Worried about renting and retirement

sixtiesgal_2

luvchocolate said:

sixtiesgal_2 said:

luvchocolate said:

My state pension is £201 per week..I'm on old pension but deferred for 2 years to increase my weekly income. 
My works pension is £300 a month. 
I live in housing association flat and have no trouble paying all bills and have surplus. 
It was important to me to be self sufficient and take responsibility for myself. 
I feel benefits are there for people that have a genuine need

Thanks, this is very reassuring. Can I ask how much your rent is if you don't mind? I feel if I had a cheaper rent like before I wouldn't be as worried.

£400 per month. 
I have less coming than when I was working but to be honest its it's not a problem. 
My pension lump sum will cover replacing white goods furniture etc. 
No interest in expensive holidays did much of that in the past. 
It all depends on your lifestyle...I'm in a good place..no financial worries 

Thanks, this is very reassuring. I suppose also that when rents go up pensions will do too. I don't bother with expensive holidays, only go away now and again but I do like socialising and like to have meals out etc and want to still be able to afford it when I retire.

sixtiesgal_2

GibbsRule_No3. said:

Sixtiesgal-2
I was in a similar position six years ago, approaching retirement in six years and wondering what to do. I was renting a two bedroom ground floor social flat, the new neighbours upstairs were a nightmare and then salvation reared it head in the form of a one bedroom, age protected bungalow but with a fly in the ointment more expensive.  I worked out that my State Pension due in that six years would pay for the rent and almost all the council tax, the sums after that meant my Civil Service Pension and (tupe over so same terms as CSP) work pension would be enough to live on and if I need to I can dip into the lump sum for any necessary holidays and electrical goods. I hope the £200 heating allowance is not scrapped, as that has been factored in and will make a difference per year.
I made the decision to stay at work for three days and COVID19 has actually helped me save, so glad I stayed working. I am single so being involved online has kept me occupied and now I am back one day a week, the other two O go in and pack PPE that my company got involved with. You don’t say if you drive, drink or smoke, I don’t so none of those expenses. I do like holidays and new tech and lump sum covers that. 

Just add up everything monthly bill wise, add any annual payments for me NT and RHP memberships, then take it away from your (predicted SP, you have got a forecast? I hope) and CSP then you can see what state you are in.

I’m sure it won’t be that far out if you have 32 years, I had nearly 50. BTW my rent is £200 more a month than you are paying but I would not give up where I live for anything now.

Thanks for your reply which is very reassuring. Are you working partial retirement hours now? When I tried to work out my state pension paying for my rent and Council tax it didn't seem to cover it, my rent is 400 a month and Council tax is 94 a month. Like you I don't drink much or smoke and don't have expensive tastes, though I do like to socialise and go out for meals etc and don't want to have to give that up when I retire, it will be more important to get out then with not having work to occupy me. I do get a pension statement every year and try to work things out from that but I'm not very good with figures.

Like you, I much prefer where I live now and wouldn't go back just because of the rent but it does worry me.

sixtiesgal_2

luvchocolate said:

sixtiesgal_2 said:

luvchocolate said:

My state pension is £201 per week..I'm on old pension but deferred for 2 years to increase my weekly income. 
My works pension is £300 a month. 
I live in housing association flat and have no trouble paying all bills and have surplus. 
It was important to me to be self sufficient and take responsibility for myself. 
I feel benefits are there for people that have a genuine need

Thanks, this is very reassuring. Can I ask how much your rent is if you don't mind? I feel if I had a cheaper rent like before I wouldn't be as worried.

£400 per month. 
I have less coming than when I was working but to be honest its it's not a problem. 
My pension lump sum will cover replacing white goods furniture etc. 
No interest in expensive holidays did much of that in the past. 
It all depends on your lifestyle...I'm in a good place..no financial worries 

Thanks for your reply. I don't go away often, don't drink much or smoke. I do like to socialise though and want to be able to afford that when I retire but obviously the rent and bills will come first. I am worried about being too poor to do anything.

wilfred30

I really do think you are worrying unnecessarily.  None of us knows where we will be in 7 years time, or even if we'll still be around.

