Active discussions

Meet the Other Phone. Child-safe in minutes.

Meet the Other Phone.
Child-safe in minutes.

Buy now

Please or to access all these features

Talk
Chat

Join the discussion and chat with other Mumsnetters about everyday life, relationships and parenting.

Original poster

Pension is more than I earn

86 replies

Zaphodsotherhead · 26/10/2020 11:42

I've just Adulted and done my pension forecast (not eligible for another seven years, but thought I'd check).

I'm entitled to full state pension (phew, was a bit worried, hence checking). And my state pension is going to be more than I earn currently, most months.

The point of this post is really just me going 'wha'?', I mean, I know I'm not paid a great deal and I'm quite often pegged down to basic hours at present and I'm very grateful and all, but....

surely this shouldn't be possible? Add in the pittance I've currently got in private pensions and I'll be better off at 67 than I am at 60. Okay, if work up my hours I can earn more, but that's sporadic and unpredictable. My pension will come in monthly and I don't even have to do anything for it?

I dunno. It feels all kinds of wrong.

OP posts:
Lobsterquadrille2 · 27/10/2020 12:17

I don't spend more than £600 a month either. It's DD and me and she pays about £40 a month gas, electric and water bills (half), the extra council tax and her own food. I earn a decent salary but years of being worried about money (no maintenance from DD's father) led to frugal habits which are hard to shake off. I too think that I will be able to manage fine on the state pension, although I do have a private pension too, and was surprised at how much it is.

GroundAlmonds · 27/10/2020 12:18

It's more shock and surprise at my pension - the money I am considered to need once I retire (which I probably won't do completely) - is far more than the money I exist on presently.

You’ve never had a serious illness or incapacity, I’m guessing? It is expensive to lose ability. Convenience products, paying cleaners or gardeners, keeping warm when you are less mobile, etc. Lots of things get more expensive when you are less fit and able.

Original poster
Zaphodsotherhead · 27/10/2020 12:29

Yes, but ALCS don't pay me much, maybe £30 a year? I don't write for periodicals, only the odd newspaper column, so there's nothing much to come from them. But thank you for thinking of it!

OP posts:

Interested in this thread?

Then you might like threads about these subjects:

General money Retirement & pensions
Original poster
Zaphodsotherhead · 27/10/2020 12:30

And yes, I realise that there will be additional expenses incurred from growing older and slowly starting to lose faculties.

OP posts:
Viviennemary · 27/10/2020 12:41

There s a big difference between only spending £600 a month and only having that amount to pay for everything including house repairs car bills and so on. Not doable.

MustWe · 27/10/2020 12:48

Most people on low incomes will be better off in retirement. Basic pension, pension credit, full housing benefit paid, council tax paid, plus the extras like free bus travel and prescriptions. That makes life much more comfortable than surviving on minimum wage and having to pay all bills.

GroundAlmonds · 27/10/2020 12:52

@Zaphodsotherhead

Yes, but ALCS don't pay me much, maybe £30 a year? I don't write for periodicals, only the odd newspaper column, so there's nothing much to come from them. But thank you for thinking of it!
Oh well. Maybe it will help someone. Smile
GroundAlmonds · 27/10/2020 12:53

@Viviennemary

There s a big difference between only spending £600 a month and only having that amount to pay for everything including house repairs car bills and so on. Not doable.
Also the huge divide between paid-up owner-occupiers and tenants who still have to pay rent.
Original poster
Zaphodsotherhead · 27/10/2020 16:06

This is why, when my mum died and I and my DB inherited her estate, I chose to spend my entire inheritance on buying a teeny tiny house outright, rather than continuing to rent and blowing the money on trips abroad, cars, stuff for the kids etc (as DB did, but he has a wife who contributes to bills and they already have a house w mortgage).

I didn't want to have the struggle of paying rent once I was pensioned. Previously my rent took the majority of my income and it's only now that I've been able to reduce my hours at work (hence the £600 pm income) to give more time to my writing.

OP posts:
Onedropbeat · 27/10/2020 16:27

I’m only 35 so a while to go yet but I’m quite impressed with that amount as state pension.

It’s more than statutory maternity pay which I’m currently managing fine on so maybe I won’t be totally destitute in 40+ years

(If state pension still exists by then)

AnotherSlice · 27/10/2020 16:59

@Zaphodsotherhead

My electricity bill is around £50/per month. My council tax is £111. Other bills are about £100 (house/car insurance, subscriptions, other bits and pieces). Food for me and dog around £40 per week.

I also have six monthly royalties from book sales, but these can vary so wildly that I don't take them into consideration (could be £200, could be £2000) and PLR which comes in in Feb and is around £1000. So there are additional earnings, but those tend to pay for extraordinary expenses. £600 is my regular and dependable income. It's perfectly possible to live on!

So, if you need a new boiler, roof repairs, getting the outside decorated because the window frames are rotting...those entirely routine but 'extraordinary' expenses then you have your extra earnings to fall back on. And you do not actually manage on £600 a month.

