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Does anyone live on £1,000 per month?

(152 Posts)
LaCrepescule Sun 19-Jun-22 09:42:45

I’m thinking of retiring a year early due to ill health and my combined pension would be just under £1,000. I’ve paid off my mortgage. Do you think this is enough to live on? When I reach state pension age in just over a year’s time, this will go up to just under £1,600 so would only be doing this for a year.

Doodledog Tue 21-Jun-22 09:58:40

But doesn't that mean that you also get things like council tax and rent (if applicable) paid for? I'm no expert on these things, but my understanding is that pension credit brings far more benefits than a few pounds in cash, and that if the OP is hearing about people managing on less than she will have coming in, she may get a shock when she has to pay for things herself that others get free.

BigBertha1 Tue 21-Jun-22 10:02:15

My energy bill would swallow a fifth of that and it will go up soon. I would wait another year if were you until your state pension kicks in the way that prices are rising.

henetha Tue 21-Jun-22 10:21:36

I get some help with Council Tax, but still pay a large dollop.
I get a £50 voucher off glasses. That's it.

PurpleWitch Tue 21-Jun-22 10:47:41

I live on about £1000pm including PIP, plus housing benefit and council tax rebate. I don't drive but have a Freedom Pass. At the moment, I can manage ok and still spend a lot on books and art materials. I always look for bargains - sales, second-hand, charity shops etc. I feel quite rich compared to 3 years ago when I wasn't getting PIP. Then I was getting by on £500pm which was very hard. If your work is making you ill, then retire now and make the most of it. Go to Citizens Advice for info on all extras you will be entitled to eg: Freedom Pass, 25% council tax discount if you live alone, and various others. When your money goes up by 50% after a year, you will feel so rich!

DaisyAnne Tue 21-Jun-22 10:54:23

henetha

I get Pension Credit, - £3.90 per week!

But because of that £3.90 per week, you should also get council tax support (or you should). How much is that worth?

You will also automatically get a £150 Warm Home Discount on your Electricity Bill.

You will also automatically get NHS Low Income support (just take your last letter saying you get Pension Credit when you go for glasses or to the dentist and read the booklet the DWP sent you (or google) to see what else it covers that is applicable to you.

You should be able to get a Carer's premium if you would be getting Carer's Allowance were you not on State Pension.

If you get Attendance Allowance/Disability Living Allowance you may get an additional payment added to your Pension Credit.

You should be able to get help with some housing costs, eg., service charges.

The point is, it is worth claiming because there are automatic benefits you will get and others that will be open to you in specific circumstances.

DaisyAnne Tue 21-Jun-22 10:57:28

henetha, just to clarify, are you getting Pension Guarantee Credit or Pension Savings Credit?

Zonne Tue 21-Jun-22 11:32:52

Those who are paying high water rates: it might be worth considering a meter instead? We pay £20 month, two of us, grandkids two days a week in the school holidays, 3 bed semi, washing machine, dishwasher, etc. Anglian Water is our provider.

Doodledog Tue 21-Jun-22 11:38:45

Yes, that's the sort of thing I meant, DaisyAnne. It is misleading to quote only the cash amounts people say they are living on, without adding the things that amount to cash, as they would cost those not receiving them. The OP is wondering how far £1000 a month would go, and suggesting that it is almost twice what others are getting is not the whole story.

Polly7 Tue 21-Jun-22 12:42:38

I enjoy bargain hunting on fb market? why pay more for same thing

But have anxiety for the unknown expenses eg car problem etc

I do feel upset though that singletons seem to get unfairness
Eg. A couple have two incomes to share one set of bills whereas a singleton need to fund it all
I went through years of this as unwell on breadline so worn t shirt, debt comes eventually it’s a case of doing your sums maybe saving for rainy day if needsbe
Plus holiday high costs etc but I get it

Polly7 Tue 21-Jun-22 12:48:01

Quite respect cultures that share a lovely spacious home
Never worrying about individual 4 walls singularly and never lonely ?

Polly7 Tue 21-Jun-22 12:50:38

Ps
My query is how much do you need in savings to see you through..
I find it hard to let go
How long is piece of string ?

