Great Things To Know Before You Retire Hunt



  • nqsenile
    nqsenile Posts: 42 Forumite
    Deeds. I think that your Building society may keep them for you for free if you leave £100 still under mortgage when you've "paid off" your mortgage.
  • Good idea re the pension credit, didn't realise you could apply if you have a small occupational pension at 60 and want to retire before your state pension is paid until 65.
  • voisin
    voisin Posts: 8 Forumite
    Putting aside pensions, etc. for a minute, what about growing old and ending up in an old folks home?
    Most I've visited smell of p--s and cabbage!
    If at all possible, I would suggest a good investment now would be to prepare your home for you and your spouse or partner for that time when the kids dump us there and strip our assets.
    Replace bath or baths with showers and convert the garage or some handy downstairs room ready for a possible bedroom with toilet and shower at a later date.
    As the time approaches move in downstairs (share the kitchen) convert the main upstairs bedroom into sitting room (assuming there are more than one bedroom) and offer the accommodation
    in return for housekeeping, cooked meals etc. and eventually nursing, could offer a few quid a week on top for full time (attendance allowance)- cheaper than £500 a week at the old folks home- and you still live in familiar surroundings,can control your diet, determine your own alcoholic intake, and friends and family will still call to see you ( if you want them to).
    As for the kids inheritance, forget it, they are much better off at the present time than we ever were, if you couldn't help them when they needed it, by the time we pop our clogs , bet your life they won't be needing it either except for a top of the range B.M.W. and a fortnight in DisneyLand Florida.
    Don't forget,debt is not a bad thing as long as you can service it comfortably,
    money is a commodity, treat it the same as bread, don't be afraid of it, use it.
    Only banks don't owe money.
    By the way I've just turned 60 and done the conversion mentioned and just suggested to my wife we could get in a young nurse to move in-- I think I need one at the moment to take a pair of siccors out of my back----
  • rosepink
    rosepink Posts: 33 Forumite
    First Post First Anniversary Combo Breaker
    My husband retired 3 years ago at 63 and I gave up my part time job to spend time with him and to do those things we have planned. I am now 53 nd discovered when I got a pension forecast, that i have a big hole in my NI record which i can do nothing about. I inherited 2 young sons on marriage and became a full time mother to them from 1976 to 1992. My husband had custody and they had no contact with their mother. I gave up a very good career to move with my husband and to care for my ready made family. I was never advised to ask for the child benefit to be made payable to me, although I used to collect it and use it for their benefit.The book bore my husbands name and therefore i got no home responsibility protection when ti was later introduced.

    I will have to rely on my husbands contributions and so it is not worth me working still , as we have a good final salary pension plus SRP as income. My husband says he wishes he had known the extent that his state pension would be eroded because of his occupational pension, plus the fact that he does not get any extra tax allowance as that is reduced too! In fact his is on a minus tax code!!!! Still we are fit and have loving family so we are rich in many ways! Knowing you are happy, when you are happy, is something to be grateful for every day!
  • We had a mortgage with the Nationwide, and on paying it off found that they will keep deeds for free if you leave a balance of £1 on the mortgage. Its such a small amount they don't even add the interest to it!

    They will still charge the usual 'deeds production fee' when we want the deeds back from them, but as we have a photocopy of the deeds (I recommend people always ask their conveyancer/solicitor for a photocopy when buying a house - it saves you paying the £40 or so production fee if you need to see your deeds over boundary disputes or similar) this should only be when we come to sell the house.

    I assume other banks/building societies will do the same, but I'm not sure whether they will do it with as little as £1 balance?
  • I am 29 and the thought of retirement scares me at the moment. As I cannot afford to buy my own home due to the stupid house prices, I live in North Devon, so I currently rent.
    As far as I can see if I am still renting when I retire, any pension I may recieve, state or private, will have to be used to pay my rent leaving me with nothing to live off.
    As the rent I pay is also stupidly high this leaves me with little to put away each month for retirement as I am already stretched with nursery fees, energy bills, C/Tax, Rent etc.
    Oh, don't get me started on nursery fees, as we get no help from Tax credits and both work full time but people I know with no jobs get full nursery fees paid so they can sit at home and watch Trisha whilst little one is at nursery. What's that all about!
    I have a young family and my partner and I, (we can't afford to get married either) both have good jobs, I'm a chartered accountant. Anyone have an answer, older people were very lucky to get cheper houses years ago.
  • hollyp_3
    hollyp_3 Posts: 12 Forumite
    home_alone wrote:
    I took early retirement at 60 and my main worry (if you can call it that) is IHT, I do not want to become Gordon Browns best friend, it has been only since retirement that I have discovered that if I do not act know with hopefully at least 20 years to go, I will leave about 400K to the Chancellor, this is not bragging but with rising house prices and a fairly thrifty life this is what I or we are facing. I find with loopholes closing I am left with very little option but to give my 2 children their inheritance up front and also to downsize my home which I am reluctant to do so. Apart from employing the Rolling stones accountants (they paid just over 1 mill tax last year from over 83 mill income) this is what I intend to do. So for those coming up to retirement dont overdo the savings part you might not be able to spend it all.

    You don't need to downsize
    If you make yourselves tennants in common as owners of your house instead of joint tennants,( easy to do, download a form from the land registry site, it's free). Then make wills including a discretionary trust leaving the inheritance tax maximum to the kids on first death. This takes it out of the estate of the second one to die, but the kids don't get the money until then. It's an easy way of taking £300,000 out of your estate thus saving tax
  • I must have been misinformed I was told that the Tennants in Common loophole had been closed by G Brown. thanks

  • anniecave
    anniecave Posts: 2,442 Forumite
    First Post First Anniversary Combo Breaker
    home_alone wrote:
    I must have been misinformed I was told that the Tennants in Common loophole had been closed by G Brown. thanks


    I also thought that that loophole had been closed. Anyone know?
    Indecision is the key to flexibility :)
  • anniecave wrote:
    I also thought that that loophole had been closed. Anyone know?
    It still works; subject to the following:

    1. Married couples must jointly own property as tenants in common (not joint tenants, as most are - see severance of joint tenancy above).
    2. Both must have correctly drafted Wills incorporating discretionary will trusts. In effect, instead of 'all to the survivor' on first death, a sum equivilant to the IHT threshold (currently £285K) goes into a trust fund. This can include the half of the property owned by the one who died first.
    3. The survivor 'borrows' the trust fund on an interest free, IOU basis for life (living in the house, using the cash etc). So when the survivor eventually dies, the 'debt' is repaid to the first estate. This £285K then passes to children (or others) and as it is below the IHT threshold, is inherited free of tax.
    4. The survivor can also leave £285k free of tax so the tax free inheritance is doubled.
    5. Thus, the survivor has had the use of the 'joint' estate but died with an estate worth £285k less than it would have been under 'all to survivor'. So the tax saving is £285k x 40% = £114,000. Poor Gordon!

    CAUTION: DO NOT ATTEMPT THIS WITH DIY WILLS unless you know EXACTLY what you are doing. If you get it wrong, it's an expensive mistake .. and one you cannot easily come back and fix!!
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