Can you manage on just a state pension ?

@Peasblossom I think you'd be surprised by the finances of many older people, once you factor in inheritances and other investments they may have made which would be in addition to a workplace pension.
That doesn't detract from the fact that so many others manage/struggle on much less and have to bring up a family on a lower income.

Teachers don’t get two thirds of their salary. Nothing like. Half of your average salary if you work 40 years.

Who gets a package like two thirds? !

But there are loads and loads of people who earn even less than that and raise families.

I really think people on high salaries have no idea.

The average actual single pensioner income is here: www.unbiased.co.uk/life/pensions-retirement/what-is-the-average-uk-retirement-income
It depends what you want to do in your retirement as to whether you would be content to live on that amount or not - what it does illustrate though is that even on a full state pension you would be living on a lot less than the average person.

Take a look at that link - that's per couple. So, if 2 teachers/nurses on £30k each retired on 2/3 of their salary, they'd have £40,000 gross, potentially with the state pension on top.

Classroom teachers and nurses earn an average of £30,000 and bring up families.

Who are these retired people who think they need £40,000?

£25,000 for a single person or a couple?

£40,000 for a few luxuries ?

Goodness. How the other half expect to live. ?

@LovelyLady £1400 a month net isn't a good income by any stretch.
Lots of people live on that, and less, but it allows for few luxuries and makes you vulnerable when unexpected essential expenses arise.
The survey below suggests £25,000 a year (2083/month) is the minimum to be comfortable, £40,000 if you want a few luxuries:
www.which.co.uk/money/pensions-and-retirement/starting-to-plan-your-retirement/how-much-will-you-need-to-retire-atu0z9k0lw3p

£1400 a month every month, tax free is a good income. We live on less than this. It’s just a different lifestyle. Look at what you don’t spend - travelling to work, lunches out, work clothes, If you have doubts at all don’t retire. Liking work! Thats unusual and a privilege but when you retire, belts have to be tightened. Harsh words but that’s life. If you think you can have coffees out, lunches out, hair done etc. Then possibly not for you.
Sorry x

When we were in our early thirties we bought a house that had closing orders on it. This means that it was about to be condemned. It was an absolute wreck. Although we had a mortgage, they wouldn't pay it out and so we had to have a bank loan. This meant we were repaying a mortgage and also the bank loan. The mortgage repayments were put in a separate account which we received to pay off the bank loan once the building society were happy with the work. My OH worked 7 days a week, on his work or on the house. Any surplus money was spent on materials for the house. We had no money whatsoever for "extras". This was our choice and we knew it would benefit us in the long term but it was very hard.

We had another period of virtually no income when, after we moved to Suffolk, my OH's main client (who had moved from London to Gloucestershire) decided that it was impractical to continue to use him and my job in London moved to Milton Keynes, unexpectedly. I got a new job fairly quickly but cried all the way home, because I didn't like it or want it. But needs must.

We liked to potter around - going Up West when we lived in London or out for the day somewhere. Lunch at a pub, look in a few junk shops, visit a NT property. We had no money for any of that.

When we had money we had a few extravagances. I liked to sit in the Grand Tier at Covent Garden. I remember going to shop in South Molton Street to find that the shoes I wanted in a particular were sold out but there was another colour (green) and there were other shoes in red. I came with two expensive pairs without batting an eyelid.

On other occasions we stood at the back of the stalls at the ROH and took sandwiches from home which we ate sitting outside.

My point is that when you are young you can do without because you hope that something better will come along. But, when you're past retirement age you might not be able to earn extra money and you have to do without. So, please think very carefully about giving up full time work.

Could you reduce your working weeks to 4 days instead of 5 so that you have a longer weekend?

Just reading about the pension blunder involving those of us 80 and over, widows too. Going back to 1992 there has been underpayments amounting to millions/ 3billion.

When H died in 1994 I was never paid 60% of his pension, as all I received, being younger than he was, was £54 a week widows pension along with my wages from the hospital. Nor did I receive it with my retirement pension either.
So since 1994 to date, I've dipped out
Must get cracking on that while I'm able before I snuff it.

It's not much fun struggling on a small amount of money but I suppose it can be done if there is no alternative. If you are currently working full time, would it be possible to both get a stress-free part time job for a bit of extra cash?

Sandytoes My father died at 55 and my mother at 65 and I'm still here, having outlived them both. There's no reason to assume that because your family had an history of ill health that you will follow the same route.

Many of us changed to the reduced rate for married women when we got married. Our generation married young by today's standards and on the whole women stayed home and had children. We had no concept of retirement when we were in out twenties. I believe that there is some sort of top up by the state if our total income comes below a certain figure so it would be worth finding out about this.

You appear to have researched this carefully Sandytoes so yes I think you should go for it.
Myself and husband did the same at 60, partly due to fact that retirement at 60 was compulsory in husbands employment. We have recently begun receiving our state pensions, and have never regretted our decision. Yes we had a tighter budget and were conscious that money spent from savings could not be replaced but quite enjoyed the challenge!

I couldn't live off our New Zealand pension. Especially when you own a house. Theres always going to be unexpected car costs and maintenance. We had always saved for our retirement. I think the idea of living lean as a trial makes a lot of sense. We retired two years early and then I got sick. You do need to enjoy your life together while you have good health because you just don't know what's around the corner. Covid threw us all didn't it?

