An excellent and sensible coverage of the issues! The important thing is to separate out essential costs and luxury costs. The former are all day-to-day living costs, shortage of which would affect your daily living. The latter are both a) one off and b) optional. e.g. a luxury holiday. You can then adjust the latter to meet your desires and means without impacting on daily living. Much depends on if you own your home- costs are much higher if you do not. Personally, my wife and I live in a 3 bedroom house (we downsized to a finisher home) in Southern England and run two cars on ~£12Kpa. That is our base costs. We could live that way, and largely have for the last year under the pandemic. Normally holidays alone come to (much) more than that! But they are optional- if a financial catastrophe happened we would not be in crisis. Actually my state pension alone covers base costs, so my wife's would ensure some luxuries... Interestingly that base cost has not changed for 14 years. Inflation? What is that? Our state pensions have gone up >= 2.5% each year, our costs have not. There are opportunities in retirement that one has the time to activate... The important thing about saving is the learning to live on less money that entails. It reduces your on-going costs, and therefore you pension savings needs. Win-win.
It’s really interesting that your base cost has not moved for the last 14 years!!! It completely flies in the face of all references to inflation and the need to maintain purchasing power etc... Thanks for the kind comment!! 🙏🙏
@@EdmundBaileyUK I know. I have tried to analyze it, but it all moves about- some things increase year on year (e.g. Council tax - but downsizing reduces that) but others disappear entirely (e.g. business suits). And other things last longer. The total has remained remarkably constant. If you examine the way inflation is calculated, it is clear that it does not just cover the increase in costs of what you buy, but includes the extra things you start buying as your income increases. Indeed, it has to- otherwise over time it would be increasingly irrelevant to actual costs. But when you retire, you have usually reached a level of spending that remains constant (at least for essential goods) and other things (spending time with the grandkids) interest you, but do not cost money. And you have a lot more time to make and mend rather than just buy- and gain pleasure from that. There are those that will doubt me- I can only assure them that I have tracked my financial life accurately since 1991 (thank you, Excel) and the figures do not lie.
Those numbers look about right. I live on my own with no debt with yearly outlay of £12100 (lockdown) and £13800 out of lockdown with 55% going to salary sacrifice. This also means I hardly pay any tax and NI. Salary sacrifice is the only reason I am still working, just turned 56 and might do a couple more years, a very informative RUclips channel.
Thanks GDC! Salary Sac is a great way of getting contributions into pension especially where the employer pays in the full NI saving as well. 55% is an impressive amount into pension!! 👍
Really enjoyed you're Steve Webb interviews he seems very genuine, I think you're channel is a great help to many people (including me) by focusing on issues the way you do - thanks again.
Thanks GDC!!! I very much appreciate that and yes Steve Webb was incredibly knowledgeable and really seemed to care about the work he done and putting in place a scheme that was as fair as possible. He really did seem to actually care!!
Thanks so much Helena!!! 👍 Yes I wasn’t sure whether to add it or not and whether it would impact on views and that the income would be worth it... but I thought maybe I could use any money towards making better content...? Hope all is well with you!
@@EdmundBaileyUK I hope you get good RPM and CPM rates, mine are quite good I think. Need to factor in the income tax on the earnings though! Views did get impacted with ads playing but not too much really. I'm hoping to be able to afford to improve my lighting with ad revenue and always trying to improve content too - hard juggling family and full time job though isn't it. I really liked this video, it was very clear.
Oh wow, so true about juggling YT with family and work life... definitely been times where I have questioned the practicalities of doing this stuff but I find it quite addictive and still enjoy it!! I think as soon as it becomes too much, I don’t enjoy it or the views really drop off I’ll keep going. That’s interesting about the ads!! I think views are down a lot since the end of last year so it could be seasonal. Thanks for the kind feedback!
Caught the 'essential lifestyle' itemized costs at 7:57. How can anyone spend £2,424 on insurance? All my insurances last year cost £517, and that is with 2 cars- hardly essential. And when you retire, new clothes are optional- you probably have enough to see you out. This list was clearly compiled by someone who is not retired...
Thanks for the comment Mike! Yes I’d agree that looks far too high, over asked for a copy of the breakdown of the research and categories but it’s probably unlikely they’ll share it. The only way I can see how you can get to that level of insurance is with private medical... but clearly that makes no sense at the ‘essential’ level. I could see how property and car insurance could get someone to £1k... but over £2k requires much more than that... life insurance is a possibility but again not sure how essential that would be for someone retired with no liabilities etc.
@@EdmundBaileyUK Yes, they probably worked on averages- but when you are retired your driving mileage drops and it it is SD&P only. But people insure all sorts of stuff that does not need it. Test drove an iPace last week, and they wanted to sell me six insurances (tyre, wheel, etc) totalling £3,700! Agree that few retired people have dependents, so do not need life insurance. Your investments should cover any liabilities anyway...
