Can you live solely off state pension?

pseudodox

I live alone with full state pension as my sole income, plus the WFA & not forgetting the whopping great £10 Christmas Bonus.  But I do not qualify for any benefits as I do have some savings which I resist dipping into other than for house or car repairs or necessary expenses which arise the week before the SP hits my bank.  I own my house outright & anticipate the sale of this will eventually fund me going into care if it becomes necessary as I have no family to leave anything to.  Should everyday living expenses start to exceed my income I could downsize & release some equity.  But I would certainly feel differently if I did not have the house.

I manage quite nicely as I have always been frugal with having been in low paid jobs most of my life & I don't feel I am missing out on life as I have interests that cost very little like gardening, voluntary work, walking & am a capable DIYer of jobs that need doing around the home.   I have a very old but reliable car, don't covet the latest technology, don't need a 72" TV with paid for channels, can manage to afford a self-catering UK walking holiday every summer.  I can get through my remaining years with no need to buy more clothes, furnishings, kitchen gadgets, household  paraphernalia etc etc.  Just grateful to be happy, fit & healthy - all that money cannot buy!  

WillowCat

It's worth noting that a single person on a state pension only and limited savings would be entitled to a proportion of council tax support (as well as 25% discount).  Full council tax support is only available if you are entitled to pension credit but if you're on just a standard new state pension you're only a few pounds over that amount so the taper would be very little.

I've just done an entitledto calculation for my own postcode, income new state pension only. A band B single person council tax charge is £23.69 per week (£1,275 per year) and the council tax support would be £23.56 per week - so only paying 13p per week.

barnstar2077

I'm living comfortably on just under a grand a month (after pension and ISA deductions.). My bills are well under £600, so I definitely could live quite happily on just a state pension.  I would want some savings to take care of new boilers etc though.

Owning your own home is probably what makes the difference. 

SouthCoastBoy

My mum lived on the state pension and pension credit for just over 20 years. I think pension credit was the key, she paid no council tax and also during this time received a free boiler. She was good at managing her money but never wanted for anything, she even ran a car until her late 70s

ader42

My mother does. She doesn’t have lots of gadgets or holidays or run a car, but she does eat out multiple times a week and has her hair done weekly.

Richard1212

I suppose some people have to do it and I suppose they just scrape by. But what quality of life is there in that scenario ? If I had to do it, I'd be miserable and wonder what the whole point is there at all in anything ?

I can't understand why you'd need to ask the question when you are not one of those poor souls who have to try and scrape by ?

If I were in your position, and retired, I'd get a bit of equity out of the house ( put a nest egg away in savings)  and see a bit of the world, eat out at good restaurants every couple of weeks, go to the theatre/cinema, spend more on a hobby that you enjoy.... the list is endless and does not mean going on a mad spending spree.

Isn't it the dream that, if you work hard all your life, always in debt to a mortgage lender and/or others, you finally pay off all debts and retire at what is now a young age of 60-65-----and then enjoy the fruits of your years of labour and borrowing, without scrimping and saving ?

michaels

I find it sad that for some people only spending money could possibly give a 'decent quality of life'. 

There are other ways to enjoy life which have the added advantage of not being environmentally unsustainable.

Bostonerimus1

You would have to be debt free and extremely frugal to survive (I use that word on purpose) on SP alone. This isn't very surprising as the UK SP replaces a very low percentage of the average UK person's income and is one of the worst state pensions in the developed world (according to OECD studies). I'm retired and I budget to spend about 2 x SP on my basic needs (between $25k and $30k), but I live in the US and don't get any supplementary benefits and have to pay for health insurance and have a fairly large house with rates that are $9k per year. Just be thankful for the NHS...I pay $150/month for health and dental insurance (that's a great deal as I was a state worker) and still have to pay the first $5k of any medical bills each year.

Richard1212

michaels said:

I find it sad that for some people only spending money could possibly give a 'decent quality of life'. 

There are other ways to enjoy life which have the added advantage of not being environmentally unsustainable.

And I find it sad that some people do not accept the enormous benefits that money brings---you can see different countries and cultures, you can eat fine food, you can give more to charity and the list is endless. It cannot buy you health and happiness but it can buy a lot of other forms of "quality of life" that most people would give their left arms for.

As for the comment about "environmentally unsustainable", I have no idea what is meant other than perhaps some pseudo-ideology that we see in the sort of crowds that follow G7 meetings around and protest against virtually everything.

pseudodox

Richard1212 said:

I suppose some people have to do it and I suppose they just scrape by. But what quality of life is there in that scenario ? If I had to do it, I'd be miserable and wonder what the whole point is there at all in anything ?

I can't understand why you'd need to ask the question when you are not one of those poor souls who have to try and scrape by ?

If I were in your position, and retired, I'd get a bit of equity out of the house ( put a nest egg away in savings)  and see a bit of the world, eat out at good restaurants every couple of weeks, go to the theatre/cinema, spend more on a hobby that you enjoy.... the list is endless and does not mean going on a mad spending spree.

Isn't it the dream that, if you work hard all your life, always in debt to a mortgage lender and/or others, you finally pay off all debts and retire at what is now a young age of 60-65-----and then enjoy the fruits of your years of labour and borrowing, without scrimping and saving ?

But that is what would make YOU happy.  When I was earning I did what travelling I wanted to do (Europe, Australia, China).  Now I am exploring my home country.  I don't enjoy eating out other than once in a blue moon, don't much enjoy theatre or cinema etc.  I like to potter in my garden, DIY projects, go for long hikes, read, do voluntary work in the community, photography, research my family tree.  There never seem to be enough hours in the day.  I don't require to spend more money on any hobby as I am totally happy with what I do.  Certainly I seem to be happier with my life than many around me who keep trying to buy happiness & I have a quality of life that seems to be admired by others.

I certainly don't regard myself as "scraping by" although it does seem that people with far more income than I have ever had feel they are on the breadline.  I always lived modestly within my means, was mortgage free in my late 40s & for the last 10 years of my employment was able to work part time & enjoy 4 day weekends.  I have always aimed to make a life, not a living & am quite content not to be one of the rat race or constantly desiring the latest gadgets, fashions, must have experiences.  It's called contentment.  I personally don't need to buy it.  Others may spend, spend, spend & still not achieve it.