Retirement, how much?

[Bromptonaut]

With my rent at its current level I would need an absolute minimum of £10k a year. I only have about £0.5k a year from a private pension and the state pension would be just over £8k a year so I would need a small amount of housing benefit/council tax benefit/pension credit/universal credit/(whatever they call it by then) to top me up.

The Pension Credit Guarantee figure now is a whisker under £160 a week for a single person. As things stand you'd get pretty much 100% of your rent (subject to the LHA ceiling if renting privately) and 100% Council Tax Reduction. With some water companies', for example Anglian, you'd also qualify for a 'Social Tariff' giving a reduction of up to 80% on supply and/or waste. However Yorkshire Water's scheme seems to be limited to those in serious debt.

 

[Deleted member 1258]

State pension here, I have a small works pension, £60 a month, and I qualify for pension credit, gives me £32 a month plus my council tax paid and get help with the energy bills, dentist and glasses. I've no mortgage or debts and get by OK, but there's very little for treats or outings.

 

[Flying Dodo]

Yes, that's how I envisage structuring my retirement PaulSB. When it happens...

I went to a financial workshop a few weeks ago and the subject of gifting (including gifting houses) came up. That in itself is a very complex subject, that was only briefly touched on, but one of the things the presenter said was a gift is only a gift if the giver no longer has any call on the gift (those weren't the exact words, but I've had a sleep since and have forgotten the exact phrase). The example given, was that if someone gave their house to their kids but continued to live in it, then (in the government's eyes) it wouldn't count as a gift and could still be liable to inheritance tax. Of course, that's inheritance tax only, it might very well avoid the issue of being forced to sell the house to fund Monday night bingo, singalongs on a Thursday morning, and a chair in the corner that smells of wee...

If you give the property to your kids, but continue to live in it, then for it be outside of your estate for inheritance tax purposes*, then a) you have to live at least 7 years, and b), you have to pay a commercial rate of rent to your kids.


* and inheritance tax would only be an issue if your total assets are worth more than £325,000 if single, £650,000 on second death if married, plus there's a further £100,000 per person allowance from April 2017, rising next year.

 

[ColinJ]

The Pension Credit Guarantee figure now is a whisker under £160 a week for a single person. As things stand you'd get pretty much 100% of your rent (subject to the LHA ceiling if renting privately) and 100% Council Tax Reduction. With some water companies', for example Anglian, you'd also qualify for a 'Social Tariff' giving a reduction of up to 80% on supply and/or waste. However Yorkshire Water's scheme seems to be limited to those in serious debt.

Thanks - that would be pretty handy ...

I'm still hoping to earn enough from one of my many harebrained and hopelessly optimistic amazing money-making schemes to not need assistance, but it is nice to know that there is a 'Plan B'!

 

[NorthernDave]

By freak of co-incidence I got my pension statement in the post the other day.
The big number at the top of the page looked quite impressive, until I read down to the much smaller predicted* annual pension I could expect from it...

Mind you I've got 20 years to go (assuming our friends in Westminster don't push the retirement age back again, which they almost certainly will ), so I'll keep buying the lottery tickets.

* - predicted, guideline, possibly, maybe, could be, who knows, back of a fag packet finger in the air guesstimate type figure

 

[delb0y]

By freak of co-incidence I got my pension statement in the post the other day.
....assuming our friends in Westminster don't push the retirement age back again, which they almost certainly will

Yep. Mine has been moved back twice so far, and currently stands at 67. I suspect if you've twenty years to go then it'll move a few more times. I wouldn't be surprised if mine doesn't slip back another year before I get there.

 

[The Jogger]

I retired June 2016 at 58 got a fairly large VS payment and took a lump sum from my pension and a slightly reduced pension. It allowed me to be debt free and buy a place abroad but we need to be more careful today than when working. Not so many outings to restaurants and usually think more about any purchases we make. Now though we can head of to Spain for a couple of months at a time and treat it like we're living there and not in holiday mode, so quite often eating at home and buying local food. Here in the UK we make full use of our joint gym membership for £75 per month but that includes gym, pool, classes and more, cycling and walking takes up more time so not always looking where will we go and what will we do/spend/waste quite often. We do one big shop a week, it could be less than what it is but there are certain things I won't give up. Still my income was cut by about 60% however my time is mine and hopefully we are in fairly good health to enjoy it for a while. Also I have the option of doing something P/T if I want or had to.

 

[NorthernDave]

Yep. Mine has been moved back twice so far, and currently stands at 67. I suspect if you've twenty years to go then it'll move a few more times. I wouldn't be surprised if mine doesn't slip back another year before I get there.

Mine is also currently 67 - but I wouldn't be surprised if it gets pushed back that far that I'll never get there!

 

[gavroche]

We live comfortably on both state pensions and small private one. No mortgage and very little debts. I still work though as I get easily bored so extra income pays for luxuries , holidays , etc... Overall, happy with way things are with us.

 

[slowmotion]

I watched a TV documentary about pensions fifteen years ago. One of the people interviewed said he was absolutely not relying on anything at all from The State. "They might just say that there's nothing there". At the time, I thought he was a paranoid nutter, but today I'm not so sure.

 

[Beebo]

Would your spending decrease as you get older?
I expect a fit 68 year old spends far more than a house bound 85 year old.

 

[slowmotion]

[QUOTE 5049287, member: 9609"]I retired early with the intention of spending all me cash by 65 then existing on the state pension - if they pull that I'm sort of going to be snookered. I suppose I could always head down to the south of France and become one of those Gigglelows, I have heard told there are plenty of rich young women![/QUOTE]
It's a worry.........and not just for the rich young women in the south of France.......

 

[Drago]

My worry about becoming a gigolo is the sort of woman that fancies a young chicken like me.

 

[DCLane]

I'm starting to plan ahead and hope to retire around 60. By then I'll have put 32 years into a teacher's pension, along with a small private pension plus 'alternative' pension scheme. SWMBO will have an NHS pension as well although she's part-time.

The basic plan is to use that, plus working 2 or so days a week, until the state pension kicks in as well - if it ever does.

Hopefully that should put a decent pension from me and a bit from her into the coffers along with a couple of lump sums. Enough for a decent bike

 

[Deafie]

My worry about becoming a gigolo is the sort of woman that fancies a young chicken like me.

View attachment 384080

Reminds me of my mom's neighbour, I gave her a lift somewhere when I was last home before mom died, when I dropped her off she offered me the cheek so, I went to give her a friendly peck and she span round at the last moment and tongued me!!!!!!!! Still cringe when I think of it.