How much £ is enough?
#46
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Thread Starter
Joined: Jan 2016
Posts: 42
Re: How much £ is enough?
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.
#49
Re: How much £ is enough?
On the median income thing. Wow! OK, if it works for you. It seems complicated to me. For one thing, if you are working in Country A and retiring in Country B, then you are not only changing countries but lifestyles, with very different expenses. Also the assumption that standards of living on median incomes in both countries are comparable seems a very big assumption.
But if it works it works, I guess.
But if it works it works, I guess.
Painlessly. While paying rent on an apartment (until the solicitors say we can move to a very nice, mortgage free property)
Last edited by Novocastrian; Jan 11th 2016 at 9:17 pm.
#50
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Joined: Feb 2013
Location: Chicago
Posts: 470
Re: How much £ is enough?
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.
I see not2old just had the same thoughts as I was typing.
#51
Forum Regular
Thread Starter
Joined: Jan 2016
Posts: 42
Re: How much £ is enough?
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.
I see not2old just had the same thoughts as I was typing.
#52
Re: How much £ is enough?
12k is low for a couple. It's the level of pension credit - the means tested benefit for pensioners on low incomes. So, in the long term (after you've been resident for long enough to qualify) you are not going to get less, but you are not going to have much of a life on that sum either.
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 £?
.
Last edited by not2old; Jan 11th 2016 at 9:37 pm.
#53
Re: How much £ is enough?
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.
I see not2old just had the same thoughts as I was typing.
I can't imagine a sane person wanting to do that.
#54
Re: How much £ is enough?
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.
#55
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Joined: Feb 2013
Location: Chicago
Posts: 470
Re: How much £ is enough?
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.
#56
Re: How much £ is enough?
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.
#57
Re: How much £ is enough?
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 £?
.
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 £?
.
#58
BE Enthusiast
Joined: Feb 2013
Location: Chicago
Posts: 470
Re: How much £ is enough?
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.
#59
Just Joined
Joined: Feb 2014
Location: New York
Posts: 29
Re: How much £ is enough?
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.
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.
#60
Re: How much £ is enough?
..... 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.
Last edited by Pulaski; Jan 12th 2016 at 12:17 am.