Retirement Income Target - do you have one?

[freespeech]

My actual pension is £11800 a year. But I am using £57000 out of my lump sum for 7 years to take my yearly income up to £20,000. I think that is a much better use than blowing it on a new car. This pays my bills (Mortgage paid off ) and gives me £7000 a year for leisure. I also will end up with £10,000 to spend on what ever I want.
Sadly for new entrants, they won't receive the pensions us long term employees have.
I don't intend to work again. Unless inflation becomes excessive and I am forced to do so.
If inflation gets up to 5 per cent, I should be ok. But double digit would be a problem.

I think this could work for a lot of people and I am planning on doing the same. Front loading your income for the years 60-67 when you should be healthy is a way of getting more out of your retirement. Yes, there will be a temptation to buy a new car etc with the lump sum, but I will just have to get into the mindset that it is for monthly income.

Our plan is to do as much travelling and holidays as we can in the period as we both love them. Ideally we want to do a big winter holiday each year to somewhere warm like the Caribbean and then shorter holidays to the uk and Europe in the warmer months. Would love to go island hopping around the Greek islands in summer.

We have not ruled out moving abroad, but I just don’t see it happening.

If you are able to not dip into the LS then this method could also reduce your tax liability if your monthly pension without the LS is above the personal threshold.

[TheStrangler]

As a single person I'm looking at a budget of 1k a month.
66% of that pension, the rest made up from the lump sum.
About 60% of that on bills, rest for small luxuries.
I do have savings which I could use if things get tight.
Last resort would be equity release and as I don't have any dependants it's not such an issue as it would be for some.

[Schiff]

This is an interesting site for working out what amount you will need for various lifestyles in retirement.

https://www.retirementlivingstandards.org.uk/details" onclick="window.open(this.href);return false;