Can I afford to retire to Tenerife on a basic UK state pension of £131 flat paid for?

[treboreel]

Hi,
Can I manage to live reasonably on a UK state pension of £131 per week
in the South Tenerife area, I am just starting to do my homework with a view to move to Tenerife in the near future. I will have enough money to purchase a studio or 1/2 bed apartment, so no rent will need to be found?

[garlicbread]

How anyone could live on less than £7000 a year in the UK is beyond me but I guess it would be easier in Tenerife.

[treboreel]

How anyone could live on less than £7000 a year in the UK is beyond me but I guess it would be easier in Tenerife.

Garlicbread, thank you for your welcome response, well, you are possible correct in saying that, but at the time I was claiming housing benefit for a room in Northampton so I could manage OK, so you think it would be possible to live even with all the costs related to having a flat, plus eating costs?

[TenerifeTeddy]

Hi Treboreel and welcome to the forum

That's about €645 per month. You would have to factor in - rough figures - Electricity bills €50-80 per month; Community Fees €60 ish per month; Phone & internet €50 per month; Basura €40-50 twice per year; IBI €200 per year; transport costs - would depend on mode of transport. all before you think about buying food or entertainment or other incidentals. As a pensioner you would get medical cover, but would still have to pay part of any prescription costs.

IMO I think it would be very tough, you don't have any leeway there if there were any unexpected problems or bills, unless you have some savings tucked away.

[treboreel]

Hi Treboreel and welcome to the forum

That's about €645 per month. You would have to factor in - rough figures - Electricity bills €50-80 per month; Community Fees €60 ish per month; Phone & internet €50 per month; Basura €40-50 twice per year; IBI €200 per year; transport costs - would depend on mode of transport. all before you think about buying food or entertainment or other incidentals. As a pensioner you would get medical cover, but would still have to pay part of any prescription costs.

IMO I think it would be very tough, you don't have any leeway there if there were any unexpected problems or bills, unless you have some savings tucked away.

Hi Tenerife Teddy, Thank you for your greeting also the information you have given me, yes I agree with what you have said, it would be rather difficult, I will have some cash but it will depend on the price of the property I purchase to how much I would have left for savings.
You have given me some food for thought which is what the Forum is all about I suppose, thanks again.

[candy2411]

I would think your pension would give you a better life in Tenerife than the UK particularly if you can't stand the UK winter.

You'll have minimal heating costs in Tenerife and if you can manage without a car the bus service is very good and comparatively cheap.

My advice would be to long term rent before you buy and give it a try before you part with a lot of your cash in property purchase.If you're on your own maybe you could find someone to share the rent.

If it doesn't work for you there's then nothing to stop you returning to UK and picking up your housing benefit again.

Good luck whatever you decide.:)

[CIM]

It will definitely go further here than over there...!
The lack of heating costs is a big plus, if you can do without a car even better.
Buy something on a residential complex with no pool and few or no elevators and the community fees will also be very low. But if there are no elevators you probably dont want to go higher than the first floor!
Nice coastal towns where you might get something really cheap that matches this are Los Abrigos, Costa Del Silencio and Las Galletas. There are also cheap studios up in Playa Paraiso 40 - 50k but the do have communal pools etc.
I think it can be done. A friend of mine lives off state pension and a small private pension in Las Galletas and he rents. He has slowly used his saving over the last couple of years until he got his state pension and he gets by and manages fine. If you want to have a chat with him while your over (he´s a friendly chap) let me know and spend a night quizzing him about how he gets on.
Renting here first is a good option to get an idea on costs but you dont want to burn through too much money renting if you are thinking of buying

[chifleta]

I'd definately rent for a few months first to get an idea of the different areas that you may or may not like... also it gives you plenty of time to really do your homework and pick up a great bargain on the property front, especially if you don't need a mortgage, don't rush into things... in some areas you can get a 2 bed apartment in a non-touristic village for under €30k (bank repossessions). If you're on a complex you pay from 50€ upwards community fees, per month, for the use of a pool. Why bother when you're on an island next to the sea, and not many complex pools are heated - and unless your daily exercise is a 100 lap swim, the novelty soon wears off LOL.

If you live frugally, keep your eating-out enjoyment to once or twice a week (have a look on here for reviews of various restaurants, it's a great help to find the places that are "bueno, bonito, barrato"), and don't do the typical out drinking every day/night (it can get out of control quickly, believe me).

