Hello Dear Reader,
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?