Hell Eddie I have a pension pot of 340k & a separate one at 120k iv been told I can't combine them together & I'm lost my job how can I get the best return if I cash it in plse I'm 59yrs old & worried if I do cash it in it won't last long all my family history is they live till in there 90s
Sir am thinking about taking a taxable sum from my pension plan but I receive universal credit and working part time what exactly will happen to my monthly payment it would be a one off payment apart from paying the tax
Thanks so much for watching! 👍 ⭐ If you found this useful or if it helped you in anyway and you want to support the channel you can do so using the 'Super Thanks' button above! See you next time!
That seems a very big annuity income of £26k on just £250k pension, especially if indexed as you said. Maybe the figures are for a 67 year old smoker with heart issues.
Thanks! Yeah the detail provided by ‘Which’ on their assumptions isn’t great but it assumes two state pensions at £16k. Therefore the drawdown is £10k.
I take home about 2400 a month Live on 1200 a month And save 1200 a month The 1200 a spend a month is roughly 120 gas and electric 120 council tax 50 internet 35 water 25 insurance 10 Netflix 120 food 50 fuel 25 car insurance ect 50 a.month into jar for annual holiday abroad Bla bla bla Get clothes for Xmas and birthdays never buy any I could live very very well if I had a pension of a grand a month
An excellent and sensible coverage of the issues!
The important thing is to separate out essential costs and luxury costs. The former are all day-to-day living costs, shortage of which would affect your daily living. The latter are both a) one off and b) optional. e.g. a luxury holiday. You can then adjust the latter to meet your desires and means without impacting on daily living.
Much depends on if you own your home- costs are much higher if you do not.
Personally, my wife and I live in a 3 bedroom house (we downsized to a finisher home) in Southern England and run two cars on ~£12Kpa. That is our base costs. We could live that way, and largely have for the last year under the pandemic. Normally holidays alone come to (much) more than that! But they are optional- if a financial catastrophe happened we would not be in crisis. Actually my state pension alone covers base costs, so my wife's would ensure some luxuries...
Interestingly that base cost has not changed for 14 years. Inflation? What is that? Our state pensions have gone up >= 2.5% each year, our costs have not. There are opportunities in retirement that one has the time to activate...
The important thing about saving is the learning to live on less money that entails. It reduces your on-going costs, and therefore you pension savings needs. Win-win.
It’s really interesting that your base cost has not moved for the last 14 years!!! It completely flies in the face of all references to inflation and the need to maintain purchasing power etc...
Thanks for the kind comment!! 🙏🙏
@@EdmundBaileyUK I know. I have tried to analyze it, but it all moves about- some things increase year on year (e.g. Council tax - but downsizing reduces that) but others disappear entirely (e.g. business suits). And other things last longer. The total has remained remarkably constant.
If you examine the way inflation is calculated, it is clear that it does not just cover the increase in costs of what you buy, but includes the extra things you start buying as your income increases. Indeed, it has to- otherwise over time it would be increasingly irrelevant to actual costs. But when you retire, you have usually reached a level of spending that remains constant (at least for essential goods) and other things (spending time with the grandkids) interest you, but do not cost money. And you have a lot more time to make and mend rather than just buy- and gain pleasure from that.
There are those that will doubt me- I can only assure them that I have tracked my financial life accurately since 1991 (thank you, Excel) and the figures do not lie.
Really interesting Mike 👍
Great content, thank you, I just wish my own financial advisor was as open as this and explained things. Perhaps I need a change!!!
Thanks so much for the kind words Andy!! Very much appreciated!
Those numbers look about right. I live on my own with no debt with yearly outlay of £12100 (lockdown) and £13800 out of lockdown with 55% going to salary sacrifice. This also means I hardly pay any tax and NI. Salary sacrifice is the only reason I am still working, just turned 56 and might do a couple more years, a very informative RUclips channel.
Thanks GDC! Salary Sac is a great way of getting contributions into pension especially where the employer pays in the full NI saving as well. 55% is an impressive amount into pension!! 👍
Really enjoyed you're Steve Webb interviews he seems very genuine, I think you're channel is a great help to many people (including me) by focusing on issues the way you do - thanks again.
Thanks GDC!!! I very much appreciate that and yes Steve Webb was incredibly knowledgeable and really seemed to care about the work he done and putting in place a scheme that was as fair as possible. He really did seem to actually care!!
Congrats on getting monetized! Great video and so important for people to realise how much they need for retirement.
Thanks so much Helena!!! 👍 Yes I wasn’t sure whether to add it or not and whether it would impact on views and that the income would be worth it... but I thought maybe I could use any money towards making better content...?