I left work at 55 but must admit changes in my workplace were making me very unhappy. I used part of my private pension to clear mortgage and I have never been happier I love it!
After 6 years I still feel massive relief that I don't have to set alarm and join the rat race each morning. I still have nearly 5yrs until I get State Pension, my partner worked for 2 more years after I left which helped finances but now both at home full time.
We manage fine day to day and can afford to replace worn out appliances etc but my only concern is living in an old property maintenance can be expensive, if bigger jobs needed not sure how we will manage. We replaced roof and double glazing before I left but always something needs doing. Kitchen and bathroom looking tired Not in a position to downsize any further. Still wake up with a smile on my face each day. Worth it for me.

The date at which the pension age changes were announced (with little or no fanfare, and no letters to the affected women) was many years before the first women were affected. Women were not retiring at 66 in the 90s - that is a much more recent state of affairs.

Doodledog The pension age for women changed in the 1990s.

I retired at 58 when my husband was 62. The plan had been that he would retire at 65, a year after me (at age 60, when I was supposed to get my state pension). It didn't work out like that, as the pension age changed, so neither of us will get a state pension until we are 66. My income has gone down considerably - partly because of early retirement, and partly because I was unable to pay into an occupational pension for a long time after I started work. My husband's pension is a lot better than mine, but jointly, we don't have remotely what we had planned for (a year with me getting my state pension and a better occupational pension, then, when he retired, two lots of state and occupational ones).

My husband decided to retire at 60, as he wasn't enjoying his work, and after two years of getting up and leaving the house whilst he was still in bed, I decided to join him. The house was paid for, which obviously helped, but I am a worrier, and wasn't sure how we would manage.

What I found was that not having to pay for 2 commutes, 2 lots of lunches, coffees, work clothes, (and all the things people have to pay just to go to work) made far more difference than I'd expected. Tax went right down, and although I still pay NI contributions, the voluntary ones are significantly less than in-work ones.

Some of the time since I left has been lockdown, of course, during which we have spent nothing on going out or having people round here, so expenditure hasn't been typical lately, and what with the damage to the economy caused by Covid and Brexit, things might get tighter before the state pensions kick in.

I think that a lot depends on how much you spend in order to feel happy. That's not the same as how much you spend to scrape by. You need to factor in the things that you enjoy. For some that is having a full TV package, for others a fancy phone, lots of books or being able to afford lots of lovely knitting yarn . It's doing without that sort of thing that makes people miserable, I think. It's easier to do without one big thing, like an exotic holiday, than to spend every day noticing all the little things you can't afford.

If you already have plenty of 'stuff' (many of us have too much of it by the time we get to retirement age) and your budget allows you to afford a little luxury or two, I would say go for it. Personally, I have never looked back - I know it's a cliche, but I don't know how I had time to go to work.

Sandytoes, I took one of my work pensions early (at a reduced rate) and, at the same time, gradually reduced the days and hours I worked. So, rather than a drastic change, I had a gradual adjustment into retirement.

If you continue working, remember to take work expenses into account with your budget. It's surprising how much travel, lunches, clothes etc. cost.

On the other hand, you'll need contingency funds for a 'rainy day' too (in my case, expensive dental work).

I'm better off now than when I was working, with state pension, work pensions and property income. My expenses are lower (no dependents, mortgage or large bills).

It's difficult to strike the right balance, between working too long and retiring too early. Would you be happy to reduce or give up luxuries (holidays, meals out etc.) that we seem to need to compensate for working?

My friend didn't want to downsize, so now has two lodgers, with extra tax-free income, from the rent-a-room scheme, and is very happy.

Maybe I’m going against the grain here Sandytoes but I’d definitely say ‘go for it’.

I honestly think most people are over-cautious in calculating their needs upon retirement .

We retired 6 years pre-state pension. We enjoy a nice life. Admittedly we don’t have a mortgage or pay rent.

My WASPI state pension this last 8 months wasn’t factored in when we did our sums on the back of an envelope in 2014.

We are happy bunnies.

Good luck, whatever you decide.

Sandytoes,
My husband's teacher pension ( which he paid through the nose for each month) is 1400 monthly.
We have no mortgage either ( council tax is over £200 per month for 10 months a year) and we run 2 cars but we manage very well on that figure.
We are, however, looking forward to him turning 66 this year and me turning 66 in just over 2 years! Yes, it is doable and we have hobbies too.

There may be encouragement for early retirement in order to get younger people into jobs. It might be worth a little wait

I'm working full time and paying a mortgage on what you will be living on and putting £200 a month away in savings. Obviously it depends on what you enjoy spending money on. I'm 57 this year and want to go part time next year but will need part time wages til 67 but more free time to me means much more than money. It's what's the most important to you I would say. Good luck

Covid has given me a great insight into retirement.
I know that we can’t do much in lockdown but if we, personally, had to live on our pensions only then I think we wouldn’t be able to do much at any other time.
I want to live in our bungalow but have the option to downsize if we need to do so. I am happy to keep working part time to fund this and our holidays. I am lucky that I like my work and miss it at the moment.
We all have different requirements and I want to have some luxuries in retirement and I don’t want to worry about unexpected expenses. Your pension seems to be similar to ours and I couldn’t live on that alone. I may be able to on the whole but then we get winter and big oil bills, then it’s the car tax, MOT, then the house insurance . It’s always something.

Like others I wonder if you could work part time? You could, perhaps, do house sitting. I think you get some payment and you would have mini breaks all over the U.K.