, I just said to myself well I have a fair bit by my modest standards, that should last for a while, if it doesnt then I will find a way to top it up, truth be known if I had done the calculation I would have realised that I fell short of realising my ambition by a huge amount, would not be here at all and still in the UK on the consumerist treadmill so whilst it is your perogative to consider people like me  fools I for one am proud to be one.

My savings are now well below my comfort level and whilst I am not going to divulge the amount to the world I reckon it is far less than what most others would wish to maintain, it would only take a couple of things to happen to turn things upside down but hey-ho thats life and I dont forget that the majority of people live the whole of their like this without far fewer options than I have, when people enquire I just laugh and say that I will start worrying when I am down to my last million [:D]

[/quote]

I stepped off the treadmill in 1987, two or three years younger than MP and next year will celebrate the 25th anniversary of loafing around and also the 15th anniversary of residence in the land of amoral immorality.

As to actuaries I dont bother. I just take 100 as probable snuff out time. If I do make it till then I hope to be still capable of parking up a laden Kenworth Truck on the point of maximum horizontal flexure on the Millau Viaduct before bidding a final farewell.

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What started my 30-year thought process was that I wanted to retire from IT consulting (too old at 50), the company pension was apparently quite good, but the pension was then fixed for life - not even CPI annual increases. If I had retired 35 years earlier in 1960, on what was then a decent pension (say, £1,500 per year), would it still be keeping us in 1996 with no intervening increases?

You can either think it through, or go on blithely not caring. I preferred to attempt the former, but I failed to allow for the damage that 12 years of Gordon Brown could do.

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[quote user="pachapapa"] If I do make it till then I hope to be still capable of parking up a laden Kenworth Truck on the point of maximum horizontal flexion on the Millau Viaduct before bidding a final farewell.[/quote]

As you'll no longer need the Kenworth, would you be good enough to leave the keys in the ignition?

Secondly, are tickets available for this momentous event?

[:)]

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Life has far too many unexpected opportunities that come along that if you were to have everything planned out you would never be able to profit from them, I know many people that not only plan their days/weeks to the minute but years even decades ahead.

I am the other extreme, I would find it completely oppressive to think that my future is mapped out either by myself or others, I have kept smiling and sane through some of the worst contract jobs by the thought that they were not likely to continue long into the future, often they did but it was the belief that each day might be my last that kept me sane.

I try to keep this spirit throughout life, my planning is done twice a day, in the morning and the afternoon, no further ahead than that apart from appointments etc, 99% of the time I only buy single ferry tickets, I may only intend staying 2 or 3 days but I would rather choose to return when I feel ready than know I have to meet a self imposed deadline, mind you that could explain why I am 6 years into a 2 year job!!!

And people still ask me the dumbest of questions like "what is your deadline?" or "when do you think you will be finished?"

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I've just thought of another way: keep your house in the UK and let it out. Then you will have the rent to live on, and the capital in the house will be your savings.

You will have to pay tax on the rent in the UK, but if the money was in the bank you would have to pay tax on the interest anyway.

You will also have the sense of security of a bolthole in the UK if things go wrong in France.

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[quote user="Salty Sam"]

[quote user="pachapapa"] If I do make it till then I hope to be still capable of parking up a laden Kenworth Truck on the point of maximum horizontal flexion on the Millau Viaduct before bidding a final farewell.[/quote]

As you'll no longer need the Kenworth, would you be good enough to leave the keys in the ignition?

Secondly, are tickets available for this momentous event?

[:)]

[/quote]

You will be informed on Artificial Intelligence under the pseudo Rumpelstiltskin.

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[quote user="Chancer"]

Life has far too many unexpected opportunities that come along that if you were to have everything planned out you would never be able to profit from them, I know many people that not only plan their days/weeks to the minute but years even decades ahead.

I am the other extreme, I would find it completely oppressive to think that my future is mapped out either by myself or others, I have kept smiling and sane through some of the worst contract jobs by the thought that they were not likely to continue long into the future, often they did but it was the belief that each day might be my last that kept me sane.

I try to keep this spirit throughout life, my planning is done twice a day, in the morning and the afternoon, no further ahead than that apart from appointments etc, 99% of the time I only buy single ferry tickets, I may only intend staying 2 or 3 days but I would rather choose to return when I feel ready than know I have to meet a self imposed deadline, mind you that could explain why I am 6 years into a 2 year job!!!

And people still ask me the dumbest of questions like "what is your deadline?" or "when do you think you will be finished?"

[/quote]

Have I ever said[:)]

Get some of it finished and ready to go.

That would work minor miracles with:

your discounted cash flow

                                        internal rate of return

                                                                         and present value

Oh! What the hell! Why worry![:D]

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