The Lemon Fool

A few things... office clothes, if there is still such a thing... commuting... but on the whole it's true.

If anything I'd say ours has risen, more hobbies.
And during winter, more heating, which would have been trivial a few years ago but less so now.

V8

88V8 wrote:A few things... office clothes, if there is still such a thing... commuting... but on the whole it's true.

If anything I'd say ours has risen, more hobbies.
And during winter, more heating, which would have been trivial a few years ago but less so now.

V8

I think the difference is that we have a choice when retired. I probably dress better or at least more expensively in retirement than when working. There is no commuting costs and hobbies are entirely optional. My hobbies I think are probably eating out and my garden, either of which can be expensive or not as you choose. But I certainly spend a lot more that £245 per week.

Dod

Perhaps spending does not decline, but deductions from your income certainly may. I include the following:

Mortgage paid up.
Less income tax (higher personal allowance).
No NICs to pay.
No further pension contributions.

Individual circumstances may vary, but those are indisputable.

TJH

I can dispute one of those items. There is no longer any age related higher personal tax allowance. It was withdrawn some years ago.

When I look at my 92 year old father it's very clear indeed that spending in retirement is not a straight line.

If I were to live as long as he has, I anticipate far higher spending in the next maybe 10 years since I like business class travel and expensive hotels. That would put me in my mid 70's. By then my long haul travel ability and perhaps inclination will be tapering off and my long trips around the world might well have finished. Perhaps replaced by shorter trips. If I am lucky enough to still be around by my mid 80's I would anticipate being in a similar situation that my father is in today. He has far more monthly income than he knows what to do with.

I anticipate all things being good, I will be in the same boat. So for me, it's very clear indeed that in my case spending in earlier retirement will be far more expensive and reduce significantly as time passes.

* Pension withdrawals taxed at a lower rate because of the tax free sums

* living off capital has no taxation provided you are wise handing capital gains

* extra non-means tested benefits like winter fuel allowance or bus passes boost income and reduce spending

* pensioner discounts on tourist attractions, rail travel etc

all reduce spending, but can be overwhelmed by the big problem of having to pay people to do things you used to do yourself, whether than be gardening or personal care.

pyad wrote:I can dispute one of those items. There is no longer any age related higher personal tax allowance. It was withdrawn some years ago.

I'm retired but still paying voluntary Class 3 NI... so that's two undisputable things that are disputed.

I think most are are confusing different things.

This doesn't say there isn't a drop between the spending rate between pre-retirement, and post-retirement. What it is reflecting that once retired spending doesn't continue to decline thereafter.

This the actual paper rather than the linked to blog of someone reporting on it. As usual the source is a better place than someone's interpretation of someone's interpretation of it.

https://ifs.org.uk/publications/16055

dealtn wrote:I think most are are confusing different things.

This doesn't say there isn't a drop between the spending rate between pre-retirement, and post-retirement. What it is reflecting that once retired spending doesn't continue to decline thereafter.

This the actual paper rather than the linked to blog of someone reporting on it. As usual the source is a better place than someone's interpretation of someone's interpretation of it.

https://ifs.org.uk/publications/16055

But it's highly personal dependent on circumstances. I am spending more than I was working simply because I am booking several expensive holidays a year. I didn't have enough vacation days when I worked. But if I survive as long as my father, when I get to his age, all that spending isn't happening any more. I expect if I live past mid 80 's into 90's like he has, there's a huge income surplus every month.

BullDog wrote:

dealtn wrote:I think most are are confusing different things.

This doesn't say there isn't a drop between the spending rate between pre-retirement, and post-retirement. What it is reflecting that once retired spending doesn't continue to decline thereafter.

This the actual paper rather than the linked to blog of someone reporting on it. As usual the source is a better place than someone's interpretation of someone's interpretation of it.

https://ifs.org.uk/publications/16055

But it's highly personal dependent on circumstances. I am spending more than I was working simply because I am booking several expensive holidays a year. I didn't have enough vacation days when I worked. But if I survive as long as my father, when I get to his age, all that spending isn't happening any more. I expect if I live past mid 80 's into 90's like he has, there's a huge income surplus every month.

But it's not talking about "when you are working", and comparing that period to "when you are no longer working".

