Does anyone live on £1,000 per month?

Not enjoying work….health problems? Retire!
Before I took early retirement with just a work pension and 6 years to wait for state pension (grrr) I was very unsure.
I had some savings and could claim a lump sum as part of my pension.
I totted up all my standing orders, direct debits, subscriptions, commitments etc and firstly looked at everything I didn’t actually need.
I took the plunge. I cancelled everything that was unnecessary. Shopped at Aldi, became more energy conscious, bought books from charity shops, looked for bargains, sold tons of unwanted items on eBay.
After a year, I realised I had money to spare!
Over the next 5 years, I stopped being so frugal but never returned to the wasteful practices I had whilst working.
With price increases you need to think about inflation and need some savings to help out. However, once you get the state pension, you’ll feel rich!

The bottom line is not really whether you can live on £1000 a month (you almost certainly can as you have no mortgage), but whether you will be happy doing so.

It comes down to personal preference, which is not something that others can advise on. Some people are happy having the time and freedoms that retirement provides, and don't mind sacrificing luxuries to get those things, whereas others wouldn't enjoy time and freedom without the funds to do the things they are used to doing with them.

There is no right and wrong, and the fact that this would be a temporary arrangement for you needs to be taken into account too, but ultimately only you can decide.

It's difficult but you can do it as long as nothing major goes wrong with your car and you don't go on luxury holidays. It's not great but i do believe people do live on less money.

As others have said on here, when you’re retired you have TIME - that thing that’s in short supply when you’re working. With this gift of time you can shop cannily for food, toiletries etc; cook meals from scratch that will last two / three days; shop in charity shops (all the rage now); use your local library. Honestly, it’s eye-opening what you can do when your time is your own, and it’s amazing how much money you can save by NOT going to work!

It all depends on your lifestyle, are you one to go on big holidays ? Lots of meals out ? Is you car essential? Write down all your expenses for the next month then go through it with a fine tooth-comb look at what you spend on non essential items. Some will be work time related, so you will be able to cut them out, things like leaving /birthday presents, you will find you don't need work clothes/shoes like you do now , as retirement clothes are more casual? but don't forget you will be home more during the colder months so heating my be on more. Could you get a part time job in a less stressful environment to ride you over till your state pension kicks in.

I live on £485.71 per month - due to having lived abroad and only having a portion of the state pension and no company pension! I do get pension credit, but it is just as well I am very frugal - no luxuries allowed just necessities

Yes, I have done for nearly 6 years. No mortgage or rent. It’s a pretty frugal existence and I’m lucky to have savings to dip into for unexpected bills and little extravagances……this year of course that will be heating!!

Disabled, living on benefits (including PIP) on a total of just over £1,200 but have (relatively small) mortgage to pay, it's pretty damned hard, once mortgage ends things should be easier but right now with the way prices are going through the roof it's getting harder for everyone (11% inflation phooey, it's more like 30% in the supermarkets, people like me can't afford to buy the big things that go into the inflation equation like cars and new mobile phones!)

Yes I have been managing easily on a part time wage of about £700 a month for the last 3-4 years, plus about £17/week working tax credits, and a bit of help with council tax. I live alone (with pets), run an old diesel car, mortgage free and paying £50/month to clear a credit card. I don’t go out, or on holiday, never buy new if I can buy second hand (except underwear!), I eat eggs and cheese but only occasionally buy meat, and I grow vegetables. And I can save a bit too.

My state pension is about to start and if I carry on working p/t I’ll lose tax credits and council tax support because my income would more than double.

I survive on £10,000 a year….. I don’t live!

I know the OP is asking about living on £1,000 prior to State Pension Age but some are commenting about what they have after SPA.

Some of the figures quoted would mean the poster is eligable to Pension Credit if this is their only income and they have less the £16,000 in savings, £10,000 of which is disregarded.

The weekly amount of income at and below which you can claim is £182.60 for single pensioners and £278.70 for couples. Even if you only get £1 it is worth applying as you would automatically get some other benefits too.

I live on an occupational pension of about £1200 net per month. After outgoings, there’s about £600 a month to live on, which I find is more than enough for me. I don’t have a car or a mortgage, though, otherwise I doubt I’d be able to do it. I’m quite thrifty when it comes to food buying, and I occasionally pick up bargains - both clothes and household items - at the local charity shop. I go to the library as often as I can to borrow books. I put a small sum of money into my savings account each month and, thanks to negotiating the larger share in my divorce settlement about 5 years ago, I have a not inconsiderable amount in savings. I enjoy going to the theatre a few times a year. I’m fortunate in that local transport is free for those of us over 60. I have a couple of years to wait before state pension. I enjoy a quiet, relatively carefree life these days after all the shenanigans my ex-husband subjected me to.

