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AIBU?

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Original poster

Pension income

138 replies

BreakingAndBroke · 08/05/2024 11:43

Posting for traffic.

I keep seeing articles about how big a pension pot you need to have a minimum/modest/comfortable standard of living in retirement, and the levels vary significantly (pots of £37k, £150k or £500k). Obviously, there are huge variations between £37k and £150k or between £150k and £500k!

If you are a pensioner, what is your monthly income (from all sources, eg. State pension, private pension, widow/er's pension, BTL income, businesses or jobs, interest on savings, stocks, shares etc) and how much in non-pension savings do you have?

And do you consider yourself to have a minimal, modest or comfortable standard of life?

https://www.thetimes.co.uk/money-mentor/pensions-retirement/private-pension/pension-pot-amount-average-uk-how-much

What does a £37,000, £150,000 and £500,000 pension pot give you?

How much pension you need for retirement in the UK depends on lifestyle factors. Here's what pension pot worth from £37,000 up give

https://www.thetimes.co.uk/money-mentor/pensions-retirement/private-pension/pension-pot-amount-average-uk-how-much

OP posts:
BIossomtoes · 11/05/2024 13:06

decionsdecisions62 · 11/05/2024 11:53

@Heatherbell1978 they probably worked out they couldn't get travel insurance like my in-laws did. Why anyone would plan to travel long haul when they are that age is beyond me. I once had to help an old couple at the airport who had no bloody insurance and she had had a stroke in the hotel room. They just took themselves off to the airport after a week of hiding in the room and relied on good will to get them home!

You can always get insurance unless you have a catastrophic medical condition, it just gets more expensive with age. I got it for my parents when they were both over 90.

Failingtofindaname · 14/05/2024 22:53

@EmpressSoleil Would you mind saying what your job is? As I would love to find something that I could do flexibly into the future.

HurryUpHilda · 14/05/2024 23:14

We are 62, both retired at 59, nice public sector pensions. Mortgage free, currently taking home c3000 a month, that will go to c4500 at 67 (state pension).
Run two cars, two big dogs, two holidays, hobbies, two DC who have both had 'issues'. It's nowhere near as much as it sounds it is. I know, 'read the room'!

My advice to the 30 year old me, over-pay your mortgage (I'd never heard of that and didn't even know it was a thing), bung as much as you can tax-free money into your pension.

Caspianberg · 15/05/2024 06:15

I think that’s the thing, there’s two amounts of pension ‘needs’.

The minimum amount you can possibly survive on, v enough you can not worry about car needing replacing, house repairs or replacements.

I hope in retirement I don’t have to worry about turning heating on, or paying for grandchild to join us on days out, or buying new coat. I want to be able to replace washing machine without worrying or help Ds with something.

HulaChick · 15/05/2024 07:03

My pot is & will be woefully small & I will be almost completely relying on the state pension. Was a SAHM for 18 years so wasn't paying into a work pension & what I did pay in to it has resulted in only about £18,000. I am now full time but pay is low & between now & retirement, won't add up to much. I divorced my husband 2 years ago & in order to get out quickly gave up my rights to his pension (He had got it ring fenced & after much wrangling, grudgingly agreed to give me a very small % which will be about £7 000 a year, so very little per month).. I had to sign a waiver to show I agreed to this. I find it really unfair that you gave to be taxed on your pension income.

Soontobe60 · 15/05/2024 07:08

fridaynight1 · 08/05/2024 13:14

For homeowners, it is possible to live a comfortable life on state pension alone, with a small savings pot for emergencies.

Surely, the biggest factor in calculating the amount of pension you need depends on if you have to pay rent.

For homeowners, once the mortgage has been paid off other household bills are relatively low and you no longer need anywhere as near as much income.
For someone who rents, nothing changes.

I'm not suggesting homeownership/renting is the only factor. Lifestyle does come into it and if you want to continue enjoying sky tv, gym membership and going to costa coffee a couple of times a week then of course you need to factor that in. But that is peanuts compared to finding the money to pay the rent.

Edited

Both my DF and my MIL lived in rented accommodation. They both had a small private pension under £50 a month. Neither of them really struggled on their total income as they received pension credits and housing / council tax support. When my mil eventually died, she’d accrued over 20k in savings during the last few years of her life.

BIossomtoes · 15/05/2024 07:20

Soontobe60 · 15/05/2024 07:08

Both my DF and my MIL lived in rented accommodation. They both had a small private pension under £50 a month. Neither of them really struggled on their total income as they received pension credits and housing / council tax support. When my mil eventually died, she’d accrued over 20k in savings during the last few years of her life.

Show quote history

So she committed fraud because nobody with savings over £16k is entitled to pension credits or housing benefit.

DragonFly98 · 15/05/2024 19:56

BIossomtoes · 15/05/2024 07:20

So she committed fraud because nobody with savings over £16k is entitled to pension credits or housing benefit.

Show quote history

There is no savings limit for pension credits. And the savings limit is not 16k for housing benefit if you claim pension credits. So think before you post lies about peoples loved ones who have passed away.

Papyrophile · 15/05/2024 22:02

Fairly confident that my 90 yo mum whose income is only her state pension and pension credit, to get her to £204 weekly, is not going to be a victim of this.

NosyJosie · 15/05/2024 22:49

BIossomtoes · 15/05/2024 22:22

Show quote history

Not sure grandma above intended to defraud anyone and good on her for being able to squirrel away money but I too am fairly certain that if you have savings of more than 16k you do not qualify for housing benefit. Council tax benefit is a different matter and takes into consideration age and other factors.

DragonFly98 · 15/05/2024 23:24

NosyJosie · 15/05/2024 22:49

Not sure grandma above intended to defraud anyone and good on her for being able to squirrel away money but I too am fairly certain that if you have savings of more than 16k you do not qualify for housing benefit. Council tax benefit is a different matter and takes into consideration age and other factors.

Show quote history

Fairly certain, and yet wrong

When you may not be able to claim usually , you will not get Housing Benefit if:

  • your savings are over £16,000 - unless you get Guarantee Credit of Pension Credit
source : https://www.gov.uk/housing-benefit#:~:text=When%20you%20may%20not%20be,Support%20for%20Mortgage%20Interest%20(SMI)

Housing Benefit

Housing Benefit or Local Housing Allowance (LHA) - rates, eligibility, claim form, calculator, appeals, 'Discretionary Housing Payment'.

https://www.gov.uk/housing-benefit#:~:text=When%20you%20may%20not%20be,Support%20for%20Mortgage%20Interest%20(SMI)

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