Can you manage on just a state pension ?

When I started this thread a couple of other posters mentioned they were also considering retirement on a fairly low income and I wondered if anyone else has taken the plunge ? , and of so how are they managing with all the C of L increases.

@MOnica , lifetime mortgage / equity release may be right , or essential , for some but it isnt something we are considering right now . We do have savings and are managing all the essential bills, but like lots of other households are having to tighten our belts now .

You can release money from your house without having to sell it and buy a smaller house. It works like a mortgage without repayments. The interest is rolled up and is repayed when the house is sold, either following your deaths or when you go into care.

For you the disadvantage would be your age, you are very young to be taking out equity release. The younger you are, the longer the interest will be rolling up, so th eless you can borrow. But it might just be worth it to take a small sum out to provide you with a cash cushion for a rainy day.

Just wondered how anyone on a similar income to us is managing now, with all the current and upcoming cost of living increases. We are managing ok but definitely not as comfortable as before and without my few part time hours it would be very tight .

@Biglouis . We dont currently have health problems , just a very poor family health history . Not interested in " cash in hand " work myself , but am doing just a few agency hours per week ( 4 to 5 ) which is helping with the increased living costs .

I always advise people to go for a cash in hand side hustle if their health allows. You do mention health problems and living rural so anything physical like cleaning, baby sitting or dog walking might be a problem.

Do you have an attic full of "stuff" you can sell online on Ebay or Facebook? You can get Royal Mail to collect if posting/trips to the post office are a problem. There are also many things which can be done WAH from a computer if you have the skills and a good education.

I started a small business when I retired but I did have my state pension to provide a fall back position. I now make far more money selling online that my pension brings in but Ive built it up over a number of years.

Poppyred , yes we have a smart meter too so not concerned with under paying and accumulating a large debt . Unfortunately our heating is by oil, and that's a whole other story ! . Glad its summer at the moment and heating is off ! X

Yes, we are going to do this from now on. Just had a smart meter fitted so makes more sense just to pay what’s owing every month, rather than an estimate through direct debit.

* done this ?

Just wondered if anyone has stopped paying fuel bills by DD . Our DD increase seems extortionate ( Electricity from £45 to £ 105 per month ) . I think the companies are factoring in potential non payments in their estimates. We have decided to pay slightly more and pay the actual monthly bill . Anyone else dine this ? .

Thanks to those who Pm'd to ask how we were managing . We are fine but like everyone else on a fixed income we have had to look at our budgets again and make savings where we can. Our biggest increase is , unsurprisingly fuel, our heating is from oil and there is no cap on this and is now treble what it was at the start of the winter .
How is everyone else on modest incomes coping?. Any budgeting tips are always welcome .

Quite. Didn’t you just say something about being an antiques dealer Biglouis? I trust you declare your income.

@biglouis , this was a thread intended for discussion of living on a state pension income . With regard to "honesty " I will leave you with your views without further reply , and I will keep mine .

Given the graft and corruption of those at the top - fiddling expenses and fraudulently passing contracts for dud merchandise to their mates - there is little incentive for anyone to perate honestly.

Thanks Pammiel , fortunately our health is fine at the moment . It is our family health history that is poor , but your advice will probably be really helpful to someone else.

vegansrock

I was told you can make £1000 pa on ebay legally without having to declare it to taxman.

You don’t have to declare any ebay sales to the tax man provided you are not acting as a business. In other words if you are buying goods wholesale to sell on at a profit, then you’re a business and should declare from the start. If you are just selling personal things you’ve bought and no longer need, then you’re a private seller and don’t need to declare.

If you are both in poor health, would this be something you could claim disability benefits such as personal independence payment. If you were successful, you could possibly also qualify for carers allowance - this is subject to an earnings cap but pension income doesn’t count as earnings. PIP is payable after pension age if your claim starts before age 66 but carers allowance would stop when state pension becomes payable. Maybe look into this before you take the plunge. I started a thread on the Pensions and Benefits forum giving details of various benefits and how to claim, so that might be helpful.

Of course you can work and get paid in cash . You just need to declare your earnings
@biglouis , not sure why someone not wanting to work illegally is either taking the moral high ground or a sign that they have something bigger to conceal but maybe that's just your experience from the people you know .

If someone is "older" its very difficult to prove that they were not that person's own belongings that they bought/collected when they were younger or that they did not inherit them from a mother or grandparent. I was left the contents of my grandmothers house back in the 1970s and have items I inherited from her and my mother still in boxes in my attic. Back in those days few people bothered to photograph or itemise their possessions for insurance purposes. It never occurred to them that said objects might be valuable collectors items one day. While it would be difficult for someone to prove that they had "inherited" every single object ir would also be difficult to prove that they did not!

vegansrock

I was told you can make £1000 pa on ebay legally without having to declare it to taxman.

If you're selling your own belongings surely that is not taxable?

In my experience people who vehemently take the moral high ground over doing occasional cash in hand jobs for a couple of hundred a month probably have something far more nefarious in their lives to conceal. People who really are honest do not feel the need to comment publicly or boast about it. It is enough for them to know they are honest.

SporeRB

I see nothing wrong with cash in hand jobs. The personal allowance for 2022 is £12570. If you get say £750 from private pension and another £250 per month from cash in hand jobs, you are still below the taxable threshold, so you are not working illegally. Am I right?

You are right PP ......some people just like walking the moral hughground even when its not necessary ?

I see nothing wrong with cash in hand jobs. The personal allowance for 2022 is £12570. If you get say £750 from private pension and another £250 per month from cash in hand jobs, you are still below the taxable threshold, so you are not working illegally. Am I right?

@biglouis . I wont be doing what you call " side hussles " and I call "working illegally" . We have been able to retire early by hard work and paying our way throughout our working lives . Hopefully I have too much integrity to do otherwise , even if you do not .

I was told you can make £1000 pa on ebay legally without having to declare it to taxman.