Can i live comfortably on this amount?

[Hopthegoodgod]

I am due to retire at end of year. Private pension is going to be £25k per annum and will get full state pension on top of this. I live in rural south east in older property with no mortgage. No loans atm . My brother thinks I will struggle financially as my children are overseas so will need a higher income to regularly visit / host their families. He suggests I have two options : carry on working part- time ( don't want to as I 'm a full time teacher and exhausted). .Alternatively, sell up and downsize.
Am I being naive to think I can live off this amount comfortably ?

What are your current monthly outgoings?

Will you inherit in the future?

What do you live on now and how much do you save if it’s more?

Whilst it's a bit - depends.. On the face of it that gives you a moderate retirement Standards here

Well a 1,600 sq ft 4 bed semi costs a different amount to run (ie heat and insure) and maintain than a detached 4,000 sq ft house on 2 acres....

What are your current outgoings?

So about £32k in total after tax? £2666/month. With no mortgage or dependents that seems pretty good. Do you have a monthly budget now? Presumably you would not spend that every month and put done aside for visiting family abroad or hosting. Do you have any savings? Is your house in good shape?

Without your outgoings it’s not possible to say. You also don’t say if downsizing would release capital tied up in the house if you needed to get your hands on extra funds. If you’re a secondary teacher could you mark exam papers or moderate to bring in a bit extra or offer tutoring?

With your state pension of £12k+ on top of your teacher pension that is a very good total pension. You should be fine,

Record your outgoings on a spreadsheet for 3-4 months minus the payments you won’t have when you retire ( union fees, etc) then you will know.

What is your income now and how much do you save a month/year? That tells you how much of your net income you are currently spending - subtract any work related costs like commuting / lunch / work expenses then you can work what the equivalent gross pay would be or pension required.

House in good condition . Currently earn 3k after tax and pension taken. Outgoing are :
500 per month council tax
Oil fuel 2. 5 k per annum
Electric 100 per month
Petrol 140 per month
Sorry - should have clarified this.

House in good condition . Currently earn 3k after tax and pension taken. Outgoing are :
500 per month council tax
Oil fuel 2. 5 k per annum
Electric 100 per month
Petrol 140 per month
Sorry - should have clarified this.

Will you get a huge lump sum as well?

House in good condition . Currently earn 3k after tax and pension taken. Outgoing are :
500 per month council tax
Oil fuel 2. 5 k per annum
Electric 100 per month
Petrol 140 per month
Try to save about 1000 a month
Sorry - should have clarified this.

Honestly I think that will be fine....

You’ll clear about 2.5k.... outgoings are about 1.5k so you'll have 1k spare and presumably you have some savings for emergencies or to dip into....

Is that a mistype? Your council tax is £500 a month, that does not sound plausible unless you’re in a mansion. If you live alone you’d also be getting the 25% discount. If you can save about £1k a month and your pension is index linked you will be totally fine.

500 per month council tax
Oil fuel 2. 5 k per annum
Electric 100 per month
Petrol 140 per month

Clearly those are not your only outgoings. Car tax & insurance, water, internet, house & contents insurance, etc etc. You probably want to eat, maybe get a haircut.

You need to do a proper budget. Try the MSE budget spreadsheet
https://www.moneysavingexpert.com/banking/budget-planning/

It doesn't matter how much is coming in, it's the amount going out that counts. TBH from what you've stated so far you should be fine, although you need to do a detailed budget. £500 council tax sounds high. You can get a discount if you are single. Equally you may find you will be using less petrol once you've stopped working, spending less on clothes and more in coffee shops. Do you have savings? Are you taking a lump sum? All these factors come into play. Bear in mind that people tend to spend more in the early years of retirement when they are fitter. One thing money can't buy is time.

Get a budget calculator online. But if you are doing ok now with £3000/month then you’ll be getting about 10% less than that when you retire.
Agree £500/month council tax is mind boggling! I live in a £1.25m house (London three bed terrace) and mine is about £225/month.

Are you living with someone who will share bills with you or on your own?

Alas not a mansion and not a mistype band H . Our Council is one of most expensive in uk. Still got millions of potholes mind you.

My sister lives on £1100 net a month. Easily and happily. She runs a car but doesn't travel that much. She lives near Worcester.

I dont suppose someone living in the SE who needs to travel to see family, could manage on this amount, though

Make a spreadsheet of your current outgoings. Account for everything - use your bank statement(s). I've done this for years so I have a clear picture of where my money goes. Then work out how much money you'll have after tax. To me, it sounds like you should have enough as a single person but hard to be sure with scant details. The beauty of a spreadsheet is you can see where you may be able to make savings.

Need to consider all out going’s
Oil
Electric

Mobile phones
Broadband
Home & contents insurance
Council tax if rural septic tank emptying
Fuel for car
Servicing tyres tax & insurance

Upgrading car dependant on age of vehicle
Boiler service
Council tax
Any pets ? Vet fees feeding and insurance
tv licence/ subscriptions
Dentist if not nhs
Food shop
Household upkeep - new kettle / washing machine etc then bigger stuff like decorating roof repairs
Do you garden ? Compost etc
Lunches /coffees days out
Hair cut
Clothing even if frugal you’ll need new pants /shoes now and again
Birthday gifts / Xmas
Holidays big or small
Budget needs to be comprehensive & realistic then a bit of spare for unexpected .
Need to be honest about what you spend & where you can compromise .
Then consider income generation
Retiring & part time job
Downsizing house
Staying put and Air B &B. a room
Future changes inheritance - dangerous to rely on though
State pension
Selling excess stuff furniture jewellery & clothes that just clutter up
life
Lots to consider
My sister is so frugal lives on £1500 a month & lives well
I couldn’t possibly …. We’re all different .
Realistic and then consider options .

Thanks for this - extremely helpful .