As a retired person could you live on £10,000 a year.?

[allamberedover]

To cover bills but not housing costs.

Given my basic outgoings last year (including car running costs) were over £1K a month, no. That does not include dental and eye care costs, replacing household items from kettle to white goods, new mattress, or clothing/shoes, or monies for replacement boiler, or other things such as new carpet, broken window or door lock, replacement bathroom etc or any socialising, modest gifting etc.

Yes probably in some tiny little well insulated new build. In our current house no, 75% of it would be gone on council tax and electricity/gas.

No, I couldn't run my current home on that, even though it's paid for.

I do agree. I personally don’t think it’s possible even on OPs quote of £10k. Also as others have said one may well have paid off their mortgage but what about the ongoing manintenance costs - including indoor items like dripping tap, electrical issues, plumbing problems and heaven forbid the boiler should break down?! Just the call out charge alone makes your eyes water! Eg I work FT right now but as I live alone with no friends or family, I’m totally reliant on myself and one of my biggest fears is the boiler breaking down so I have a £35pcm home service subscription that covers any issues with it or the central heating system. It’s a significant chunk of my income but on the other hand it does give compete peace of mind knowing you won’t be ripped off or left for days without heat and I have used it a few times already. So that’ll be an ongoing cost for me when I retire no doubt. There’s just so many insidious little costs like these on top of all the others PP have mentioned I personally will need a whole lot more than 10k! In fact I’m actively working towards a promotion at work because I’d like to be on a minimum of 30k or so when I retire.

Yes I could, month to month - no car, tv, probably no internet, basic phone. I have a library, GP, food shop, post office within walking distance But I couldn't maintain this house long term. So I'd downsize and have more resources.

Depends what you include in, 'housing costs'. Most of us will no longer have a mortgage but we still pay council tax, properties have to be maintained and insured. If that was all taken care of I think I could live on £10,000 pa, it's £833.333 per calendar month, I'd manage but couldn't be extravagant. However, nobody does have to manage on that alone, after housing costs.

I think it is hard if you are on your own. DH can fix most things - for example, we got second-hand patio doors from ebay for a song, and he fitted them. Same with fixing the car. If he dies first, my expenses would go up considerably! Likewise, I grow a lot of our food. Also, as you get older, dental expenses shoot up.

Lol I bet it would make for some entertaining threads though! I can see it now, people caveating with ‘it’s another retired friends shared accommodation one’ 😅

Not everyone qualifies for a full pension and those who reached 65 before 2016 are on the old pension which is less than
post 2016. We have the second lowest pensions in Europe, don't we?
Managing on £10, 000 a year isn't going to give you many choices.

Yes. I live on less than that now.

Tax kicks in at £12,500 so there would be no tax to pay...

I was at the opticians earlier and an elderly couple bought glasses, it came to nearly £600 (hopefully that was for a pair each!).

I think you'd be living in fear of the next big expense.

I'm up for living with friends personally, happiest days of my life were houseshares (the good ones not the bad obviously).

I know two brothers who still live together in their 40s, they're very happy about it (grumpy people though, but they always were!) and have good social lives. So maybe I'll revise my earlier prediction, and suggest there'll be an increase in elderly siblings moving in together.

No chance our council tax alone is £290 add to this gas/electric £350 and other bills say £200. I estimate that at retirement we would need at least £50-60k a year and that's what we have worked towards.

£8k wow. I’m feeling like a bit of a prick now 😳

I'd have to sit down and do the sums, but I'm not sure I'd manage. I'd probably pay the bills and pay for food, but I'm not sure I'd be able to run a car (insurance, tax, petrol, new tyres, expensive mechanic bills etc.) and I might struggle with house repairs and maintenance.

What about property tax? I'm assuming that will still have to be paid. House insurance? I know the OP said no housing costs, but if you own your home, you'd be crazy not to have a house insurance policy.

It's not so much the regular bills that would pose a challenge, it would be having to cope with an unexpected bill e.g. washing machine needs replacing, oven stops working, boiler needs replacing, plumbing issue requires a plumber etc. You'd need a nest egg to pay for those things. Could you pay for pets on that income? Pet food, insurance, vet bills etc.? Unlikely.

WFA was taken away from most people of state pension age as soon as this government took office last year. So even those on modest pensions are no longer eligible at the moment.

what is wfa?

winter fuel allowance?
that is coming back
and on £10,000 you should get pension credit anyway

I don't think so.

Yes I could im on benefits and that would be a lot

Sharing bills is very different to paying for everything on your own.

And the older you get, the more you're likely to be at home all day so fuel bills go up. And we don't all live in the balmy south!

Big repairs would be frightening unless there are savings.

I couldn't but my dad lives off 12k a year. I think he would just manage at 10k.

Unfortunately mum died suddenly at 65, he wasn't expecting to spend his savings on the funeral (they started a plan but it didn't pay out)

House is paid for. Lives on his own. No debt.

Council tax is something like £60 a month due to low income/single person.

Energy is something like £130 and Water 30. He has the full tv and broadband package £100. Car insurance £25. Then just insurances/car tax. Petrol about £50

Batch cooks, 3 meals (one for the freezer)Food cost is low.

Walks lots for exercise.

However, he does ok for birthday presents. I buy him the techy stuff he wouldn't afford to buy. Same with meals etc. We pay for him. We don't mind, he gave us money towards our house years ago.

My council tax is £4k a year (south east council spending money like crazy with too much borrowing).

You need to consider costs associated utilities, phones, cars. It mounts up up quickly.

Well the government thinks students can, who probably have very expensive housing costs. Just me, no pets? Yes. Im good at budgeting and making do, fixing things.