Mum has house ... but no private pension what do I advise?!

carlos76

HEY everyone,

Was hoping for some help with the following. My mum has her own house val approx 120k. SHe is 67 and has worked long and hard (she considers herself part-time now she works 40 hrs a week) but never really had the chance to plan for her future so has no private pension. Time is catching up and she is thinking of selling part of her house (equity release scheme) as she is struggling to even get to work. What does everyone think of this? If your sceptical as I am could you suggest something else? My thoughts were to either:

1 - Possibly downgrade although there not much to downgrade with?
2 - Could she sell up and rent?
3 - Don't think she can get by comfortably on the state pension (plus pension credit which I have read about) but try to do this?

Any help or advice appreciated

EdInvestor

Has she claimed or already deferred her state pension? Is she divorced or widowed, if not how old is her husband?

Does she have any idea how much state pension she is due? If she has worked all her life she may be due double the normal amount.Ask here:

https://www.thepensionservice.gov.uk

If not, tell her to visit Age Concern or the CAB for a full review of what benefits she is entitled to.

carlos76

Thanks very much for getting back to me.

She has claimed already and widowed. I think she has pretty much worked all her life since she was 16 (with a few gaps) ... so yes I will look into this.

Ill also try age concern as hadn't thought of that.


To all, if your in the same postion as my mum I've found an FSA document here. Shows the real cost of these equity release plans and suggests additional alternatives ... in an impartial manner
http://www.moneymadeclear.fsa.gov.uk/products/equity_release/equity_release.html