Anyone live on £900 a month?

MaggieT Years ago I visited a friend's aunt with her and the elderly aunt was struggling along in a huge house (I mean huge!). It was lovely but she really wanted to sell and buy something manageable but said her children were horrified at the thought of her selling the 'family home' where they grew up and of which had such happy memories.
None lived there, they were in their 30s but just liked to come 'home' sometimes.

You have to do what is right for you. You will still have your memories wherever you live.

MaggieTulliver there's lots of helpful advice on here so I can't add much except to say that £900 per month if you own your own home is doable - it is just when large bills come in such as the ones you mention for your house and when expensive items like a washing machine need replacing or the car needs repairing. Once gone, savings are not so easily replaced in retirement.
I'm not sure when you get bus passes now as I got mine at 60 which can save money and, of course you won't have the expenses of going to work eg travel, clothes etc.

Could you reduce your hours to part-time to reduce your stress levels? Otherwise, I would definitely look at downsizing to a small modern property which is cheaper to maintain and heat etc if maintaining your property is a worry. However, moving can be expensive so you'd have to factor that in.

I've only met one person who regretted downsizing in retirement.

Go through all the stuff in your house and consider selling anything that no longer has any sentiment attached to it. That will generate a little bit extra. It all helps.

MaggieTulliver, do bear in mind that you could always have a lodger, as your house is too big for you. It's easy extra tax-free income:

www.gov.uk/rent-room-in-your-home/the-rent-a-room-scheme

Phoenixpalmsandsun, the initials mean darling husband/son etc.
and welcome !

i think Suze is right about the National Insurance.
i read of a case like this recently, sorry can't remember names.
after all, how is the person covered for NI in the years until they receive state pension, when it will be credited to them.
so this is another reason to look into what benefits OP might get. if you get benefits, then NI contributions are credited to you. you could consult DWP as to what you could apply for.
if you belong to a trade union, consult their welfare office.
could you cut down your hours at work ?
your DD will be off soon, living her own life.
do what's best for you.
good luck.

?

Good luck going forward MT whatever you decide. x

Urmstongran you are so right - I find decision-making so tortuous! I will discuss this with DD and not shy away from it because I’m worried about upsetting her. She does have her dad just living down the road anyway so will always have a base in town.

When I posted this morning I had no idea I’d get such a wonderful response from you all ?

Great call Maggiemaybe on checking with the Future Pensions Service first before buying in any missing NI years. Its a minefield, that's for sure.

Oh MaggieTulliver I feel for you here. Anxiety and MH issues make decision making very stressful.

I think communication is key here.

You seem loathe to put your house in the market because your daughter at uni loves, what it represents, the old family home.

I can understand that.

But your attachment to the place is, it seems, less strong. I’d discuss how you feel with your daughter. Explain your worries. That house will suck down your savings and you know it. But perhaps she isn’t aware of the situation.

I’d bet a pound to a penny she’d far rather have a happier, anxiety free mum than a house to return to between uni terms! Your memories (hers and yours) will go with you in your heart, wherever you live. Take photos of the place with objects and views that hold significance to you both and ‘do an Elsa’ here ... and let it go!

Good advice there, Artaylar, re buying in missing NI years. Nobody should do it though, without checking first with the Future Pensions service, who will liaise with HMRC and eventually send you written confirmation of which years you can buy that will make a difference to your pension. I was going to pay to buy up three recent years that weren’t full - I’m so glad I checked first, as one of them would have made no difference to my final entitlement. And I was warned in no uncertain terms that if I overpaid, I wouldn’t get it back!

Also, if you look after grandchildren while under state pension age, please look into Specified Adult Childcare Credits, which can also boost your final pension.

Maggie it is really lovely, the help that you get on here.
I know that there is a lot of moaning and groaning elsewhere on the site, but this sort of thing more than makes up for it.

Perhaps you will discover your daughter would prefer a happy mother than a house that’s too big. Especially as it sounds as though she may be off soon.
She has her life to live, you have yours.

MaggieTulliver - I think you should get Estate Agent quotes for sale of the house as it is. You can also get the potential repairs assessed and quoted for along side this. I would also look at your option for the ideal home you have in mind that you believe will free you from the stress. This will help you see a clearer picture of your options going forward. You will get to that stress free point but you will need to go through things stage by stage. Ask your daughter, family or close friend to help you through this.

I wish you well through this process.