:welcome::goodluck:

[junglejim]

You could do a trial holiday , rent an apartment for a month and see how you get on self-catering , recce out the area for purchasing at same time and that should give you all the info you need - especially if you do it in winter when you will see the biggest benefit !

[kathml]

buying an apartment in a block against on a complex would drop communidad to around 30 euros a month electricity in a studio or small apartment around 40 euros
It could be done esp if u dont eat out a lot you should have a comfortable life
The main problem I can see is illness esp if ur on ur own

[treboreel]

I would think your pension would give you a better life in Tenerife than the UK particularly if you can't stand the UK winter.

You'll have minimal heating costs in Tenerife and if you can manage without a car the bus service is very good and comparatively cheap.

My advice would be to long term rent before you buy and give it a try before you part with a lot of your cash in property purchase.If you're on your own maybe you could find someone to share the rent.

If it doesn't work for you there's then nothing to stop you returning to UK and picking up your housing benefit again.

Good luck whatever you decide.:)

Hi Candy,

Thank you for your comments, they are all greatly appreciated as where would I find out all this information if it wasn't for the Forum and the good people on it.

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You could do a trial holiday , rent an apartment for a month and see how you get on self-catering , recce out the area for purchasing at same time and that should give you all the info you need - especially if you do it in winter when you will see the biggest benefit !

Hi Junglejim,

That is a good idea, I hadn't thought of that, I really wasn't aware that you could rent for just one month, as when I was there previously I stayed at a hotel.
I will look into that, so thank you for that idea.

[junglejim]

Post a request on here and see what offers you get -plenty of owners will contact you !
You probably won´t get along term rate but should get a reasonable rate for a month´s booking.

[melm]

Hi,
Can I manage to live reasonably on a UK state pension of £131 per week
in the South Tenerife area, I am just starting to do my homework with a view to move to Tenerife in the near future. I will have enough money to purchase a studio or 1/2 bed apartment, so no rent will need to be found?

Dont mean to be cheeky but how did you manage to qualify for housing benefit when you have savings?

[marbro8]

Dont mean to be cheeky but how did you manage to qualify for housing benefit when you have savings?he is from eastern europe:crylaughing: no offence meant by the way:o

[Skeggy]

Stay where you are and don't be so daft, £131 a week to move to a country about to endure worst austerity than we are in the UK.

[kingbaker]

You need to find an oul' burd wiv lotsa money.........and see if she has a good lookin' sister (wiv money also) for me
and I'll be over with you like a shot:D:cheeky::laugh::crylaughing:;)

[candy2411]

not sure I agree with you Skeggy......it seems to me that any austerity measures will be aimed at the higher rate taxpayer and persons claiming benefits (not state pension).

[Skeggy]

Perhaps you are right Candy, but I think that it is a rather silly idea with no other income than the state pension, as a 72 yr old I know how the days weeks and years go much faster and bits of you don't work like they used to which may mean more visits the Doctor, who in Tenerife don't provide intrepreters, unforfunately as you age you will find difficulty in adapting to change. I do sound like the miserable old sod that I am. But in my opinion better the devils you know than taking on new ones with very little money.........

[junglejim]

Don´t agree with you Skeggy on health basis , if I stayed in Scotland during wet and winter months I would struggle with chest infections. Out here I have virtually no issues , eat better for less and get out and about a lot more .
I am in the fortunate position of having no financial issues but the difference in quality of life due to weather alone is significant for me .
You can always learn Spanish as a hobby !

[boredinscotland]

Rent long term and keep your savings in the bank, interest from this will provide income that will pay part of your rent and you can live off your savings

[junglejim]

Rent long term and keep your savings in the bank, interest from this will provide income that will pay part of your rent and you can live off your savings

Have you seen the interest from a bank account ? Doubt if you could get enough to live on !

[Medanoman]

I don't mean to be rude ,But do you want to be cremated here or back home? Have you got relatives that will be presented with a nasty bill for your funeral? Will you budget for funeral insurance?

[boredinscotland]

[QUOTE=boredinscotland;229485]Rent long term and keep your savings in the bank, interest from this will provide income that will pay part of your rent and you can live off your savings[/QUOTE
Have you seen the interest from a bank account ? Doubt if you could get enough to live on !

Yip, seen the interest rates, 3% gross, when you buy your moneys away, nothing left to live on but long term rent, you still have your money with interest, just eats into it a bit each year

[TheBloke]

What is interest?

The person with the best answer or an excuse for an answer wins a prize courtesy of the forum member TheBloke.