Delila Tue 21-Jun-22 13:08:00

The OP has no housing cost as her mortgage is paid off, and as a single person householder I believe she is entitled to a reduction in Council Tax, so comparisons with the incomes of people in receipt of Housing Benefit and Council Tax Support are fairer in this case than they might seem at first.

OP, So much depends on the standard of living you’ve been used to, and yes, things may have to be sacrificed for a while, but hopefully your health will improve and in a year’s time I think your income will be more than sufficient for most of what you want from life. If not, you’ll find a way to improve things for yourself.

Doodledog Tue 21-Jun-22 14:19:11

The OP has no housing cost as her mortgage is paid off, and as a single person householder I believe she is entitled to a reduction in Council Tax, so comparisons with the incomes of people in receipt of Housing Benefit and Council Tax Support are fairer in this case than they might seem at first.
Not if the comparison is made against a net amount, after other things have been paid, as opposed to the total amount being spent in a month, whether from benefits or pension. I don't want to single anyone out, but someone saying she lives on £240 a fortnight (ie £120 a week) must surely have indirect income on top of that?

I agree that a lot depends on what your expectations are, though.

Caleo Tue 21-Jun-22 14:23:44

£1000 per month is adequate. comfortable even, unless you are bad at managing your spending.

Casdon Tue 21-Jun-22 17:16:17

Caleo

£1000 per month is adequate. comfortable even, unless you are bad at managing your spending.

Sorry Caleo, that’s a silly thing to say. People have unavoidable outgoings like council tax, water rates, power bills, phone bill, car related expenses if they live somewhere inaccessible, rent, food and household expenses, insurance, pets if they have them etc. etc. , and everybody’s unavoidable outgoings vary depending on the type of accommodation they have, the repair demands of their house and equipment. If you have unavoidable outgoings above £1000 per month that doesn’t mean you’re profligate. That’s why so many have advised OP to do her sums, and try to manage on that amount for a couple of months before committing herself.

Caleo Fri 24-Jun-22 11:54:19

Casdon, I have all these expenses and I live comfortably on less than £1,000 a month. I own my house and that makes a huge difference.

I do agree that OP should do her sums.

Jeanetteleighton1979 Sat 25-Jun-22 12:18:16

I have a partner and 2 young children and we get £1230 a month i suppose it depends on bills mainly

humptydumpty Sat 25-Jun-22 12:29:37

Caleo, the magnitude of all these expenses can vary hugely depending on where you live irrespective of owning your home. Therefore you are lucky to live comfortably on less than £1000 and doubly important for OP not to be swayed by others' experience and do her own sums - and do a test run for maybe 3 months.

effalump Sat 25-Jun-22 15:34:32

I'd say it's doable but you may need to live frugally just in case of any sudden crises, like expensive appliances breaking down.

john46 Sun 26-Jun-22 08:46:51

I live on a lot less

Caleo Sun 26-Jun-22 11:46:40

If where you live is too expensive for you obviously you consider a move to a cheaper area. This is what I had to do, and others too.

Doodledog Sun 26-Jun-22 14:38:57

It's not always that easy when you factor in the cost of moving. Stamp duty, estate agents, solicitors, removals and things like carpets and curtains not fitting the new house can easily wipe out the difference between a house in an expensive area and one in a cheaper town nearby. You'd often have to move to a totally different area to be in profit, and that's a gamble when you are retired. It's not as easy to make friends when you aren't working, particularly if you are living on a budget and don't go out a lot.

Floradora9 Sun 26-Jun-22 14:57:42

I wonder how many others like me who are lucky enough to still have a husband looked into what money they would get if they lost him. I found DH would be fine without my income but mine would drop a lot as he has the far better works pension. I would manage though I expect.

Zonne Sun 26-Jun-22 16:34:48

Floradora9, I have. I'll be better off on paper as one of my husband's pensions* will come to me in its entirety. However, I'll have to pay the full amount for things he currently pays half for, and other pensions of his die with him, so I won't have much more in practice.

*one husband who has plural pensions, rather than outing myself as bigamist

Sandytoes Tue 11-Oct-22 16:12:17

@LaCrepesule , was just reading the thread and realised it's a few month old . Just wondered if you decided on retirement? And if so how you are managing ? .