Can you live solely off state pension?

zagfles

michaels said:

handful said:

I think a large part of the property problem is that many people approaching or in retirement have houses that are bigger than they need but the level of downsizing required to actually realise any capital puts them off. Stamp duty in particular plays a massive part. I would quite like to drop from 4 beds to 3 but if I did I wouldn't actually benefit apart from having paid my stamp duty/legal fees, estate agents fees. Therefore, one and often two bedrooms remain empty.

Also you might want a smaller property but a footprint pretty much the same size - perhaps a detached bungalow but the restriction on building land means that no bungalows are built and existing bungalows are converted to higher density.  Thus if you want to stay detached there is no downsizing option.  But at a more basic level, why would people chose to downsize just to make supply available to others if they like having the space - we don't tell people they need to sell their big cars and buy smaller ones because they no longer drive their kids around and road space is limited.....

But we don't encourage it by giving people a discount on their road tax if they're the only user of the car. 

Motoring taxes are massively tweaked to encourage efficient behaviour. Property taxes encourage inefficent behaviour.

DT2001

It has taken me a few days to read this thread so I’ll initially answer the original question, yes.
My mother passed away 18 months ago aged 91. When she was widowed at 69 she had a less than full old style pension, a very small private pension and a lump sum she had inherited. The amount she lived on on average before needing carers/nursing home averaged below the equivalent full SP now. Her expenditure followed the sometimes seen U curve for pensioners. She had a car for the first 12 years, took the occasional overseas holiday but downsized at 85 to a cheaper part of the country. Overall she lived as she wanted however the lump sum she had allowed her to spend more in the early years.

Turning to the more recent diversion of children - I think they reflect society as a whole, some spend every penny they get and others save. Where your inclination comes from is difficult to see IMO as both my OH and I have a sibling that is the complete opposite of us. Our children all seem to be following our way however it is early doors with one working, 2 at Uni and one at school.

Finally housing. My OH before we married bought a doer upper large house in a good road just outside the M25. It was a good investment and allowed us to buy a house that has been sufficient for our growing family and help friends to get themselves on the property ladder. At one stage we had a small 2nd property where we originally lived just in case we wanted to move back there as prices seemed to be moving faster there than where we live. Our eldest is in the building trade and would love to self build with a group however there are no opportunities locally as any multiple plots are picked up by developers - planning changes might help but I think we need a dramatic change to solve the housing issues.

Murielson

Live or survive?

Thumbs_Up

Murielson said:

Live or survive?

Once you have learn how to survive, you learn how to live.

RG2015

Murielson said:

Live or survive?

This is subjective. And long as your basic needs of shelter, food and safety are met then you are surviving.

Beyond this, being fulfilled, for some people, may be achieved without the need to spend more money.

Others will need more money to fund more expensive life choices.

segovia

State pension just about covers my Utilities and Rates

Somebody

segovia said:

State pension just about covers my Utilities and Rates

You mean council tax? Rates are what businesses pay.

SouthCoastBoy

Somebody said:

segovia said:

State pension just about covers my Utilities and Rates

You mean council tax? Rates are what businesses pay.

Yes, I think they do, rates existed before the poll tax, which preceded council tax. If you only receive the state pension I think there is every chance you would get help with council tax.

xylophone

It's still rates in Northern Ireland.

segovia

Somebody said:

segovia said:

State pension just about covers my Utilities and Rates

You mean council tax? Rates are what businesses pay.

I'm old school, it was rates when my mum was alive and its still rates to me