Is £30k enough to live off

[Desdemonadryeyes]

I realise it’s a ‘how long is a piece of string’ question but I’d appreciate views. My DH died a few months ago and I think I’m now receiving the amounts which will be my monthly income (got his full works pension for a few months) and surprised to receive an extra £2k on my state pension.

Think I’m being over taxed but that will all be sorted out eventually.

My income is £30,600 per annum after tax. No mortgage. Last year I also won £1950 on PBs which is tax free plus I have other annual bonds that should bring in about £3,200 in interest some of which will be taxable. I’m taking out every year to top up my cash ISA.

I have increased expenditure due to requiring a dog walker following an injury but hope to get that sorted eventually.

I like good food, and mid price wine - drink about 3/4 bottles a week. I run a car. Have lunch out with friends probably once a week. Netflix and cheap Sky package. My yearly outgoings on bills etc is £12,400. Need to add in car and house insurance which are due soon but don’t what they will be yet. Dog walker £3,750 per year 🫣

Never really needed to budget before. DHs pensions covered day to day living expenses quite comfortably and I used my inheritance from my dad for life’s luxuries. And I didn’t need a dog walker. Now I’m alone I feel a bit daunted. My injury means I can no longer fly economy.

I could live for a couple of years on the contents of my store cupboards and freezers. When my DD comes home I pay her train fare and uber journeys. And she then shops for her expensive recovery eating plan.

I’ve lost a significant amount of weight recently so need to update my wardrobe. I do enjoy buying stuff. I really don’t need ‘stuff’ but we only pass this way once.

i intend to downsize when I’ve recovered from my injury, and after paying DHs care home fees hope to have about £250,000 left over to put somewhere to earn some interest.

So I will have about £15,500 per year for food, going out, holidays, clothes, gifts etc. I have got savings I van dip into if necessary but for some reason I don’t like doing that. Think I’ve developed the mindset that I should be saving it for my DD to inherit. But my dad had that attitude and it used to annoy me that he wouldn’t spend money on what he needed to make his life more comfortable.

So is that a reasonable amount to live comfortably?

Thanks for reading.

I bring home 2/3 of that, live alone with my dogs and still save every month. I would save a heck of a lot more on your income. So yes, in my world, it’s a total doddle to live on £30k after tax.

My condolences OP - on the finances, it depends on how much travel you want to do, especially as you will be going business class. This is the big number. Everything else - clothes, food, makeup etc - pales by comparison.

2.5k no mortgage, savings, potential is fine. Make sure you have cash for one offs.

Bloody hell. Talk about tone deaf

£30000 after tax would be a salary of £38000 which id consider a very good salary especially if youre mortgage free. But it sounds like youve a tight handle on your financial planning so only you know if its enough or if you need cut back somewhere

Scoring points off a recent widow? Yes, that is tone deaf.

Are you for fucking real??? She told you her husband just died and you’re telling her to ‘have a bit more sensitivity’ 🤦‍♀️

I’m 66. In the north west. The £250k is in my head until I can downsize. My life changing injury has totally taken away any real enjoyment in life. I’m currently in hospital, awaiting an enema. My dog is at the home boarders costing me £30 per day (but saving on walks).

@mindutopia That’s what terrifies me - having a massive unanticipated expense on the house.

We never really had to budget. DH ran his own business from home. We lived comfortably off that. My inheritance from my lovely Dad paid for the extras like holidays etc. Used to make good return on it until Covid hit.

At least I’m not spending money on much whilst I’m in here. And I’m not drinking any wine which should please some of you.

I haven’t intended to brag and certainly don’t see myself as wealthy.

Whoever said the extra £2k on my pension isn’t permanent, it definitely is.

It sounds like you need to have a serious & honest conversation with yourself regarding your finances. With no mortgage etc 30k is more than enough for a single person to live on. It’s the choices that you make that possibly not make it a reasonable amount. Start with sitting down & looking at bank statement or using a budget app to give you a clear view of how much of your income is going on bills vs leisure. Then compare your national average. It may be an eye opener & a starting point for you

3-4 bottles of wine a week is concerning & definitely not good for your physical or mental health. Please have a look at speaking to someone bout this separately cos that sounds like verging on a functional alcoholic.

