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  • FIRST POST
    • Ashingtonian
    • By Ashingtonian 6th Jan 18, 5:51 PM
    • 135Posts
    • 102Thanks
    Ashingtonian
    Is the state pension really that bad?
    • #1
    • 6th Jan 18, 5:51 PM
    Is the state pension really that bad? 6th Jan 18 at 5:51 PM
    If I were to retire tomorrow I would get 690 month.

    Assuming my home would be paid off and I won't want or need to run a car, based to today's prices my monthly outgoings would be as follows:

    Groceries - 150
    Council Tax - 90
    Gas/Elec -40
    Phones/Internet - 40
    Water/TVL - 30
    Entertainment - 100
    Clothes - 20
    Emergency fund - 100
    Insurances - 20
    Xmas/Birthdays - 50

    In total 640. And I think I have been fairly generous in regards to groceries, entertainment and emergency fund, which should cover all miscellaneous spending. Obviously there would be no fancy foreign holidays or going out on the drink every night, but its certainly by no means an austerity lifestyle.

    I will have a small work pension that should add a couple of hundred a month into my pot but even without that I doubt I would starve or go without on anything fancy. Opinions?
    Current MFD 1st July 2026

    Target MFD 1st April 2023
Page 1
    • LeadFarmer
    • By LeadFarmer 6th Jan 18, 6:00 PM
    • 42 Posts
    • 18 Thanks
    LeadFarmer
    • #2
    • 6th Jan 18, 6:00 PM
    • #2
    • 6th Jan 18, 6:00 PM
    Its the unexpected outgoings that can cause problems for anyone, suddenly needing a new boiler, new roof on your house, new windows etc...
    • BLB53
    • By BLB53 6th Jan 18, 6:06 PM
    • 1,306 Posts
    • 1,089 Thanks
    BLB53
    • #3
    • 6th Jan 18, 6:06 PM
    • #3
    • 6th Jan 18, 6:06 PM
    I guess to some extent it depends on where you live...I think some in London & SE will struggle but for those up North it's a bit easier to get by and certainly covers the basics.

    You would need a very large lump sum to generate 8,500 pa index linked I believe so not to be sniffed at imo.
    If you choose index funds you can never outperform the market.
    If you choose managed funds there's a high probability you will underperform index funds.
    • Tom99
    • By Tom99 6th Jan 18, 6:23 PM
    • 2,248 Posts
    • 1,524 Thanks
    Tom99
    • #4
    • 6th Jan 18, 6:23 PM
    • #4
    • 6th Jan 18, 6:23 PM
    You should manage ok. No car or travel?
    • Ashingtonian
    • By Ashingtonian 6th Jan 18, 6:52 PM
    • 135 Posts
    • 102 Thanks
    Ashingtonian
    • #5
    • 6th Jan 18, 6:52 PM
    • #5
    • 6th Jan 18, 6:52 PM
    Well I drive for a living now, and going by the standard of driving today I have no intention of continuing after my retirement unless in dire emergency!
    Current MFD 1st July 2026

    Target MFD 1st April 2023
    • TheShape
    • By TheShape 6th Jan 18, 7:05 PM
    • 1,293 Posts
    • 1,103 Thanks
    TheShape
    • #6
    • 6th Jan 18, 7:05 PM
    • #6
    • 6th Jan 18, 7:05 PM
    I guess to some extent it depends on where you live...I think some in London & SE will struggle but for those up North it's a bit easier to get by and certainly covers the basics.

    You would need a very large lump sum to generate 8,500 pa index linked I believe so not to be sniffed at imo.
    Originally posted by BLB53
    Are day to day living costs much different in London? If you own your own property so that housing costs are not an issue I don't see why living in London would be much more expensive than anywhere else unless you're spending your time going out in the West End. Public transport is also relatively good in London and free with the Freedom pass from State Pension age.
    • capital0ne
    • By capital0ne 6th Jan 18, 7:07 PM
    • 524 Posts
    • 254 Thanks
    capital0ne
    • #7
    • 6th Jan 18, 7:07 PM
    • #7
    • 6th Jan 18, 7:07 PM
    You should manage ok. No car or travel?
    Originally posted by Tom99
    Free bus pass!
    • capital0ne
    • By capital0ne 6th Jan 18, 7:09 PM
    • 524 Posts
    • 254 Thanks
    capital0ne
    • #8
    • 6th Jan 18, 7:09 PM
    • #8
    • 6th Jan 18, 7:09 PM
    If I were to retire tomorrow I would get 690 month.

