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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

Can anyone live on a state pension?

300 replies

whatisforteamum · 20/08/2021 21:22

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.

OP posts:
Gwenhwyfar · 20/08/2021 22:02

@Bathshebahardy

As there are two of you, your joint income will be plenty for a basic standard of living. It is single people who struggle with only one income but most bills are the same per household. Your joint income will be around £18,500, plus any small private pension your DH has. That's more than many low paid or single people have.
And with the house paid for, which is the big thing.
Viviennemary · 20/08/2021 22:03

Some people are in for a shock if they think they can live on a state pension. They cant. Single people who own their own home get the worst deal.. If they have evdn quite a tiny private pension this means no pension credit. And no council tax rebate. And no savings allowed either. Over 23k I think. Which wouldnt go far dipped into for house repairs and so on over 20 years.

Mantlemoose · 20/08/2021 22:07

My DM has only her state pension. She says she's never been as well off as she is now.

Soontobe60 · 20/08/2021 22:07

@Viviennemary

Some people are in for a shock if they think they can live on a state pension. They cant. Single people who own their own home get the worst deal.. If they have evdn quite a tiny private pension this means no pension credit. And no council tax rebate. And no savings allowed either. Over 23k I think. Which wouldnt go far dipped into for house repairs and so on over 20 years.
Both my DF and my MIL managed to live off their state pensions, although neither owned their own house. They got reduced council tax, as they were single occupants. Both seemed to acquire more money by the time they died as their savings accounts showed.
Babyroobs · 20/08/2021 22:09

The worry for old people is big expenses related to owning their own home and this is why many fall into these dodgy equity release schemes. The elderly lady next door to us owned her own home but had no disposable income. I remember one day a huge bough from a tree in her garden crashed onto our shed roof. We downplayed the damage as we didn't want her to feel she had to pay for it but she was then so worried about more of the tree falling and injuring our kids who were small that I'm sur she ended up releasing equity to get this huge tree cut back. It's major expenses like that that worry old folk.

Viviennemary · 20/08/2021 22:09

Id love to know how. So rent paid presumably. No top ups?

Gwenhwyfar · 20/08/2021 22:13

@Babyroobs

The worry for old people is big expenses related to owning their own home and this is why many fall into these dodgy equity release schemes. The elderly lady next door to us owned her own home but had no disposable income. I remember one day a huge bough from a tree in her garden crashed onto our shed roof. We downplayed the damage as we didn't want her to feel she had to pay for it but she was then so worried about more of the tree falling and injuring our kids who were small that I'm sur she ended up releasing equity to get this huge tree cut back. It's major expenses like that that worry old folk.
Is equity release a problem for the person who takes it out or just for the beneficiaries of their will?
WingBingo · 20/08/2021 22:14

My mum lived very well on a state pension. Had quite a lot of savings when she passed too.

Gwenhwyfar · 20/08/2021 22:15

@WingBingo

My mum lived very well on a state pension. Had quite a lot of savings when she passed too.
So she didn't really live on the state pension, did she? She lived on the pension plus savings. Unless you're saying she acquired all those savings in retirement?
JulesCobb · 20/08/2021 22:17

@WingBingo

My mum lived very well on a state pension. Had quite a lot of savings when she passed too.
Hmm
FrownedUpon · 20/08/2021 22:18

It wouldn’t be much of a retirement on the state pension alone. It might cover the bills if the mortgage is paid off, but won’t leave much for fun. I’m planning to do lots of travel & holidays in retirement so am saving as much as I can into pensions.

Viviennemary · 20/08/2021 22:21

Id love to see anybody live well on 9k a year which is what the new basic increased state pension will provide. And thats only for folk with 35 years NI contribution.

Babyroobs · 20/08/2021 22:21

@WingBingo

My mum lived very well on a state pension. Had quite a lot of savings when she passed too.
We were amazed at the savings my in laws had when they died. FIL was a self employed plumber who never charged people the going rate, he was too kind hearted. I think they amassed their savings by both claiming Attendance allowance ( health problems) , which they never actually used for anything. MIL was always hot and rarely had the heating on, they didn't go anywhere as MIL not well or mobile enough, they wouldn't pay for anyone to help them as SIL did all that, so the money just built up.
WingBingo · 20/08/2021 22:24

@Gwenhwyfar she amassed them whilst living on a state pension , plus attendance allowance for the last year of her life.

We never had much growing up, and she was very good at living frugally.

MorriseysGladioli · 20/08/2021 22:24

Different people, different priorities.
A pensioner gets more than a jobseeker, so it can be done.
It may not meet others' expectations of living, but that's neither here nor there.

tanguero · 20/08/2021 22:29

Viviennemary Fri 20-Aug-21 22:21:20
Id love to see anybody live well on 9k a year which is what the new basic increased state pension will provide. And thats only for folk with 35 years NI contribution

No it's not ! Pension Credit (which is what really counts here) is for anybody. Even if they have never made a single National Insurance contribution in their life.

Vinniepolis · 20/08/2021 22:29

The Retirement Living Standards developed by the Pension & Lifetime Savings Association is a website that lets you see what your standard of living might be like on different retirement incomes and depending on whether you’re single or a couple.

www.retirementlivingstandards.org.uk/

toconclude · 20/08/2021 22:32

@Gwenhwyfar
Well that depends. DM died of lung cancer having had a 58 year smoking habit. But she was still 86.

Babyroobs · 20/08/2021 22:32

@tanguero

Viviennemary Fri 20-Aug-21 22:21:20 Id love to see anybody live well on 9k a year which is what the new basic increased state pension will provide. And thats only for folk with 35 years NI contribution

No it's not ! Pension Credit (which is what really counts here) is for anybody. Even if they have never made a single National Insurance contribution in their life.

But I don't think people on new state pension would qualify for pension credit because New state pension is just slightly higher than the pension credit threshold unless you have disabilities etc which increase your Pc applicable amount.
suzy2b · 20/08/2021 22:35

After living on £280 a month on UC £750 is a fortune £250 DDS leaves me with £500in winter can save about £200 a month also have a car

PigletJohn · 20/08/2021 22:36

The flat rate pension is a misleading myth.

Few people get the nominal flat rate.

What you get depends on how many years you worked and paid National Insurance. There may then be additions and deductions.

You need to get your own personal pension estimate, which will be calculated for you, from
www.gov.uk/check-state-pension

You can request online, or with a form by post.

Use that government site, not any of the ones run by scammers, even if Google pushes them to the top of the search results.

alexdgr8 · 20/08/2021 22:38

Babyroobs, they should really have been paying some of the AA to SIL.

Lincslady53 · 20/08/2021 22:38

The amount of state pension you get depends on how many years you have paid National Insurance. Check here. www.gov.uk/check-state-pension If you have missing years NI you can make too up payments to get up to the max. If you work beyond the retirement age, you can defer the oayment, and it increases by 1% for every 9 weeks it is deferred for.

Gwenhwyfar · 20/08/2021 22:40

"Few people get the nominal flat rate.

What you get depends on how many years you worked and paid National Insurance. There may then be additions and deductions."

I knew there could be deductions, but additions? I thought if you qualified for the amount you get for 35 years of working, you get the full state pension and that's it.

Hopeisnotastrategy · 20/08/2021 22:40

OP you both need to go online and check your current state pension forecasts. Get someone to help you if you're not confident doing it, it's important.

Please be aware - everyone, please be aware- you can make additional contributions very often to give you a bigger pension if you gave less than 35 years contributions from whatever sources.