Terrified of retirement 3 March 2014 at 3:33PM in Over 50s MoneySaving 79 replies 14.8K views

jangor_2

At 67 I am still working full time (self employed) but circumstances dictate that I will need to retire in about six months. Unfortunately my income has never been sufficient to allow me to make reasonable pension plans. I have deferred my state pension for 7 years and will have a tiny private pension of approx £60 per week. I have drawn up an expenses sheet but my outgoings and income simply do not meet. I have pared all outgoings down to the minimum but am still unable to work out how I can keep my head above water. Unfortunately my house is very tiny and downsizing is not an option. I am not entitled to any benefits on retirement. I am trying to find a part time post but this is proving very difficult. What do others do on a limited income? I am becoming increasingly concerned since I have never been in debt.

mgdavid

have you worked out which discounts / benefits you will be entitled to once retired on a low income?
You might be better to ask again on the Benefits board, and pay a visit to the Old-style money-saving board too.

McKneff

Do you live alone, are you relying on just one income.
It sounds as if you are going to have the thick end of £1k a month to be honest. My OH and I live easily on less than that.


Do you rent or have mortgage or neither, you may be entitled to pension credit.


May I suggest you do an SOA on here and we will help you a lot more with more details.


Perhaps its just a couple of tweeks at your lifestyle to be honest.

jangor_2

Thankyou for the replies. I actually also do voluntary work helping people with benefits and I am aware that my income will be over the threshold. My income will be a little over £800 per month (after tax). I am on my own, I do not waste money but even in retirement there are certain unavoidable monthly outgoings, i.e. house insurance, heating, water, sewage, food, council tax, homecare cover, maintenance, clothes, (although I buy these from the charity shops), eye tests and glasses, life insurance. I also have two rescue dogs but there is no way I am parting with them. At the moment a car is a necessity for my work. I guess I will have to manage without but I live in a rural village where transport is limited and there are no local shops. In my area we have a bus pass but not a train pass. Visiting my family, who live 360 miles away, will be very difficult. I will go back to my expense sheet to see if I can make any further cuts. I actually did not realise how difficult retirement would be. I will go to the other board to seek advice as well. I am sure I will find something part time eventually. I suppose the hardest part of retirement is accepting that life will change drastically.

luvchocolate

It seems you have no rent/mortgage to pay... I will have £1000 per month when I retire shortly...my rent is £450 I think I will scrape by, you should be ok with £800, it will be a challenge!!

Savvy_Sue

jangor wrote: »

life insurance.

I realise it may not be a massive part of your budget, but do you actually need life insurance? Especially if you don't have a mortgage to pay off, and by the sound of it no dependents living with you, what's it for?

teddysmum

jangor wrote: »

I am on my own, I do not waste money but even in retirement there are certain unavoidable monthly outgoings, i.e. house insurance, heating, water, sewage, food, council tax, homecare cover, maintenance, clothes, (although I buy these from the charity shops), eye tests and glasses, life insurance.

You know that eye tests are free for pensioners ? Asda's glasses are a bargain, if you would benefit from lighter lenses, as unlike other opticians, they don't charge extra for them.


Why have life insurance , if you don't have a spouse or dependants who will need it ?

macman

As above, cancel the life insurance and homecare policies for starters.

rochja

Money advice service.
Universal credit.
Free prescriptions, glasses, travel.
Home delivery on food.
Car rental for long trips using a home pickup service.
For every problem there is a solution.
Rest assured you need not worry.

McKneff

I really cant see where you have a problem, with over £800 a month and no rent/mortgage, like I say my other half and I live on this each month and we have all the outgoings you have. We also have a car, no life insurance because we have enough savings to cover 2 funerals.


You are overspending on something.... Like I say, do a statement of affairs on here, a proper one if someone would oblige with a link. Even things like 'water meter or RV water payment. For a household on one, you could be halving your bill or more if you had a meter.
Have you had a pension forecast, including any Serps.

jangor_2

Thankyou for all your replies. I am in the process of checking everything again but I still cannot get the figures to meet. The life insurance is only a very small amount which will pay for my funeral. I thought it best to retain the homecare agreement as I have no one to call on if anything goes wrong. My boiler recently stopped working and the repair bill would have been in the region of £300 without the agreement. I cannot see any way I can keep my car financially. However you all sound so positive that it seems the problem definitely lies with me. Thankyou all again.