To ask how much you could survive on if you didn't have a mortgage/rent to pay?

[Bluebird282]

We're early 40's and have about 12 months left on our mortgage however my health is taking a dramatic nose dive (chronic illness for 20yrs). We have 1 DC who's 13. If I can no longer work we'll be £1300 per month worse off. Our mortgage is £500 so money would be very tight on DHs wage alone. I'm panicking.

How much do you think you could realistically survive on?

I'm not sure there is any value asking the question here as fixed costs will differ so wildly. Also it depends whether you literally mean "survive" or whether you'd want to have a reasonable standard of living.

You need to look at your fixed costs (council tax, utilities etc) as there probably (assuming you already shop around for cheapest suppliers) isn't a lot you can do about this unless you do something fairly drastic such as move.

Then look at necessary but variable costs (such as food and fuel) and work out what the minimum you would be happy on is.

Then look at every other item of discretionary spending and work out whether you can live without it. You might (for example) want to keep any of your DC's activities going, whilst being prepared to sacrifice adult socialising.

What @UserAtLargeAgain says.

It’s pretty pointless me telling you what we could live on as I’m the sole earner and we have three kids.

I’m sorry you’re not well and have these worries though

Can you take early ill health retirement and take your pension now (if you have one)?

What's your current income v outgoings, plus savings?

List your bills and usual outgoings dor the last few months . There is often help on here and moneysavung expert if you need to cut down. Remember there may be UC top up if income is low.

We are doing okay on about £25000 but there isn't spare for big holidays or major improvements etc. Also a bit worried about uni. But we are doing days out and nice food etcm

Sorry to hear you are facing such a tough prospect of being too disabled to work. No one expects to stop working in their 40s and yet it does happen.

But surely you would get PIP at least? I think that could be as much as £500/mo if higher rate care and mobility.

Maybe also ESA/UC unless partner earns too much? Even if he does, still apply for ESA and I think you can do a work capability assessment and still get the national insurance credits for every year you cannot work even if you are not entitled to any actual benefit money. So that will mean your state pension should still be adding up.

Thanks everyone, you're right it was a daft question really. I've got the calculator out and it's depressing.

Can you take early ill health retirement at the age of 42? I've got 20 years nhs pension.

Is there a middle ground maybe? Cut down your hours and look at things to reduce the strain on your body/health?

Have you applied for PIP?that would be a great help.

@Bluebird282

Thanks everyone, you're right it was a daft question really. I've got the calculator out and it's depressing.

Can you take early ill health retirement at the age of 42? I've got 20 years nhs pension.

Apparently, you might be able to. I found this 2017 fact sheet on NHS early retirement for ill health. It says no minimum age. Ask your HR dept for up to date information, but it looks like you probably could.

www.nhsbsa.nhs.uk/sites/default/files/2017-05/Ill%20health%20retirement%20tiers%20and%20FAQs%20%2805.2017%29%20V8.pdf

Can you remortgage for a longer term so your monthly payments go down?

Sympathies for your health problems

@Bluebird282 my DM sick health retired from the NHS in her 50s (osteoporosis, stress, damaged back from lifting patients and a bunch of other issues). If you're too sick to work, it's certainly worth HR / the union asking about it. Lots of hoops to jump through.

And apply for PIP now - you can be working and claim it. It's also common to be refused and have to appeal, so best to get it in motion now and be ready to fight it. There are support groups out there you can get help from to fill out the application - some charge for their time, but they are worth every penny in my experience.

PlanDeRaccordement thankyou, I've got a lot of research to do. I've no idea what I'd be entitled to. The realisation that I might not be able to work much longer is a very recent one which sounds naive after 20 years of illness but I've managed very well up until now. We've over paid the mortgage knowing we'd at least have a secure roof over our head but other than that I've buried my head in the sand.

nellly I do 20 hours at the moment and I'm struggling with that but yes, maybe reducing my hours further would give me longer in employment.

