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

[allamberedover]

To cover bills but not housing costs.

I could not live on that. I am on a pension higher than that, but still under what minimum wage would be full time. Just Council Tax and gas/electricity are over half of that amount. Those of us elderly people who live in old poorly insulated houses and at home all day have to keep moderately warm.
I have to dip into savings for any large items. I had to replace my boiler last year. I have recently had to spend a large amount on glasses and have to pay for a podiatrist - these kind of costs tend to be more common the older you get. I do not run a car or have holidays.

the question was “As a retired person could YOU live on 10k per year?” We have to answer and assume that not everyone can or wants to downsize and/or move somewhere where life is cheaper. My answer is no I couldn’t live on 10k per year. For me It would be too hard.

Well I took it to be a capability question.

Its about what we spend in a good month, so hardly likely that I’d manage without major changes, but if I had to, well yes I could.

Edit: if my life depended on it!

It would be easy for a couple with £10k each.

My late mother lived alone on Pension Credit and we went out for pub meals every week for example. She wouldn’t let me pay for meals so I had to make sure I bought her other things to recompense her like clothes etc. There is though a difference between someone in their 60s, someone in their 70s and someone in their 80s. The older you get the less you tend to spend.

I’m quite frugal so probably. I’m also a carer so used to not spending. There’s actually quite a lot of activities near me for retirees, which are cheap/free especially with a bus pass.
i am aware we need a new boiler in the next few years and that certainly would wipe out a chunk of that out though, but I guess there would be help paying for that.

The personal tax allowance is higher than that, so you wouldn't pay tax on £10k a year.

I possibly could. My housing costs are £350 a month (no mortgage, no TV streaming stuff), food I could get by with 100 a month, and presently I budget £400 a month for things like the dentist, optician, gym, hair, a bit of a social life, clothes, phone etc. I’d have to get shot of my car, and I’d have to cancel my memberships of various organisations, I wouldn’t be travelling anywhere, and I wouldn’t be saving anything. So I’d as soon not.

Well, most of us will be making arrangements to ensure we don't have to live on £10kpa.

@allamberedover Out of interest, why do you ask?

The basic state pension for anyone who has paid all their NI etc is more than that. It's just under £12K.

It also depends if you/ that person has savings for bills when some things need replacing, house repairs, etc.

no

I could possibly survive, and try to earn extra cash, but it would be pretty miserable. There's more to life than surviving.

Technically I could also live and being homeless, many people do, but that's not the point is it. I remember a program with an elderly lady living in her car, who couldn't drink anything after 4pm to make sure she wouldn't need the loo at night. It's frightening.

It's a sad world when dentists and even holidays are considered a luxury for the wealthy.

No. I'm quite frugal but love to travel.

Also cost of living increases have given us a reality check on how quickly comfortable can turn to struggling. A fixed low sum this year won't be enough in 10 years.

I hate these vague posts with no context at all.
What's the point?
It's academic anyway.

Very few people will live on £10K because even if they don't qualify for a full pension they will get pension credit to bring them up to it. And with PC you also get lots of other freebies.

Yes I could. I don't drink alcohol, don't smoke, haven't had a holiday in years although we do go away for a weekend 2 or 3 times a year. I can do food very reasonably. I'd get rid of the car but I'm thinking of that anyway.

I'm retired. Absolutely not, income of £3.5k net per month and it's 'doable' with no mortgage, though do dip into savings

How do you get through £3500 a month ? That's almost £1K a month.
It's £42K pa net, so closer to £60K gross.

But you have to realise that a lot of working age people live on significantly less than that and have housing costs to pay.

I never understand these huge figures banded around as minimum income requirements.

This is what I will be living on in 10 years’ time when I retire! Terrified!

Financial advisors will tell you that to live a comfortable but not flash life after 65 you need around £25Kpa.

If you are on the state pension only it's not easy but I know people in their late 80s and early 90s who are managing very well on around £12K but they are too old to go on hols, buy new cars etc. And they do have savings.

To be able to have a couple of nice hols and change your car regularly, you're looking at £40K.

These are obviously occupational pensions plus state pension.

How come? State pension is almost £12K.
Do you not have a personal private pension? You're working in your 50s so are you not contributing through work to a pension scheme?

Everyone's bills will be quite different.
Everyone's expectations in terms of the way they like to live, will be different.

You ned to go back through your bank statements for the last 12 months and note what you spend.

Some people need (or want) to run a car.
Some people have pets and the incurred costs.
Some people feel going on holidays is a big part of their life.
Some people enjoy eating cheaper foods / don't eat meat / don't drink alcohol but others feel spending a lot more every week is something they need to do as that is something they value.
Council tax varies massively throughout the country. As do water bills. As will people's utility bills, and insurance bills.

It is a real 'how long is a piece of string?' question.

I could exist on that.....I don't think I'd call it 'living' though!

Not in my current house as the council tax & utilities would be too high.
In smaller & cheaper to run accommodation I could.

Yes I certainly could. Mortgage paid off, don't drive and have free bus travel anywhere in England as get State Pension.

£10000 pa would yield about £800pm

Council Tax 124
Gas & Elec average 100
Water 35
TV licence 15
Sky & phone 100

So total bills 350 rest for food and savings.
Say I spent 300 on food I'd still have 150 to save or spend.

With the way things work in this country, it's not as easy as some think to work out what you get. My grandad (mum's dad) was a shipyard worker (till they closed) and had some savings. My gran (dad's mum, saying so people don't assume they're a couple!) had no savings and only the state pension, but she qualified for housing benefit, assistance with medical/dental most of her life (the NHS system was different) and got all sorts of other things including carers to come round, meal help etc, so she actually had much more disposable income.

Also, some people might have kids who help them out, whether that's giving money, allowing them to stay at their house, paying them for babysitting, making meals/giving free care so they didn't need home helps or whatever, while others might have children who demand money from them.

So the answer is I honestly don't know, as it would depend what other help I did/didn't get.

OP, are you looking at early retirement on £10k a year? If you have a choice, I wouldn’t do it. If you hate your job, look for a new one, but don’t tie yourself into living on a very low income for the rest of your life.

Obviously some people have no choice, but the OP’s post reads to me like a pipe dream rather than reality.

My pension has a slider thing that shows the difference in income based on my retirement age - it’s a lot less if I retire at 55 than if I stick it out until state pension age at 67. Circumstances might change, but barring some major medical issue, I’m going to keep working and paying in for as long as I can.