Thursday, 26 January 2012
Can you live off a state pension?
Scroffles wondered how much I would budget for running a house and if someone could live on a state pension. I've used my current household running costs, but adapted them as if I were retired now. I'm hoping to downsize, have a smaller or no mortgage and then save at the rate that I'm paying the mortgage for my retirement. If I had the sense that I have now, I would have saved for my retirement from the day I started work.
So, for Scroffles - here's some idea of what I would need if I were retired. I haven't factored any money as disposable, haven't factored any holidays or hobbies as I assume I'll carry on amusing myself and having the little day out here and there.
Food and sundry supermarket costs- £2600 = £50 a week
Gas and Electric - £1344
Water - £480
Home Insurance - £150
Car Insurance - £250
Boiler Ins - £65
Council Tax - £1800!!! We wouldn't be able to get council tax benefit as we'd have savings!
TV Licence - £200? I think!
Car maintenance, new tyres, servicing, mot check, parts - £500 (a small budget - into the savings pot)
Diesel for car - a tank full a month? £780
Clothes and shoes £250 (for two)
Household maintenance (£500 - also into the saving pot)
Home phone - £300
Pay as you go - £50 - for two.
Glasses every two years - we replace ours on alternate years £100 per year
£9549 per year - with a pension of around £10,000 for two people!
Paying what we pay now, if we were retired now? Er! No! I am hoping to have a bit more than a frugal life when I'm retired! I'm sure now you've looked at this with me, you can see why I save everything I can for the future. We can have the money now or later, we can't have both. Even if you can only save a few pounds a month, it's important to put money away for the future.
Over to you. Are you careful? Do you save?