How much to live on

RetSol

I have not read the Resolution Foundation's report but their suggestion that a 'living pension' starts at a weekly income of £209 for a single homeowner is broadly in line with what peeps are saying here.  https://www.thisismoney.co.uk/money/pensions/article-9176493/Living-pension-Companies-urged-contribute-low-earners-face-retirement-shortfalls.html.
I am finding it reassuring to hear on this thread from others in a similar position to myself. Starting out on semi-retirement in the midst of a black swan event has been a bit scary!

[Deleted User]

Just purchased my car insurance for 2021/2022. Managed to to reduce bill by £100 on the renewal quote by switching. Also managed to pay nearly £80 less than I did for the 2020/21 insurance. All helps with the 'How much to live on' discussion!

blue.peter

[Deleted User] said:

Just purchased my car insurance for 2021/2022. Managed to to reduce bill by £100 on the renewal quote by switching. Also managed to pau nearly £80 less than I did for the 2020/21 insurance. All helps with the @How much to live on' discussion!

Thanks - that's nice to know. Well done. My car insurance is due on 24 February, so I'm expecting to get my renewal notice through any day now. I've just begun thinking about the tedious annual song and dance of getting quotes, and wondering what effect the pandemic might have had on premiums.

203846930

Remembered today when out walking that I will have earning potential starting in the summer next year when the 20p deposit is charged on drinks containers. I live right beside 2 primary schools, 2 football fields, a college and a leisure centre so there will be untold numbers of cans and bottles getting thrown away (as normal) and all I have to do is collect and return them to a shop and I will be quids in.

General_Grant

Silvertabby said:

duncanthedog said:

[Deleted User] said:

duncanthedog, if you have another 4 years until you are 66 why not pay voluntary contributions for the next 4 years. That will increase your state pension by about £20 a week index linked for life. Just under 3 years to beak even. A very good deal.

I have shown you my budget, see if you can find the money to get me an extra £20 a week out of it and I will give it a go.

£20 per week is the return, not the expenditure.  Yes, it sounds a lot, and you would have to dib into savings - but the returns could be better than anything else available at the moment.

I, too, can buy 4 years of post 2016 NI conts.  I've already bought 2 years, and will buy 2 more before April.

In (very) round figures, each year costs a one-off payment of £750 in return for another £5 per week index linked State pension for life.
As a basic rate taxpayer I will get my money back after just 4 years.  3 years for a non tax payer.

It really is a bargain if you have the means to take advantage of it.

So £750 paid in one year to purchase a year's contribution equals more than £14/week.

[Deleted User]

Yes but the £5 a week extra is for life index linked. In surplus after 3 years.

General_Grant

duncanthedog said:

Remembered today when out walking that I will have earning potential starting in the summer next year when the 20p deposit is charged on drinks containers. I live right beside 2 primary schools, 2 football fields, a college and a leisure centre so there will be untold numbers of cans and bottles getting thrown away (as normal) and all I have to do is collect and return them to a shop and I will be quids in.

Perhaps I'll look to earning something when holidaying in Scotland in 2022 then.

ninjaef

I work for a global company. Very fortunate to have a company pension. The actuaries and trustees write - every year - to the some 300,000 employees worldwide with a "Pension Planner" pack. The last annual review we had (Dec 2020) was that a single person (like moi) needs around £25000 a year if retiring now - today - for a "comfortable" living based on no mortgage and no debt.

I also am a "Which?" consumer subscriber. They reckon that an annual household expenditure of £17,200 would allow for small luxuries, such as a European holidays, hobbies and eating out. They consider that you’d need £40,000 a year (household) if you add on luxuries such as long-haul trips and a new car every five years .
So if like me you're on your own at 50 (as I am) then about £20,000 is sufficient for a "comfortable" mortgage free life in the UK.
Of course if there are two of you , then £40,000 a year in the UK.
If like me you're considering retirement in a warm , gentle , lovely place where the cost of living is significantly less than the UK then you can get away with about £12,000 to £15,000 a year  - each of you.

I'm looking at Greece - but then there's so many options for UK citizens - for sure, most can only be better than here !!!

The slightly horrific thing is that many people cannot afford to pay into a pension. Life is hard enough. I am extremely luckily to have been with my employer for 30+ years and they paid most of my pension contributions into a "final salary" pension. There 'aint many of them around now. It is worrying that for those relying on the state pension, so many are "sleep walking" into a tough retirement - the state can only get worse not better , more people, increased life expectancy ,  much else to fund rather than "grey voters". 

A dark future for many! 

Move to a sunnier climate where cost of living is less and that all important sun extends life expectancy    

[Deleted User]

ninjaef, interesting post. So what is your pension income shaping up to be? Agree final salary pension is something to be valued. 

comeandgo

ninjaef said:

I work for a global company. Very fortunate to have a company pension. The actuaries and trustees write - every year - to the some 300,000 employees worldwide with a "Pension Planner" pack. The last annual review we had (Dec 2020) was that a single person (like moi) needs around £25000 a year if retiring now - today - for a "comfortable" living based on no mortgage and no debt.

I also am a "Which?" consumer subscriber. They reckon that an annual household expenditure of £17,200 would allow for small luxuries, such as a European holidays, hobbies and eating out. They consider that you’d need £40,000 a year (household) if you add on luxuries such as long-haul trips and a new car every five years .
So if like me you're on your own at 50 (as I am) then about £20,000 is sufficient for a "comfortable" mortgage free life in the UK.
Of course if there are two of you , then £40,000 a year in the UK.
If like me you're considering retirement in a warm , gentle , lovely place where the cost of living is significantly less than the UK then you can get away with about £12,000 to £15,000 a year  - each of you.

I'm looking at Greece - but then there's so many options for UK citizens - for sure, most can only be better than here !!!

The slightly horrific thing is that many people cannot afford to pay into a pension. Life is hard enough. I am extremely luckily to have been with my employer for 30+ years and they paid most of my pension contributions into a "final salary" pension. There 'aint many of them around now. It is worrying that for those relying on the state pension, so many are "sleep walking" into a tough retirement - the state can only get worse not better , more people, increased life expectancy ,  much else to fund rather than "grey voters". 

A dark future for many! 

Move to a sunnier climate where cost of living is less and that all important sun extends life expectancy    

Until last week I would have agreed with you the need to pay into pension but my mum died recently and I’m dealing with her affairs.  She never worked a day in her life but her monthly income from state pension, pension credit, greatly reduced rent and greater reduced council tax and other bad weather payments, she had more money coming in than I have after working and work pension.  She had benefits of over £1,050 a month.