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Original poster

How much do you need to live in London? (I think I have enough!)

152 replies

Ethicaldebacle · 27/04/2025 07:06

I've asked before about moving to London and basically everyone agreed it was a good idea, but we didn't really touch the financial aspect.

I posted about my pension on Reddit (because I think I have a fairly solid plan all things considered) but everybody got fixated about not being able to afford to live in London

So housing and transport costs aside, (because I've done that calculation already), how much do you spend a month?

We shop at Lidl for the most part, and go out twice a month. I don't go to the salon or anything like that, and the gym is out peloton (so cheaper as it's for both). One car.

We're talking about Z3, one DC in secondary school.

For the sake of this conversation we have £7k every month to play around after housing and travel cards.

OP posts:
Evaka · 27/04/2025 08:25

Ethicaldebacle · 27/04/2025 08:20

No, they focused on telling me over and over that I wouldn't survive in London with our income. Not so much on the pension. Although the London house value is an element of our retirement for sure.

Show quote history

Did you ask your group of reddit consiglieri what they consider to be the monthly costs of living in London? If they told you over and over you surely asked at some point how much you would need and what for? Must say I'm now intrigued.

meevee · 27/04/2025 08:25

I'm not sure why you are so bothered by what they said?

Perhaps some were just talking about the fact the lifestyle wouldn't necessarily be what you expect for 150k.

If you have spare income it makes sense to use compound interest for a pension rather than relying on downsizing at a later date tbh.

Original poster
Ethicaldebacle · 27/04/2025 08:27

Evaka · 27/04/2025 08:25

Did you ask your group of reddit consiglieri what they consider to be the monthly costs of living in London? If they told you over and over you surely asked at some point how much you would need and what for? Must say I'm now intrigued.

Show quote history

I did ask. I even told them I have friends with those incomes living OK. I was told they were surely in debt.

There was no real reason given why I wouldn't be able to afford it.

Some did ask more meaningful questions if I'd save any money from living in London (which I would)

OP posts:
meevee · 27/04/2025 08:27

If your pensions are very low as you say I would put some that 600k into pensions and take out a bigger mortgage or buy a cheaper property tbh.

Original poster
Ethicaldebacle · 27/04/2025 08:28

meevee · 27/04/2025 08:25

I'm not sure why you are so bothered by what they said?

Perhaps some were just talking about the fact the lifestyle wouldn't necessarily be what you expect for 150k.

If you have spare income it makes sense to use compound interest for a pension rather than relying on downsizing at a later date tbh.

I actually think that was part of it too.

The idea of downsizing is so the interest helps, rather than eating out the leftover equity so to speak.

I also know that once past £100k one of the smartest things is to out into pensions.

OP posts:
Original poster
Ethicaldebacle · 27/04/2025 08:30

meevee · 27/04/2025 08:27

If your pensions are very low as you say I would put some that 600k into pensions and take out a bigger mortgage or buy a cheaper property tbh.

For better or for worse we need this house now, but not when we move to London. We'll only need a 3 bed as opposed to a 5 bed.

We want a fairly basic lifestyle once retired though, which I know is probably different to many.

OP posts:
MidnightPatrol · 27/04/2025 08:32

meevee · 27/04/2025 08:27

If your pensions are very low as you say I would put some that 600k into pensions and take out a bigger mortgage or buy a cheaper property tbh.

That seems unnecessarily complex when they could just contribute more to their pensions from their income instead.

That also gives flexibility vs forcing themselves into a £3-4k a month mortgage.

meevee · 27/04/2025 08:32

That's probably the difference then.

Original poster
Ethicaldebacle · 27/04/2025 08:34

MidnightPatrol · 27/04/2025 08:32

That seems unnecessarily complex when they could just contribute more to their pensions from their income instead.

That also gives flexibility vs forcing themselves into a £3-4k a month mortgage.

Show quote history

We'd never have such a mortgage! Our expected mortgage is in the range of £1500-£1800.

OP posts:
wordywitch · 27/04/2025 08:34

I’m guessing the people who said that on Reddit are anti-London types who like to try to convince people not to live there, visit, or even utter its name, lest all their money flies out of their bank account at its mere mention. Ignore them, they clearly have never lived there and are basing their ‘advice’ on assumptions and stereotypes, with a large helping of sour grapes. You’ll be absolutely more than fine.

meevee · 27/04/2025 08:34

That seems unnecessarily complex when they could just contribute more to their pensions from their income instead.

