living off your savings in retirement

This is the 'trap' that so many who have a small pension / some savings get caught in.
You don't say what advice you have received about managing your money. If you haven't, I definitely suggest getting advice from Help the Aged, maybe checking your entitlements on Turn2us.

I think this can be tackled from 2 points: one is making sure that you are maximising benefits and not missing any.

The other is the best way to manage the money you do have. I am wary of 'financial advisors' - I personally had poor experience (not fraudulent, just not that helpful) but I have friends who are very glad that they had an appointment.

Do you go over to Money Saving Expert? The forums there are full of people stretching money, sharing tips and bargains: from the best savings accounts, to up-to-date coupons and freebies.

I am not sure if I am teaching my grandmother to suck eggs, but I am always looking in the local council information, adverts, information at the library etc. for free / cheap activities, just as I did when my kids were small.

We live in an area with active groups and can attend a good many free or very cheap activities. A typical week:
Local health walk (set up so that people in wheelchairs / mobility scooters can join in) free, we usually join in having a coffee at the end
Craft group where we share advice, and take advantage of offers. Free apart from materials
Aquafit (which people with disabilities join in) is free as I pay £12 a month 'swimming membership' at our local leisure centre
Village coffee morning. Free, contributions welcome, money or cake. If there is an offer at the Co-op, I put in a jar of coffee.
We will pay £5 each this week for a hilarious night at our local amateur dramatic review, and will probably stretch to a glass of wine to accompany and a quid in the raffle. We will also use the car to get there, other activities are walking or by bus, using bus passes.

My apologies, travelsafar, if this doesn't sound as much fun to you as it does to me!

Have you had a benefit check carried out by the CAB? Having savings doesn't automatically mean you can't get some help - it depends on the amount of the savings and the amount of income. You must be old enough for Pension Credit? CAB will check for that and help with rent, council tax, NHS costs etc.

Don't resent others for their lifestyle, you have got a good little nest egg, they haven't and despite what you may here, there is nothing luxurious about living a life on a state retirement pension topped up a little with pension credit. You are right though about having a great holiday, go for it, enjoy it while you are fit to do it.

If your savings are just over the amount that you are allowed to have without losing out on benefits you might be better off spending some more of the savings to qualify for the benefits. As others have said, you need advice from CAB or Help the Aged. Sometimes you just have to play the system!

I imagine most retired people are living off a mixture of savings, state and/or private pension.

Don't waste your energy on what other people are doing - you don't know their circumstances. They could have always worked but in low-paid, unskilled jobs and could never afford to save.

It really annoys me when i hear other people talking about how they get this and that from the state as they saved nothing or made no provison for later years

Do you not see the irony in this statement?

From what you say your family has been in receipt of sickness/unemployment state benefits for many years, plus if you are in council property you will have had state subsidized accommodation all these years. These benefits helped you to save 'quite a lot'.

Enjoy your retirement and forthcoming holiday.

I think part of the problem with eligibility and benefits is that far too many people swallow the right wing rhetoric that savers lose out whilst wastes gain and so think they ( as savers) can't get anything. The OP needs a benefits check - they are easily available ( if she hasn't had one yet). The majority of people are ill- informed about the benefits system

Get a benefit check, then stop worrying about what others get or don't get. We have taken massive financial hits in our time for one reason or another and we have always managed fine, even when we thought we might not.

Enjoy your birthday holiday!

I don't think we know what benefits OP's family would have claimed, possibly not much if she was the breadwinner. I was unsure as to whether she wanted advice or just to let off steam.
It is difficult to know what seems reasonable.
We are aware that our lifestyle seems a bit 'downbeat' compared to some we know - but we are lucky enough to enjoy relatively cheap activities. We are also lucky to live in a comfortable house in a pleasant area which makes an enormous difference to general well being.

We live off our benefits and my tiny £32 per month works pension - (pension and health benefits (DLA, AA, ESA etc)). We are grateful for Rent and Council Tax Benefits and I do appreciate that winter fuel help and generous £10 Xmas bonus. I'v always been a saver rather than a spender, but feel somewhat aggrieved that because I have been frugal whenever possible over the years, my husband loses much of his ESA. I feel that investment as a result of not spending all one's benefits/salary etc should be disregarded. Don't know how much you've put aside for the proverbial rainy day, but have you checked whether you are entitled to Pension Credit, which automatically entitles you to Winter Fuel and rent/council tax help? Worth looking into, if not. Enjoy your holiday!

If you have enough savings it might be an idea to get advice from a financial advisor as they might know how to make your savings work better for you. I know how frustrating it can be when your savings are not a lot but just over the limit for getting help!

It is not unreasonable to 'future proof' your home with your savings. You do need to check how much can be spent, in what circumstances (I know that councils assessing for social care costs take a dim view of sudden large expenditure, but am no expert)
However, ensuring good insulation, accessible bathroom, wheelcahir access to garden etc. and buying good quality appliances are all reasonable things to do (I know not all of this applies in rented accommodation)
We have spent for our future, hoping that there will save money in the long run - we have also been able to install photovoltaic cells and solar panels which keep our bills down.

The OP's age puts her in the frame for possible pension credit. As I have said before, there is no theoretical savings limit for PC but there is an income limit. That is why if she hasn't already had it, she needs advice. She rents her home so there would be issues about doing anything to it like wheelchair access ( if that were appropriate). We can't advise her in any meaningful way unless she provides more information. Perhaps she just wanted to complain?

