Day 10 – What Will The State Pension Buy You?

What Will The State Pension Buy You?

Let’s be brutal here. The basic State Pension is currently £168 a week (December 2019). Let’s be generous and round that up to £170. The State Pension is designed to help those people out who would not have enough income to survive on if they didn’t get the pension. It’s a lot of money if you don’t have it, but in the overall scheme of things, it won’t buy a lot. As a monthly figure it equates to £737 (again, rounded up). If you work a part time job at 20 hours per week the hourly rate is just £8.50 per hour. That is just over the minimum wage of £8.21 per hour. It’s not a lot of money whichever way you look at it.

Even the word “basic” tells us that you are not meant to be able to do a lot with it. The average shopping basket for 1 person is about £60 per week. That leaves you with £110. Let’s assume you have no other income. Your mortgage is paid off (hopefully) or you get housing benefit that covers your rent. If you have to pay council tax, for a Band A property (let’s assume that is £150 per month). As a single person you get a discount of 25%. That means you pay £26 per week. That leaves you with £84 per week.

If you don’t get your state pension, then you don’t get your free bus pass which means you need to rely on your car to get out and about. Let’s say car tax, insurance and fuel come to £20 per week. Your £84 is now £64. Gas and electric, even being conservative here is £25 per week, now we have £39 left. What shall we include for water rates? Do we have a telly – then there is a TV licence to pay and maybe a TV package, maybe a telephone line to pay, mobile phone to pay. And this is just a basic existence. There has been no mention of holidays, take aways, meals out or going for a drink with friends. This IS just existing.

I don’t know about you but, after working all my life, I want to be able to afford  my retirement and to be able to enjoy my retirement. I don’t want to survive on £170 per week. I want AT LEAST £500 per week, and I think this is easy to achieve. Tomorrow, I will start posting some ideas of how you can do this. Meanwhile, if you want to know one way of building an income stream online, click the picture above and watch the videos – this is eye opening stuff.

If you stop by – please leave a comment and say hi.

2 thoughts on “Day 10 – What Will The State Pension Buy You?”

  1. The numbers don’t lie Anne, there has never been a better time to have more than one income, wether that is a pension related income or not. A good read, thank you x

    1. Thank you for your comment Helen. Yes you are right, the numbers don’t lie. And the more income you have from other sources, the less dependent you are on pension income. This means it doesn’t matter what the Government do (or don’t do) our financial health is in our own hands.

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