Does anyone live on £1,000 per month?

OP doesn’t mention savings or other sorts of investments - to my mind that that would make a huge difference. I’ve just totted my monthly outgoing up and they’re more than £1K a month! I do run a car but tax and insurance come in at less than £50, but a round trip to babysit my DGS costs over £10 in diesel alone. Octopus have hiked my energy payment up to £250 and my single person council tax is £230. However, I’ve savings and happy to rely on those for big bills, holidays, and house maintenance. I’m sure I’d be much better off if I sold the grandchildren and stopped donations to wonky donkeys and other charities!
I’d say go for it OP - life really is too short.

I do agree with that humptydumpty but sometimes we have to use what we have.
If only we knew just how long we shall live and then divide our savings by the number of years left that would be ideal.
However we may die tomorrow or next week so use your savings if any when you need them.

I feel that it is fine to say use a savings pot to meet big expenses e.g. a new boiler, but the problem with that is, you need to be able to replenish your savings pot or it will dwindle to nothing, so your £1000 needs to include some savings element.

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.

My husband & I live on £1020 per month state pension.It is a struggle after paying all utility bills & £280 pounds per month rent for our part ownership house.We never go out for a meal,not even buy a coffee out.We do have an old car but only use it when absolutely necessary so we make use of our free bus pass as much as possible.Sometimes it can be a little depressing when we need to replace anything & unless we can’t manage without it then we talk ourselves out of it.Fortunately I had many years working as a cook & can make a nourishing & tasty meal out of next to nothing so we do eat well.I worry what the future will be like with the continued price rises but we have to make the most of what we have.

I live very comfortable on less than that
I do not have a car and have finished my mortgage a long time ago I do everything I want to do and give some away to charities grandkids etc I go out to meals with friends and cinema/ theatre when wanted
I don’t live in London
I ve happily lived like this for 8 years I have no complaints and get or do whatever I want There’s nothing I want to do that I can’t
I think a car makes a difference

Whether uou can live o a thousand a month very much depends on your lifestyle before you retire. If you received a large income and had done for a long time and have a large house, are used to good holidays, and have hobbies and interests that are expensive, I am not talking exotics, but if a hobby costs a lot in driving to and from somewhere, then cutting down to living on £1,000 a month is going to be very difficult and will probably require selling your home, relocating, developing new friends and hobbies.

If your life has been modest before retirement and it is only for a year, I would think it quite do-able.

Everybody's expenses are going to be different of course. But I'm the sort of boring old fart who keeps a spreadsheet with a probably way-too-detailed account of all our incomings and outgoings, so I know exactly what we could manage on. I'd really recommend setting one up, or just listing everything, so you know your own situation and whether you can afford to do this.

My spreadsheet includes all our regular expenditure apart from holidays and going out, down to every insurance policy, dental charges, car running costs, my contact lenses, subscriptions and membership fees, birthday and Christmas presents, the lot. And then it's broken down into cost per month. So I know we, even as a couple, could live on £1000 a month (just) if we settled for no holiday and limited our social life to things we could do for free or very cheaply. If we weren't lucky enough to still have a fixed rate energy deal, we couldn't. We'd need a savings cushion in case we had to replace the car or an essential appliance, though I daresay if it was just for a year we could muddle through without or cut down what we spent on presents.

I'd do it on our figures, especially if it was just for the short term. Having been in a bad situation at work, I know what a massive relief it is to get out of it and make the most of all the freedoms that retirement brings.

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.

My retirement plan was to leave another pension fund to drawdown from it rather than get an annuity and use it up slowly until I was about 70 yrs old - I retired at 60. Then I would sell my bungalow and for half its value but a smaller apartment and release another chunk of money to last the rest of my life! I have not yet had to release money from this fund as I had other savings to use first so I’ll be talking with my financial adviser about possibly adjusting my plans.

In summary to answer the question of the OP, I think you can manage on £1000 a month until you get your state pension as long as you own your own house and have some savings to dip into for large expenses. Without enough savings for hopefully 20 odd years, you might have to be slightly more frugal as inflation affects your income. But I would go for it, if you are unhappy at work then live for today!

I am sure it is possible with modest lifestyle,but, you would need savings for big items.
I had to have new windows last year and chose to have a new front door at the same time.
I had decorators in after that but it all came out of savings.
You would really have to economise to get jobs done.
However your health comes a big first with me.
Weigh it up, do your sums and make the right decision for you.
Good luck.

