How much to live on

Organgrinder

Well my how much to live on spreadsheet just took a hammering. 9% rise in Council Tax this year!

Could be worse, 21% in Sir Benfro!

BooJewels

Do you not write inflation into your projections @Organgrinder ?  I do some forward annual projections and add in inflation on expenditure and a reduction in interest paid on diminishing savings and thankfully, to date, my own numbers have been far more pessimistic than reality - which I was hoping would be the case - my numbers were intended to be 'worst case scenario' knowing it probably wouldn't be that bad.  I totally scrapped my figures in June last year when I realised I was so far out, I needed to start over.  Since then I was over £3.5k up on 2023 and am already over £600 up on this year. 

I don't do it on a per item basis, just a flat percentage change on routine monthly expenses - I expect CT to be up 4.99% which I think is the allowed un-frozen increase and so far a couple of items have actually gone down or stayed the same.  My annual buildings and contents insurance is up about 8% and due today, but I moved last year and saved nearly 60% so that put me ahead for a while.

Organgrinder

Of course I factor in inflation. It's all part of the big picture. However most of my pensions are index linked so it shouldn't be an issue. More so IF my personal pension continues to perform which more than offsets this.

But council tax rises at more than double inflation came as a surprise. It's not a huge amount but near double what had been predicted.

Ok, I was being tongue in cheek when I said "took a hammering" and all told my projection for my chosen retirement date is still £13,000 up on 1 year ago, largely due to tax changes, fuel cost reductions and some investments that are now beating inflation (eg 6% government bonds).

My pension pot for 61-67 may not have to be touched as by then I should have sufficient funds to see me through that period. But it's there if I need it, and it's nice to know it should be ok in the event of a 25% crash in my fund value (most of my fund isn't in volatile investments anyway).

Worst case scenario may mean a reduction in discretionary spends and our annual holiday fund. But at approx £10k per annum there should be sufficient wiggle room here.

I recognise fully that I am very fortunate to be in a position where my disposable income after housing costs is projected to never be lower than it was in my last year of working full time. 

However, I think budgetting, planning and keeping an eye on what is happening to all our costs is essential. My personal "how much to live on figure" changes regularly as a result. I don't expect it to change hugely (in real terms). My broadband £16/month for 70 mbps and mobile phone £9.40/month don't have much wiggle room. That said I look forward to an end to inflation plus x percent contract rises. I'm hoping also that decent energy switch deals return soon. 

All in all, my figures are fluid and I'm always looking to save money provided I get the service I want. Eg, I use Asda opticians as i need high index varifocals, and at £120 for two pairs they are cheaper than the lenses alone for one pair at other opticians.

Equally I'm always looking at things like bank switch incentives and have made roughly £1,000 since November. I use cashback websites too, my 1% chase cashback or cashback on my Amex or Halifax accounts.

I probably don't need to do all this. However, for maybe 30 minutes work a week, if it makes for a better retirement I think it's worthwhile.

SouthCoastBoy

Organgrinder said:

Well my how much to live on spreadsheet just took a hammering. 9% rise in Council Tax this year!

Could be worse, 21% in Sir Benfro!

Council tax rises hit the ones working and not in receipt of benefits, or pensioners that rely on income not linked to cpi or rpi. Those on benefits don't get hit and neither do those on rpi private pensions. The same cohort are continually being asked to stump up the cash. Its unsustainable.

Kim1965

Apparantly only 63.5 % of uk households pay  full council tax. Its certainly my biggest single bill ( and bigger than my combined energy cost).
 

SouthCoastBoy

Kim1965 said:

Apparantly only 63.5 % of uk households pay  full council tax. Its certainly my biggest single bill ( and bigger than my combined energy cost).
 

Interesting fact, it's middle England being squeezed yet again, the same people always picking up the tab, and it seems they are forgotten about, or politicians think that they can be continually fleeced.

Albermarle

Kim1965 said:

Apparantly only 63.5 % of uk households pay  full council tax. Its certainly my biggest single bill ( and bigger than my combined energy cost).
 

It would be interesting to see who the 36.5% are.
Presumably a mixture of:
People living alone
Students
Empty properties
People getting council tax benefits
Some disabled people get discounts.
Holiday park homes
Holiday lets ( pay business rates ) 

Floss

Albermarle said:

Kim1965 said:

Apparantly only 63.5 % of uk households pay  full council tax. Its certainly my biggest single bill ( and bigger than my combined energy cost).
 

It would be interesting to see who the 36.5% are.
Presumably a mixture of:
People living alone
Students
Empty properties
People getting council tax benefits
Some disabled people get discounts.
Holiday park homes
Holiday lets ( pay business rates ) 

I pay 75% as a single household. My CT will go up by 4.99%, my rent by 6.85% and currently my salary won't go up by anything. 

SouthCoastBoy

Floss said:

Albermarle said:

Kim1965 said:

Apparantly only 63.5 % of uk households pay  full council tax. Its certainly my biggest single bill ( and bigger than my combined energy cost).
 

It would be interesting to see who the 36.5% are.
Presumably a mixture of:
People living alone
Students
Empty properties
People getting council tax benefits
Some disabled people get discounts.
Holiday park homes
Holiday lets ( pay business rates ) 

I pay 75% as a single household. My CT will go up by 4.99%, my rent by 6.85% and currently my salary won't go up by anything. 

This is the problem, the govt are not considering people like yourself, we hear plenty about benefits and how those on benefits need supporting, whereas the real cost of living crisis is the squeezed in the middle who aren't rich and not supported by rises similar to cost of living, hence productivity is decreasing. Work needs to be reincentivised. Imo while those on benefits are still getting rises similar to inflation, inflation will continue as their propensity to spend has not diminished but they are not producing anything. More people will be dropping out of the work force as it becomes uneconomical to work when compared to benefits therefore there will be more people fighting over fewer goods leading to inflation. We have seen this already with people dropping out of the workforce I think it will only get worse, the uk has massive structural issues and the govt don't seem either willing or able to change it.

Kim1965

The stat was63. 5%of dwellings, not sure how many are single occupancy. I think that some claim Ing non means tested benefits get their council tax paid which seems odd to me.