How much do you need to live on in retirement?

Erica23... sorry for delay in replying.. apparently I was contracted out.. local government then nhs...

Jaffacake2

I cannot understand why people start these threads. We are all in different financial situations having had our own personal journeys through life. The amounts you quote are a fortune to me but then my finances may be a lot to someone else. At our ages we have learnt how to cope with any given scenario however hard it becomes. Just enjoy what you have,it's more than most.

It definitely seems more than most to me - why on earth would anyone be worried? You will end up with your work pension over £1.2k a month, 2 state pensions and rental income?! So well over £3k a month after tax and your accommodation is secure and mortgage paid off?

What on earth do you get up to where £3k cash per month could be considered not enough to live on? How much cash do you have now when you are both working? Anyway, only hypothetical questions but I don't get why people are so unrealistic when they are in a comfortable position!

Fluer20 .I have been quoted the same amount as you by DWP. I’ll be 66 next May. When you say you’ll be £100 a year worse off have you asked them why ?

I’m happy that on the whole people are finding this thread useful. Money can be such a taboo, and obviously emotive when some have a lot less than others. I have found it useful to get some concrete examples of what people are living on now and the various strategies used to manage in retirement.

I agree. Dementia is a dreadful illness/disease/condition and I simply don't understand why it somehow doesn't count as such.

Aveline

I think it's helpful for people to almost think aloud as this sort of question is. It's sensible to poll the opinions of those who have actually taken the plunge and gone ahead and retired. Was it worse than they'd feared? Better? Or just OK.

Agreed.

Wonderful poll of opinions, actually matter to many people.

Saggi
Please take advice about the amount you are paying for your husband’s care.
I was in the same position 4 years ago.
SS told me that my husband’s state pension, attendance allowance would all go towards his care, quite rightly.
When they said his private pension would also all be taken I was horrified, it would have left me with very little.
After researching and getting advice I found out they could only take half of his private, actually from his employer, pension leaving me with half.
Please do your research.
I believe with a diagnosis of dementia we should not have to pay at all but that is very hard to prove and justify.

Aveline , I agree about the thought sharing / thinking aloud sentiment. I started a similar thread before we retired , albeit the monthly income was significantly less . I really got a lot of benefit from the replies. Although many suggested we should work longer it helped me decide on our priorities and we chose to retire on approx £1400 per month plus about 100-200 top up from a few hours agency work per month . We dont regret it at all . We now have caring responsibilities for family members and would have never coped with this and working too .

I think it's helpful for people to almost think aloud as this sort of question is. It's sensible to poll the opinions of those who have actually taken the plunge and gone ahead and retired. Was it worse than they'd feared? Better? Or just OK.

I cannot understand why people start these threads. We are all in different financial situations having had our own personal journeys through life. The amounts you quote are a fortune to me but then my finances may be a lot to someone else. At our ages we have learnt how to cope with any given scenario however hard it becomes. Just enjoy what you have,it's more than most.

Saggi

Oh …and yes…it is a miserable and cold existence!

Saggi, have you consider renting out a room in your big house and getting a lodger? You could get say £400 per month which will go a long way towards paying for heating and food.

Missmoneypenny, I just retired a few months ago at age 60, my private pension is £100 less than yours, overseas rental income similar to yours, DH has state pension + additional pension.

I do not think either you or your DH has to work part time to supplement your retirement income of £3k per month and your income should allow you to visit your lovely cousin in France more than once a year.

My advice is :Dont worry, just go for it, life is too short and we never know what is around the corner.

I moved to live 9 minutes away from a useful train line. However lockdown showed me how much I was wasting on going out and buying things when out.

at the moment i get £122 per week on single persons long term sickness benefit, i have a monthly pension of £58 from my late husband and that is taken from my benefits. when i am eligible for state pension at the current rate i will get £185 per week on state pension, i have no pensions or saving as i was a sahm then i became my husbands carer, when i could go back to work i got ill so i will need to survive on what the goverment give me, i will manage the same as i do now as i have no choice. it would be a good idea if you can look at your outgoings for the past year and then calculate what you will need to live on when you retire, many people of your age and mine have to live on a lot less each month and it is hard at times but as someone else said...it is what it is and i and everyone else has to just get on with it.

Madeleine45 I don’t own a car, longest I have ever owned one was 2 years, SILs old cast off until it died. I line in London so it’s not an issue. I’m with you on the importance of small pleasures though. Mine is single estate Darjeeling leaf tea. A whole ritual here too. Water must not be boiling but around 90C. I have a kitchen timer and it gets 4 minutes brewing. My other sticking point is at least 1 trip to France a year to visit my lovely cousin. Both non negotiable!

We’ve been retired for 9 years now. We have a good savings pot - for emergencies, holidays etc and we ‘earn’ £2100 monthly after tax. We live as we wish and put £200 away monthly as extra savings.

