Escape to the country & living off savings

Skint_yet_Again

Thanks Doris, Chrystal and Suze 😊 Still feeling a bit grotty, nothing specific. 

Cold here again. Have potted about this morning and read a bit, but now laid on sofa watching tv. I have ordered a new pair of slippers for free delivery tomorrow using some of my remaining Christmas money from DF. I have worn through the sole of my current ones 😆

@[Deleted User] the last government said they were committed to the principle of providing 10 years notice of changes to State Pension age, but I haven’t seen anything from current government? I have until later this year when I am 57 to be under 10 years notice but not sure I can rely on this? Will have to see what happens at the budget in March

Skint_yet_Again

Have received my new water bill and it is based on actual meter readings. Last year I paid £13 a month but was £38.86 in credit coming off water rates onto my meter and ended the year £22.95 in debit. Should have paid just over £18 a month. I have phoned and paid the £22.95 from my annual bills pot. January direct debit was only £13 so from 1 Feb it will be £19. I have updated my monthly budget. 

Friend has been round for a cuppa. Am now laid on the sofa again 😆 Must cook some chicken which is defrosted in the fridge that I didn’t eat last night. Have not got much of an appetite which is most unlike me ☺️

SuzeQStan

Hi SYA - we found ourselves in same position with our water direct debit and we did the same as you to put ourselves back in the correct position.  

Although we found our water bill had been based on 2x estimated readings so our meter hadn’t been read for 18 months!!

we also raised our direct debit by £5 - up to £40 - which does hurt a bit especially bearing in mind further increases are to come in April. We are with United Utilities and they are suppose to raise prices by 5% in April. 

Sorry you aren’t feeling too good - hope your appetite returns soon - keep wrapped up warm xx

Skint_yet_Again

Thanks Suze 😊

I'm with Yorkshire water and according to mse mine will be going up 23% 😳

SuzeQStan

I think that 23% is over a period of 5 years possibly?  Hope so anyway 🤞🏻

Skint_yet_Again

Yorkshire Water
24/25 average £430 
25/26 £101 = £531 (23%)
29/30 £177 = £607. (41%)

😳😳😳

Will know the actual rise from April, can’t find it online. Can only see the 24/25 meter charges. 

[Deleted User]

You will definitely get your state pension at 67. 

Time2count

I've been looking at your money plans SYA.
You have £70k. 
You plan to keep £10k for after pension age.
You need 2 x £10k for the next 2 years of living.
After that you will get your first pension.
I am thinking you're 56(?) so from getting your first pension to state pension you have 9 years to cover and £40k of your savings plus whatever your pension(s) will give you is that right?
That means approx £4400 from savings each year, which means the pension needs to be at least £5600 a year to maintain your current levels.
I think it'd be save to assume a need for an additional £500-1000 per year by the time you reach SP age, due to inflation. You might get deals on insurances etc but food/ aquafit/ petrol/ clothes etc are bound to be more than they currently are.
This extra won't be for each year, you might need an extra £300 in a couple of years, another £600 in 5 years etc but the costs are only going to increase. 

Def put as much of your savings away for as long as possible in the highest rate you can find.

1 year of doing 1 day a week work at minimum wage would bring in over £4k all tax free which might be something to explore in the next few years if prices rise more than interest. And to be fair you have plans for your interest payments that don't include day-day living so it's something to keep in the back of your mind. I understand it's a tough mindset shift to have to go back to the daily grind when you've left that behind you and might not be necessary but good to see that an option of a limited time part time job could be enough to cover any shortfalls and wouldn't last forever!

There's also the possibility to only have £5k in savings by the time you reach SP. At that age you're expecting to have £17k a year so in year 1 of SP you could live on £12k and replenish those savings within a year so it's not all doom and gloom.

SuzeQStan

My maths are substandard so apologies for any mistakes

Could interest on your current savings make up for some of the shortfall?  A need to find £5k - I believe you are invested in bonds circa 5% so you should be getting approx £1k per £20k invested.  So this year £3.5k in interest earned approx? And another £2-£3knext year if interest rates play ball?  That would cover the shortfall - unless you already have plans for the interest?

SuzeQStan

Re water rates - was horrified to see the new water rates rises - ours was supposed to go up by 5% in 2025 when they were first announced and now they are due to rise 17%. Disgusted