I live on much less than that - £620 a month, plus about £70 interest from savings - and am comfortable with that. No mortgage, I keep a car on the road, don't go out a lot and holidays are rare [both through choice] and not one for buying 'stuff' or lots of clothes etc.

I have everything I need and eat well, lots of treats, days out and don't feel I go without anything.
However I do have savings which give some interest per month and so have plenty of back up for big purchases or emergencies.

I'd say just do it, especially if it's only for a year. Retirement is just the best thing ever. The freedom is wonderful. It costs nothing to pack a lunch and go out for a walk in the sun to somewhere leafy and quiet, to spend an afternoon in a garden, to read a book all afternoon, to meet up with a friend etc. etc.

I think that is sound advice to live on that for 2 months and see how you manage .....I did that before I retired this year at 57 on my nhs pension.... I managed fine although it was more
..... in the end I decided to go back 2 days a week then retire completely at 59 ..... if you've got rainy day savings that will be a good cushion in case of emergencies ....hope it works out

Obviously depends on what you have to cover. But I certainly can - no car, mortgage free, no expensive habits, holiday every alternate year.

It is better if you have some savings though - because the bigger expenses (new washing machine etc) could make things difficult.

If it is only for 12 months it should be fairly easy to do. As others have said, many live on less permanently.

I don’t think it’s possible for anyone to say whether it’s possible for you or not as we don’t know what your essential outgoings are. As others have suggested you need to list all your outgoings, consider whether they will go up or down, and then see what’s left. You would then be in a better position to assess.

I retired at 62 on a pension of just over 900 a month but with some savings and no mortgage.
I am pleasantly surprised how easy it has been. I run a car have replaced my boiler and had other jobs done around the house and garden. I now have just 6 months left till I get my state pension. Am now planning a new kitchen and adopted a dog during lockdown.

Do you have, or are you thinking of getting, a pet? That can be a very big expense - food, vet bills, insurance - so do research that very carefully.

Trewdie

Yes it is doable. I am mortgage free and have a pension of just over £700 a month I do all my own decorating and small repairs.,but I still put a small amount into savings for bigger repairs not that I really need to my sons are all builders so I am lucky

Trewdie, I assume that isn't your only income?

I budget £950 a month to cover my essential costs, including my car, have something of a social life and a couple of holidays a year, but that’s as half a couple, with no mortgage or rent. If I was single, I’d need to cover my husband’s half of our household costs. And the rise in utility bills in October (we’ve been shielded by a fixed rate) may change that significantly. However, a quick calculation suggests I could manage with £1,000 if I cut back on other things.

If it was for a year, and my work was making me ill, I’d go for it like a shot.

I would rather you had benefits if your are eligable Whiff. Why would anyone not want that for you?

Look at your savings and outgoings, and take account of big things that might happen like an old washing machine or a new boiler.
Then try it for a month now, it will be harder because you will be shopping after work or at weekends and if you need to travel to shop would you be able to do it in one big shop.
Best of luck.

In our house we live on direct debits. This means that we tend to be a bit removed from what goes out, we know we can cover them.
Our electric has gone up to £211/month and council tax is 292 so that’s half of £1000 already therefore answer from me is no. We live in a rural location so doing without a car would be extremely difficult. We don’t live in a mansion, the estate agent would describe our home as a 3 bed bungalow, we do have a large garden though.
I still work, aged 69, only part time, but I love it and would be loath to give it up. Luckily!

Yes it is doable. I am mortgage free and have a pension of just over £700 a month I do all my own decorating and small repairs.,but I still put a small amount into savings for bigger repairs not that I really need to my sons are all builders so I am lucky

Wish I had that much a month. I have to live on far less . My bungalow is all paid for . But haven't had a holiday since 2005. Don't get my state pension for 2 years then might be able to have a holiday. Just in case any one thinks I am living on benefits I don't get a penny off anyone.

Mortgage/rent and driving a car both make a huge difference which is why pooobear2811 is struggling. Without those two you can manage comfortably as long as you have savings for unexpected expenses.

If your work is making you ill, then do it. It's a temporary arrangement, being just for one year, anyway. How much people need seems to vary widely, depending on their circumstances.