The state pension is £9,110 a year, and most people do have rent or a need to pay for house upkeep, maintenance and repairs and renewals.

AnotherSlice · 27/10/2020 16:59

And most people don't inherit enough to buy a house.

Quite goady, OP.

Viviennemary · 27/10/2020 17:02

The majority of people don't have a state pension of £9100 per year.

dottiedodah · 27/10/2020 17:25

Same here as well!

Original poster
Zaphodsotherhead · 27/10/2020 17:28

Right, I'm out.

I started this thread to express my surprise at how high my state pension would be, when I'd been half convinced I wouldn't get one at all. Not to have my incomings and outgoings cross examined.

I earn £600 a month, my alternative incomings could cease tomorrow. So that is all the income I can rely on. And I manage on it.

I still think £750 is quite a lot of money to be getting every month without having to work for it.

You can now bitch about me having inherited a house to your heart's content. Go.

OP posts:
PigletJohn · 27/10/2020 17:34

The state pension is £9,110 a year

No it isn't.

When I first heard of "flat rate state pension" the government said it would be £160 per week, or some such number, for everybody.

But my own projection, and, I hear most others, is not that amount. There are bits added on and bits taken off. You can't tell how they are calculated, or why it is (say) £24 and not £25 or £23.

0blio · 27/10/2020 18:11

I still think £750 is quite a lot of money to be getting every month without having to work for it.

But you have worked for it, it isn't given away, you have to contribute towards it throughout your working life.

And it's that level because how would someone in their 70s, 80s or 90s get a job?! They still have bills to pay, food and clothes to buy.

oldmotherriley · 27/10/2020 18:58

PigletJohn Tue 27-Oct-20 17:34:05
The state pension is £9,110 a year

No it isn't.

It really doesn't matter what the State pension is. What matters is that the Government guarantees every pensioner a MINIMUM INCOME of £9035 (£13,790 for a couple) a year through Pension Credit (should they choose to claim it). Whatever your income from other sources, PC will top it up to those levels (subject to a means test of your income /savings). About 50% of pensioners claim some level of Pension Credit. Anyone with that level of income will also likely receive Council Tax/Housing Benefit, and qualify for other means-tested payments such as 'The Warm Homes Discount' (£140), and various other discounts, such as BT's discounted scheme for low-income pensioners.

oldmotherriley · 27/10/2020 19:03

The BT scheme provides landline/broadband for those on Pension Credit, at in their own words 'a massively reduced price'.

GroundAlmonds · 27/10/2020 19:10

About 50% of pensioners claim some level of Pension Credit

Wow. That’s a lot of pensioners on very small incomes.

Lightsontbut · 27/10/2020 19:36

@Zaphodsotherhead

My electricity bill is around £50/per month. My council tax is £111. Other bills are about £100 (house/car insurance, subscriptions, other bits and pieces). Food for me and dog around £40 per week.

I also have six monthly royalties from book sales, but these can vary so wildly that I don't take them into consideration (could be £200, could be £2000) and PLR which comes in in Feb and is around £1000. So there are additional earnings, but those tend to pay for extraordinary expenses. £600 is my regular and dependable income. It's perfectly possible to live on!

so £111 for council tax, £173 a month food, £100 to cover gas, electric, house insurance, car insurance and water rates (seems very low are you sure??) leaves you £216 a month for clothing, vet bills, prescription costs (or are those free), car repairs, MOT cost, petrol and socialising. Are you sure these figures are right? I reckon running a basic car costs around £75 a month (repairs, MOT etc). so that would only be £141 left even if you really can get all gas, water, elec, car and home insurance for £100.

It sounds like the other income actually does add quite a few £'s though - in reality the £1000 split over 12 months is £83 a month and from what you say you could easily get another £83 a month from other sources, meaning your income is actually 27% higher than you said, and indeed over what the basic pension would be. Irregular income is still income.

SwedishEdith · 27/10/2020 19:59

I still think £750 is quite a lot of money to be getting every month without having to work for it. and I dunno. It feels all kinds of wrong.

These all came across as, I dunno, suggesting the state pension is too high.

Lightsontbut · 27/10/2020 20:00

@SwedishEdith

I still think £750 is quite a lot of money to be getting every month without having to work for it. and I dunno. It feels all kinds of wrong.

These all came across as, I dunno, suggesting the state pension is too high.

Yes indeed! Based on the fact that the OP can manage on less....if you disregard a significant percentage of her income. All feels a bit disingenuous.
0blio · 27/10/2020 20:23

Quite @SwedishEdith and @Lightsontbut

OP, I may be old but I ain't daft. And I'm really not looking forward to the day when I have to start living on my pension.

GroundAlmonds · 27/10/2020 20:27

I feel like I must be crazy reading this thread. It seems to me that OP has unparalleled powers of frugality and self control. I would be absolutely miserable living on £1k a month or less, even though I don’t have particularly expensive habits myself. To never buy books or stay in a hotel or buy a painting or fill the car at the garden centre would be very hard.