It feels like I’m talking with trusted friends about this decision ? Seacliff, a smaller place in my part of town would be great, the trouble is most of the housing stock is older terraces like mine. I’ve seen a lovely 2 bed new build but of course it’s on the outskirts of town. The more I think about it though, the keener I am to sell up.

Suze56

Just to be aware you will need to pay voluntary NI contributions until your official retirement age in order to get full state pension even if you already have 35+ years.

I might be wrong Suze56 but I'm not entirely sure that this is correct.

As long as you have 35 full years NI contributions in, you shouldnt have to pay any more /voluntary NI contributions if you stop working before your state retirement age.

What can mislead people is thinking that they have worked for and paid NI for 35 years means that each of those years is a 'full' NI year. It all depends on whether or not in taking out any private or work related pensions, you contracted out of paying full NI.

Getting a state retirement pension forecast is pretty straight forward.
www.gov.uk/check-state-pension

If you do have any years that are classed as being not 'full NI'you can pay voluntary contributions for, I think, up to 6 years after the year/s in question
www.gov.uk/check-state-pension

Could you move to a smaller place still in the town centre? I am just thinking of the future, when you might not want to drive, to would be great to be able to walk to everywhere.

Also if you go for somewhere modern, smaller, easy to heat and clean, it would be a big relief to you. You might feel a huge weight was lifted. If your place is in a desirable area it will sell whatever the condition. Why not start looking at what is around.

Just to be aware you will need to pay voluntary NI contributions until your official retirement age in order to get full state pension even if you already have 35+ years.

It might be worth going over your options with a member of your local council's social services about PIP, you might be eligible for at least the lower level(s) and they could take you through the forms as to how best to put your case to give you the best chance. By the way, if they think you have a chance but get a knock back to start with then appeal this as quickly as possible, again, with help.
Other than that, it might be worth seeing which outgoings can be reduced or cancelled until you have a higher income. I'd say £900 is doable but there might not be many frills for a while.

I do wish you well. I'm retiring this summer but under completely different circumstances.
However, it's lovely to see you respond to ideas. Most people seem to post and clear off.
Your post reminds me of the saying: Cut your cloth to suit your needs. If you do that, then I'm sure you'll be fine.
Best of luck to you!

Do it! I did it 13 and a half years ago but on considerably less. I've never regretted it. I did dip into savings for luxuries and treats for the grandkids, but that might have happened anyway. But the freedom from anxiety and stress was worth far more than losing a small amount of savings.
Enjoy life. You never know what is waiting round the corner!

Thank you for holding my hand through this - what a lovely community we have here. It’s helped so much to clarify things a little. My home seems to be causing me more anxiety than work and maybe a move is what I should consider. I’d do it in a flash were it not for my 21 year old daughter who loves the house and it’s location (in the middle of town with everything on the doorstep). If I moved, it would be slightly out of town probably. She’s in her final year at uni though and will be putting down her own roots soon.

And yes, downsizing would allow me invest some money which would give me more options - one of them being early retirement. Sorry if I sound all over the place and I know I need time to make the right decision.

Yes you can if you just watch what you are spending I’ve done this for the last 5 years . Should get my pension this year then I’ll treat myself ,

MaggieTulliver

What a huge amount of helpful information - thank you so much everyone. I’m going to give this a lot of thought over the next 2 weeks (I’m signed off sick). I do like my job and that’s not what’s making me ill but I simply can’t function at work when my MH is bad ( which is very often now).

One of the things that’s making me so ill is my house. It’s a lovely Edwardian terrace which I’ve lived in for almost 20 years but it needs quite a lot of work and I’m literally terrified of anything going wrong. I currently have a problem with my central heating which might involve taking up floorboards to lay new pipes. This has made me literally sick with worry. If I could find a little new build not too far away, I’d snap it up.

After reading this I can only think that you may be jumping out of the frying pan into the fire if you retire now.
If you are worrying about the state of your house at the moment how are you going to cope with less money and so much time to look at everything that needs doing? I can’t think that would do your MH any good at all.

Stress is worse if you aren’t in control so step up to the plate and take that control. Sell the house and move somewhere easier to manage. It sounds as though it would also give you more money to invest and cushion you in future.

It sounds like your house needs far more than your £8,000 savings spent on it. Having the work done will be stressful in itself.
In your position I'd sell, now.
Find somewhere future-proof just for you: what a treat and what a weight off your mind.