Your Pension …

A couple of years ago I received a shock financially as I had to replace my f/f, washing machine, dishwasher, cooker and TV within months of each other. The boss at Euronics always had a smile on his face when he saw me.

The next will be a gas boiler and hopefully all of these gadgets will "see me out".

Joseanne: Does it mean redecorating or replacing the kitchen?

We've lived in this quite old house over 60 years. We've painted walls, varnished the floors, and trades have replaced worktop, some plumbing and re-wiring, and window framing.

We've never replaced the entire kitchen at one go.

Georgesgran

Gsm my friend who will be 70 this years is a dab hand with a paintbrush and says it’s easier to repaint a wall than wash it - takes less than an hour, apparently. She often does this for both of her sons while childminding and decorates properly for them, One day she went out to wash her garage door down and said after that, it needed a coat of paint and was done in a trice.
I’m a GAMI - get a man in.

We used to be DIY now we're GAMI - or, in some instances GAWI.

Hovering between the first two at the moment, DH is due his State pension in December which will definitely shift us into number 2. Then in 5 years time when I can claim my State pension we will be into hovering between 2 and 3.

The trick is to survive the interim!!

The lowest bracket - is that meant to be without housing costs? I am sure I've seen this sort of thing on here before - if you have no housing costs, i.e., you own your own freehold property, then I think the £1k a month or thereabouts is doable. That's where I hope to be in a few years time - I'll get my state pension and a small private pension of about £2,500 a year. However, that means I won't qualify for pension credits. And of course there's still all your utilities and council tax. Also if you are in a leasehold you might have quite high service charges and ground rent.

I saw a thread on here before Christmas that really made me cross; a retired/about to retire poster saying that after all outgoings her and her husband ONLY had £3k in cash each month and wondering if she'd be ok, would they manage on that ... (they owned 2 properties if I remember rightly). A couple of people (not many) said well of course you can afford to live on that, and then the poster was like "oh poor me, I was only asking" - that sort of attitude. I think to call it disingenuous is being polite!

I've also noticed a much higher number of people (mostly women) over 60 maybe over 70s too working in supermarket jobs; making ends meet or maybe its a choice for the company/social life/independence?

I do have to say that I had built up quite a nice little nest egg of about £8000, but then my two adult children were in a bit of a fix, so I leant them most of the money, (I do hasten to add that I wasn’t asked I offered )it will be repaid, obviously without interest and my needs are few so I can manage…

I think whether you are single or in a couple makes all the difference financially for pensioners, just as it does for working age people. Bills and house maintenance are much the same for one or two people, but two people have double the income, even if just on a State Pension.
I have savings from moving to a cheaper area and releasing equity like that. Savings are going down now with the huge increase in fuel and food, as well as house maintenance needed last year. I don't have holidays.

mrsnonsmoker

The lowest bracket - is that meant to be without housing costs? I am sure I've seen this sort of thing on here before - if you have no housing costs, i.e., you own your own freehold property, then I think the £1k a month or thereabouts is doable. That's where I hope to be in a few years time - I'll get my state pension and a small private pension of about £2,500 a year. However, that means I won't qualify for pension credits. And of course there's still all your utilities and council tax. Also if you are in a leasehold you might have quite high service charges and ground rent.

I saw a thread on here before Christmas that really made me cross; a retired/about to retire poster saying that after all outgoings her and her husband ONLY had £3k in cash each month and wondering if she'd be ok, would they manage on that ... (they owned 2 properties if I remember rightly). A couple of people (not many) said well of course you can afford to live on that, and then the poster was like "oh poor me, I was only asking" - that sort of attitude. I think to call it disingenuous is being polite!

There is no pension credit with new state pension...so withoit your private pension you would be worse off

I’m definitely going to be on the first one- only time will tell how I cope

Callistemon21

Greyduster

Close to the second tier, and manage fine on that, but have “rainy day” money to fall back on. So far we haven’t had any rainy days🤞🏻! If that’s not tempting fate I don’t know what is!

