How much to live on

Kim1965

Robin9 said:

I used to work on the basis of £25000 pa but with energy and general cost of living I am revising this to £30000.  Having already retired this means drawing more on savings

So for those who have retired since this thread has been going, or were already retired, how has this cost of living crisis affected you? Are the increases so painful that working again is on the agenda? 

Suzzi59

So far, the cost of living crisis doesn’t seem to be affecting my budget. However, I expect that to change when the winter energy bills start to come in. To offset the increase in my food shopping bill, I now buy less and that’s been a bonus, because I am much healthier for it.  I’ve  been retired two years now and as a single person I live well on an average £12k pa. Mortgage and debt free. 

blue.peter

Kim1965 said:

So for those who have retired since this thread has been going, or were already retired, how has this cost of living crisis affected you? Are the increases so painful that working again is on the agenda? 

I was already retired when the thread started (I took early retirement, following redundancy, in 2015).

Obviously, my costs have increased. Particularly noticeable is energy: my DD has gone up by £75/month since last autumn. Fortunately, my income has proven sufficient to absorb the inflation so far, and can absorb more. Even now, I'm able to save a fair bit each month. My state pension kicks in in 2.5 years, so that'll give me even more headroom. Inflation at 10% and increases on the greater part of my pension capped at 5% means that I'm getting squeezed a bit, but I think that I'll be OK. There's no expectation that I'll have to go back to work.

I know that I'm one of the lucky ones.

For me, the bad news is that I wanted to move house, but it looks as if that'll have to be deferred indefinitely. There's a massive shortage of available houses, prices are shooting up and the value of my ISA (from which I was planning to fund the move) has fallen dramatically in recent months.

luvchocolate

I've just today checked how I'm doing as coming off my energy fix end of July...checked my new rate on the variable tariff and I'm pleased to see my state pension still covers my bills. My small works pension is my smile money 

otb666

 i finished jan 2022 we had £600 monthly food budget £600 bills £600 everything else, the car/annual insurances come outta savings.  We have managed to stick to budgets.  We prefer to buy unprepared food now and cook from scratch Thats cheaper as well.  I managed to fix gas and electric til feb 24 So not bothered about that for time being.  If prices go up further we might have to start charging our son board.  But at the moment this would just delay him saving money up to move out.  We have got some wiggle room in budgets so not to bothered today.  Ask me another day when i am wearing my panic hat on and you will get a different answer.

I am expecting a small tax rebate £300 back from last year 21/22 Does anyone know do they do this in June?

Kim1965

For those retired on state pension and small works pensions say 12 to 15 k, I would have thought energy rises of 1k per annum would hurt.
 I guess those who rely on dc pots to provide that bit of extra income are also squeezed by poorer investmemt returns.
 Im interested, i would like to retire but think it prudent to work  the next year or two. Extra money saved and fewer years to cover before sp kicks in dramatically change the equation. I feel im treading water until i can go. 

luvchocolate

My retirement age was 62 and went to working 3 days and deffered state pension...at the time it was just over 10% uplift so with only having a small work pension due of app £300 month it made a big difference. 
Of course anyone retiring at 67 its not always possible to do this 

Farway

Suzzi59 said:

So far, the cost of living crisis doesn’t seem to be affecting my budget. However, I expect that to change when the winter energy bills start to come in. To offset the increase in my food shopping bill, I now buy less and that’s been a bonus, because I am much healthier for it.  I’ve  been retired two years now and as a single person I live well on an average £12k pa. Mortgage and debt free. 

Much the same here, being a bit more picky with shopping, cheaper options at times but doesn't stop me using Waitrose or Mark's for food either.

What has helped I think is not driving / fuel costs as much due to lockdowns and illness so now I'm having to stay in more than I did

Plus I will get a massive 25p extra on the SP next year when I top 80

jevbanx1

I'm really reassured reading some of the responses here. I'm retiring end of August this year. I turn 64 in August so will have two years to manage on my work pension and savings. I was asked last week to reconsider retirement and put it off till later next year, but am so fed up with the constant changes at work, the micro management via increasing tech and, to put it simply, am tired. I was going to defer, but think not now. I've prevaricated so much because of the cost of living crisis, but want to leave now. I live alone, except for my little cat, and will have a pension around the 12k mark until my SP kicks in. 

[Deleted User]

Always good to read updates on this thread. At the moment things are fine on the budget front. Bills seem to be more or less staying static at the moment. Tend to look more for Sainsburys offers though! Received the £150 rebate this month too. I have also spent about £300 plus on the garden in preparation for the summer. This was more than planned but the results give a lot of pleasure. Car is in the garage for new brake pads today, but this will come out of annual bills fund.

I have simplified my savings accounts even further. I now have one Loyalty Saver which is divided into pots on my spreadsheet to cover the annual bills plus things like travel, house maintenance and the garden. I also have my regular saver at £200 per month at 2.5% which will cover one of my 2023 holidays. The final account is a limited access saver which contains my emergency fund.
My low risk S&S ISA seems to be recovering somewhat and counts as my longer term savings.

I still have my back up current account, which also contains my clothes and Christmas budgets plus the joint account for household bills I share with an older relative.

Remaining funds still in premium bonds. Always hoping!

I still plan to finish on July 22nd and finally enter full retirement after 5 years of semi retirement! For the next two years  I will have my TPS pension and a very small annuity (£41 a month ! ). Altogether about £20000 a year before tax. (SP to add to this from July 2024) I should be fine. Very relieved pension is fully indexed linked.

When my gas and electricity price fix ends in November I shall probably opt for another fix if available. That way I will know what to expect for a year or so.

Great admiration for those who are enjoying retirement on £12000 to £15000. You don't need loads to have a full and happy retirement as long as bills are paid and there is a little left over for some fun.

I believe the cost of living squeeze is more scary for those with young families on lower incomes with bills, rent or mortgages to pay. Of course, I appreciate some retirees will also have a tough time.

Lifestyle choices can also have an impact. I have never smoked and have been teetotal since a teenager. I would have rather spend some money on decent meals out with family or friends. Each to his/her own.

Best wishes to all.