living off your savings in retirement

Some excellent posts from you Nannarose on this subject.

Message withdrawn at poster's request.

You sound like you have been a real hard worker, travelsafar. I understand how you feel regarding some who live it up and fritter away money regularly fully expecting the state will look after them, and I don't mean everyone on benefits has done that.

I still can't stand to see George Osborne's smug face after he stole more than £40K from me. Yes shock horror the b... did! I now have to wait till I am at least 66yrs before I'm able to draw a pension. After working very long and hard this does irk me.

In regard to your question many have stated about checking you are receiving what you are entitled too, which I hope you do if you haven't already. You are right in that interest on savings currently is poor. One thing I could suggest here is to get store savings cards in which the store adds a bit extra on to your card. Iceland currently add £1 for every £20 you save, which is £5 for every £100 added to you card. At 5% this is a lot more than you are likely getting in a bank account. They recently had a bonus period in which they gave an additional £1 for every £10 saved plus each £1 saved gets entry to a monthly draw for Iceland vouchers. They also send bonus free gifts now and again. I received a gateaux for my birthday and recently received a free £2 gift in which I chose the morello cherry bakewell tart, which was delicious. Every little helps and looking at these options can spread your income and help out.

Enjoy your, by the sound of it, hard earned holiday (where are you off to).

We have savings we are trying to hang onto my husband has a good pension because he worked much longer than me I went back to work when the children started school and nursery, it was only part time but I have a small pension plus my state pension. My husband has only his state pension and a small pension. We have our grandaughter who we are guardians too so we can claim tax credit which is good, our gd gets a grant from our local council but when she is 18 that will stop.
But we can't claim anything else, I wouldn't anyway, but it does seem harsh that you cannot get any help maybe when your h does retire you may get more help

Please get a Welfare Rights check on your income, however you can. Do not be sour about others profligacy, we have one life.
Us that are more fortunate could fester that our taxes provide and have provided for those less fortunate.
If you are getting all the benefits you can and are still just surviving is there somethings you could do to earn anything? I have friends very broke who scoured charity shops for pretty clothes, cleaned and pressed them, then sold them on, okay it may have only been £5 now and again, but if you are bumping along the bottom, that is a lovely bonus, another friend used to sell homemade cakes at a village cake stall once a month.

Thanks Penstemmon. I couldn't agree more. We have been fortunate in working hard and being able to save towards decent pensions. I had to retire at 62 due to ill health, weeks later my husband was made redundant, so we had a bit less time to save than we'd planned. That's life isn't it. Of course we pay tax on our workplace pensions, my husband worked part time until recently, tax paid there. I am fortunate in having expensive disease modifiers free on the NHS. I've had eye surgery and excellent care from my optician (NHS). I'm happy we've paid tax, would have paid more to help people in more difficult circumstances than we have been. Long live the welfare state.

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.

Ilovecheese Well said.

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.

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.

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.

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.

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 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.

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.

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.

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

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.

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?

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.

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!

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!

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.

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 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