Can you manage on just a state pension ?

Due to my having made the stupid decision to pay the (now defunct) reduced rate married women's NI rate many decades ago, my state pension is only £83 per week - not a chance I could survive on that!

I’d say go for it, who knows what tomorrow will bring. It’s ok airing on the side of caution but sometimes this holds us back for to long. You will make it work live for today, tomorrow will be a good day.

I would say that it would be tough to manage if you are paying for a car. You say it wouldn't be possible to move to release equity, but if you move to somewhere more accessible you could perhaps manage without a car? In the sad event of one of you being left alone you might prefer to be somewhere less rural.

No, I can’t.

Sandytoes

Hi River walk , fortunately we have both worked since the age of 16 and will have full state pensions . ( have obtained pension forecasts ).

Well that's a good thing!

You don't say what state of health you're both in, only family history - if in good health might it not be a good idea for you both to have at least part-time jobs to bolster your income and savings?

I wouldn't want to live an unnecessarily frugal life for the next 6 years waiting for pensions.

Yes you can but you should consider moving areas to release equity or move to a static home site with low annual fees and where you won’t be chucked off when they feel like it. Other choice would be move to another country but guessing your health problems mean you need this country’s excellent health system.

It’s certainly doable. I know a couple who live happily on £1200 a month. No mortgage/rent helps massively. If you’re happy with a simple life and are not materialistic you’ll probably be fine.

Take a look on the forum on moneysavingexpert.com. Under the pensions forum, there’s a thread called THE NUMBER. People discuss the amount of money they need in retirement and it’s really useful.

Your house may be too small to downsize but could you release equity without moving? Might be worth talking to a broker about this. If you follow through you will pay them a fee but an initial consult will be free.

Sandytoes, my DH and I lived on the equivalent of two State Pensions for a few years. We found that we couldn’t go on holidays like our retired friends and had to watch our spending. When the cost of living rose we found we were paying more for utilities etc but our income didn’t increase by the same amount.

I've been managing well on my state pension for the last year. I save regularly and invest in XRP. The world is changing rapidly. Don't be left behind. I'm investing in my future.

I would suggest if you are both working to basically hang in there until you get a bit closer to retiring.
I retired in October 2019 having paid 49 years of national insurance payments. I was working for the NHS and had yet again been passed over by a younger person for promotion. I was 63+3months. I’m a WASPI. I feel very hard done by. I was mortgage free and claimed my 3 private pension. I have enough to pay my bills each month which leaves me enough, just to get by on. I do run a fairly new car. It’s very hard. My friends are shocked at how little I live off which is less than £400 a month to pay for food, clothes and any shock surprises. Yes it’s hard but I still manage to save. I have to think twice before the heating goes on. I’m counting the months / days to when I get my well deserved and earns state pension which is now 16 months away. So unless you are truly dedicated to watching everything you spend. I would so no, don’t retire yet. I’m exceptionally careful and have managed to actually add to my savings rather than spend any. Please instant message me, if you can. Happy to chat with you about this. As I feel I’m very much an expert.

I've managed ok on 1 state pension for 4 years. I budget for a holiday every other year too. I very rarely buy new clothes, eat out or buy luxuries but am quite happy and dont miss the things i cant have. Only you can decide if you would be happy living like this, but its been fine for me.
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Have you checked the terms for minimum income benefits. If your DH or yourself have health issues and cannot work or find work there may be benefits available. Once you reach retirement age you still should have a minimum income even as a couple though savings will affect this. Two full state pensions at the new rate will be quite a lot especially as you feel you don't have an extravagant lifestyle. You are obviously careful in that you are taking time to consider all aspects of your situation.

I manage quite well.I worked a bit beyond retirement,but my husband went into a care home,so I was classed as single.I get help with my rent,so I was no better off by working,as this was reduced.I'm a widow now,I think it's harder for people on their own,as they still have some of the same bills to pay as a couple.But I managed,and could still afford some outings.I'm certainly a lot better off since we had lockdowns,I've managed to save quite a bit.