[candy2411]

Perhaps you are right Candy, but I think that it is a rather silly idea with no other income than the state pension, as a 72 yr old I know how the days weeks and years go much faster and bits of you don't work like they used to which may mean more visits the Doctor, who in Tenerife don't provide intrepreters, unforfunately as you age you will find difficulty in adapting to change. I do sound like the miserable old sod that I am. But in my opinion better the devils you know than taking on new ones with very little money.........

Skeggy I appreciate what you say and its down to the individual's personal circumstances.

72 is not considered old nowadays, and if a person has no particular health issues, i agree with junglejim, the climate in the Canaries could be beneficial in promoting quality of life. Life is what you make it and I personally would always choose a quality of life rather than a miserable one whatever years a person has left.

[junglejim]

What is interest?

The person with the best answer or an excuse for an answer wins a prize courtesy of the forum member TheBloke.
I'm not interested !

[macdonald5]

What is interest?

The person with the best answer or an excuse for an answer wins a prize courtesy of the forum member TheBloke.

Interest is the thing I don't get much off from bank as the Bankers take it in bonuses

[Fivepence]

Skeggy I appreciate what you say and its down to the individual's personal circumstances.

72 is not considered old nowadays, and if a person has no particular health issues, i agree with junglejim, the climate in the Canaries could be beneficial in promoting quality of life. Life is what you make it and I personally would always choose a quality of life rather than a miserable one whatever years a person has left.

Not if you're 71...........:wink2:

[CIM]

I know a landlord in Las Galletas who has a few apartments for rent. I often rent from him if I have family over. If you want to rent in that area let me know - he is happy to do a month at a time.

[Ricman]

Interest is the only thing Man Utd got out of any of the 6 major competitions they entered last season.

According to the experts, interest is unlikely to change short, medium & long term.

Back to the script, If less than £7000 a year is the only income, wherever you live is likely to be a rather frugal existence. So it would be far better to live here in this climate where it don`t cost an arm & a leg just to keep alive.

Also heed the good advice given i.e. RENT do not buy under any circumstances. Apart from all the many sensible reasons not to buy, if you tie up all your dosh in real estate you will have great problems in any emergency needing quick cash.

[chifleta]

I don't mean to be rude ,But do you want to be cremated here or back home? Have you got relatives that will be presented with a nasty bill for your funeral? Will you budget for funeral insurance?

sensible question... not many people think about that, but it's the family that ends up footing the bill ...

[timmylish]

I throw my bit in on this. I believe that your pension is workable here if you had bought (taking rent out of the equation) but to arrive at that point you must follow the advice given by the members and rent here for a while. My worry for you is language because to get the most out of your converted euros you will need to have contact with Spanish people, the place you choose to live, shopping at the cheapest but nearest shops. No use saving money by going to the cheapest but paying the difference away on transport (people actually do this, crazy!). You pay 10% of medical prescriptions but are allowed to claim back some of this money each 6 months. Now as others have said about living on 8400 euros pa here, I have considered this in the event of something happening to Mrs. T. and my ill health. I,ve said this before and I,m gonna say it again. My family are firmly of the opinion that I would be much worse, health wise, if I currently stayed in Scotland so, for me, its a no brainer. Its Tenerife till my end. Sorry, going back to the buying an apartment of course staying in a Spanish town, like we do, is a lot cheaper but, as I,ve said you need Spanish. As opposed to others I would have a wee car. 12 year old and 1500 euros. Simple insurance so cheapest. Gives you the chance to get out and about and be independant.
Lastly, but quite reasonable to think might happen. You meet someone to live with. Suddenly costs tumble down or at least they should. I wish you all the best in your intentions. One final thing. Don,t rush into anything. Time is on your side. (Don,t understand how you get 131 stg!)

[mike in chayofa]

With an income at that level, I wouldn't be able to sleep at night.

You can produce all the budgets and estimates of costs until 'the cows come home', but it isn't going to allow for any unexpected circumstances.

Over the last week, or so, my budget has been blown out of the window. I am fortunate that it isn't a problem (although it is annoying), but recent unexpected expenses have included the following.

