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.

Well then the state pension will only just about cover your bills or will fall short of covering your bills ( if they are 13k)

I could, but it would be a very frugal existence. Dh and I have paid into very good occupational pensions and we also have other investments. I’ve always seen the state pension as a top up - definitely not the only income I’d rely on

Definitely more than 16 k.
Scrimped for years and worked A lot of overtime.
Car is not on finance.Maintenance adds up though.
I think on a bus pass it looks ok.

Blueblacktan sorry I meant to say half each on this.

I don't understand
Are you saying you'd get around using a bus pass instead of the car?

What about if you're too infirm to walk to and wait for a bus?

And not everyone has buses where they live.

If you're spending a lot maintaining a car, maybe consider buying one that doesn't need that much? Smaller model? Newer so less to go wrong?

Even some top of the range cars 'only' cost £500 pa for a major service, and don't need new tyres that often.

All over 60s get free eye tests too.

Yes, but it is buying the glasses that is expensive.
That, and having any work done on your teeth.

Well, due to chronic illness, I live on less than £1000 a month after my contribution to the mortgage and I have 2 dc and a horse! £1045 per person after housing costs would be very doable if I wasn’t also paying for school uniform and gymnastics and food for several extra people who eat a lot of fresh fruit.

What about if you're too infirm to walk to and wait for a bus?

Driving probably isn’t a great idea in that case either!

Not everyone needs to run a car - it is perfectly possible to live without one, unless you choose to live very rurally like half of MN claims to

I think the difference perhaps is that people who retire hope to 'live a little' before it's too late, rather than just survive.

Also, it's very hard to compare anyone's outgoings as there are so many variables across the UK - council tax, water rates, home insurance, utility bills, transport costs, food, etc.

There is a big difference though between being unable to drive and unable to walk 15 or 20 mins to a bus stop in bad weather.

Many older people are driving legally even in their mid-late 80s or older (some should not be, for sure) but have limited mobility.

I don't think I could overall. While there were two of us, yes. On my own month to month yes, until occasional bills like a new boiler, house repairs or travel to hospital or paying for any help were factored in, then no.

Well, I'm in my 70s and survive pretty well on Government hand-outs. Thank you.

It's not government money- it's tax payers! Presumably you worked and paid NI and it's your state pension you're talking about?

Presume nothing !

In my mind, state pension covers the pure basics only. Anything beyond that (travel, hobbies, unexpected costs, entertainment, car, treats) needs to be self funded.

My MIL does. She lives in sheltered accommodation and I believe receives some housing benefit towards her rent. She has a small amount of savings. She lives very simply, she and FIL always did - they're not of a generation or background that wants all the latest gadgets, expensive clothes or costly hobbies.

You can in a small property, cheap to heat and reasonably low council tax whereas bigger ones cost too much to run. We have spent about £20k since dh retired in June as a guide

The state pension was never meant to give a luxurious lifestyle compared to having an occupational pension. Initially it was there to pay for 5 years or so of life after age 65. Now people are living to their mid 80s. The triple lock will change and it will become even more necessary to have private pensions or savings.

I think they key to the OP's question is not can they live on TWO state pensions and savings, but how she could live on her pension as a widow if that happens.

I have the feeling there is no long term, serious planning going on around their money.

@whatisforteamum It's not difficult to do some working out on this. Add up all your spend in a year, (fixed costs like housing, insurance, etc), food, clothes, holidays, cars etc.

look at your total net income now,
look at what your net income will be when you're both retired and see if you will need to cut back.

How old is your MIL out of interest?

She's getting a lot of support from the state, in terms of housing and benefits. That's different to older people living in their own homes paying council tax of £3K pa in some areas and all the other overheads a home requires.

I am planning to sell my home and give the children the money. I can’t remember if I’ve said it on this thread.
But I will be living in shelter accommodation as soon as my son is financially on his feet
I think it’s the biggest mistake that pension has made rattling around in the old family home. They should be visiting the children in theirs

She's 86. They lived in council housing all their lives - both worked, that was in the days when council housing hadn't become synonymous with benefits - but FIL's occupational pension died with him, and she never had one. They very sensibly gave up their council house about 15 years ago for the tiny but pleasant enough sheltered flat exactly to avoid the type of scenario you describe.

Never worked, One thinks it's called the Sovereign Grant.
One doesn't have to pay income tax, capital gains tax, or inheritance tax.
I live like a King - oh wait a minute...

Oh, it’s a funny person
You have to give us a little nudge to let us know if you’re making a joke so that we can all pretend to laugh

Not everyone is eligible for sheltered housing, surely? I assume it's only eligible (the type you mean) for council house tenants anyway. There is sheltered / assisted housing available but the flats are privately owned (McCarthy Stone is a big provider.)

My mother lives on the state pension only. She seems to have a reasonable life and goes away occasionally too.

We do pay some bills of hers occasionally - anything unexpected, plus broadband and phone.

See what you might get from your husband's pension if he dies - you may get some benefits and it's worth knowing what these might be.