I retired Oct 2023, and I can say that I am spending more in retirement than I did when I was working.

Ignoring the exceptional spending of multiple trips/holidays in the first year of retirement, just being at home with 100% free time has meant that the wife and I are spending more.

I was working from home, so no real save on commuting. As I am not working 10 hours a day, eating a sarnie in front of computer, we have time to enjoy lunch - home or out - but always more expensive than a home made ham sarnie ! I used to stay off the booze on "school nights", well everyday is a bank holiday when you are retired (especially if you worked for a bank for 38 years!). I am cooking more, never cheap ! We have time for shopping, going to the cinema, taking elderly relatives out to lunch etc etc etc when working, I could go weeks without spending much money other than on basics.

We are all different, we have different lives, different spending habits etc. When preparing for retirement, I spent a lot of time reviewing my spending (I keep s/sheets), and forecasting future spending/cash requirements. I would not have retired when i did if i wasn't reasonably confident that i could fund my retirement. This will be different for everyone, and your forecast will be right for you.

I am enjoying the retirement I had hoped for, I wouldn't have it any other way either.

Good luck with your plans

@Andrew1952 - Without wishing to derail the thread, from what I have read (i.e media speculation rather than whatever will eventually be the law) executors will indeed have to pay interest on IHT due when the inevitable chaos breaks out after April 2027. Expect a lot of gnashing of teeth!

It would be worth checking, for your & your nephew's peace mind, whether your ISA provider is signed up to HMRC's Direct Payment Scheme. This should allow the ISA provider to settle an IHT liability directly with HMRC on the orders of the executors by selling sufficient investments to cover it.
In my experience it is not something about which investment platforms are very forthcoming unless asked - their normal action is to simply freeze the account! Much as many of us dislike having to pay IHT, if we can make sure we don't leave an awful, expensive mess for our executors and beneficiaries I'm sure they would be grateful!

Figures for both of us -


1) when did you retire? (age)
52 (both now 55)

2) How much income did you retire with?
Circa £36k but with extra 'small lumps' to fund one-off purchases (a few thousand here and there).

3) What was the source of that income? DC or DB pension?
ISAs and SIPPs, plus a moderate NHS pension which has only just started.
I have a Teacher's Pension but that starts in 5 years time.

4) If DC how much did you have in your portfolio?
In total, £750k (rapidly changed downward due to Covid/Ukraine etc)

5) When did you start getting the state pension?
Not for another 11 years.

6) Do you anticipate any chance of any significant inheritance or other event that will change the above financial details materially?
None.



IN SUMMARY -
We had £750k., the effects of Covid and Ukraine etc, plus 3.5 years of drawdown (including an expensive card or me!), we currently have £712k.
If you add back the cost of my car we're at £772k.

So, £750k has seen us through our modest 'normal' living expenses and 'some fun' expenses, a couple of severe economic downturns, and is pretty much still intact.
45% in global trackers, 25% in growth funds, 20% private equity funds, 10% cash in HL Active Savings.

Id be interested to learn if anyone is drawing down against the capital of their pension pot ie not just at a rate of 4% so the capital remains intact esp given proposed changes to IHT by the new govt?

Hi MBA MBA, in response to your original post:

Care to share your details...either with your partner ie household finances or without

1) when did you retire? (age)
Me at 55 (Oct 23), wife, early through ill health at about 49 (c5 yrs ago)

2) How much income did you retire with?
I don’t really understand this question. Rather than income, perhaps you meant financial assets/sources of income ?
My main source of income is/was (to be going forward), my SIPP, and my initial approach was not to draw anything until the new tax year (then April 24), because I was already a higher rate tax payer. So, I drew down my TFLS (£267k), as SIPP was worth £1.2m on retirement. In current tax year I am drawing monthly £3,750 gross, which gives me £3,209 net, which is Gross £45k pa. I have some other taxable income, of c£5k pa, so I am bang on Higher Rate Threshold (what a coincidence!).

3) What was the source of that income? DC or DB pension?
See above.

4) If DC how much did you have in your portfolio?
My SIPP was worth £1.2m when I retired, and since then, having taken £267k TFLS and £3,750 per month, as at end of Jan 2025, SIPP is still worth c£1.157m, which I am very happy with.
Post drawing TFLS, we have c£250k in ISA’s, £100k in Premium Bonds, c £250k in cash. Wife has SIPP worth c£107k, I am still adding £2,880 to each year.

5) When did you start getting the state pension?
Me in 2036, wife in 2037 – if not means tested by then !

6) Do you anticipate any chance of any significant inheritance or other event that will change the above financial details materially?
No.