Can you live on a state pension if you are mortgage/rent free.

[whatisforteamum]

I'm sorting out the bills and since lockdown we ve lived a frugal life.
Always counted food costs and lessened trips to the garden center.
Dh retires this year with a pot of savings myself in a few more years.
I've seen too many single older women who's husband's have left or died before they could retire or do much together.
With a bus pass too I think his pension will surfice.
Am I deluded to think you can live on a state pension.
We have plenty put aside for household up keep etc.

@whatisforteamum
State pension is £1,045 each.
You need to work out your outgoings based on having combined state pensions just shy of £2,100.
No mortgage?
Water
Gas/electricity
Council tax
Food
Insurance, house and other.
Car
If you only have your state pensions would you be able to claim pension credits, look into this.
Personally we could live on that figure

Are you asking if I could? The answer is no. You may be able to though. Do your calculations.

It’s about £250 a week. Each obviously. Depends on whether you can live on that.

My mum will be retiring next year with only state pension, no mortgage but is going to be very tight and I’m expecting to pay for anything fun

I think we can tbh.Mine is a few more years away but it looks doable.I keep hearing how hard pensioners have it.We ve always lived on a v tight budget to bring up the kids and pay the mortgage.
Dh has a small private pension to look into but nothing to get excited about.

What are your monthly outgoings? How much do you spend each month currently?

It is doable. It provides a basic standard of living which is possible if you have low outgoings and bills and don't spend on any frivolities.

I am. I phased down work so I was working three days a week when I retired (I actually saved as I am two years away from getting my state pension), and my pension is going to be more than I was earning.

I'm using this two years of living on (minimal) savings to learn to live on lower outgoings, so when my pension kicks in I'm going to feel like a millionaire!

I am single though, so can peg my spending without having to worry about anyone else, and can live on beans if necessary.

I know people who do, so it is possible.

But it depends on what sort of life you want. The person I know who lives most comfortably on the State pension only goes on holiday to visit UK-based friends and family, doesn’t run a car, doesn’t do any regular paid-for activities, doesn’t really drink - all their money is basically for food and bills. But that’s the life they like (and pretty much lived the same life while working).

Ive lived on benefits with 4 children that paid less than a state pension
It can be done

Our bills are about 12to 13 k a year all in.

My dad does. But his outgoings are very low. I couldn't as my outgoings are high.

House is paid for. He gets council tax reduction due to low income/savings.

He had solar panels on the roof. Electric bill is low. He doesn't have gas.

Owns his own small car. Cheap insurance.

I think TV/Internet is his biggest outgoings.

Food is cheap, it's just him and he batch cooks.

My dad does. It's enough to live month to month frugally but not enough for luxuries like his sky sports package or for unexpected expenses like when the car breaks down. He does rely on a little bit of work (self employed all his life) to supplement it. Only a few hours a week and thankfully he's still capable at 75.

A couple both receiving state pension would not qualify for Pension credit unless there were disabilities and/ or carers premiums added.

I don't think I could. I hardly spend anything going out etc, but just added my bills and food up and after that would have about £200 a month left. That's without buying fuel or anything.

Have you or your husband got any pensions from your work?
Company pension schemes?

Relying on an income of (currently) just under £13Kpa (if he dies before you) would be very tight indeed.

If you have savings you need to consider how much you'd dip into them over the years.

How much savings?
£50K
£100K
£200K
£1m?

You also need to think seriously if you can afford to retire when you plan to and miss out on more years of working and saving.

I'm semi retired and we worked out that to have a basic standard of living, slightly below what we have now, we'd need £25K pa.
That would include a basic UK holiday, maintaining 2 cars or replacing one in time etc.

Our pension income is far in excess of that as both me and DH have pensions from our employment.

We’re both receiving the state pension bit of we didn’t have modest private pensions and my income from part time work, we would find it hard to manage and may have to cut back or downsize.

Dh has a small private pension to look into but nothing to get excited about.

You sound head in the sand.

He/ you should know what this is.

Most people start planning for retirement in their early 50s not a year before they retire.

Also unlike what @DonewhatIcando says you can't get pension credit on a full state pension. PC is a top up for anyone falling short of contributions (which is a nonsense IMO because what is the point working and paying NI if the government will top people up anyway???)

I work in the area of benefits for older people and an awful lot do live on just the state pension. If single they usually get some council tax support which helps a bit. My dad lives on more than state pension but only pays around £12 a month for water.

A single person of any age gets 25% off council tax.

Exactly. The people claiming Pension credit end up better off then those who payed into the system for 35 years and get full state pension. All council tax and rent paid, free dental care and opticians.

So you couldn't live on one state pension, as that's all your income going on bills.

You can work this out surely?

Yes but if just on a state pension they may get council tax support too which is in addition to the single occupancy discount.

I don't see how that works.
My Mum has the full state pension and a tiny amount of occupational pension from my late father.

What is 'council tax support' for someone on the full state pension?

State pension is £1,045 each.
Most people work on an annual figure, not monthly which is what you're posting I guess?

The OP is asking if she could live on ONE state pension if her DH dies first. @DonewhatIcando

Not £25K ( 2 pensions.)

Bringing up 4 children on less than £13K pa is hard.
OP is asking not about 2 pensions combined but her own pension in the future.