Don't be ridiculous. Your post is absurd

When do you drink the wine? Are you driving regularly?

My first thought was 4 bottles of wine a week!! That’s a hell of a lot of wine. You might feel okay now but consuming that amount of alcohol a week will catch up with you eventually, health wise. I would cut down now and drink more water

You’re on the Money Matters board. It’s where people post about money matters. If you want to act like a shithead because someone is richer than you, maybe stick to AIBU.

I would think you have enough to live on from what you have said. I would also recommend you see a financial adviser. You have 250k and assume will have more when you downsize and it sounds like you have never really had to think about money, tax etc so an adviser will be useful, especially if you want to consider inheritance. If you do look for advisers I would suggest avoiding anyone who is a representative of St James Place. They are known as the money grabbing cowboys of the industry.
Re the extra 2k pension, my Stepmum got some extra when my Dad died. I think it was linked to state pension benefit accrual from the 1970s so ignore the deniers!

It is possible to inherit some benefit your partner accrued in the state second pension (SERPs).

I am divorced and retired on about 50k pension all index linked with no mortgage or debts. Just have about 130k in savings all in nsandi and isas to reduce tax. I feel quite well off. I think you are doing well op. I wouldn’t worry at all about the 1/2 bottle of good quality wine per night. Enjoy it!!!

Working out yearly income is pretty pointless. You need to do a monthly income and expenditure and see what you have left for luxuries such as meals out etc and see if that meets your needs, don’t forget to include food and petrol. That’s what I do and then transfer the remainder after mortgage and bills into my “spends account” for clothes, meals out, socialising etc.

everyone commenting on her alcohol use- that was not her question!

My in laws have had a very comfortable retirement, but it was front loaded, did lots in their 60s and 70s, now while still fit and well in their 80s their outgoings are much less. Enjoy it early.

Interesting to see the replies as I’m planning retirement to have about £30k (pre tax) PA with mortgage paid off. Will be about £35k once state pension is due. That is about 2/3 of what I live on now.
The experts say to aim for about 2/3 of pre retirement income whatever that is as that’s what you’re used to.
It’s a lot more than the average person has but still not luxury living when you account for home repairs and maintaining a car. It’s annoying how much more expensive it is proportionally to live as a single person (but still better than living with a man like my ex!)

Well yes, everyone with alcoholic liver disease starts off healthy. They don’t stay healthy though which is the point many are making.

@TapestryNeedle

Folk must think I’m stupid. Of course I don’t drink and drive. In fact I can’t drive as I’ve got an injury that prevents me from driving.

I have one small glass of wine at 5pm. Another small one with my tea and a third small one when sit down in my chair for the evening. Probably not half a bottle so I was rounding up for ease. Didn’t realise it would cause such conniptions.

Christ some of these replies! The OP didn’t ask for judgement on her wine consumption … yet so many pile in as though she’s a raging alkie.

She’s recently lost her DH ffs.

And for those who want to know my savings situation L have £50k in Premium Bonds, £85K in NS&I bonds, and ££32k in a cash ISA with Chip, which I will use top up my ISA when renewal due in September.

My house is worth about £800k. Intend to sell it eventually, buy somewhere for less money, pay off Care Home debt that I don’t have confirmation of yet, give my DD a lump sump, might need to spend some turning a house into a home then invest the rest and use the returns on holidays.

Seems like you have it all in hand. What do you anticipate your total accessible monthly income being?

@Desdemonadryeyes you've got a lot on your plate and I think a lot of posters are giving you an unnecessarily hard time (talking of tone deaf...) about money.

I stand by my previous comment - it's enough to live on but not lavishly. Given you are used to living more comfortably, you will need to prioritise. You really do need to work out your expenses. Use the MSE budget link I put in my previous post.

I think you also need to distinguish between capital/savings and income, ie, dont spend all your money propping up your lifestyle. Be judicious, keep some back.