Hope all is well with you!
@@EdmundBaileyUK I hope you get good RPM and CPM rates, mine are quite good I think. Need to factor in the income tax on the earnings though! Views did get impacted with ads playing but not too much really. I'm hoping to be able to afford to improve my lighting with ad revenue and always trying to improve content too - hard juggling family and full time job though isn't it. I really liked this video, it was very clear.
Oh wow, so true about juggling YT with family and work life... definitely been times where I have questioned the practicalities of doing this stuff but I find it quite addictive and still enjoy it!! I think as soon as it becomes too much, I don’t enjoy it or the views really drop off I’ll keep going.
That’s interesting about the ads!! I think views are down a lot since the end of last year so it could be seasonal.
Thanks for the kind feedback!
Another gr8 video Edmund ..keep up the good work .
Thanks 🙏 Really appreciate that!
Caught the 'essential lifestyle' itemized costs at 7:57. How can anyone spend £2,424 on insurance? All my insurances last year cost £517, and that is with 2 cars- hardly essential. And when you retire, new clothes are optional- you probably have enough to see you out. This list was clearly compiled by someone who is not retired...
Thanks for the comment Mike!
Yes I’d agree that looks far too high, over asked for a copy of the breakdown of the research and categories but it’s probably unlikely they’ll share it. The only way I can see how you can get to that level of insurance is with private medical... but clearly that makes no sense at the ‘essential’ level. I could see how property and car insurance could get someone to £1k... but over £2k requires much more than that... life insurance is a possibility but again not sure how essential that would be for someone retired with no liabilities etc.
@@EdmundBaileyUK Yes, they probably worked on averages- but when you are retired your driving mileage drops and it it is SD&P only. But people insure all sorts of stuff that does not need it. Test drove an iPace last week, and they wanted to sell me six insurances (tyre, wheel, etc) totalling £3,700! Agree that few retired people have dependents, so do not need life insurance. Your investments should cover any liabilities anyway...
Great video make me to understand how much I have to pay every month on my ages a single person and my lifestyle. Thanks
Thanks so much!! 🙏 It’s great that it’s helped you!
Thanks for the kind words.
Keep this type of content coming, v useful 😎👍🏻
Love that comment Phil!! Very much appreciated and hope this finds you well! 👍
Hell Eddie I have a pension pot of 340k & a separate one at 120k iv been told I can't combine them together & I'm lost my job how can I get the best return if I cash it in plse I'm 59yrs old & worried if I do cash it in it won't last long all my family history is they live till in there 90s
Sir am thinking about taking a taxable sum from my pension plan but I receive universal credit and working part time what exactly will happen to my monthly payment it would be a one off payment apart from paying the tax
Could you explain the term “banding” when used by companies for working out their contributions to employees pensions?
Yeah sure, sounds like a workplace pensions video! Thanks for the comment.
@@EdmundBaileyUK I think it’s called banded earnings.
Edmund
As per the PLSA weblink, are those figures given gross ?
Thanks PM!! They are net.
@@EdmundBaileyUK Wow, so your talking approx £40k gross.....that's more than I'm on now,.,lol
Great Videos btw
@@Project-Masculinity thanks 🙏. Yeah its far more achievable when in a couple and there are two state pensions available and two personal allowances.
Utilities may need a update :)
Thank you.
Thanks 🙏
Downsize , thats it, if pension pot not enough. Else move to country where your money works harder. If your flexible, anything is possible
Thanks so much for watching! 👍
⭐ If you found this useful or if it helped you in anyway and you want to support the channel you can do so using the 'Super Thanks' button above!
See you next time!
That seems a very big annuity income of £26k on just £250k pension, especially if indexed as you said. Maybe the figures are for a 67 year old smoker with heart issues.
Thanks Mark. This includes two full state pensions as well I believe but I’d have to go back and check the video!!
I dont uderstand how one can get £26,000 a year from a £154,700 drawdown for 30 years ??? I am missing something ??
Same. Very confused and not explained very well.
Thanks! Yeah the detail provided by ‘Which’ on their assumptions isn’t great but it assumes two state pensions at £16k. Therefore the drawdown is £10k.
thanks for clarifying...if you know where to get that projected grow for a fund do let us know
I take home about 2400 a month
Live on 1200 a month
And save 1200 a month
The 1200 a spend a month is roughly
120 gas and electric
120 council tax
50 internet
35 water
25 insurance
10 Netflix
120 food
50 fuel
25 car insurance ect
50 a.month into jar for annual holiday abroad
Bla bla bla
Get clothes for Xmas and birthdays never buy any
I could live very very well if I had a pension of a grand a month