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

[allamberedover]

To cover bills but not housing costs.

I was at the opticians earlier and an elderly couple bought glasses, it came to nearly £600 (hopefully that was for a pair each!).
Personally, I get a prescription from the optician, then buy my glasses online. I know that's not for everyone, but just thought I'd mention it, in case it helps anyone.

For one person?
I could, but I'd really rather not!
In real terms, it's about what I lived on when I was a graduate student in the 1990s. I had some housing costs at the University, but they were low and included bills.

The government thinks job seekers can live on well less than pensioners.

No. I plan to retire on a joint income of 10x that.

MIL lives on a basic state pension with pension credit and various disability allowances (I don't know the details). Her lifestyle is not one I aspire to.

students dont need so much heating though

As a single person no way. But I reckon two people on £20k between them (tax-free with no rent/mortgage) could probably make it work.

Yeah but that poster shares bills with a partner……so is actually living on effectively £16K not 8

State pension works out at slightly less than 1k a month. Of course people could live on that with no housing costs. People on just state pension likely get some council tax reduction too alongside single occupancy discount. If you have rent to pay then a good portion would be paid by housing benefit.
The problems come for people who are home owners when they suddenly are faced with a big house repair bill or need a new walk in shower or something costing a bit and have no savings to fall back on. This is is what pushes people into these equity release schemes.

Two days ago it was announced that the cost of a comfortable retirement for a couple was £60k a year and a single person £43,900. That allows for saving towards a replacement kitchen and bathroom over the next ten years, one longer-haul holiday each year as well as a fortnight in Europe and a couple of city breaks, replacing a car every 3-4 years, eating out once a week, giving decent gifts to family and friends and charity.

The minimum standard for a single person is £13,400, £21,600 for a couple.

https://www.plsa.co.uk/News/Article/Latest-Retirement-Living-Standards-show-costs-for-Minimum-retiree-needs-have-fallen-while-Moderate-and-Comfortable-Standards-see-modest-rises

I might be able to live on £10k pa for a year, but it would be absolutely miserable. I imagine on that kind of money you would get pension credit and other benefits. Even so, already this year I've spent £900 on tax, MOT and servicing/ routine maintenance/ minor repairs for my eight-year-old car. I'm having relatively routine dental treatment at the moment and it's impossible to get an NHS dentist here so the bill is well over £1k.

I live in social housing. It has an air source heat pump. Which still needs servicing, but the housing association sorts that out (and any other repairs).

And when/if the DC move out and live independently, I can swap to one of the little retirement bungalows the HA are building, which are extremely well insulated so cheap to run, have heat pumps, electric car charging points etc.

Tell me again how great it is to own your own home? 😆

No way, our Council tax alone is £340, then gas/electric is another £200, water £60, I’m already at £600 and I haven’t eaten yet, or bought toiletries, clothes, transport, home insurance, repairs, things like breaking washers or leeks for example. I could get by for a few months but could live on that!

Yeah, mine is more than that, but faced with £10k income you’d moving!

I would not want to live on £10k/yr in retirement. I’d essentially be bored, miserable and waiting for death 💀

I'd definitely have to downsize to a smaller, lower maintenance house though. That's my plan to some extent, but I think I might have to do it a bit more drastically.

People on that income would likely get a considerable amount of council tax support as long as savings weren't over 16k.

I retired early (not state pension age) and have lived on a work pension of about £10K p.a. for a while now. It's doable if you're careful and don't have extravagant tastes or expensive hobbies. I buy clothes from charity shops or in the sales but make things last. I run an old car. I don't belong to a gym. Don't do gifts etc. The main thing is I share living costs with my DH and I'd guess it would be a lot dearer on my own but we do 50/50 on bills. Our mortgage is paid off but I suppose if there was a major unexpected expense like a new boiler I'd be in the doo-doo.

When extraordinary expenses crop up like car servicing it comes out of savings which I see as a separate thing, as are holidays. I'm not saying it's easy but it's a matter of attitude and lifestyle plus a little luck maybe. It can be done and no, my life is not miserable.

A full life could be getting on s bus for free, to a tourist destination or somewhere quieter, and hiking/rambling/gentle walking, with a picnic. Borrowing books from the library etc. Sounds good to me.

No. Not a chance.

Full state pension is £921 every 4 weeks. Where I live there is a good bus service and for £10 pa I also get free tram and train travel. It must be much harder living in a rural area. My library is a hive of activity. I totally agree with pp who said about being less tolerant. I would struggle to share with a friend.

I must admit I was a bit shocked when I found out that the basic state pension for one person was only very slightly under what I and two DC are expected to live on.

You sound like you are fantastic at budgeting @Badbadbunny, do you have any tips?

No, half of that would be council tax and they still won't fix the f'ing roads around here. Grrr

For just me, yes. Me and dh, harder but doable. If any of the dc were still living at home, no. We wouldn't be able to be generous with presents, trips out with the grandchildren on that amount but we could certainly live and save a bit for when the washing machine breaks down.

Exactly. When people come off Universal credit and start claiming state pension they feel like they've won the lottery.

If you own your own house, then even if it's paid off you will need some money for maintenance, like a new boiler, or roof repairs.