We have no mortgage and a 4 bed house in N Wales and live off about £2,200 a month, we might use savings for a holiday occasionally but usually don't and we run one car, have a gardener who Costa £90 a month, go to a few regular groups (weekly life drawing for me £8). We are vegetarian and eat out or have a takeaway 2-4 times a month

One area that you might look at is the car situation. If you really work out the cost and depreciation etc etc and try and put everything into that such as services and tyres etc etc then divide it by 12, you will have a better idea of how much you really do pay to have a car. My friend worked it all out and decided that she would be better off - as there was some reasonable public transport near her - to get rid of the car but allowed herself a set amount for a taxi. So she would walk or take a bus to supermarket or wherever but with a lot of shopping would have a taxi home. She got a railcard and in general says she has done much better without the car and no worry about it either, but of course in strike situations she hasnt got the flexibility. Whereas up in the dales, the buses have been allowed to get less and less and you really need a car if you are to remain up there for everything. So I think you should also think what you really would hate to give up. I have very little money but I am having ground coffee as long as I live (I hope) that is my pleasure and my equivelent to the japanese tea ceremony! My pleasure of making that first fresh coffee of the day, the lovely smell of it. If there was eau de cafe I would buy it!! When I have had a horrible night it cheers my day,etc, so for me that would not be negotiable and nor would I buy cheaper or poorer quality coffee. So that is my sticking point, and I am sure you will think of the thing that really gives you everyday pleasure and make sure that that takes a high precedence in your working things out. Good luck with your efforts

I am on a NHS pension - not old enough for my state pension yet.
I manage on approx £1500 / month.
This covers holidays , travel to family etc.
I feel I am quite comfortable !

I was told for years that I qualified fot the full state pension... even last year it was quoted at £185.15 per week.

But the reality from my birthday next year will be £100 less per year.
So be aware that the statement from DWP is not completely accurate.
And yes I was contracted out with nhs... but was still quoted the full amount!

That is about the amount I get including state pension. OH gets about the same. We don’t go out much by choice, but shop with Ocado and include M&S goodies, (not ready meals). Have enough to save a little, give GCs decent presents and occasionally help out ACs. We don’t feel we are missing out

Thank you for all your posts, too many useful ones to name them all, I’ll certainly look at the CAB link sadgranma ( hope your gransnet name is totally inaccurate). Saggi I’m very sorry to hear about your husband. It’s the awful double penalty of dementia, as if the heartbreak wasn’t enough it can be financially devastating. My dad had Alzheimer’s and I was his power of attorney so I know a little about it. I do hope you turn your heating on and are getting all the state help you can get- pension top ups mentioned above, winter payment.
I really didn’t want to be obnoxious and signal my relative wealth. I know many are less well off ( and many are more, to be fair) our main weakness is DHs near total lack of occupational pension so I’m trying to think ahead. The suggestion of a “side hustle” or part time job is good. Thanks again everyone.

Oh …and yes…it is a miserable and cold existence!

I’m ‘living’ on a state pension of £677 per month , since my husband has had to go into home for Alzheimer’s patients. His pensions went to pay for him. We own our home….it’s too big and too expensive to run.
But I can’t sell up and move to smaller placdd we as they would straight away take his share to pay for his care ( the council funds some of it!) between a total k and a hard place! Your fortune per mo th would be very welcome here. I’m 72 and haven’t been able to turn my heating on yet! So I’d say YES….your £1215+state pension + your husbands state pension is a fortune. I have a real choice ….eat or heat …when people say that it’s not a joke!

If your rental is a smaller unit, could you possibly move there instead and rent your main home out for more??

We too live in the SE.
We have no mortgage. We have a 2 bed semi rental property that we rent out.by 2025 the EPC must be C or above to be able (by law) to be rented out. Ours is already a C, so we are ok.
I'm assuming that you have had an EICR done on the property. That has to be done when each tenant changes, or every 5 years, whichever is shortest.
We have completely redone the bathroom 2 years ago and have just completely redone the kitchen, patio door and ground floor flooring.
The ceilings in the lounge and kitchen have both been renewed and have LED lighting in both. We also put in a new Worcester Bosch boiler this year when doing the kitchen.
Are you sure that your maintenance and any upgrading is up to date so that you're less likely to have big expenses for the next 10-15 years? Your money won't go as far in the future which is why we've done ours now.
We don't have a lavish lifestyle. My husband has a good works pension and state pension (he's 75) I have a very small works pension (200+monthly) and my state pension (I'm 73).
We are both happy and fairly content but are hindered by my poor mobility. This was caused by an Industrial Injury in School and it gets worse every year as I was warned that it would. I need to sit down every few minutes so going for walks is tricky as my speed is that of a sloth! Good job I've kept my sense of humour.
Good luck to you but doing a spreadsheet of absolutely everything and making allowances for cars and maintenance of both the rented property and your own home is something for serious consideration.