    Assuming my home would be paid off and I won't want or need to run a car, based to today's prices my monthly outgoings would be as follows:

    Groceries - 150
    Council Tax - 90
    Gas/Elec -40
    Phones/Internet - 40
    Water/TVL - 30
    Entertainment - 100
    Clothes - 20
    Emergency fund - 100
    Insurances - 20
    Xmas/Birthdays - 50
    Originally posted by Ashingtonian
    I think your Gas/Elec is low I pay 90/month
    • capital0ne
    • By capital0ne 6th Jan 18, 7:11 PM
    • 524 Posts
    • 254 Thanks
    capital0ne
    • #9
    • 6th Jan 18, 7:11 PM
    • #9
    • 6th Jan 18, 7:11 PM
    If I were to retire tomorrow I would get 690 month.
    Originally posted by Ashingtonian
    Is that 690 a month the figure from your estimate, if so it's paid every four weeks so you actually get a bit more per month, which is 747
    • frugal90
    • By frugal90 6th Jan 18, 7:15 PM
    • 242 Posts
    • 139 Thanks
    frugal90
    Council tax at 90 per month, if only . In Scotland I am nearly 2k per year, yet not even a street light.
    • EdGasketTheSecond
    • By EdGasketTheSecond 6th Jan 18, 7:15 PM
    • 586 Posts
    • 315 Thanks
    EdGasketTheSecond
    My gas/electric is 4 times what you've allowed and council tax double.
    • Alice Holt
    • By Alice Holt 6th Jan 18, 7:24 PM
    • 2,144 Posts
    • 2,503 Thanks
    Alice Holt
    I think your Gas/Elec is low I pay 90/month
    Originally posted by capital0ne
    Yes, and the Insurances look low.

    House Maintenance costs?
    Health costs?

    But anyone on a basic SP would get help with Council Tax through the Council Tax reduction scheme.

    I think according to a recent survey from Which? retired couples need 18,000 a year in order to cover essential expenditure.
    • TheShape
    • By TheShape 6th Jan 18, 7:32 PM
    • 1,293 Posts
    • 1,103 Thanks
    TheShape
    My gas/electric is 4 times what you've allowed and council tax double.
    Originally posted by EdGasketTheSecond
    Are there any girls/women in your household.

    My girlfriend thinks she cold die from the cold at my house. At her house, it's so hot I feel like I could die from heat exhaustion. My sister has the heating turned up so high that you can't move without breaking into a sweat.
    Last edited by TheShape; 06-01-2018 at 7:39 PM.
    • Bogof_Babe
    • By Bogof_Babe 6th Jan 18, 7:36 PM
    • 10,121 Posts
    • 16,441 Thanks
    Bogof_Babe
    My Council Tax for a 1-bed flat in the North West is 112 a month now!

    I suppose if you are on your own you will get a 25% discount, but still 90 is optimistic ongoing.
    I haven't bogged off yet, and I ain't no babe


    • TheShape
    • By TheShape 6th Jan 18, 7:42 PM
    • 1,293 Posts
    • 1,103 Thanks
    TheShape
    My Council Tax for a 1-bed flat in the North West is 112 a month now!

    I suppose if you are on your own you will get a 25% discount, but still 90 is optimistic ongoing.
    Originally posted by Bogof_Babe
    London Borough of Havering:

    Band D with single person discount 100 pm.
    Band C with single person discount 89 pm.
    • kidmugsy
    • By kidmugsy 6th Jan 18, 8:16 PM
    • 10,870 Posts
    • 7,432 Thanks
    kidmugsy
    You could save on the TV licence: just stop paying, say you don't watch a telly any more, and refuse to let them into your property. Look upon it as striking a blow against the class of twerps who run the BBC. If people can think of any other ways of simultaneously saving money and hitting out at the Blairites (and worse), do volunteer them.
    Last edited by kidmugsy; 06-01-2018 at 8:19 PM.
    Free the dunston one next time too.
    • haras_nosirrah
    • By haras_nosirrah 6th Jan 18, 8:30 PM
    • 1,426 Posts
    • 2,630 Thanks
    haras_nosirrah
    I guess it depends if you want to live or want to merely exist.-

    After working for 45-50 years I want more from the remaining 30 years of my life than sitting at home watching television as I can't afford to leave the house

    By sacrificing a decent wedge of my income now I plan to retire by 60 and enjoy my free time, travel etc rather than sit at home choosing between eating or putting the heating on.

    You can exist on state pension - you will be kept alive but it sounds a pretty crap existance
    • Silvertabby
    • By Silvertabby 6th Jan 18, 9:00 PM
    • 2,859 Posts
    • 4,089 Thanks
    Silvertabby
    The State pension was only ever intended to keep a roof over your head and bread on the table. If you want more than that then you'll have to pay for it yourself.

    You may think that the State pension will be enough for you - but, as someone has already said, what will you do when your boiler fails or your roof starts to leak?
    • davieg11
    • By davieg11 6th Jan 18, 10:48 PM
    • 274 Posts
    • 159 Thanks
    davieg11
    My father in law has lived off state pension for years with around 20pm pension credit = 700 month.

    Groceries - 200 including beer and whisky
    Council Tax - 20 only pay water charge in Scotland
    Gas/Elec -80
    Phones/Internet - 40
    Water/TVL - 15
    Entertainment - 200 in pub
    Clothes - 0 gets new ones for Christmas
    Emergency fund - 100
    Insurances - 20. House insurance
    Xmas/birthdays- 25

    He seems quite happy with that!
    • EdGasketTheSecond
    • By EdGasketTheSecond 6th Jan 18, 10:50 PM
    • 586 Posts
    • 315 Thanks
    EdGasketTheSecond
    Are there any girls/women in your household.

    My girlfriend thinks she cold die from the cold at my house. At her house, it's so hot I feel like I could die from heat exhaustion. My sister has the heating turned up so high that you can't move without breaking into a sweat.
    Originally posted by TheShape
    Ha, yes. What is it about women that make them want to turn the heating on full blast and open windows?
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