Is anyone going to be living just on state pension when they retire?

[Shinyseas]

It looks like I will be. Never really earned enough to put money aside for a pension, married someone who was terrible with money and at the age of 51, have youngish DC so even though I’m earning better money now, I’ve got to get them through teenage years, then off to Uni. All feels too late to save anything decent. I’ll be early 60s before my youngest leaves home.

When I checked this week, my private pension is set to give me 1.5k a year 🙁

People do survive on the state pension I know - but it must be very very tight.

I don't understand it when posters say that because their parents cope very well on the basic state pension then they also will be fine when the time comes. Energy costs will never return to last year's fixes and already people are struggling with the bills. Free bus travel might be scrapped - you could spend your days stuck at home wrapped in a duvet on a basic state pension. Nobody knows if there'll be extra financial support when they retire in 10/20 years time but it might be a big mistake to bank on pension credit or help with housing costs or council tax as the government has made it plain for years that we need to take more responsibility. If you think retired life will be enjoyable on the basic pension then think very carefully about where you could make savings to your lifestyle as it may be enough to survive on but little more.

Well I guess it depends on what sort of life you want.....my DM is 85....she has 320 per werk ( state and private) .....she manages on this well...but big holidays and home projects come out of her savings as she couldn't afford on her pension ......she would have to live very frugally on a state pension only.....no holidays, theatre, spending money on her home and garden, running her car

Noone knows what's going to happen between now and when you become pensionable OP. The risk is you might tip the threshold of additional support so won't get a top up and all the benefits that come with it like zero council tax and rent paid.

I would speak to a financial advisor they will do a review and recommend whats youd be best doing with your £100 pcm.

In my mind you either have a decent pension c£22k pa is the figure most suggest to live modestly or you have modest savings and tip up with part time work.

I'm peed off the Chancellor is taxing pensions. Wtf is that about? Tories, the government of taxation.

I am in the same position and it just means that you have to work longer. My mum was in the same boat and she has been working at Sainsburys for 20 years since being made to retire ( it was before the change in the retirement and age discrimination laws) so instead of assuming you will be retiring at 65 (which is what u r doing and very entitled IMHO) why not join me and everyone I know, down waitrose, sainsbury, home base, b&q etc and keep working? My mum only gave up working because of covid and she was 83. Her friends work at sainsbury and they are all in their 80's so stop whining. Don't call yourself working class if you don't work.

Current pensioners seem to be doing OK. But many will have enhanced state pensions through the SERPs scheme. Many will also be the generation who purchased their council houses.

But think back to the time in the 80s when pensioners were poor, really poor, struggling with bills and heating. Being given patronising advice to put on a hat to keep warm indoors.
OK some of that might be poorly insulated houses, no double glazing, fire in one room etc.

Age concern has done a good job of improving conditions for pensioners but there is no guarantee that things won't slip backwards.

I'm peed off the Chancellor is taxing pensions. Wtf is that about? Tories, the government of taxation

Wtf it’s about is that pension contributions are tax free so obviously you pay tax when you take the money out - why on earth wouldn’t pensions be taxed? They’re income, just like wages.

I live on a state pension and - although I get help with council tax & rent - I find it fiscally challenging (i neither drink, smoke, have addictions or gamble) when bills come in for gas and electric one is faced with the choices of robbing Peter to pay Paul often deciding between heating or eating, furthermore latest pension rise has been completely wiped out by the latest rise in heating costs. I’m very fortunate to have three daughters who are very good to me.

I don't know if my perspective is skewed from having lived on very little at times as a single parent, but if housing costs are not an issue I think I will be ok on £800 a month. I get it doesn't allow for travel/holidays etc but it covers monthly expenses. Are those struggling not getting enough help with rent?

Probably best to start brainwashing the kids that we will be living with them…

Can you imagine the outrage if state pensions were enough to fund holidays etc? The people in their 20s/30s paying their NI to fund pensioner’s jollies? I think we have it at the right level tbh, that spot between making sure everyone has enough to live on and being just about manageable to fund by the current taxpayers. Funding extras has to be saved or worked for. I don’t know what else anyone expects.

