Preparing for the future

LindsayO

I'm looking for some guidance and advise.
I am 49, I have an undiagnosed neurological condition, that so far (3 years) appears to be steadily progressive. I am currently working . I have a flat with a mortgage that is 2 & 1/2 times my current salary. Its fixed rate for 10 years and is linked to an offset savings account. I have been paying in to a final salary pension since I was 36. It has a medical retiral pension that provides a ful pension if I'm deemed to too ill to do any full time work. If that happens I wont be able to afford to continue paying my mortgage. So currently I'm working on putting as much as possible into my offset account in an attempt to get as much of my mortgage paid off as quickly as possible.

It seems quite likely that I will eventually have to go into some kind of managed care facility. I'm wondering if there is any way to prepare for this financially. I'd hate to put all my effort into paying off my mortgage only to find that I would have been better off putting it into some other means of preparing for the future

mummytofour

Personally I would stash it all under the bed.
I know that's not helpful really..
It seems that those with a mortgage get penalised all the way down the line. Those that rent seem to have much more help. For example you will only get help ( I think) with your mortgage if you are on JSA or IS and that is with currently a 39 week sanction period. If you rent you would get help straight away.If you are on a low income you would get help with rent, but there is nothing like that if you have a mortgage.

I think your being very sensible looking ahead and planning and I am sure somebody will be a long in a mo with some good advice.

dmg24

Hi LindsayO,

Could I ask if you know how long it will be until you have to go into a care facility? If it is more than (I think) seven years, would it be possible to sign the property over to someone, and in effect rent it from them?

I agree with mummytofour on this, you will be (IMO very unfairly) penalised for having your own property if you require residential care, so I would look at ways to minimise that penalty.

It may be worth posting on the Silver Savers board, I seem to recall a few threads on paying for care and legally disposing of assets.

On the subject of paying your mortgage before you need full time care, will your pension take you above IS levels? If you are not sure, if you can give us some idea of the amount we'll try to advise further x

LindsayO

dmg24,
If I get the full medical pension it will take me above IS levels, but will not be enough to keep up my mortgage payments. as far as I can figure it out anyway. Part of my problem is that I am having cognitive problems, so getting head around the numbers is getting more and more challenging. This is compounded by the fact that these cognitive difficulties are not at very apparent to anyone else (I seem just as smart as I used to be, but I'm not)

Anyway, I don't know when or if I will have to go in to care. At first I went down hill pretty fast, but things have slowed considerably and I am managing to adapt to my disability more and more. The only thing the neurologist was fairly confident about was that I will get more disabled over time, and so it seems quite likely this will happen sometime

dmg24

My condition is different, but I also have cognitive problems. I know how frustrating it can be, especially when others just expect you to still be your 'normal' self.

I'm not sure if you are already claiming, but you may be entitled to DLA. This adds premiums to the amount of IS that you could be eligible for, so you may still qualify for help with your mortgage. However, there are many who fall into the trap of having too much income for IS, but not nearly enough to cover the mortgage.

Do you have any mortgage payment protection?

If you require residential care through medical need, it may not be means assessed. I'm not sure of the specifics of this, again the Silver Savers board may be helpful.

I'm sorry I keep referring you over to SS, I know the name isn't the best when you certainly are not old enough to fall into that category. Hope you get things sorted x

LindsayO

thanks again dmg24, I think I do fall exactly into tha gap you mention, unfortunately I didn't take out mortgage protection.

I will try posting on the SS board tommorrow