Albert_dock

I believe I'm looking at 3216 from 55 then on reaching 62 about 4800, all in pre-tax US dollars. Not including the wife.

Pulaski

I hope those are /mth figures.

Albert_dock

Yes!

Novocastrian

Agreed. That seems totally stupid to me. I was earning about four, no, five times the median income in Canada, and now on my work pension alone, I'm living on the median income in the UK.

Painlessly. While paying rent on an apartment (until the solicitors say we can move to a very nice, mortgage free property)

Richard8655

In this discussion, I'm wondering if everyone is factoring in outright home ownership, taking out a mortgage, or renting. Also location... central London vs north England for example. Huge impact on budget beyond everyday cost of living expenses.

I see not2old just had the same thoughts as I was typing.

Albert_dock

It was in the initial question to be mortgage free.

not2old

on the low end & on the basis a couple either have a house fully paid for, or are renting - as Editha mentioned, on 'pension credit', is today £230.85/wk, £1000.35/mth, or £12004/yr .

So with that, the couple on 'guaranteed pension credit' pays zero council (property) tax & if renting (live rent free) the rent could be paid for by the local council.

Separate for those that have the need or qualify, is the Attendance Allowance £82.30/wk, £356.62/mth or £4276.90/yr

Then the winter fuel payment, free prescriptions, bus pass etc

Is it doable that folks could live on the minimum, without having all that extra private or personal pension income?

Why living in the UK is it necessary to save for your 'old age'?

For the fortunate few that have homes they live in mortgage free, as they get older they could 'equity release' (reverse mortgage).

On the above for a senior aged retired couple

Council/property tax £0

Rent or accommodation costs £0

Utilities £140/mth - £200/mth

Phones & internet £50/mth

Freeview TV £0/mth

Groceries £200/mth (minimum), closer to £300 without bargain BOGOF

Entertainment £200/mth

Vehicle costs (none) £0

Travel budget £?

Repairs & maintenance costs £?

.

Novocastrian

Of course if you want to live in central London, that's your problem.

I can't imagine a sane person wanting to do that.

Pulaski

That reminds me, when I worked in London I was fairly well paid but when I did my grocery shopping it was often on the way home after working late, or after a drink or three with colleagues. By the time I rolled into Sainsbury's they had often marked down bread, vegetables, and meat, including steak, so my basket was often heavy on discounted items. Even back then it struck me as odd that I was well paid but getting the discounts, whereas the pensioners, families with children, and others on low income were paying full prices earlier in the day.

Richard8655

Yes, that's right, mortgage free was the assumption. So location is the real consideration.

Central London might be very nice if you can afford it, so to me it's not an issue of sanity or a problem but lifestyle preference.

Pulaski

You have to be pretty wealthy if you have a surplus £1million+ to sink into a home just so you can live mortgage-free in "central London". There are probably still a few areas that might be considsred to be "central London" where you could find something for less than £1million, but those are likely to be areas where a pensioner isn't going to feel particularly safe.

Editha

There is no point in anyone who is eligible for pension credit doing equity release, because pension credit is a means tested benefit.

Richard8655

Central London was just an example about importance of location. Yes, central London would be expensive for practically everyone. But some retirees may have saved enough for something like that. Especially when considering sale of a current home that's appreciated significantly.

OdysseusLite

Albert, if you are planning to buy those Class 2 NICs, be aware that you must have worked enough time to earn a National Insurance stamp in the year prior to your departure from the country. I was initially denied the right to pay Class 2s because I worked only a couple of months in the tax-year that I left. They rescinded when I showed that I actually left the country earlier and those two months of work were during a temporary trip home for visa purposes. So your specified departure date might be important.

The government says you need a little over 18,000 pounds per year (including any benefits) for a basic standard of living for a retired couple. I assume you would need a lot more in London and less up north. The breakdown is here:

Latest MIS results | CRSP | Loughborough University

I have a question for everyone: When you say “mortgage free”, does that mean you own your home outright or that you are renting? I assume the former but undefined terms are confusing and there is a huge difference between owning a paid-for home and having to pay rent.

Pulaski

And you have to start working in the country you move to, on a similar sort of basis i.e. fairly soon after you arrive. To me "mortgage free" implies you own a home, on which you don't have a mortgage, which is the only way to have a "zero cost" (other than taxes, maintenance, and repairs) home. Everything I have read on BE, and elsewhere, is consistent with that interpretation.