Can anyone live on a state pension?

[whatisforteamum]

I've never had a pension,bought a house on a low income so scrimped and scraped to make ends meet and paid the mortgage with no outstanding debt .Dh put into a small pension over 30 yrs.
We are in our 50s and 60s and feel the thought of living on the state pension daunting.
We do have life savings and I will call the government pension advice line.
AIBU to think the state pension won't cover the bills of most pensioners?
Can anyone survive on just state pension.

We will have to... I imagine a large percentage of the population do

Umm surely your life savings will help with your income??

And yes a lot of people do live on state pension.

My DM lives off a state pension topped up to the minimum income. She says it's plenty as long as you don't want to run a car (she has never driven)

@00100001

Umm surely your life savings will help with your income??

And yes a lot of people do live on state pension.

Passive aggressive behaviour right there.

Those whose state pension is low get topped up by pension credit. Then they get full housing benefit and council tax reduction. However most people now will get the new state pension so wont get pension credit. I think it's about £178 a week so if too of you have that and no mortgage, it is doable.
The ones I worry for are those going into pension years with a mortgage still.

Also, if you've paid off your mortgage. What is your biggest outgoing after that?

You can sell your house and downsize, which might leave you with money to supplement your state pensions.

Plus you have another 10+ years to save a d out into pensions.

It's not like it's a surprise...

@Babyroobs

Those whose state pension is low get topped up by pension credit. Then they get full housing benefit and council tax reduction. However most people now will get the new state pension so wont get pension credit. I think it's about £178 a week so if too of you have that and no mortgage, it is doable. The ones I worry for are those going into pension years with a mortgage still.

two

So sorry 001 the pp did mention life savings, I now see.

If you’re low waged and struggle you may be eligible for Pension Credit (it may be part of Universal Credit now) - Citizens Advice or the DWP pension line may be able to advise.

Millions do live just on state pension, plus your free tv licence, prescriptions and bus pass are designed to give an added boost. Look in to winter fuel payments also.

If you’re still working save as hard as you can now.

If you have paid off your mortgage or have rent covered by HB you should be ok- check you’re both eligible for the full state pension.

If you need to move in to a care home when you’re older you may need to sell your home, but may also be eligible for a council funded care place as you’re low waged.

Pay off all debt before you retire, and keep working for as long as you’re able. Be prepared to live frugally.

I have two elderly relatives who do.

With a mortgage-free house, a bit of a pension from your darling husband and some savings I'd say you'll be substantially better off than most OAPs.

@Frenchfancy

My DM lives off a state pension topped up to the minimum income. She says it's plenty as long as you don't want to run a car (she has never driven)

My mum is exactly the same. She does live in a little house on her own mortgage free though. She rarely goes on holiday or lives extravagantly though but affords nice clothes, bits for her house, presents, Galway a has a full fridge, days and trips out etc. She also manages to save some each month.

No you cant live on a state pension. You need to reduce your savings so you can claim Pension Credit. A lot of people won't get the new state pension in full.

Ah ok.Yes I work ridiculously long hours to put something aside.I never heard of pension credit tbh.
It just hit me we may have to sell our little house which would be heart breaking.
Like I say financial advisors couldn't sell me a pension as we were pushed for money for decades.

You have your own home and life savings plus your DH’s pension, there are plenty of current pensioners surviving on far less, and even more working age people who won’t be in as good position as you when they retire

The amount of the State Pension is IRRELEVANT. What matters is the minimum income that the Government guarantees all pensioners, AKA as 'Pension Credit'. Currently £177 for single pensioner, £270 for a couple.

And, anyone qualifying for 'Pension Credit' will almost certainly qualify for Housing Benefit (in London could be hundreds of pounds a month), Council Tax Benefit, Warm Homes Discount, Winter Fuel Payment, Free Prescriptions, Free TV licence (75+), free bus/tram/train travel (depending on where they live), and discounted telephone/broadband connection.

Would owning a home count against any top up?

No, you can't live on it if you have to pay rent. You'd have to apply for some top-up benefits, but you own your house so no mortgage to pay, isn't that right?

@whatisforteamum

Would owning a home count against any top up?

No . Savings and income ( state retirement pension and private pensions ) are used to calculate whether you are eligible for pension credit top up. There is also savings pension credit but I don't think many people get that any more.

" anyone qualifying for 'Pension Credit' will almost certainly qualify for Housing Benefit (in London could be hundreds of pounds a month), Council Tax Benefit, Warm Homes Discount, Winter Fuel Payment, Free Prescriptions, Free TV licence (75+), free bus/tram/train travel (depending on where they live), and discounted telephone/broadband connection."

Free bus is for all pensioners, in Wales at least, as is the winter fuel payment and I think free prescriptions. The free TV licence has been scrapped for all 75+ though, I think.

Pay off all debt before you retire, and keep working for as long as you’re able. Be prepared to live frugally.

This

but if you have got savings, isn't that what they are for, to help pay the bills.
you may not have to sell your house.

Op, will you have two full state pensions and will you have paid of your mortgage?

If you have a full state pension, that's currently just under £180 per week. So £360 per week for 2. 52 weeks a year, it's just over £18k. Neither of you would have to pay tax or NI on it, so that's £1500 per month. If you don't have a mortgage any more, then your next outgoing are likely to be council tax, electricity, gas, water, internet, mobiles, insurance, which should come in at I reckon around £500. Even then allowing for food - say £200, and running a car (tax, insurance, MOT, petrol - say £150) that leave £650 for clothes, going out, savings for holidays, house repairs, replacing the car etc. That feels quite doable to me?

Older relatives of mine have. Food and bills are no problem. And day to day they're ok, they get out and about, doing lots of inexpensive things, free culture, walks, pub lunches, special theatre offers etc. They don't do big holidays or major house repairs though. And the car's always a bit of a worry - they'd be better if they were in town but they're right out in the country.

"If you have a full state pension, that's currently just under £180 per week. So £360 per week for 2. "

Is it like that now? The amount for couples used to be less than twice the single person's amount.

@Gwenhwyfar - so I remember that, but the information I can find at the moment certainly implies there's no impact of being married:

www.ageuk.org.uk/information-advice/money-legal/pensions/state-pension/new-state-pension/

Very happy to be corrected though!