Is State Pension Alone Enough To Live On?

ewaste

The state pension is £179.60 per week at present or £778.26 per month. So you've got that muddled to begin with.

£77 a week 🤔 maybe you mean that would be the weekly co-pay/deduction or something along those lines if your state pension and other benefits were your sole income. This would be dependent on your health being extremely poor to warrant the Local Authority or NHS carrying the vast majority of the burden. By which point you likely wouldn't be in a mental or physical condition to care or comprehend about much of anything.

There is something missing as Care Homes are expensive. They certainly aren't cheaper than a Travel Lodge or other budget hotel brands, student digs or even an HMO.

Pensions are only "dire" if you don't, can't or won't contribute a reasonable amount to them. If your current employer only offers the Auto-Enrolment minimum then look for employment elsewhere that offers a better pension or contribute more yourself. 

anonmoose

In answer to your original question about state pension.  It is enough to live on depending on your individual circumstances but it would be tight, so any extra you can save over that figure is a bonus.

I do know someone who despite having other means does live on the state pension alone, so it can be done but you have to be very frugal especially the way cost of living is going up.

MovingForwards

My parent had state pension and some pension credit, CT was heavily discounted, free prescriptions and owned own property.

Parent smoked, had an expensive cable package, spent on hobbies and had enough in the bank to pay for the funeral, with enough left to cover probate etc.

Excluding mortgage, work related costs, less petrol etc, even with the current rise in gas / electric, having a full state pension (£179.60) would be more than enough to fund my lifestyle / monthly / annual outgoings, including running a car and having pets.

Audaxer

MovingForwards said:

Excluding mortgage, work related costs, less petrol etc, even with the current rise in gas / electric, having a full state pension (£179.60) would be more than enough to fund my lifestyle / monthly / annual outgoings, including running a car and having pets.

Not many pensioners would find the State Pension of £179.60 per week, anywhere near enough to fund even a basic lifestyle in retirement.

Silvertabby

Conan1Sett said:

Silvertabby said:

Do you mean council house? As for the State pension being enough to live on, right from the start it was only ever intended to cover a very basic standard of living, with any extras being paid for by savings/private pensions.

No. 

Being that you're the second person to ask about this I'm going to phone up tomorrow to double check. 

Can't possibly be a care home.  You don't just choose to walk into one the day after you retire - you have to be assessed as actually needing care.  £77 per week still sounds like a one bed council property to me, but you won't even get this by just asking - most areas have waiting lists for council accommodation. 

Marcon

Conan1Sett said:

eastcorkram said:

Where can you get a care home at £77 a week?
Wouldn't it be more like £1,000 a week?

I live in the North East of England and the amount quoted was £77 a week. 

If you look at this table (which dates from 2017), the cheapest care homes in the UK were in Lancashire and cost well over £500 a week: https://www.lovemoney.com/news/66718/care-home-fees-cost-uk-cheapest-most-expensive-best-worst-areas

Kim1965

If you own your own home the full state pension, could just about cover your most basic costs..... Until the boiler or roof needs replacing. 
If you rent, at least half the pension is gone. 
 A couple both on full state pension, mortgage /rent free, possibly could easily manage.Single retired are at a distinct disadvantage. 
 I think 2 x state pensionis the minimum i am aiming for. I consider myself pretty frugal. 

Nebulous2

I was brought up in the 1970s. My great-aunt had some part-time cleaning jobs and her husband suffered from poor health, meaning he often wasn't able to work. 

She couldn't believe how secure they were once they went onto the state pension. They never had carpets or a hoover before then. They didn't run a car.

That shows how much the world has changed, but also that your attitude to the state pension depends on where you are coming from......

Workerdrone

Conan1Sett said:

Silvertabby said:

Do you mean council house? As for the State pension being enough to live on, right from the start it was only ever intended to cover a very basic standard of living, with any extras being paid for by savings/private pensions.

No. 

Being that you're the second person to ask about this I'm going to phone up tomorrow to double check. 

I'm also in the North East. We have a relative who is a self funder in Ridley Park care home in Blyth. It's one of the nicer ones. She is on the residential floor rather than one that requires additional care (Those are more expensive) and she pays around £900 a week. Its just gone up this year. Most people in there are now paid for by the council having started out as self funders.

Now I know this is a BUPA care home hence could be considered more top end. I have a friend who works in another home in Gosforth. That's £1500 a week just for comparison.

As you are 32, by the time you come around to needing anything (Assuming no further changes which is a massive if), the governments new cap on care fees of £86k will come into play. But bear in mind that £86k only refers directly to care fees. Other items like rent, food and utilities are excluded so you would still face quite an ongoing bill as a self funder.

https://www.gov.uk/government/publications/build-back-better-our-plan-for-health-and-social-care/adult-social-care-charging-reform-further-details

I suppose the aim if you think you will need later life care is to have enough funds set aside to get you into one of the plusher ones for a year or so on the basis that once you run out of self funds the council won't move you. If you start off somewhere bottom dollar and not very nice then barring a lottery win that's where you will end your days.

anonmoose

Although in our case we were told the council always move you once you run out of funds if your chosen home is over budget. It might depend on the local authority. 

Bear in mind I think the average length of stay in a care home is around 18months although this is obviously not always the case.  I had a relative in a nursing home for over 10 years.