How much savings nest egg is needed in retirement?

Interesting thread. Like POPS my husband has been keeping a spreadsheet (the size of a house ) for some years now and insists we will be ok with our state pensions, very small personal pensions we had to put on hold when our business closed and whatever income we manage to save between now and when we retire some time in the next year. Everyone we know who has retired say that they manage very well as they don't spend nearly as much once they'd stopped work however if you're planning on renovating a property it's definitely worth overestimating the costs than underestimating. It's quite usual to find unexpected problems once you start pulling a property apart.

We don't live extravagantly - don't holiday apart from visiting son overseas 2 years ago, don't smoke and rarely go out socialising although we do like to have a pub meal now and again. As he keeps telling me not to worry about retirement finances I don't but dread the day we get up and look at each other with nothing to do. Weekends are bad enough now!!

Wilow500, instead of dreading it, why not make a plan? Do some research on groups that are near you that do things that might be of interest. Gardening? NT - annual membership might be worth considering if there are places in your vicinity. Does volunteering appeal? Libraries are free, if your town still has one! Hobbies? How about learning a new skill? Rehoming a dog? There that's keeping you busy! Have fun, whatever you decide to do.

Re doing up the bungalow - I have two friends who have invested large amounts of money in alterations to their homes which they were going to enjoy in their retirement. Both have now been struck with unexpected and probably terminal illness and may never see the work finished. Just pointing out that you can never take anything for granted.

I am new on the forum, and find this thread very interesting.
I don't know how much pension I will get, I have worked abroad in fits and starts for years.

I was shocked when i saw how little full years I had contributed to.

That's the bad news.

I am divorced, love my independence and travelling.

I managed to buy myself a city centre apartment, and was convinced by a friend to rent it out on airbnb, when I am not there.

It has been very successful, beyond all expectations.

I will be of retirement age in 5 years, I don't if I will retire or not when the time comes.

Although my family live abroad, I want to stay put in the UK, I feel at home.

I am planning to still rent my apartment out Friday and Saturday nights, even when I live in the UK on a permanent basis.

I have heard that there are good tax breaks for this type of rental, and added to my expected state pension, and some savings, I hope to have a good retirement , not megabucks but not exactly poor.

I have friends I can stay with for weekends, they can stay with me too, and also I could even book into a premier inn..........while my apartment is rented out.

Downside......my place is sleek, no clutter (I love clutter) but we can't have everything.
I am used to traveling light, and was looking forward to not living out of a suitcase, but I think I will have to carry on with my nomadic lifestyle.

Of course there will come a day when this is not possible, so I will look at the way
Equity release options, and with savings etc, I hope to be able to finance my old age.

Yes my husband's state pension is around £16,500 because he paid into SERPS. Its a godsend as his private pension is smallish owing to the fact that although he earned a very good salary in the private sector, he was also made redundant several times and we had to eat into pension saving to keep a roof over our heads.

Morgi, I would check out the ‘Tax Breaks’ part of your plans. Apart from some allowances, you will be taxed on all rental income from renting out your home.
You can easily check what State Pension you are likely to receive by going online.
That will help to take some of the guesswork out of your finances.

Hi Oopsadaisy12, thanks for replying.

I will check out the tax implications as I don't want to get myself into hot water, with HMRC.

What I meant by tax breaks, was that I have heard that you can rent out a room in your house and don't have to declare any amount under 7500 or you can opt to do it on a "business" footing. Claiming expenses, a portion of service charges etc.

I haven't been doing airbnb for long enough to have to do a tax return yet for the letting, that will come next year. I have recently submitted the latest one and paid before 31st January deadline.

I will have a nosey around, to see if I can find an airbnb advice forum, or something similar.

I read in today's paper that Wayne rooney is being chased for 5 million tax.
Small potatoes really for such a big earner, in fact only a few months wages.
His new baby will not be going without nappies, even if he does have to cough up.

Yes you can have a lodger who shares your house with you and you can earn £7500 before you pay tax, but not renting out your entire home. Yes, best to get it all checked out, the Revenue will help you out over the phone.