£10,900 annual income needed to retire

Well..... I keep a spreadsheet of my monthly income and outgoings. I think I could manage on that but it would be a pretty Spartan existence. That's, of course, before all these price increases we are currently being warned of. Certainly wouldn't enjoy it.

It would depend on your outgoings. We are mortgage free, but still have to make sure we have money to cover maintenance, repairs and replacement. If you pay rent those things may be covered. I went through all this with my financial advisor before retiring and it really does help to include things like hairdresser, nights out, hobbies, etc.

Rising to the heady sum of £16,700 for a couple. To carry on our not particularly extravagant lifestyle, which we enjoy, would be a struggle.

I did read that pensioners needed more because nowadays they like to eat out and have haircuts. - really, how very dare we.

I manage fine on just under £11,500 and don’t live a spartan life at all I am mortgage free I paid that off by myself some years ago I don’t have or run a car so that would make a difference I wouldn’t want to go any lower although I m sure I could adjust, but why should we ?

I guess the issue is whether that amount will be enough a year from now, when the cost of everything is rising, but pensions won’t keep up with inflation. It must be very worrying for people who already live on or below the line.

I would have great difficulty keeping my dog I think - not only food (she’s a big dog) and annual jabs but medication as she’s elderly.

So much depends on whether you have mortgage, rent or service charge payments, or a car. Those are all large amounts to find. So plucking a figure out of the air like £10,900 is a bit random.
Then we have holidays, not essential I guess, and entertainment, meals out etc. again not essential. Those things are all dependant on the amount you have left after paying the essential bills and food.

Must also depend on your council tax. Ours is about the highest in the country, yet a mile or so down the road is a borough with about the lowest.

Is that £10,900 before or after tax? It doesn't sound more than slightly adequate to me.

My annual state pension income is £9,600. I’m fortunate that my mortgage is paid off. I get by but only just. If I’m careful I break even each month.

The full details of how that sum was made up was published in the Daily Mail. www.dailymail.co.uk/news/article-10082041/Couples-need-extra-cash-sustain-post-working-lifestyle-Covid-pandemic.html

I cannot understand the article - what about paying for utilities, house insurance, dental insurance, broadband etc?

I don’t know if this will apply to anyone here or if it’s still the case.
Some years ago I was helping a friend who had got herself in a bit of a pickle financially. I discovered that her service charges could be paid.

Shandy many, myself included don’t pay dental insurance, some can’t afford broadband and unfortunately house insurance either.
They’re focused on food and heating, those of us with mortgages paid and disposable income are fortunate, hence the distress with a £20 reduction in UC.

I manage on less than £10,900 after housing costs. It's intended to be a minimum.

annodomini

Is that £10,900 before or after tax? It doesn't sound more than slightly adequate to me.

Somebody with an income of £10,900 wouldn't pay income tax.

If you're paying rent on a small flat, that's nearly £9k alone in the south, much more in London. Council tax is another £1k.

annodomini

Is that £10,900 before or after tax? It doesn't sound more than slightly adequate to me.

As growstuff said, that amount is less than the Personal Allowance, annodomini.

I think it starts at £12,571

If you follow the link and page down to the text below the headline table it tells you who did the research, and how the researchers collected the information for these tables, which they have been drawing up for some years.

It seems they held 13 discussion groups with people from across the UK, including both retirees and over-55s approaching retirement.

Obviously they do have to concentrate their breakdown into as few headings as possible and the higher the income (and the wider the choice for people with that income) the less representative it will be, but as a guide to how much income is needed to live a reasonable life after retirement it is better than nothing.

Our council tax is £2600 pa first a two bedroom cottage. Add in house insurance and utilities not much left!

What a strange list!!! Whoever compiled this? Nothing allowed for gas, leccie, insurances, phone line, etc.
Why is it only those living as a couple has allowance for hair colouring? Obviously, singletons do not need this.
The food amount is very high for singles -assume this also includes toiletries, cleaning materials, etc.
Surely, the wine and cans of beer should be part of the weekly 'food' bill.
No allowance made for on-going repair/replacement costs on any household items or clothes/shoes.
Do wonder at the algorythms........!!!

I get by on simply the state pension and nothing else. It's ok if I am sensible and don't get too extravagant. I run a car and have the occasional holiday (before covid).

The simple answer is no.
I have nothing but admiration for people who can and do.