How much (monthly) would you consider enough to live on while retired

[Alton Turner Blackwood]

Chatting about this with someone at the moment and I thought it'd make an interesting topic.

If all your expenses were paid for (house, car, etc) how much would you need to survive on a monthly basis. For the sake of convenience - and since it varies so much from person to person - lets exclude things like security, alarm company, etc.

Lets assume this is your pension and or retirement annuity you're living from. And you already have money saved up over the years for your annual trip overseas

 

[loc]

With no bond/car and excluding things like insurance/ADSL etc - I guess around 4000 a month

 

[satanboy]

... And you already have money saved up over the years for your annual trip overseas

Only rich and stupid people do that.

 

[Garson007]

All your expenses are paid for? How does that work...

I'd need more than I earn right now. I'd wager R20k would be enough if I owned all the assets I use on a daily basis.

 

[Alton Turner Blackwood]

Oops, I see I didn't add a figure for myself in the OP

I think, together with my wife I wouldn't need more than 10k a month

 

[Alton Turner Blackwood]

All your expenses are paid for? How does that work...

I'd need more than I earn right now. I'd wager R20k would be enough if I owned all the assets I use on a daily basis.

What I meant is bond, car(s), and you have no other expenses except things like your utilities and day to day expenses.

What else would you need once you're retired?

 

[Grouter]

And you already have money saved up over the years for your annual trip overseas

Only rich and stupid people do that.

Only rich people can afford to do that. What's so stupid about wanting, moreover, being able to afford, an annual overseas holiday?

So is sittin' on your wrinkly ol' ass at home waiting to die the preferred option?

 

[Alton Turner Blackwood]

Only rich and stupid people do that.

You think? If I've amassed around 10/20million over my lifetime from pension funds, retirement plans, etc, I'd like to spoil myself occasionally.

 

[psion]

Same as what you earn upon retirement, so that you can continue your lifestyle you currently have. Thinking you have paid everything off and just need to pay Groceries and utilities is extremely naive.

 

[Wyzak]

You think? If I've amassed around 10/20million over my lifetime from pension funds, retirement plans, etc, I'd like to spoil myself occasionally.

lol, by then a plane ticket will probably cost a million round

 

[froot]

I'd need more than I earn right now. I'd wager R20k would be enough if I owned all the assets I use on a daily basis.

What about depreciation on assets? Your car might not last for another 30 years. Incidental expenses, maintenance on assets, inflation is a big one too.

 

[Salvage]

I chatted to a financial planner about this not too long ago. His "rule of thumb" was that if you'll probably live for the next 30-odd years after retirement, and if your big loans like house and car are paid for you should have retirement savings of 10x your annual salary to see you through the next 30 years and it should allow you to keep up standard of living that isn't a massive shock to your system. You still want to be able to buy a little runaround car for example, most people won't drive the same car from retirement age till their 80's. We also don't all want to have to have lettuce leaves and water every meal once we hit old age

 

[satanboy]

Only rich people can afford to do that. What's so stupid about wanting, moreover, being able to afford, an annual overseas holiday?

So is sittin' on your wrinkly ol' ass at home waiting to die the preferred option?

I meant stupid people that use their pension savings for an overseas trip and then discover they have no money after 5-10 years.

 

[satanboy]

You think? If I've amassed around 10/20million over my lifetime from pension funds, retirement plans, etc, I'd like to spoil myself occasionally.

You are then one of the very fortunate few.

The rest of us call rich.

 

[Grouter]

I meant stupid people that use their pension savings for an overseas trip and then discover they have no money after 5-10 years.

OK, cool. Those truly are stupid people.

But you could have made it a bit clearer.

 

[supersunbird]

R20 000 per person after tax (in todays money, future value depends on inflation)

 

[RichardG]

When I retire I need at least R50 K to be well off per month

 

[satanboy]

R20 000 per person after tax (in todays money, future value depends on inflation)

wtf

I could easily live off less than that today.

 

[froot]

wtf

I could easily live off less than that today.

Yes, fixed amount, with no (as mentioned above), incidental expenditures? I think not.
For the most part it should be fine, no problem. But then comes that one month a year where you're sucked dry and beyond.

 

[satanboy]

Yes, fixed amount, with no (as mentioned above), incidental expenditures? I think not.
For the most part it should be fine, no problem. But then comes that one month a year where you're sucked dry and beyond.

We are two people...so you say we need R40K per month now. I say BS.