The way I see it, someone earning 50,000pa is quite likely to be 'putting away bewteen 200 and 1,000 per month depending on the life style they chose to lead and their short/medium term intentions (i.e. if they are looking to retire soon they may well decide to put away the max they can) so could well be living on the same net income as someone on 30,000pa who is spending it all.
Whilst this is what I do, so it is possible, many of the people that I work with, doing the same as me, complain that they can't make end's meet. Once you get into the mode of buying a new BMW each year you come to expect the new BMW each year.
(I have never owned a BMW).
tim
"Chris Blunt" wrote
There is no "need" for anyone to continue any particular lifestyle. That's just a *wish*, certainly not a *need*.
The person on 20,000pa could *wish* to go into retirement with a pension of 15,000pa, just as much as the person on 30,000pa wishes to!
I have never owned a BMW either, but I have had a few as company cars. (I do miss them)
Tim wrote
I suppose we were both on fairly comparable salaries, and I see what you are getting at! OTOH, people tend to 'live up to' their salaries, and usually have greater responsibilities, or more expensive tastes, and would not want to take a greatly reduced life-style in retirement. I haven't really given up anything which mattered, although holidays have less attraction for me. Chores done, every day is a holiday.
However, many people are very keen to travel when they retire. That can be expensive.....
Oops! I replied in the same vein before I read that.
"tim (back at home)" wrote
Hey! You're ok! ;-) Neither have I. I have one daughter who is childless, and doesn't understand what keeping a tight budget is!
A spell of raising three children with a wife who was a full-time mother taught us a lot about budgeting!
Not necessarily. A friend of my Mum went to SE Asia and Australia for a year just after she retired, she rented her house out while she was gone and reckons the rent plus the saving on utility bills & council tax paid for the entire cost of her trip!
As long as she isn't giving ear-ache to younger people whose taxes are paying for her pension credit, but who won't be entitled themselves until they reach 68!
Andy Pandy wrote
Fair enough, but remember we helped pay for their education. I'm not going to get into a generation war here, I have enough trouble from my own kids!
I'm sorry we are all living too long..... ;-)
Right - but the previous generation would have paid for her education and got no pension credit at all. The current generation of pensioners does pretty well out of the system, compare to the past and probably the future...
Fairy nuff, I understand the point about means testing - when you've contributed and end up no better off than those who pissed their money up against the wall. Blame that moron Brown who's obsessed with means testing - god help us if he becomes PM.
Yes....
I dont want strangers in my house, and I would prefer to go places for a month or two at a time....
Doesn't Gordy have plans to allow them to take control of houses left empty? And don't forget insurance likes your house to not be left alone for more than a month usually.
Unless you get the tenant from Hell.
tim
Yes, but not in a case like this.
tim
You misread what I wrote. I said the higher amount of money is what someone would "need" in order to maintain their lifestyle (assuming they would want to). I didn't say they necessarily had a "need" to maintain that lifestyle, which is how you interpreted it.
Chris
I sold the house and now live permanently in SE Asia. I reckon my living costs are between one third and one half of what they would be in the UK for the same standard of living. The income from the money invested from the sale of my house means that I don't need to do a day's work for the rest of my life, and I have the satisfaction of knowing that not a single penny of it goes to subsidising council flats for single pregnant teenagers back in the UK.
Chris
"Chris Blunt" wrote
No, I properly read what Gordon wrote. I was replying to Gordon's post where he said: "much discussion amongst colleagues of a practical disposition produced a consensus that you need
50% of your *gross* salary as disposable retirement income..."mogga wrote
I would like to make it quite clear that this Chancellor has no plans to take over empty houses at this time. (However, thanks for the suggestion).
Agreed, it's what I intend doing!
So can buying clothes. It can also be very cheap.
In my Mum's friend case she rented it out to a student she knew well who was doing an MA, who sublet to a couple of friends.
The point was that her travel wasn't at all expensive - the equivalent of renting a house with bills.
Me too. But it is quite possible to end up spending less money per day while on holiday than you would if you were back home - for instance last time I was in SE Asia it was easy enough to get by on 25 a day between two of us, that's with good accomodation, eating out most nights, and all the touristy stuff. Of course you can spend 250 a day if you want to....
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