JohnB wrote:* Pension withdrawals taxed at a lower rate because of the tax free sums

* living off capital has no taxation provided you are wise handing capital gains

* extra non-means tested benefits like winter fuel allowance or bus passes boost income and reduce spending

* pensioner discounts on tourist attractions, rail travel etc

all reduce spending, but can be overwhelmed by the big problem of having to pay people to do things you used to do yourself, whether than be gardening or personal care.

Bus passes decrease spending on buses, or trains, but they serve to boost spending overall. Lots of wrinklies visiting towns and attractions which they wouldn't do if bus passes didn't help them to. And when we get there, we spend money. I've always thought any suggestion of axing travel benefits would be very short sighted in terms of the general economic benefit.
In my case, discounted travel up to London means I will do it - otherwise I would baulk at the cost and do it less frequently.

I think this is determined by one or two big ticket items.

For example, in my case, I am sure my retirement expenditure has fallen by at least 40% of what I used to spend. However, I have a penchant for visiting New Zealand and the only way I can face the 18 hours from Dubai is to totally indulge myself and have a shower before I land. This sets me back about £8k every time I do it. So Jocinda's shut down and the pandemic have saved me lots of money. I suspect 2022/23 will prove to be very expensive...

Eb.

Eboli wrote:I think this is determined by one or two big ticket items.

For example, in my case, I am sure my retirement expenditure has fallen by at least 40% of what I used to spend. However, I have a penchant for visiting New Zealand and the only way I can face the 18 hours from Dubai is to totally indulge myself and have a shower before I land. This sets me back about £8k every time I do it. So Jocinda's shut down and the pandemic have saved me lots of money. I suspect 2022/23 will prove to be very expensive...

Eb.

That is an expensive shower but presumably the airline throws in First Class travel as well?

Dod

Surely spending increases within retirement as care home fees in time likely become payable.

Dod101 wrote:

Eboli wrote:I think this is determined by one or two big ticket items.

For example, in my case, I am sure my retirement expenditure has fallen by at least 40% of what I used to spend. However, I have a penchant for visiting New Zealand and the only way I can face the 18 hours from Dubai is to totally indulge myself and have a shower before I land. This sets me back about £8k every time I do it. So Jocinda's shut down and the pandemic have saved me lots of money. I suspect 2022/23 will prove to be very expensive...

That is an expensive shower but presumably the airline throws in First Class travel as well?

I love flying First as much as the next guy. But I never understood this desire to shower half way through a flight. Let alone on a plane which I believe is only available on Emirates and Etihad.

I am happy to stink all the way there whilst drinking champagne and eating caviar, and then have a soak when I get there.

Lootman noted:

But I never understood this desire to shower half way through a flight. Let alone on a plane which I believe is only available on Emirates and Etihad. I am happy to stink all the way there whilst drinking champagne and eating caviar, and then have a soak when I get there.

1. I can only comment about Emirates. Your 'let alone" suggests a total bias especially as they are consistently one of the best.

2. Who said 'half way through' (I said before I land). You thereby miss the purpose. I want to be awake when going through New Zealand immigration rather than stink of alcohol.

'Nuff said. I stray off-topic.

Eb.

Eboli wrote:Lootman noted:

But I never understood this desire to shower half way through a flight. Let alone on a plane which I believe is only available on Emirates and Etihad. I am happy to stink all the way there whilst drinking champagne and eating caviar, and then have a soak when I get there.

1. I can only comment about Emirates. Your 'let alone" suggests a total bias especially as they are consistently one of the best.

2. Who said 'half way through' (I said before I land). You thereby miss the purpose. I want to be awake when going through New Zealand immigration rather than stink of alcohol.

I have bad news for you. A shower won't remove the stench of alcohol from your breath. You need mouthwash for that.

And I never said that Emirates or any of the ME3 airlines are bad at all. I merely stated that they are the only airlines (less Qatar) that offer in-flight showers. Lots of airlines offer them in lounges of course but, again, I have no use for them. I'd rather get to my hotel quicker and then have a real shower.

Plus in many cases the arrivals lounges with showers are AFTER immigration and customs e.g. Heathrow.

Lootman,

As normal you go down bag ends.

As I said, 'nuff said.

Eb.

Eboli wrote:Lootman,

As normal you go down bag ends.

As I said, 'nuff said.

Eb.

I have no idea what your cute little idiom means nor what you think it means. I was merely correcting your factual errors "as normal". But I would recommend carrying around less anger with you. And drinking less on flights.