Great Things To Know Before You Retire Hunt



  • esthomizzy
    esthomizzy Posts: 492 Forumite
    JohnL wrote:
    It still works; subject to the following:

    1CAUTION: 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!!

    With regards to this what does your property have to be worth for it to be worthwhile doing this? My partner and I are not married but probably will be one day and we already hold our property as tenants in common (60/40split). It's currently worth approx 300k (London) so I haven't done anything about it as I thought that the 60/40split would resolve the problem anyway as the total value is not high enough for this to be a problem. However I don't know what we'd want to do with it if we didn't give it to each other on either death anyway as we don't have any kids. Mind you I'd rather give to a cats home than the government.

    Should I be making any plans or is it ok to sit this out for a while longer? We are still very young 28&30.

    PS good thread everyone, I'm going to retire at 55 come hell or high water I don't want to work all my life paying massive pension payments and then die before I get to spend it all. It took a few years and some cunning to persuade my work to let me pay AVC's as they said I was paying plenty in anyway but I told a few porkies about expecting to take a career break to have children and they let me.
    MFi3 member 105 - MFW date Oct 2023 - 12 years 9 months more
  • 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.

    Had you thought about equity release? That way you could give the children their inheritance and stay living in your home. And Gordon Brown shouldn't be able to get his hands on the money! It does need looking into carefully though ...

  • kenshaz
    kenshaz Posts: 3,155 Forumite
    First Anniversary Combo Breaker
    We are spending our childrens inheritance,why not ,they didn't earn it we did,but we will try to do it in an MSE manner. I also believe that what you achieve in life tastes better when you earn it,when I look out of my window and realise what a good provder I have been,that is my gift,the rest is a bonus.Let the kids remember you for the love you gave not the money or property you left.
    [FONT=Arial, Helvetica, sans-serif]To be happy you need to make someone happy.[/FONT]
  • koru
    koru Posts: 1,501 Forumite
    Name Dropper Combo Breaker First Post First Anniversary
    I agree with some of the previous posts. People coming up to retirement shouldn't feel they have a duty to leave an inheritance to their kids.

    That's what I have told my parents. They should enjoy life and retirement. If there's some assets left when they die, that's great, but by then I will probably be retired myself, assuming they live well into their 80s. So, I will need to have accumulated enough savings of my own in order to fund my retirement (if I possibly can). I don't want to be relying on them to die at the right time so I can shore up my retirement savings!

    So, unless my retirement planning goes wrong, I won't really need an extra inheritance from my parents. Of course I could splurge it on a flash house or car or other luxury, but I won't be depending on a big inheritance. It is probably my kids who will benefit from any legacy left by my parents.

    That's not to say they shouldn't do some inheritance tax planning, though. I may not be counting on an inheritance, but if they do leave a legacy I would hate to see 40% of it go to Gordo!
  • Very interesting reading advice about retirement; does anyone know how long you have to have worked and/or brought up children in order to qualify for the full state pension?
  • cwep2
    cwep2 Posts: 202 Forumite
    First Post Name Dropper First Anniversary Combo Breaker
    Can I ask if anyone has any tips about *really* early retirement?

    I'm the main breadwinner now supporting my wife through education and training courses, but because of the nature of my work and the desire to bring up a family (and see them during the week) we've decided that I will give up work at the required time becoming a house husband, and my wife will continue working full time (minus maternity leave etc).

    This could be within the next 2-4 years. Although I'm in my early 30's is there anything I can do now to make best use of any pension arrangements for the future or anything I need to do while still working which will be too late when in the situation of not drawing an income for the next 30 years?

  • gb57
    gb57 Posts: 83 Forumite
    Currently a woman has to have "paid in" to NI for 39 years, and a man for 44 years to qualify for full state pension. This is likely to change.

    With regard to the suggestion of using equity release for your home in retirement rather than moving _DON'T DO IT UNDER ANY CIRCUMSTANCES!!! I am sure Martin would agree. All of these schemes give you very little and the interest rolls up horrendously. Downsizing is better, and anyway who wants a huge house/garden when they are 80?

    With regard to giving your kids a huge amount of money when you are still only in your 60s - spend what you need, enjoy your retirement, you have worked for it! There is no guarantee the kids will look after you when you get really old and crockety. If they are decent people they won't want your money now. Worry about IHT when you are pushing 80 - hopefully you will have spent a lot of it by then!
  • margaretclare
    margaretclare Posts: 10,789 Forumite

    We did equity release 3 years ago. We released 25% of the value and used it to pay off the existing mortgage which would have continued until we're 83.

    You say that 'downsizing is better and who wants a huge house/garden when they're 80?' We certainly don't, and I'm very glad that my late husband and I moved in 1990 from the 3-storey Pennine cottage. But you can't downsize much from a 1930s 2-bedroom bungalow which is where my present husband and I now live. What are we supposed to 'downsize' to from that - a garden shed?

    [FONT=Times New Roman, serif]Æ[/FONT]r ic wisdom funde, [FONT=Times New Roman, serif]æ[/FONT]r wear[FONT=Times New Roman, serif]ð[/FONT] ic eald.
    Before I found wisdom, I became old.
  • esthomizzy wrote:
    With regards to this what does your property have to be worth for it to be worthwhile doing this?

    You need to add up your total joint assets e.g. house £300k, death in service (say 4 x salary each) £200k, life assurance (unconnected with mortgage) £100k, house contents, vehicles, bank, savings etc. £50k = £650k total. Most people underestimate what they are worth!
    If your total is significantly in excess of the threshold (£285k this year) and you prefer children or other beneficiaries to benefit rather than Gordon then you should take action now, regardless of your age (accidents can happen). If you intend to have a family, unborn children can be named as ultimate beneficiaries. Alternatively, anything left to charity (and, strangely enough, the main political parties!!) is IHT free and effectively reduces your taxable estate by the amount you give; e.g. in the example above, giving £365k to charity on second death reduces the estate to £285k so no tax to pay.
  • helene4266 wrote:
    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!

    From my experience you should consider this carefully before doing.

    The Building Societies have recently been racking up the costs of exiting mortgages, so when you do want it to shut it, much of the savings may be eaten up by the higher exit fees. I got caught out like this dithering for a few months over whether to close the mortgage (Britannia) in order for them to look after the deeds, during which time costs of exiting rocketed.

    For the sake of £10/£20 ish a year, you at least know where you stand and reduce your future risk (you can always ask somewhere else to hold your deeds).
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