PinkFootstool thankyou, I'm going to look at PIP now.

If you are nhs is there non nhs work you could consider? Make sure you take all the sick leave etc you are entitled too as nhs is generous with that.

Woild it help if occupational health could make adjustments/reduce hours or anything?

Sorry to hear yoire unwell. It truly sucks doesn't it 😔

I don’t think it’s naive at all. You couldn’t have predicted how your chronic illness would affect you after 20yrs. I think you’re tackling this at the right time. Do discuss early retirement with your consultant doctors because I do know that they will probably have to write reports about your illness, how in their professional medical opinion you can no longer work, and what the prognosis is (will you get better the same or worse in future).

PileOfBooks it's awful isn't it, I just want to live my life, I love my job and my team and I dont want to let anyone down. I'm really at the very start of things, I've not been signed off yet but it's coming. I know I can probably 'play' the system for a couple of years (I really don't mean play but I cant think of another word for it).

Lots of things that save a lot of money require time and effort that isn't pastiche when you're unwell.

On the other hand, when it's for a limited time, it's possible to go without luxuries and scrimp and save to an extent that would be very hard long term.

Look into things like community fridges near you. And the concept of no spend year. At 13 your child may well be understanding that for one year, birthdays and Christmases will be on a strict budget (maybe no gifts for you or DH). And no holiday. If they're lucky they might be able to find a way to earn extra pocket money (wash a neighbour's car? Mow granny's lawn?)

It might also be the case that reduced hours help more than anticipated, and then you've at least still got some extra money coming in. Or could your husband manage a second job for a year? Or you manage a different job?

It might also be worth speaking to CAP for advice. If you only have £6000 left on your mortgage, perhaps you could renegotiate or get a loan to pay it off, that would then cost you £200 a month,for longer. It would cost you more in the long term, but might get you out of this hole.

@Bluebird282

nellly I do 20 hours at the moment and I'm struggling with that but yes, maybe reducing my hours further would give me longer in employment.

PinkFootstool thankyou, I'm going to look at PIP now.

I’d talk to your doctor and HR first because an ill health pension may be more income than working less than 20hrs and you don’t want to accelerate a future decline in health by pushing yourself too much.

And the thought of going through the system-HR, PIP etc when you're at such a low ebb, how are you supposed to find the energy to tackle it all?

Also, I'd recommend doing a budget and a money makeover. Money Saving Expert is really good. Even if it only saves you a few hundred, that's a help.

When I followed his advice on insurance (car and then home), that alone saved me about £300 in the first year.

When I had my son dp got made redundant. We managed fairly comfortably on statutory maternity pay and his jobseekers which came to about £210 a week plus another £22 or so in child benefit. He took a mortgage holiday so we didn't have that to pay. We have 2 cars both fully paid off, no other debts, no sky tv, very cheap mobile contracts and a band d council tax home. Much depends on your fixed costs and savings level for emergency costs

If looking at pip get a disability support group to help you with the application.

I'm in receipt of ESA, own my own home so no rent. I get £520 a month ESA and can't survive on it. I don't buy food (food bank) and had a hardship grant from my local council this year against the council tax of £50 so that was rubbish. My bills far exceed the benefit I receive.

Sorry, third post!

But what was missing from my previous two was any compassion. You're clearly having such a difficult time. You're not letting people down by being ill. It's hardly like anyone would choose that type of suffering over a 'normal' life and job.

I hope things quickly start to get better. A trained CAP volunteer could work through all the forms with you to try to help with the burden of working all this out. But either way, I hope things improve soon.

Don't reduce your hours without checking out the pension situation first. You may well be entitled to an ill health early retirement pension from the NHS, but reducing your hours could then reduce the amount that you get. So you could find yourself worse off in the longterm for having managed to work a little longer.

Definitely apply for PIP. It isn't means tested so you can do that now. Most charities for conditions that are likely to require PIP have good information on how to apply and things to think about for your condition, so that's worth looking into.