You can get a statement of you current private pension pots, you are allowed to take 25% tax free and then they take 40% tax straight off the rest of any other drawdown, if you are a basic rate tax payer then you can complete a form online and get any overpaid tax back , obviously it depends on your earnings for the year and current tax limits exactly how much you would pay in tax but these are available on HMRC website.
If taking all the pension pot check if it would push you into a higher tax bracket as it may be worth taking some now and then more in the new tax year to reduce the tax paid, call Pension Wise, a free service for up to date advice

Please don't forget when doing your calculations to include inflation, sadly most utilities, including Council Tax etc are all significantly higher than the bank rates ie our council tax this year is increasing by 1.99% plus an additional 2.5% precept for additional Policing. My broadband/telephone increased by 8%.

If you are able to access your private pensions as an annual pension, their annual increase will not be as high as the increase costs on utility bills/household spending and possibly only inline with inflation. As a rule of thumb I would add a minimum of 2% per year increase for each utility/bill you have to pay. This will add up over the 6 years until you can receive your state pension.

Good luck

I retired early from teaching, taking a reduced amount as my husband needed care. I was also expecting my state pension at 63 as it was then but they moved the goalposts. I'm now 67 and husband 80. Are there any skills you have which could add to your income without incurring tax? I knit and crochet and sell a few items. If you have a garden you could grow fruit and veg and save that way. Good luck and enjoy your retirement now, you won't regret it.

@lolee

How on earth do you live just on state pension AND save AND invest?!

Think really carefully about this. Is there the option for one of you to stop working initially or for you to both reduce the hours you do at work ? The sad reality of life is death and if you both left work, one of you died the other would be on a very reduced sum to live on and would make a sad situation increasingly difficult due to lack of money.
Do not consider a static / park home. These seem like a good option but annual fees are usually high and there are other restrictions too.

We're managing for bills and weekly shopping on both our basic state pension. But it doesn't run to Christmas and birthday presents for close family, clothes, household items that need repair or replacement, our cars, take aways, holidays etc.
We have savings and have spent at least 8k on levelling the garden (there was 15 different levels here in a small garden) building a shed, entertaining family before lockdown, power tools, new white goods for kitchen, etc etc.
You definitely need to stick to a budget and have an emergency fund. I'm also decluttering and selling on eBay as a hobby which helps in a small way.

I do know someone who did this - they moved from a more rural (lovely) house to a much smaller terraced house in the nearest town (which cost the same money!) BUT they've been able to give up having to run a car and live not very far from a supermarket, doctor's surgery, etc. They live very frugally (their holidays are visiting other people), money is a constant issue, and I'm not sure that I would like it. She did "confess" to me recently that she had come to realise that they had both retired too early (and is, in fact, now looking for some paid work). But it has to be an individual decision (of course).

Some costs decreased when I retired; I didn't need 'smart' clothes for the office and meeting people, and our petrol bill dropped. Heating bills went up of course, but we also found we were doing lots of things ourselves that in the past we have paid others to do because we felt we didn't have the skills, time and energy. We have quite surprised ourselves in what we can do. It's difficult to work out what someone else needs in terms of finance - I have friends who have lived comfortable lives with a car and holidays on a lot less than our working income, and others who were constantly complaining of being hard up when I knew that they could have bought and sold us easily. The best suggestion I have seen on here is to have a practice run. A month or two living on the income you would have will give you a clear picture.

Check pension credit , had this situation 10+years ago even if it's only a small amount opens up other benefits.
It's your right you have payed in for this.
Many years ago in your situation given this advice did the deal for us, also don't listen to the but gang do it after all its your business

I wouldn't be in a hurry to retire if I didn't have to. My job disappeared when we sold our business at the end of 2019. My DH will retire this coming April aged 70+. We have ensured that we good pension plans to top up the state pension (which neither of us at 69 and 70 have yet drawn) as we could not possibly enjoy the travelling (hopefully to return after this pandemic nightmare is over) and other leisure pursuits on the state pension alone.
I would also fully endorse always having an emergency fund for the unexpected but inevitable repairs and replacements.

Sandytoes, do look at your pension forecast carefully, it is only a forecast. I was forecast a full pension if my contributions continued at the same rate, £175 ish, in the following paragraph the forecast read... that if I stopped paying NI I would expect £134 per week! I thought I would retire early and like you I had worked from being 16 but I had been in a local government pension scheme, contracted out, and hadn’t paid enough NI contributions. I was made redundant 8 years ago and have paid Voluntary NI contributions and worked part time. Don’t forget that if you take a part time job you may not earn enough to continue paying NI and therefore will have a shortfall. Do talk to government pensions people they were really helpful. Good luck, I hope everything pans out for you both.