What will happen if I spend my savings?

At 63 are you still working mrsnonsmoker?
Possibly not as you say ‘no other money’ but just checking as not 100% clear.

Divorce settlement?

This is an excellent question. TBH £45k isn't a great deal of money to top up State Pension payments (as the OP is 63 at the moment so a few more years before it kicks in), particularly if the OP is renting. I'd probably at least buy a reliable vehicle that will last a few years as replacement costs, even with pension credit, are going to be almost impossible to raise. Good luck.

Yes I think it will definitely be counted as savings, its not possible to get an "annuity" type income from it (special old employers' scheme).

So Barleyfields, I will have to spend it one way or another won't I? Such a silly answer you put just trying to cause an argument!

I'm trying to get opinions on best way to handle this. I'm the only one of my friends I know who has so little income at retirement and the only one who doesn't own any property outright. And the only one recently divorced, so I think I am entitled to be concerned and look into it.

According to this …

Barleyfields

It seems you want to spend your money in order to get benefits?

That's not how I'm reading it.

She says it's in a "pension" pot. So it's "pension" and not "savings".

Barleyfields

It seems you want to spend your money in order to get benefits?

I didn’t think this, I think with no income other than SP, this OP is worrying about what might happen if her money runs out!

It seems you want to spend your money in order to get benefits?

Any savings or investments over £10,000 will affect the amount of Pension Credit you get. You’ll be treated as having £1 per week of income for every £500 above £10,000

This is on Citizens Advice website, may be worth a look. .

As you’re renting contact your council when your overall savings are £16,000 or less and put in a claim for both housing benefit and council tax reduction.

It completely depends upon what you spend and how.

So keep all receipts, new car, maintaining your home and bills are all permissible.

Long luxury holidays, designer clothes and giving it all away may be considered deprivation of income if and when you apply for any benefits.

Forgot to put I also realise I could use it all (or most of it) just paying my rent, but want to know what the best option is.