I agree with you, having also been a single parent. However I think the people who struggle are maybe those with a lot of expenses, a car to run, housing repair costs etc or they are used to a better lifestyle and it’s a step down.

I rent from a HA so the rent will be covered by HB as social housing rents are within the limits allowed. Also no bedroom tax for pensioners currently (although I’m aware that could change, but then I could just get a lodger). But renting means I won’t have to worry about finding the money for a new boiler or a hole in the roof etc. I live in London so no worry about running a car (I don’t have one now). Most of the things I like to do are cheap or free. I do like to travel but I’m doing all that now while I’m still fit enough, my health isn’t the best and not sure I’d be up to travelling far at 70+ anyway.

I wouldn't have a problem at all with someone who had worked all their life in a low paid job getting the odd week away to relax or get some sun - what kind of Scrooge would you need to be to mind that??

I'd be happy with funding holidays of a pensioner who worked all their lives and couldn't afford to save for a private pension.

I would have to end up like my retired neighbour who rarely leaves his house and since the walls are thin its easy to tell when he is at home or not.

In winter it was painfully obvious on days where it was absolutely freezing he would leave his house early and come back at 10pm and go straight to bed to avoid heating his house.

He cannot afford to even replace the fence panels that fell down in the storms. His house is in complete disrepair - broken fence gate, wooden windows with painting peeling badly, drity grey net curtains. Broken glass in his front door.

During pandemic he used to watch tv all day long but now he doesn't and just is at home all day doing whatever I guess, he stopped watching TV all day round about the time energy prices went up.

I mean of course I am making massive assumptions here but when you live in a terraced house and walls are thin you unwillingly hear them and notice these things.

he isn't even in poor health. I just wouldn't want to live like that when I'm older I would want to go out and about.

I just add that is meant to say I'd hate to end up like him

I wouldn't begrudge a pensioner a holiday either. But nor would I begrudge a family in receipt of universal credit a holiday or night out etc. I compared the standard of living to others on low incomes and wondered whether it was any worse. I've lived on what I think was a similar amount with two children. Not competing nor saying that it's good enough, just in purely practical terms for those facing it, it's doable.

Max pension is actually 740 a month. If it were me on my own I would be paying 150 a month council tax , at least 100 a month gas and electricity, 30 a month water , tv licence 15, house insurance 25 and internet/phone about 40 totalling 360 a month. So with no other costs eg my contact lenses 45 a month or a car then I would have to live on 380 a month for everything else. I don't know where people can afford rent as well.

New state pension is £740 every four weeks, so monthly amount is more than that. If people are renting they will get help with rent through housing benefit if they only have state pension . Savings and private pensions will also affect eligibility to housing benefit.

@Babyroobs do you know how much someone would get re rent? Is it a limited amount? Your last sentence - well of course they do but we're talking her about only State pension and little savings.

@mollythedogsmum Her friends work at sainsbury and they are all in their 80's

Which branch is this?

It’s not one where I’ve ever shopped!

@PlainJaneEyre I get that it's not a lot.
I wonder if there is a gap between rent and housing benefit. That would make things very tight.

@Blossomtoes i don’t know about stores, but Tesco delivery (hgv and home delivery vans) and warehousing have a high number of 75+ year old men working. So it’s possible there are similar at some stores.

I take it your Mum doesn’t holiday abroad, have short U.K. breaks, go the theatre and cinema, go out for nice meals, buy new clothes when she wants, spend money on new furniture ….these are all things my Mum does on around £320 a week ( and her lump sums savings in the bank ) …..she could not do this on basic state pension …..but neither does she have hundreds of thousands…..I certainly could not live on even double the state pension and enjoy the live I would want to

I paid into a Personal Pension for years and it pays me very little AND it doesn't increase from year to year with the cost of living , it is still the same as when it started paying in 2000. Still it means I don't pay any tax because I am still well under the tax allowance.