I live on a lot less than this you have to live with in your means

Sensible to think ahead. I took a long, long run at retirement. I took my spending down to what I thought I could live on and then gradually exited paid work. Back in 2005 I thought £12K a year would do it, now I think it probably needs around £15K. That assumes you want to run a car, and have a decent holiday every year and you are going to put a bit aside for emergencies. The important thing is to keep track of what you are spending, be prepared to cut out luxuries to balance the budget but most of all ENJOY YOUR RETIREMENT, there are lots of fun things to do that don't cost.

A few years ago, we lived on 800...2 adults, 2 kids and 24 miles round trip to s hool daily. We now live on just over 1k, just 2 adults but more expensive?

Doodledog

Teacheranne

I live alone and my monthly income from my pension is around £1000 which is just enough to cover my outgoings but I use my savings to pay for large purchases like a new car or a holiday. I will get my state pension in October which, although not a full amount due to being contracted out as a teacher, will hopefully cover the increase in my energy bills when my fixed term ends.

I don't want to teach you to suck eggs; but as you say you have savings, it might be worth looking into paying any missing NI contributions towards your state pension. Steve Webb has some advice here or you can speak to the pension advisory service on the phone. You can pay a lump sum or in quarterly instalments, and it can make a significant difference to your state pension amount. I have been paying since I took early retirement, and it has added about £40 a week to my pension. I think the figures say that you are in credit after 3 years, so if you can afford to do it, it is well worth it.

I have considered buying additional years having read what Steve Webb says about it. When I did the calculations using the online tool, it did not seem worth it to me, but I’ll have another look and discuss with my financial advisor who is sorting out my drawdown pension.

Yes you can.

You have a roof over your head, no rent or mortgage. If you can’t live on a grand there’s something wrong.

I live in a small cottage , no mortgage , small car ( essential as I’m on Dartmoor) dog, big garden, rescue hens and my combined teacher’s and state pension is 16k. To live comfortably I need £18.5 k per annum. Luckily I’man examiner and the extra 2.5k comes from this.
I would struggle on £1000 a month-but hey- for you it’s only for a year! Get out of that job now! I now have no idea how I got up at 5.30 every morning, coming home- exhausted - at 6 most nights. It seems like a scary decision - but once you’ve made it you’ll feel unburdened and free!

I wish! I've worked since the age of 17, paid into my various pensions as soon as I could. Even so, my income is nowhere near £1000 per month. I'm 76 and still have a part-time job to make ends meet but, even then, I still need council tax support. Fortunately my mother was very practical and she taught me how to make do and mend. I don't feel sorry for myself - I'm in good health and I have a loving family - but I have to admit that I sometimes get a bit hacked off with friends who assume that everyone is as well off as they are!

Stating the obvious, it depends on your expenses. The only thing to do is to write a budget and see where they leaves you.

I live on slightly less than £1000 a month. Mortgage all paid up, but I run a car. I have to watch what I spend but don't feel hard done by. One thing I've saved a fortune on is work clothes and shoes, it's all casual now and much cheaper. Although I can no longer afford the luxury holidays I used to have, it doesn't bother me as I no longer have the stress of the job. You've got a couple of months to test out your budget but I'm sure you'll be fine. Good luck

If your home is well insulated, in good condition and easy to heat, a small or no car and council tax not prohibitive you could manage for a year. You've probably got enough clothes and shoes that you won't need to buy a ything like that. My biggest expense after food and fuel is my dog. I am so happy I retired, similar reasons to you. Thought I'd miss it but never looked back, missed my own leaving party. I did retire partly on medical grounds and got a very slightly enhanced pension because of this, might be worth considering if you have not already done so.

Yes I do.

I wonder whether people have factored in the further rises in energy costs this Winter? That bill could easily take £300 out of the £1000. And Council Tax? Water? TV Licence? Basic mobile phone contract? Car? Food? Unexpected repairs and replacements? A break from home? Etc Etc. Even without a car, I think it would be difficult. But it might be possible for a year, by taking out a zero percent credit card, keeping track of it and repaying it in the following year when the pension is at a higher rate.