I have just returned from being out shopping with my son and DL, when this subject came up. As my daughter is from Tanzania she was surprised to find out that the pension that we save for our retirement gets taxed.
However on the other hand she does not agree with all these negative stories one hears in this country about poverty in Africa as what situation would a lot of people be in this country if there were no benefits.
Also in Tanzania one has to pay to be educated. I remember talking to a chap who was in charge of the swimming pool. He told me that he was only able to afford two years of education and that he wanted to join the army but was not allowed only due to a tiny mark he had on his arm.

How on earth could pensions not be taxed? It just couldn't work.

Strictly speaking it could be said that basic state pension isn't taxed as it falls within the personal tax allowance. Only when that allowance is used up do we pay tax on income above (now) £11.5k.
I'm constantly surprised that people think no pension is taxable or OTOH that any pension payments, however large, should be tax-free.

I believe Nannarose has a good point.

We have 'future proofed' as much as possible. To our home, our furnishings, our supplies, everything was plussed up before dh retired. We spent liberally, every single need (for us and our dds) was considered and advance paid if possible.

I think people confuse State, private and workplace pensions. One of my hobby horses / bugbears is how little interest some people take in pension provision (for instance, they hear that the 'pension' is tax free & assume that applies to all types) then suddenly get upset by something they really should have known about. I could write a book on the idiocies I have heard!

Indeed, we cannot offer meaningful advice unless OP gives more details, but I hope that she has at least taken advice on how best to manage her finances. She may also feel rather patronised if she has already done those things and is managing her finances as best she can.

I have known a few families in similar situations. Dad unable to claim much in benefits, once NI entitlements are exhausted, because the family income is above the threshold for claiming, and Mum earning less than a man might have done, carrying the burden. And any system that aims to ensure no-one is in penury, is going to have those 'cut off' points that disadvantage some.

Did anyone else see the interview Angela Ripon did with a little old pensioner yesterday morning? Just happened to have the TV on - she had only her state pension and paid all her bills - said she did not get any benefits as had never claimed - she gave a menu and it was barely enough for a mouthful - but she was not complaining.

It took me months to get a relative to apply for benefits as she thought she had too much in savings - eventually she got sick of my nagging and then found she did qualify and her life was so much easier.

i would say to anyone who is living on a low income "find out about what you might be entitled".
when i retired on a very low income i applied for pension credit and, ten years later, am still receiving this. it was supposed to pay for the interest part of my mortgage and did until the government reduced the rate which they were paying and cut my entitlement by two thirds!
however i'm still entitled to pension credit as i'm still on a low income - and i also qualify for council tax benefit [or whatever they call it these days].
i have no savings whatsoever as i never had the opportunity to save when i was working and i must admit that now and again i have problems if something major goes wrong.
but PLEASE find out if there are any benefits to which you are entitled and claim them.

I am not yet State Pension age but I took Early Retirement to care for my late DH. I signed on to ensure I had enough NI Contributions for my State Pension. I have my Civil Service Pension (about £93pw), I was transferred to Incapacity Benefit due to my health, this became ESA, I got Contribution based until the rules changed & I'm now on Income based so I got about £12pw. This does however allow me free NHS Dental care, Eye tests & glasses. I have had free Prescriptions since 2003 due to health conditions. No bus pass or Winter Fuel payment.

I also claimed DLA, now PIP which has given me an extra ESA payment as I don't have anyone claiming Carers Allowance for me (the only benefit I've been given rather than having to apply). I live in a Park Home so Band A for Council Tax, I get full Council Tax Benefit & Housing Benefit (to cover Site Fees).

How all this will change in 2021 when I draw a State Pension I don't know. Savings limit before it affects Benefits for me is £6000 but for any-one on a State Pension I believe it is £10000.

I don't envy those who have good Pensions or Savings but live as best I can, not luxurious but ample to enjoy the odd meal out/day out. A Benefit check up is essential to find full entitlements as most people are not aware of what is out there. Local Council an be very helpful, I've had my Park Home fully insulated with a £7000 Grant (I had to find about £500 on top). So again get in touch with your Council & see what you are entitled to, might cover new boiler etc.

Your resentment towards people who have to rely on help from the welfare state will eat away at you. Not everyone has the means or opportunity to salt money away. If your savings run out you will be in the same position as those you envy.

Riverbank Council property is not 'state subsidised', it is non profit but there is no subsidy. People on housing benefit may or may not be in council property and may or may not be in work.

Ilovecheese Well said.

Life is not fair!
It may feel unfair to the OP that those who she thinks were profligate with their earnings are gaining in old age because they get benefits. But her family has had support through ill health benefit, public housing (I know certain repairs and maintenance are often covered) etc.

My DH and I have been fortunate to both work hard, f/t, for many years in pensionable jobs, have both come through redundancies, & now aged 66 and 69 we continue to work p/t. We have paid tax at high levels which have contributed to the benefits those with less income can access.
We continue to pay income tax on our workplace pensions and p/t income. We benefit from our state pension, free prescriptions, eye tests, NHS and fuel allowance. I hope that my DH & I can continue to be 'self funding' as this leaves more in the pot for those who cannot, for different reasons, be so. Long live the welfare state.