Rainy days:

For example waiting 4 or 5 years for knee or hip replacements forces many people into paying to go privately using rainy day money or money set aside for longed-for holidays .
If they don't, then their quality of life is impaired.

this. As my dogs got older, they got more expensive, even though insured, because they needed special diets slippery floors covered and so on. It goes without saying that I didn't begrudge a penny but I was lucky to be able to afford it. Money goes out on looking after my trees and other house and garden expenses, yes I could downsize but that costs a lot too.

yes I could downsize but that costs a lot too.

It does. We've looked around but by the time somewhere might need renovating plus all the removal expenses (not to mention the upheaval) it might be better to stay put and pay for some help when needed.

Well under the first one even with my small workplace pension. I’m 66 in April when I’ll collect my state pension but will carry on working until I drop probably.
Thank goodness I’m mortgage free.

Above first tier but a long way off second. Thankfully I paid down my mortgage with my inheritance from my mum so it is quite small. I couldn't manage if I was renting! Sadly my house needs major work doing which I can't afford so will have to downsize to a cheaper area to have real security. Meanwhile I survive in the cold and damp! Just hope someone will buy it in its present state. I can't imagine how people manage on the basic state pension.

notgran

It's an interesting article and I read it this morning. As a couple we are doing fine and have a Rainy Day Fund each. We possibly are better off than we were when working as we have a few occupational pensions and investments between us, no mortgage payments, commuting costs etc. We are fairly careful with our spending but could do with updating our home decor etc. a bit, but then we choose to go away on trips, instead. I am surprised by the calculations shown on the chart which presumably only refer to disposable income after the essential bills have been paid.

I think those incomes are total income not after essential bills paid. If my disposable income was even close to the lower figure I'd be laughing all the way to the savings bank!

Many of our single friends are now having to make a concerted effort to budget wisely, after all a room heated costs the same for 1 as it does for houses with more people who may have a far higher household income. . For those fortunate enough to have savings they are now being eaten away by essentials not luxuries. Not much financial help for them either in comparason to some who have taken no financial responsibility in their lives and have an expectation that they will always be rescued. Sadly I cant see that that help will be sustainable for any one and poverty will be a far bigger problem across all households as time goes on as if it isn't bad enough for some now. Not great is it..

I am able to live very comfortably on DH's works pension and the state pension. His private pension I am leaving in trust for my adult children in the hope that they can retire early. DS has been ill for the last two years with long covid and is still suffering extreme fatigue.

My income after working 47 years and only stopping for two years( kids) is £10,080 per year. I live on a knife edge ….my husbands pensions went with him into full time care home for Alzheimer’s…. my entreaties that I still have a house to maintain and heat , fell on deaf ears! I now dont heat my home, no matter what the temperature… and sometimes don’t eat ….. I go to bed instead!

That’s dreadful Saggi. Have you checked whether you are entitled to any benefits? 💐

Saggi, that's awful. I'm sure you should be entitled to some help as your income is below the necessary threshold.

Can you ask Citizens' Advice?

Saggi

Has anyone looked to benefits for you?

Age UK
Factsheet 39
Paying for care in a care home if you have a partner
April 2022
3.4Pension credit rules
If you receive Pension Credit (PC) as a couple, your entitlement changes if one of you permanently enters residential care. The Pension Service will then treat you as two separate individuals and eligibility for PC or other benefits depends on your individual levels of income and capital.

I can't do a link to it but perhaps you can find it, Saggi. It might be worth a read.

Thank you all for your advice ….I’ve never been on a benefit so know little about them but I will look into the advice you’ve given. How kind .

I also had a quick look at the Age UK website. I can’t do links either but I think you would find it very helpful Saggi. I hope you have also got a reduction in council tax since you’ve been living alone. Please take a look and let us know how you get on. Your situation worries me.

Above all don’t be proud Saggi. You have worked for many years and are entitled to everything available.