1. I am entitled to state health cover, but despite doing eveything correctly, I am still not registered with a state doctor - a long story, and not really relevant. Hence, unforseen extra medication costs of 95€

2. My car fell in love with the wall in the narrow parking spaces in the Mercadona car park, and kissed it :whistle: OK, my own stupid fault, but that's anothe 500€

3. I broke a tooth and need a crown (halfway through the course of treatment and Spearafico has closed), anothe 420€

4. A bulb in the lounge exploded the other night causing the 'electronic' dimmer controller to burn out - OK, I should have had regular dimmers installed in the first place, but I didn't. Cost of new unit 50€

5. When my house was rewired, the cowboys that did it have cut corners - you don't expect to have to check on these sorts of things when you employ 'experts'. On trying to fit the new dimmer control, I discovered that in the lighting swithch box that I have brown wires, black wires, blue wires, grey wires plus the earth. Hence I had to call an electrician out - another 50€

6. On taking ou the 'exloded' bulb, I had to dismantle the until and discovered that the plastic light fittings with have become brittle with the heat. I can't get replacement fittings anywhere, so two lights will have to have new LED fitting (as opposed to Halogen fitting. I reckon that with new bulbs and untils that will be another 50€ or so.

7 My elecric bill came in and I have (like everyone else) had a clawback from Unelco for the last quarter of last year and the first quarter of this year. Along with the charges for sealing my new meter, another 120€

8. My electric bill has been in the name of the owner before the owner before. He has been dead for over 20 years, so I decided that it was time that I really should do something about it. Certificate of compliance and upgrade work - another 500€

Should I carry on, or have you had enough :wow:

[princessmonika]

you need about 2,000.00 euro per month to have some kind of life --i think more would be better???:sunburn::sunbathe::cheers::cheers2:

[cainaries]

Thanks, Mike in Chayofa and Princess Monika .... now I know what's causing my insomnia!

It's certainly true the OP should take into account no free dental treatment, etc. There are other people in the Canary Islands living on that kind of money but the OP would have to live more like a local than an expat, I think.

[Vortex Wake]

Its a contingency fund for any possible failing mental or physical health issues you need to worry about, more than whether your lounge dimmer switch is wired back-to-front.

[cainaries]

When we retired here the pound was worth €1.47. A few years ago it dropped to parity. Whilst the OPs pension converts to €645 at today's rate of exchange, we know from bitter experience that you can't count on it or budget in that way.

[warbey]

I believe this is a Loaded Question.

The only People on £131.00 a Week are those who have a Bank Account or Investments of more than 16k.

If Your Assets should fall below the 16k, You will be eligable for Assistance, as well as Free N.H.S. care.


Your question must be what do I need Minimum to move over with.?

If serious, take C.I.M's advice and try a Month to get an Idea.

Job done..

[mike in chayofa]

Its a contingency fund for any possible failing mental or physical health issues you need to worry about, more than whether your lounge dimmer switch is wired back-to-front.

I couldn't agree more, but the point that I was trying (unsuccesfully) to make was that with other extras, my contingency budget for the last few weeks has been more than 4 months of this person's TOTAL income

[cheery]

Some valuable advice here but if someone has nothing to keep them in the UK why not give it a try. This isn't the usual ' me and the missus have got €50k and want to open a bar'. We will be doing the one way trip in a few years but we have a house, a business and several pensions (which will give lump sums) to fall back on. We decided a few years ago to rent instead of buying so we can move around a bit before settling.

Even if we didn't have a reasonable amount to fall back on, a warm climate would be better for both of our failing health conditions (nothing serious just ageing).

[maxbaby]

Rent on a long let for winter. We do that. the only REAL expense we have is travel insurance,
being young pensioners (and healthy) don't think we'd go with just he NHIC
good luck!

[cainaries]

I think treboreel should try a long winter let as well. (Is he still reading this, btw?). But I did want to make the point that his income will vary month by month once he has converted it into Euros. Be interesting to hear how he gets on.

[languagefan]

Hi and welcome,
You can definitely manage your day to day expenses if you know how to be a bit frugal...and yes, Tenerife is definitely much cheaper than the UK. If you buy a studio in a Spanish block (as opposed to a fancy tourist complex) your community fees can be as little as 25-30 eu.
You dont necessarily need phone/internet connection at home, as you can use the local libraries and very cheap internet cafes in Tenerife (0.7-1 Eu/hr) as long as you are not an internet addict! I know many people who have a cheap simcard and manage their life with emails and mobiles effectively.
Public transport is fairly reliable even though not as timely as UK bus services. I know a few pensioners who own their flat and live on as little as 400-500 euros a month.
There are lots of very cheap repossessed properties that the banks are selling for unbelievably cheap, and if you do your market research right, and speak a bit of Spanish, you can buy yourself a decent studio/one bedroom for 45,000-65,000 eu. My only advice is not to throw your money away carelessly for an overpriced property and keep something for the rainy days. I can send you links to bank repossessions once you are well settled here.
Good luck anyway :)