How much to live on

RetSol

Steve_PL_too said:

I have found Octopus to be very good to deal with.  Each time they put it up, I log In online and put it back down again.  I keep the DD woefully low, but then make a payment at the end of each month on my cashback credit card to keep the account slightly in credit .  Octopus don’t complain, I effectively pay as I go, and I earn a few bob on the cashback card (which I pay off in full each month).  Works for me!

Useful tip, @Steve_PL_too.

I am a Bulb customer, soon(-ish) to join you with Octopus.

Bulb have kept the dds at a sensible level throughout so far. I have submitted monthly meter readings for about 2 years now which may have helped. 

silverwhistle

I have a smart meter and am with Octopus. Currently owe them £47 and they have temporarily suspended my DD of £20 due to the government £66 a month for 6 months. There haven't been any attempts to change my DD upwards since I've been with them. Presumably they have a relaxed attitude because they know my readings and it's a small debt. Depending on the EV miles I drive my usage is a bit spiky but overnight at cheap rate.

Newly_retired

My Santander bank account is giving a 4% cashback this month and last on energy bills, so I actually bumped my DD up to get the maximum cash back. It can go down again next month, but I find Octopus very easy to amend.

Albermarle

jevbanx1 said:

I've had the same with Octopus. Currently over £500 in credit and they only last month said I needed to increase my DD yet again. I live alone. Have recently retired 2 years early, and am trying to be sensible with costs! It is ludicrous.

The point is that the majority of energy direct debit customers actually prefer to have one monthly payment, and not have lower payments in the Summer, and then get hit with much higher ones in the Winter. So Octopus are only doing what most of their customers want, which is to build up some decent credit to help pay the much higher Winter bills. 
Of course it benefits their cash flow, but the fact they are clearly a very well run business is more important, and Octopus customers have avoided all the hassle of their supplier going bust.
In any case you can just ask Octopus to reduce the DD, or even just pay each bill as it comes, so it is a non issue.

jevbanx1

I don't disagree with anything you have written Albermarle, I was just surprised they wanted a further increase when I'm already over £500 in credit. I did speak to them and we agreed a lesser increase than they wanted and one I was happy to accept. I also know I can go onto the app at anytime and alter the DD amount. I agree also Octopus definitely appear to be well run. 

trevjl

jevbanx1 said:

I don't disagree with anything you have written Albermarle, I was just surprised they wanted a further increase when I'm already over £500 in credit. I did speak to them and we agreed a lesser increase than they wanted and one I was happy to accept. I also know I can go onto the app at anytime and alter the DD amount. I agree also Octopus definitely appear to be well run. 

Indeed, I have found them to be the best supplier I have been with.

I did ask them why we had to go through this charade every few months and they told me the emails and DD's changes are generated automatically, hence the unnecessary increases I guess.

The fact apparently most people want to over pay should not mean those of us that can manage our finances should be penalised.I don't agree it's a non issue. Why should i have spend time telling them every few months.

Kim1965

Deleted_User said:

We're already retired!!

We're both fully paid up for our state pension, so one would hope that it's still available when we get to 67!!

Hubby 56 and I'm 59. I've got a small civil service pension from years ago that will start paying about 3K a year starting next July.

We still have a couple of legacy business channels of income bringing in a few thousand a year - and they'll probably continue to do so for a while. We don't do any work - but sales still happen automatically and money is deposited in our bank account monthly. 

We have savings. We have private pension funds. We're trying to draw both down equally to avoid paying tax.

We've invested in woodburner, stores full of wood, solar generators etc. All sorts of other home improvements. We're  grow our own food. Our hobbies are things that SAVE us money rather than cost us money.

We do have plenty of savings, but we want to develop a way of life that doesn't cost money. Not scrimping and doing without, but an abundant but sustainable life that doesn't have big overheads. We have a bungalow with big garden in open countryside. It's our little oasis. We don't need to go out and spend money (and don't want to). We have our own home gym, movie theatre (inside and outside for the summer). Lots of little sitting/eating spots all around the  garden to get a different perspective. We have a 25 year old Granvia camper that's still doing great and should keep going for years (until it's banned). 

Hard to say what we spend in a year (because we have the money if we really want something) but probably about £15k for all the bills, food and regular outgoings. That includes 4 Beagles!! But I should add that we spend more because we buy things if we want them.

We own the house outright so I think at some point we will sell up. I don't want to end my days dribbling in the corner of a 2* hotel (aka nursing home). So I want to spend everything whilst I'm still fit enough to enjoy life. Our youngest dogs will reach the end of their life when I'm about 73, so we'll think about selling up then and downsizing or renting something smaller.

So our strategy is to live a comfortable, basic life on a minimum amount, but then splash out on luxuries etc when there's something we want. That way, if the money runs out before we start to go into decline we can still live comfortably without fear of losing our home.

When State Pension kicks in you will be very comfortable without drawing on private pension reserves.
 I consider ourselves as frugal but know couldnt live off 15k. Your lifestyle Sounds very much like 'the good life"

Albermarle

 I consider ourselves as frugal but know couldnt live off 15k.

Neither do they, only real total outgoings are the measure, and the £15K on basics is only an estimate. Seems unlikely with 4 dogs as well. 


Hard to say what we spend in a year (because we have the money if we really want something) but probably about £15k for all the bills, food and regular outgoings. That includes 4 Beagles!! But I should add that we spend more because we buy things if we want them.

daz378

I've already mentioned this on pensions board...slipped in to the chancellors statement today, going to be reviewing state pension age , early 2023....somewhat reassured by some posts...that said unlikely  to go up to 68  before 2038...hope  they are right as I'm due my state pension in 2032

Kim1965

When i was a Kid we always had a dog, never paid a penny for one. Four dogs could easily cost 6k, plus the vět bills etc. Think i have been priced out of being a dog owner.. Lol
 On a serious note, many of the posts in this thread report retirement annual spend of sub 20k for a couple. I wonder how many are accurate, if I thought we could live on this (and i am frugal... And do not have a dog), I could retire right now.