Stop obsessing about it and just enjoy life now.  When the time comes, you will manage like everyone else has to.  At least you have the advantage of having a generous CS pension, some people have to manage on just the state pension and still pay rent.

sixtiesgal_2

wilfred30 said:

I really do think you are worrying unnecessarily.  None of us knows where we will be in 7 years time, or even if we'll still be around.

Stop obsessing about it and just enjoy life now.  When the time comes, you will manage like everyone else has to.  At least you have the advantage of having a generous CS pension, some people have to manage on just the state pension and still pay rent.

I do suffer with anxiety which is why I find it hard not to worry about the future. 
I can't see how people who are just on state pension wouldn't get their rent paid though?

NewShadow

Hi OP  

Can you post your: 

* CS grade and years of service OR
* Forecast monthly CS pension - and if this is Classic, Nuvos, Alpha or 'a.n. other'
* Forecast monthly State pension 
* Rent
* Average monthly spend on 'essentials' - Utilities/ council tax etc. 

We should then be able to help you figure out if you've got any options - such as housing benefit or reducing your lump sum to buy extra pension

If it helps, If I decide I don't want to take a lump sum - which at the moment I don't think I'll need - then I can dial it down and get a higher monthly payment. If I do that, then it means my forecast CS pension is c.£28k and my forecast state pension is c.£8.7k - that works out at around £36k a year before tax... which is actually about my annual salary...  

luvchocolate

NewShadow said:

Hi OP  

Can you post your: 

* CS grade and years of service OR
* Forecast monthly CS pension - and if this is Classic, Nuvos, Alpha or 'a.n. other'
* Forecast monthly State pension 
* Rent
* Average monthly spend on every 'essentials' - Utilities/ council tax etc. 

We should then be able to help you figure out if you've got any options - such as housing benefit or reducing your lump sum to buy extra pension

If it helps, If I decide I don't want to take a lump sum - which at the moment I don't think I'll need - then I can dial it down and get a higher monthly payment. If I do that, then it means my forecast CS pension is c.£28k and my forecast state pension is c.£8.7k - that works out at around £36k a year before tax... which is actually about my annual salary...  

You bet me to it!
I've helped with SOA on the BR board. 
Work on today's figures 
State pension £176 per week...your private pension if taking now...all your bills as now. 
I'm happy to do mine if it will help you. 
PM me 

GibbsRule_No3.

Have have you checked your SP? Mine is £633 every four weeks. Rent £621 + £117 CT.  X 12 gives me a shortfall of £615 to find from my CSP and current work pension. Your rent and CT is a lot less and in six years you will have time to get to full SP as any contracted out years will be made up, I was a couple short. The reason I am still bothering to work three days is because I am enjoying getting a bit of extra spending money put away. I am living on what I will earn when I do retire, so taking the SP and other two pensions already, bit of a luxury being able to do a dry run, putting the current pay away and paying into a Stakeholder pension as an added savings scheme, excellent return in this climate. Very lucky I know but you will have SP, CSP and the lump sum so should be okay. At present SP and rent will rise to cancel each other, we just have to hope the SP keeps pace.  Money to pay for everything COVID19 will need to come from somewhere.

Barny1979

sixtiesgal_2 said:

Barny1979 said:

Maybe work for longer and save that cash for rent?

Thanks for your reply. If I use that cash for rent or even my lump sum, what happens when the money runs out, I still have to pay the rent.

But that will give you a buffer and you'll have your pension

John_

sixtiesgal_2 said:

Barny1979 said:

Maybe work for longer and save that cash for rent?

Thanks for your reply. If I use that cash for rent or even my lump sum, what happens when the money runs out, I still have to pay the rent.

If you work for longer the savings don’t have to be spread over so many years, so are less likely to run out.

Unless you have health issues, you should be able to work to seventy I think.