amount of savings in the bank after retiring?

margaretclare

pineapple wrote: »

What to keep by is just what I am debating right now! If you own your own house and need a car, £10,000 is not a lot. I would say £5,000 as an absolute minimum. Think roof repairs, central heating goes kaput, car gives up the ghost. Think all those little extras that mount up. It also depends on your age of course. 80+ and I would blow the lot. At 60+, you might just want to keep over £10,000 - if you can.

That said, equity release schemes (there are some bona fide ones run by local authorities) can be a failsafe. I know these schemes are regarded as the spawn of the devil, but they can be just the ticket for singletons like me whose money is tied up in bricks and mortar. I have no kids and I don't care if my estate is swallowed up on death and I don't leave a bean.

This was the thinking behind DH's and my opting for equity release to pay off the existing mortgage. So long as we are guaranteed a roof over our heads for as long as we need one, and enough money to keep it in a reasonable condition and comfortable for us, also enough to pay for our funerals, we don't mind if we leave nothing behind us but memories.

bigjl

I may sound harsh, but as they are mortgage free, and have an income of £14000 a year, why would they need any benefits.

I don't have that much disposable income after paying my mortgage, in fact barely half that.

gab1

I may sound harsh and have an income of £14000 a year, why would they need any benefits.

Some people on this forum, they sure like to pick a fight.

Why shouldn't they apply for everything that is going? My father worked all his life without claiming anything, it was my mother who got family allowance not him. Tax credits, children and working, didn't exist when me and my brothers were growing up.

Did you not know that there are millions of pensioners that are not getting the benefits they are entitled to because they haven't claimed for them.

After reading the nasty comments on here I told my Mother and him to spend it on a cruise, in fact my Mother has now decided to go on a cruise and when they get back they will be at the council tax offices and wherever necessary to claim for every penny in benefits that they are entitled to.

There are a couple of insurance policies to pay for their funerals that I never knew about so they don't need to keep money for them.

And if they have too much money and too much savings and get nothing, so be it. At least they will not be one of the millions who did not apply.

I suppose that we will get the deprivation of assets posters coming out of the woodwork now. So what, are you not meant to spend your hard earned money enyjoying life?

And if they need anything for the house like new heating or a new roof or new windows, well, there are bound to be grants or benefits for poor old age pensioners who spent all their money on enjoying life.

cashbackproblems

Maybe its just me, but even with your house paid they are surely gona struggle financially as 10k doesnt get you anywhere! What if they need full/part time care, i guess they cud sell their house but tht isnt ideal and doesnt make for a happy retirement. I guess u cud live on 14k a year tax free but they will have to spend wisely.

All the retired ppl i know through family and absolutely raking it in, they have private pensions+state pensions, shares, savings etc probably better off than anytime in their lives!

With the retirement age rising to 68yrs+ by the time young ppl in their 20's retire, a private pension is a must as a minimum and the thousands of ppl who dont pay into one or save are gona be screwed or pushing trolleys at tesco aged 65!

Ian_W

gab1 wrote: »

After reading the nasty comments on here I told my Mother and him to spend it on a cruise, in fact my Mother has now decided to go on a cruise and when they get back they will be at the council tax offices and wherever necessary to claim for every penny in benefits that they are entitled to.

You obviously didn't read them very well then. An earlier post said they can have £10K of savings without benefits being affected. So blow it on a cruise now, what about holidays for the next 20 or so years? Surely it's better to have 10 x £1K holidays, than one blow out with nothing put aside for their holidays/enjoyment/treats for the rest of their life?

And if they need anything for the house like new heating or a new roof or new windows, well, there are bound to be grants or benefits for poor old age pensioners who spent all their money on enjoying life.

Are there? Touching faith that the State will always provide but haven't you heard, the country is in serious financial trouble? Benefits are going to be SERIOUSLY CUT over the next few years. Pensions and benefits will be linked to an index that will almost certainly their value cut by substantial amounts compared to the real cost of living. Grants usually help towards an item, rather than pay for it, so with no savings where is the rest going to come from?

