Can you manage on just a state pension ?

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.

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

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

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.

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'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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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 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.

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.

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.

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.

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.

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.

No, I can’t.

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.

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.

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!

It depends a lot on whether you already have a savings fund specifically for house maintenance and repairs and replacing household goods and other items I think. Things seem to have a habit of going wrong. My financial guy told me before I retired to always have about £20k readily accessible, and to make sure that it could be topped up from living expenses when I used any of it. Also make sure you keep insurance payments up to date. Otherwise I think you’ll be worrying about what needs to be done that you can’t afford.

We manage on just over £1000 a month.
No rent or mortgage. Small amount of savings we have usually remains untouched, we run an old Volvo, have hobbies, dogs, but we don't do much that costs much money.
I was made redundant two years ago, at 62, and decided we would try to manage until I got to 66 and my state pension came through. It IS possible to do, and you will worry about it beforehand, I think once you have committed to it you will be fine, but that is dependant on how much you miss spending on treats and luxuries. In this I include new clothes, make up, hair dresser, bits and bobs for the home, buying others nice presents, etc. I would feel quite well off to have £1400 a month to be honest!

My best tip would be cook from scratch, and let your freezer be your friend, to make the most of bulk buys and bargains.
Once every six weeks or so, run freezer right down, this will probably give you a week without shopping bills, albeit you may have some strange meals.

For my mental health and wellbeing being made redundant and making the decision not to look for work has been one of the best decisions I have ever made.

Whatever you decide good luck!!

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

How many years NI contributions do you both have? If you give up work now, six years before Government pension age, you might not get a full pension.

Thank you to all for your thoughts . Our income would be approximately £1400 per month with no rent or mortgage. Our outgoings and average monthly spend are just under this at present and we have lived on a much higher budget when ACs were small. Our hobbies are very low cost .. camping, walking , gardening etc . We thought it would be manageable but from your experiences it seems it may be difficult in the long term . Currently thinking early retirement with some part time work( if we could find it ) would be the best option for us .

I couldn't stand it. You have worked all your lives and deserve better.

jennifereccles the state pension wasn’t originally intended as a “top up”, it was intended as a minimum amount to live on, as in its inception few workers would have a private pension. As the state pension has remained at a low level ( the lowest in Europe) people have had to take out private pensions, so many do see their state pension as “ pocket money”.. I agree it would be impossible to live a lifestyle which involved holidays, home improvements, many leisure activities etc if one only had the state pension to rely on.

If desperate, you could release some equity from your home while still living in it.
If you get a Lifetime Mortgage, you repay interest-only on it so the amount owed doesn't increase.
You could maybe have a look into that, just so that you're aware of what's possible.