So then, imagine the worst has happened and you are now on your own and hopefully, at the right age to be collecting your pension. You may have the full pension coming in or you may not. Other than the first year when extra government payments may kick in, after that, you are probably on your own. Could you cope?
We no longer have a mortgage to pay but if you are in rented accommodation, that might be an added problem, could you still afford it?
The chart below reflects our current monthly outgoings, living a reasonably frugal life but still able to treat ourselves occasionally. The reduction % refers to the amount that going down from two people to one person might reflect. See correction for the figures in my reply to Scarlet:
As I am a few years away from collecting mine, I hope there will still be a little left over each week though I doubt it would be as much as this!
You may spend less than this each month or considerably more. You may still have a mortgage or be paying rent. You may have credit card or other loans to pay. You might have more than one car, numerous phones, like to sit in your tee shirt and shorts whilst your heating works overtime to keep you doing so. You might love takeaways, drinking out with friends, going away for holidays, buying whatever whenever.
Could you still afford to do so? This post isn't just of interest for those approaching pension time. Anyone can be left on their own at any time for whatever reason. You may be unable to work, have young children/elderly relatives to care for, be living on benefits etc. Would those change, would you be better or worse off?
Either way, work things out to see if you can manage, it takes a great weight of your mind I can tell you.