Mum Needs To Spend and Save

jockjames

Hi there guys – first time post here so I’m hoping you can help me. Reading other posts I appreciate not everyone gives sufficient info so I’ll try to give you as much info as possible thus allowing you to best advise a way forward.
My Father recently passed away and by the time probate was complete my mother has been left £60K which is now sitting in her bank account. Mum is now 59 and approaching retirement January next year (with no mortgage or any debts to pay). She will receive a pension from my father’s employer as well as the normal state benefits (circa £600 per month). What I would like to set up for her is a fund whereby she can draw down approx. £400 month from the £60K – allowing her to top up her pension. Mums not that prudent with money though and is a bit too generous for her own good so I would like to be able to tie the money up whereby she would be limited to the amount she could draw down each month – thus ensuring there will be a reasonable monthly sum for her over the next 10 – 12 years. Can you guys suggest the best way I cold go about doing this and what products I should be looking for.

Cheers

JJ

Speculator

£60,000 in a Bradford & Bingley esavings paying 3.88% net would generate £2328 interest per year, equivilent to £194 monthly.

If you want monthly interest, the rate is 3.8% net generating £190 per month in interest.

If possible, set up regular monthly payments of £400 from this account to her current account.

EdInvestor

If you are assuming that all the money will be used up in 10-12 years then the product you probably want is a Purchased Life Annuity, which will give Mum a guaranteed income for life, in return for giving the capital to the insurance company.The PLA will pay more than an ordinary pension annuity as less tax is imposed, due to part of the annuity being a return of the capital. There are also annuities which run for shorter periods.

jockjames

Thanks for the quick reply guys - I'll put both these options to mum and see which one she prefers.

thanks again for your time and help :T :T