Of course they can do that but if the pot is very low I would want a bigger sum in there asap. But everyone has different pension & retirement goals.

MidnightPatrol · 27/04/2025 08:36

Ethicaldebacle · 27/04/2025 08:34

We'd never have such a mortgage! Our expected mortgage is in the range of £1500-£1800.

Show quote history

Yes - I’m just responding to the person saying to put your house equity in a pension. It’s not a good idea.

MidnightPatrol · 27/04/2025 08:39

meevee · 27/04/2025 08:34

That seems unnecessarily complex when they could just contribute more to their pensions from their income instead.

Of course they can do that but if the pot is very low I would want a bigger sum in there asap. But everyone has different pension & retirement goals.

You are taking into account the cost of housing in London.

£600k equity + a £1.5k a month mortgage will buy a modest property in zone 3. Put a chunk of that equity into pensions and… you won’t be able to buy a three bed house without a larger mortgage.

Lack of pension saving is a problem sure, but moving housing equity into it and needing a mortgage instead is in ‘moving deckchairs’ territory IMO.

meevee · 27/04/2025 08:41

You can buy houses in London in z3 for 700k though?

meevee · 27/04/2025 08:42

And in z4 will get houses for 600/650k

AgnesX · 27/04/2025 08:43

£7k after housing and travel ??? Easily the most stupid post in a long time.

If you have that sort of income you also have the brains to open a spreadsheet and plan a budget.

MidnightPatrol · 27/04/2025 08:45

meevee · 27/04/2025 08:41

You can buy houses in London in z3 for 700k though?

Not if you want something decent, no.

I’d say £700k was a modest budget for a three bed house in zone 3 (noting of course, it’s a massive sum of money).

meevee · 27/04/2025 08:48

It depends what you class as decent? It won't be very big but you could have a 1m budget and not have a big home. Either way my point was you can buy property in z3 for 700k, it's a bit of a myth that everyone is expensive or it's a dump but if you don't know London you wouldn't necessarily know as you wouldn't have experience of these areas.

meevee · 27/04/2025 08:50

you won’t be able to buy a three bed house without a larger mortgage.

You will was my point

MidnightPatrol · 27/04/2025 08:52

meevee · 27/04/2025 08:48

It depends what you class as decent? It won't be very big but you could have a 1m budget and not have a big home. Either way my point was you can buy property in z3 for 700k, it's a bit of a myth that everyone is expensive or it's a dump but if you don't know London you wouldn't necessarily know as you wouldn't have experience of these areas.

I do live in London, and I stand by my point.

Putting that extra money into a pension vs your property makes zero sense given the cost of housing in London.

Possiblynotever · 27/04/2025 08:55

You can love in London with a third of that...no problem, although no luxury.

meevee · 27/04/2025 08:57

I do live in London, and I stand by my point.

You can't know it very well if you think you cannot buy a home for 700k in z3.

The op did say "our pension, which yes is extremely low given our age" so in those circumstances I would supercharge my pension pot & contributions but you don't have to agree.

DragonBalls · 27/04/2025 08:57

You must have misled Reddit, like a typo where you wrote £15k instead of £150k, otherwise this is clearly ridiculous. I’d also suggest you could treat yourself to Waitrose or even M&S on occasion. And maybe once in a while go out 3 times in the month rather than 2. Move to London and go wild!

meevee · 27/04/2025 08:57

Good luck with the move OP!

Ginmonkeyagain · 27/04/2025 09:04

If you discount housing costs London can be a fairly cost effective place to live.

No need to run a car (I am talking about needs not wants here).

Affordable and frequent public transport.

A lot of places are easily walkable.

Affordable places to eat out and plenty of ethnic food stores and markets means interesting foods and ingredients can be accessed easier and cheaper

Loads of free events and things to do.

A warmer and drier climate than a lot of areas of the UK means heating costs will be lower.

There are, of course, lots more opportunities to spend your money than in rural places but you don't have to.

We have about £6k a month to pay for everything and we have a very decent life in Zone 3 London and save very well in to ISAs and pensions (caveat we have a fairly small mortgage for London).