Could you live on your pension?

[anonymous-user]

[redacted]

[DonkeyApple]

Don’t replace the dog in 6 years time and get your free bus pass and you’ll be sorted in contrast to most.

Huge numbers of people have seemingly spent all the excess monthly money generated by having paid of the mortgage instead of saving it to cover the post salary period. It sounds like you’ve got enough pension and other investments to enable you to trim certain aspects of expenditure to create a pool to cover those random bills and also your random bills are more optional than others.

[CzechItOut]

That is a really good approach to bringing home the realities of living off a pension. I might float this idea with the wife!

[condor]

I've been living on self employed income of approx £500/month (similar to a state pension) for the last 8 years - so yes
I've been mortgage free for many years and have reasonable savings so am comfortable. I am looking forward to getting a private pension next year, but have another 7 years to wait for the state pension.

[anonymous-user]

Is this for living expenses only or all expenses including things like council tax, phone, utilities.

I assume the latter!

I’m doing Stoptober next month so assume I’ll manage to reduce my outgoings considerably as a dry run

[RJG46]

I don't have a pension, we do have other investments. 3 BTLs and money in an ISA.

[anonymous-user]

RJG46 said:

I don't have a pension, we do have other investments. 3 BTLs and money in an ISA.

Well that’s very interesting but not sure how relevant to the thread

[RJG46]

garyhun said:

RJG46 said:

I don't have a pension, we do have other investments. 3 BTLs and money in an ISA.

Well that’s very interesting but not sure how relevant to the thread

Well hopefully it should make a more manageable retirement. How much will £1500 a month buy you in 10/15 years time.

[Jimmy Recard]

I currently spend less than my pension should provide and I’ve still got years of pension contributions and savings to go

I’m not really a spender though. I don’t go out for meals (who wants to sit in a restaurant alone?) and I don’t really have a taste for expensive cars. My hobbies are mainly doing work on the house and just meeting mates at the pub on a Saturday evening

[RJG46]

Same here, we aren't exactly poor but we aren't big spenders.

[DonkeyApple]

Jimmy Recard said:

just meeting mates at the pub on a Saturday evening

Lucky bd!

[rigga]

RJG46 said:

Well hopefully it should make a more manageable retirement. How much will £1500 a month buy you in 10/15 years time.

If the source of the £1500 was an indexed linked pension, hopefully the same as it does now?

[tighnamara]

condor said:

I've been living on self employed income of approx £500/month (similar to a state pension) for the last 8 years - so yes
I've been mortgage free for many years and have reasonable savings so am comfortable. I am looking forward to getting a private pension next year, but have another 7 years to wait for the state pension.

Hat off to you for living on £500 a month.
Council tax, house insurance, car insurance, food / house hold products etc. would add up before even taking life's small luxury's such as Internet, Gym etc. into consideration.

[Jimmy Recard]

DonkeyApple said:

Lucky bd!

Come along, the more the merrier!

I am deliberately missing the point...

[Cotty]

I probably spend less that £1,400 a month anyway, looking forward to trying when I retire in a couple of years.

[condor]

tighnamara said:

condor said:

I've been living on self employed income of approx £500/month (similar to a state pension) for the last 8 years - so yes
I've been mortgage free for many years and have reasonable savings so am comfortable. I am looking forward to getting a private pension next year, but have another 7 years to wait for the state pension.

Hat off to you for living on £500 a month.
Council tax, house insurance, car insurance, food / house hold products etc. would add up before even taking life's small luxury's such as Internet, Gym etc. into consideration.

Thanks House and contents insurance is cheap at approx £100/annum. It's approx £300/annum insurance for the 2 cars I own. Council tax is the highest monthly bill I pay, followed by gym membership and internet/tv.
I don't have holidays, though as I house sit for clients on a regular basis...that could be classed as a holiday.

[LeadFarmer]

I have the option of retiring in 4yrs time at age 50, with a lump sum and an initial take home pension of £1000/month, increasing to £1,200/month after five years.

I intend to take this option, even though £1000/month isn't a lot, but my wife will still have her wage, and our mortgage will be paid off, and state pension will kick in later. I aim to take some stress free part time work to top up the pension, so with the mortgage paid off I might actually be better off than I am now.

I think the key is to list all your yearly outgoing bills that are known to you, and then allow for unexpected costs such as house repairs, vet bills, car repairs etc.

[oyster]

LeadFarmer said:

I have the option of retiring in 4yrs time at age 50, with a lump sum and an initial take home pension of £1000/month, increasing to £1,200/month after five years.

I intend to take this option, even though £1000/month isn't a lot, but my wife will still have her wage, and our mortgage will be paid off, and state pension will kick in later. I aim to take some stress free part time work to top up the pension, so with the mortgage paid off I might actually be better off than I am now.

I think the key is to list all your yearly outgoing bills that are known to you, and then allow for unexpected costs such as house repairs, vet bills, car repairs etc.

I'm only a year younger than you but can't stomach the thought that my weekdays would be devoid of proper mental challenge for 40-odd years or even more.
Retirement at 67-70 for me.

[Cotty]

oyster said:

I'm only a year younger than you but can't stomach the thought that my weekdays would be devoid of proper mental challenge for 40-odd years or even more.
Retirement at 67-70 for me.

So give yourself a proper mental challenge, why do you need someone to do it for you?

[Cheib]

LeadFarmer said:

I have the option of retiring in 4yrs time at age 50, with a lump sum and an initial take home pension of £1000/month, increasing to £1,200/month after five years.

I intend to take this option, even though £1000/month isn't a lot, but my wife will still have her wage, and our mortgage will be paid off, and state pension will kick in later. I aim to take some stress free part time work to top up the pension, so with the mortgage paid off I might actually be better off than I am now.

I think the key is to list all your yearly outgoing bills that are known to you, and then allow for unexpected costs such as house repairs, vet bills, car repairs etc.

I think your approach is right...and I think most people under estimate their outgoings. I know I did....I knew what they were roughly but as a household we're prone to losing control every now and again,

I think when you do retire you effectively need to run the house like a business...and not be temped to dig into savings for "one off's" unless those items are in the budget....i.e. House repairs.