Advice requested for income

jem16

EdInvestor wrote:

I'm really not sure what kind of world you live in DH, where you could describe the most useful new retirement product in a generation as a "last resort" and "planning to fail".

It must be the same world I'm living in. If I had to use equity release to provide a living for me in retirement I would have deemed myself to have failed.

Have you noticed how much of people's wealth is tied up in their property these days?
When you're retired, this is dead money, you know.!!

It's all mine though, not a bank's. Unfortunately it may also be needed to look after me should I need to go into a home.

Of course I can think of a few heirs who might not see it that way. But frankly, I'm more concerned about retired people having enough money to live comfortably, than seeing them scrimp and deprive themselves so their children can inherit a packet.

Technically I am also my parents' heir and whilst I do not want any of my parents' home, I know my mother is dead set against it being sold to provide for her care. Now I know that's another argument!

EdInvestor

Unfortunately it may also be needed to look after me should I need to go into a home

Yes, indeed.

:idea: Think about it.

ReportInvestor

jem16 wrote:

It must be the same world I'm living in. If I had to use equity release to provide a living for me in retirement I would have deemed myself to have failed.

With the greatest respect, there aren't that many women in the UK who can lose their husbands and still remain higher rate taxpayers.

I'm both sorry for your personal circumstances and pleased for your financial circumstances.

But more than half the people in the UK are going to be "failures" on your chosen measure.

I suggest we don't start arguing since it won't help the OP.

If dh wants to nitpick, he could start with his own second post on this thread, which is not one any IFA would be proud of since he didn't bother to probe further into the circumstances of the OP (who was posting on behalf of a m-i-l which needs probing by any IFA).

Cool it people .

jem16

EdInvestor wrote:

Yes, indeed.

Think about it.

I have thought about it. I will also do everything in my power to avoid it too. My pension planning, plus that of my late husband's, should provide a retirement income of around £30k in today's money.

However the point I was making, and that you seemed to have missed, is that equity release is a last resort not a planned method of retirement income.

With my way of planning I can do what I like with my house not what I have to do because I have made no other provision.

jem16

ReportInvestor wrote:

With the greatest respect, there aren't that many women in the UK who can lose their husbands and still remain higher rate taxpayers.!!

I am only a higher rate taxpayer because I lost my husband and he had the foresight to plan for his retirement. His pension fund came to me. Before that I was a basic rate taxpayer and would have happily stayed that way.

I suggest we don't start arguing since it won't help the OP.

I didn't realise that agreeing with DH was arguing???

If dh wants to nitpick, he could start with his own second post on this thread, which is not one any IFA would be proud of since he didn't bother to probe further into the circumstances of the OP (who was posting on behalf of a m-i-l which needs probing by any IFA).

As far as I can see he said "Which is best will depend on personal circumstances.".

ReportInvestor

By saying that he immediately agreed with the OP's proposal that his m-i-l should sell up, without questioning it.

Many of us want our m-i-ls to sell up so that we can get our hands on the cash .

I'm sure that wasn't our OP's intention , but dh didn't bother to probe further.

I repeat. This argument is unproductive for the OP

jem16

ReportInvestor wrote:

By saying that he immediately agreed with the OP's proposal that his m-i-l should sell up, without questioning it.

Do you want to read the original post again? It said;

"My mother in law only has a state pension for an income and has decided to sell her house and move somewere closer to my wife and I."

If the OP's m-i-l is anything like my mum and aunt (similar generation) she will not want to use equity release as she will want to pass the house on(rightly or wrongly) - in fact the OP already mentioned this. So sorry I do feel that this "argument" does help the OP.

ReportInvestor

It helps the OP, but does it help his m-i-l?

The house is the m-i-l's only chance of a decent retirement.

Surely any IFA would say that she has to look after herself over the next 35 years and not think of passing on the house until her own needs were catered for.

That is the priority here.

Not "passing on" a house.

But then I didn't originally read the OP's post as wanting that.

margaretclare

neilm1m wrote:

Hi Everyone, first post so please be gentle.

My mother in law only has a state pension for an income and has decided to sell her house and move somewere closer to my wife and I.
She has a small mortgage of 20K and expects to get approx 250k for the house and then maybe buy a house for a similar or slightly smaller price hence giving herself a small lump sum to supplement her income.

Can I jump into this discussion? Your MIL's idea seems the simplest and most likely to succeed. Your options seem terribly complicated. I'm 5 years older than your MIL and if I were in her shoes, I think I'd prefer the simpler option.

If she sells her house she pays off her mortgage, she then has the option of buying a smaller, more convenient and manageable property in her preferred area, which is closer to you.

One of the things which no one has mentioned, no one even thought of maybe, is the fact that as you get older, convenience and ease of maintenance become paramount. You just cannot climb step-ladders to wash windows, for instance. Gardening can become a chore rather than a pleasure. Stairs can become difficult - a bungalow is something to definitely consider. There are even 'park homes' in many areas. These are factory-made and if MIL got a new one, have the advantage that she'd have absolutely nothing to do to them for a few years.

It's my belief that the decade between 60 and 70 is the best time to make these major changes. Moving house, selling larger less convenient home for something smaller and more manageable, these kind of things are all best done when you're still relatively hale and hearty. I've known too many octogenarians living in big, expensive to maintain, inconvenient properties and saying 'oh, I should have moved 20 years ago but too late now'.

Lastly, whatever your MIL wants to do and whatever she decides, it has got to be HER decision. You put the question here, and people have been expressing opinions, but MIL herself is outside this discussion completely! When do her wishes get to be considered.

Margaret Clare

ReportInvestor

margaretclare wrote:

whatever your MIL wants to do and whatever she decides, it has got to be HER decision. You put the question here, and people have been expressing opinions, but MIL herself is outside this discussion completely! When do her wishes get to be considered.

Thank you mc. That is the key point.