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.

I own my own home. I have a small private pension which does not even cover the community charge for this house. I recently started getting my state pension and feel relieved because there is less pressure on me now.
I live with my partner. He pays the bills here. If I were alone I would have had to sell the house in order to survive. I would have to start using savings to supplement my income. State pension is not enough to survive on no way.
I wish I had had better advice when I was younger. I would have done more to ensure I was in a more comfortable position than I find myself in.
My partner is a good man. He always says it is our money, and not his, but I having worked all of my life feel uncomfortable having to ask for anything. He would give me the earth if he could. I feel sorry for anyone who is poor despite having worked all their adult lives.

[quote toconclude]@Gwenhwyfar
Well that depends. DM died of lung cancer having had a 58 year smoking habit. But she was still 86.[/quote]
Sorry for your loss. I presume that she avoided many years of care home fees though?

@Gwenhwyfar

"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.

Paying 35 years of NI is not a guarantee of a full state pension. I know of someone who has 50 years of NI contributions and does not qualify for a full state pension.

I have the full state pension, plus about £500 a month from a couple of private pensions, and if it weren't for DP paying more than I do into our joint account, I wouldn't be able to manage. We have a car, but use public transport whenever possible, eat well but don't spend a lot on holidays or going out; no mortgage. I do have some extra expenses atm due to illness, and I'm dipping into savings.

I know lots of people who live on the state pension comfortably. It’s more than double JSA plus other benefits pensioners get. Just the state pension is not going to be an extravagant lifestyle but you already told us you have savings, your own home and your dhs private pension too. Should be fine imo.

Does college count as years worked.I know child benefit does as I worked when they were school age but only 20 hrs a week.
The rest of the time we've worked.

Both my late grandmothers said they had never been so well off, both in council flats though. Both left over 30k in savings when they died. One had some of her husbands war pension when he died.

How can you not be eligible for full statepension with 50 years contributions? I’m not doubting you, just wanting to know.

@lalafafa

Both my late grandmothers said they had never been so well off, both in council flats though. Both left over 30k in savings when they died. One had some of her husbands war pension when he died.

Many older people or their spouses paid into SERPS and because of that got a lot more in state pension. I'm shocked at the amount some of the pensioners i deal with in my job get. One old chap was getting £270 a week .

Bloodybridget I'm sorry to hear this.Sounds like a difficult time for you.

There are two of you, so you're in a better position than anyone single who has to pay their bills alone. And you have savings.

I'm fortunate (?) to have paid into an occupational pension. But yes, I know people who live on the state pension. If you have your own home and it's paid off, you're again, better off than those renting, by some margin.

"How can you not be eligible for full statepension with 50 years contributions? "

Yes, how?

@Gwenhwyfar

"How can you not be eligible for full statepension with 50 years contributions? "

Yes, how?

Possibly because they were contracted out through their work pension. I don’t think this happens anymore though.

"Possibly because they were contracted out through their work pension"

So they have a workplace pension instead?

@Gwenhwyfar

"How can you not be eligible for full statepension with 50 years contributions? "

Yes, how?

The old “married women’s rate”, possibly.

@Gwenhwyfar because they may have been contracted out due to work pension. This is the case for local government schemes but the other side of that is it's more than made up by the occupational pension element.

For sahms whose husband's earn above the child benefit cap, it's hugely important your dh's allow you to continue to get cb and take the hit on their tax code. It maintains your pension eligibility. Worth having even if they are tight bastards and you arrange to pay thexallowance back to them.

@Tinpotspectator

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

It's ok :)

My parents live on pension credit and they manage pretty comfortably. My DM does get PIP as well though due to disabilities, but that goes towards disability-related costs so if she wasn't disabled then she wouldn't need that extra money (and would be able to still work as she's under pension age). They own their own home outright, and the pension credit means they get council tax benefit which covers the whole bill, plus a few other passported benefits (cold weather payment, warm home discount). They get free prescriptions and public transport too.

Before they claimed pension credit, it was just my DM working in a supermarket as Dad was out of work for a long time, and adding up their income now, they have more disposable income than when they were working. So having lived for a long time on a low income helped them budget now - they can afford all bills comfortably, run a car (but only used occasionally as public transport in London is excellent), eat well (always cook from scratch, and grow some of their own veg), go on holiday occasionally, their main hobby is gardening. Me and my siblings help them out by paying for days out, meals out, inviting them on holiday with us, and paying for larger purchases like a computer, and pass on old gadgets like phones/tablet. They manage to save some of their income (quite a lot in the past 18 months as they've mostly stayed home) so they aren't living month to month at all.

Yes, many people do. Same as many people live on basic UC, which is a lot less. They live accordingly. If it was actually unliveable-on it wouldn't be set at the rate it is, especially the pension.

@plustuned

My parents live on pension credit and they manage pretty comfortably. My DM does get PIP as well though due to disabilities, but that goes towards disability-related costs so if she wasn't disabled then she wouldn't need that extra money (and would be able to still work as she's under pension age). They own their own home outright, and the pension credit means they get council tax benefit which covers the whole bill, plus a few other passported benefits (cold weather payment, warm home discount). They get free prescriptions and public transport too.

Before they claimed pension credit, it was just my DM working in a supermarket as Dad was out of work for a long time, and adding up their income now, they have more disposable income than when they were working. So having lived for a long time on a low income helped them budget now - they can afford all bills comfortably, run a car (but only used occasionally as public transport in London is excellent), eat well (always cook from scratch, and grow some of their own veg), go on holiday occasionally, their main hobby is gardening. Me and my siblings help them out by paying for days out, meals out, inviting them on holiday with us, and paying for larger purchases like a computer, and pass on old gadgets like phones/tablet. They manage to save some of their income (quite a lot in the past 18 months as they've mostly stayed home) so they aren't living month to month at all.

A mixed age couple now ( where one is state retirement age and one working age ) would have to claim Universal credit instead of pension credit, which is not half as generous as pension credit unfortunately.

Interesting how people keep mentioning free prescriptions. I am over 60 and get free prescriptions despite working full-time on a very good salary. Even when I retire my occupational pension will be above the average wage and I certainly won't need free prescriptions. It's a bizarre system and I'd rather pay than other people scrape and/or go without.

@PostMenPatWithACat

Interesting how people keep mentioning free prescriptions. I am over 60 and get free prescriptions despite working full-time on a very good salary. Even when I retire my occupational pension will be above the average wage and I certainly won't need free prescriptions. It's a bizarre system and I'd rather pay than other people scrape and/or go without.

Yes it's ridiculous that over 60's all get free prescriptions ! there was an outcry recently when there were suggestions that the government may raise the age for this in line with state retirement age. People over 60 on low incomes or Universal credit would likely still get free prescriptions so they won't miss out.

well think of the younger generations who are less likely to have a home, life savings & won't get a state pension until they are probably 70 plus!

@PostMenPatWithACat

Interesting how people keep mentioning free prescriptions. I am over 60 and get free prescriptions despite working full-time on a very good salary. Even when I retire my occupational pension will be above the average wage and I certainly won't need free prescriptions. It's a bizarre system and I'd rather pay than other people scrape and/or go without.

I believe in free prescriptions for all, as in Wales and Scotland, but in any case, I pointed out above that I think there's an unfairness in how the over 60s get so many discounts and reductions when many of them are actually the richest in society now due to owning their houses outright and having private pensions and savings on top of their state pensions. They can also afford to do certain things at quieter times when there may be discounts eg my hairdresser is cheaper mid week, but I can't go then.

@countrytown

well think of the younger generations who are less likely to have a home, life savings & won't get a state pension until they are probably 70 plus!

Yep.