How much to live on

[Deleted User]

Another thing I have been pondering is what happens after the older relative I live with finally departs . Hopefully not for a few years yet, but one has to be prepared. I currently own 50% of the house and will inherit another 20% of it. House is currently worth between 450000 and 500000 so I could be left with 315000 to 350000. I should be able to get something, although rising house prices in the area have got me a little worried. I definitely do not want to have an apartment as I love having the garden. 

I have looked at other parts of the country and it is amazing what you can get for that money compared to the south of England! I would not be averse to taking out a small mortgage to get what I want. I have no direct dependents. My building society offers mortgages for people up to 90 plus now! My pension income would cover it too. I have checked!

Hopefully not an issue for several years to come! Also assuming I last longer! 

Now finally getting up to have a huge mug of tea and chocolate biscuits! 

Ideas and thoughts welcome!

Gin_and_Milk

Good morning,

Baron_Dale - I'm currently married, but by the time I retire it's quite likely I'll be a widow.  It's a morbid thing to say I know, but I have to be realistic and plan as though I will be retiring on one income.
My husband (of all people) sent me this link from the BBC website which people on this thread might find useful: https://www.bbc.co.uk/news/business-58883053  I've just noticed it's from October, but the upshot of it is, is that it gives retirement figures for levels of comfort and single people.  Apparently single people can manage on £10900 pa.  I couldn't and I'm aiming for much higher, but from some posts on here, it seems as though some can?

[Deleted User]

Yes I have  seen those figures. I also do not know how others manage on that amount and feel fortunate that I will have more than that. I enjoy my food and like to keep smart. I also refuse to be cold. I am also looking forward to doing some travelling over the next 5 years. 

One reason for working these part time contracts these past 5 years was to complete the house upgrades, have enough to travel plus keep a back up in the bank! In that respect I have been successful.

MovingForwards

Would you not be able to buy the other 30% and stay in the property rather than moving while grieving?

People do manage on a lot less money than official reports giving average figures, especially when there's no mortgage / rent to pay each month.

As with the 'average income' I'd imagine it's the few with large incomes bringing the average up, therefore distorting the figures. There's a lot of people on NMW and just over. It would be interesting to see surveys done of those on 'lower' incomes to see how they spend their money.

It's a shame Duncan left as I did find his budgeting and information of great use. His comments were always reassuring that a huge pension / savings were not required.

[Deleted User]

I am investigating purchasing the remaining 30% as another possibility. However a repayment mortgage of potentially up to 150000 is not something I really want to take on in later life. However taking on an interest only mortgage whilst I look at my options seems more feasible. The house is also quite large for one person. To be honest it's rather big for two! 

hugheskevi

MovingForwards said:

People do manage on a lot less money than official reports giving average figures, especially when there's no mortgage / rent to pay each month.

As with the 'average income' I'd imagine it's the few with large incomes bringing the average up, therefore distorting the figures. There's a lot of people on NMW and just over. It would be interesting to see surveys done of those on 'lower' incomes to see how they spend their money.

The Pensioner Incomer Series is the most robust source of Pensioner Income statistics in the UK.

This shows that for 2019/20, the median net income after housing costs of those who had recently reached State Pension age was £25,000 for couples and for single people it was £12,000. This takes account of income from all sources.

However, particularly for those who have recently reached State Pension age, earnings can play a significant role in income and this gets reflected in the numbers. So for a fully retired individual/couple (ie no earnings) the figures above may be a little on the high side (although those with the largest incomes will be well above median, probably even after they leave work, so the bias may not be too significant).

Farway

My thoughts were about BD buying out the remaining 30% but I see that's covered. I think I'd be inclined to sell & move on while still relativley young, especiall as the house is large & could be come a money pit with heating & repairs later

However given a choice I'd stay in the Southern part of the country, if only for the weather, which like it of not, is much milder down here and as a gardener it all helps.

I'm singleton and manage quite well on my state only pension, including whatever SERPS now is, around £14K per year, mortgage paid off, borrowing or debt free so my money is just for spending and wasting on council tax, energy, etc.

Although not trying to save I do have money left over which enables me to not have to think twice about buying anything I fancy, I will admit to not requiring suits or being a snappy dresser etc so quite happy in jeans & T shirt, plus I'm bald so haircuts not required, quick self  buzz over does that job for me, and car is small Diesel, £30 road tax

[Deleted User]

Just spent a lazy morning looking at property in all the southern counties. Actually some great places available for my budget!  Less to worry about than I thought. Strange as my offshore county seems the most expensive! 
Getting up at last to take a long forest walk! 

scottish_lassy

I feel I should also consider the cost of fuel/living in future calculations. On my income I cannot afford to have my heating on as much as I would like already without serious thought.  I also calculated that if I was working from home, I would technically be in fuel poverty!  This is all before the rise in April and possibly in the Autumn.  Therefore being at home all week and having to have heating on 4 times as long as now (I live North of Scotland - enough said), less income, rising prices - being at nice warm work is looking more attractive, especially in winter.

Langtang

I’ve always loved this thread, glad to see it is still going. 

We both retired completely just before Christmas. All we have been doing for the last month is sleeping. Trying to get out of that alarm clock mentality. I’m still wakening sometimes at 03:45, but generally we’re getting out of it. I think it’s going to take a little while to fully decompress and we’re not in any hurry to do so. We’ve taken the decision to have a holiday overseas in March. We thought long and hard about it in the current climate, but we feel confident about it. 

In an ironic twist, considering that we’ve both worked full time throughout the pandemic, my wife contracted Covid 2 weeks ago having only ever been to the dentist! Thankfully it was a very mild case, and she has made a complete recovery. Thankfully, also, we’ve got enough room at home to be able to self isolate well. I’ve been covid clear throughout my wife’s infection. 

I’ve always been a bit wary about posting my figures here, as I know we spend too much in some areas. In a similar vein to Baron, I like gadgets and we’ve always changed our cars regularly. These are areas that I know we could save money in, but I’m not sure we (I) want to. Food on the other hand - it’s embarrassing how much we spend for two people, and we’re not extravagant eaters.