I wish your parents well but fear they are not in a good position, they won't starve to death but will be surviving rather than enjoying retirement. Hope I'm wrong but blowing the savings, which you've advised them to do because you didn't like some replies on here, ain't IMO, doing them any favours, but hell - they're your parents not mine!

seven-day-weekend

What nasty comments?

I have just reached retirement age; I was 60 in January, my husband is 61. We took early retirement in our mid-50s and lived very frugally off his Teachers' Pension. I have this year started to receive my State Pension. This income, plus a small amount of Incapacity Benefit, is what we live on. We do have some savings.

Last year our boiler needed replacing. This cost £1.5k

This year our bathroom needed replacing (leaking old pipes, damp walls). We have replaced it from scratch including new plumbing and it cost around £3.5k.

Next year we will have to replace some windows. This will be at least £2k.

Our car is 13 years old and at some point will need replacing - cost around £3k.

There's £10k gone straight away in a few years.

AFAIK there would be no State help for the bathroom, the windows and the car, and although there may be help for the boiler I don't think you can get it unless your boiler is not working at all, not just working very inefficiently as ours was. Even if you are eligible for the grant it takes months to come through.

Nobody has said your parents should not spend some money on having a nice holiday. Nobody has said they haven't worked hard because most of us have also done so.

However, I personally think it is quite irresponsible to spend all your money and expect the State to pick up the bill, especially as you can have £10k in the bank without it affecting Pension Credit.

Why not keep their money and have decent holidays once a year instead of blowing it all and then living in poverty for the rest of their lives? Seems a bit c0ck-eyed to me.

bendix

gab1 wrote: »

After reading the nasty comments on here I told my Mother and him to spend it on a cruise, in fact my Mother has now decided to go on a cruise and when they get back they will be at the council tax offices and wherever necessary to claim for every penny in benefits that they are entitled to.

.

Well done. You obviously don't care about your poor old Mother very much to give that sort of advice.

If ever there was a definition of the blind leading the blind, this is it.

margaretclare

Like 7DWE, I too didn't see any 'nasty comments'.

And if they need anything for the house like new heating or a new roof or new windows, well, there are bound to be grants or benefits for poor old age pensioners who spent all their money on enjoying life.

I hope they're not going to be in the position of some older people around here who were relying on home improvements through the 'Better Homes' scheme. The work was done by a firm called Connaught, who have gone bust, leaving 80+ year old people with half the work done and no way of knowing when they will get their radiators replaced! http://www.echo-news.co.uk/news/8378956.Repairs_half_finished_as_contractor_Connaught_folds/

As for getting a grant for roof repairs, I was told this some years ago, because our roof on this 1930s bungalow was asbestos tiled, there would be a grant. Unfortunately, no. The council representative whom I asked about this told me that there are so many similar in this area, to replace them all at the council's cost would use up the whole of the council's budget!

Even bathroom upgrading, which I needed before DH came out of hospital with a stiff leg, did not qualify. I've lost count of the number of times I've been told 'Oh the council will pay for...' only to find that it was NOT the case when push came to shove.

Nevertheless I am a great believer in enjoying life, having a nice holiday or a weekend getaway etc, but NOT in just spending money for the sake of spending it. We are still saving. I help my eldest GD out when she needs it. DH joked to me yesterday 'What are you saving for - your old age?' I said 'You may laugh, but we'd have been in a right hole if we hadn't had those savings to fall back on'.

Like 7DWE, we're looking at replacing the car before too long. In addition, work that could be done by young fit householders in the past now needs to be paid for. Like, climbing ladders and painting - the list is endless.

And why does everybody imagine that going on a cruise is the be-all and end-all? We've had this said to us: 'why don't you go on a cruise?' Answer: 'It's not the kind of thing that grabs us at all'.

bigjl

gab1 wrote: »

Some people on this forum, they sure like to pick a fight.

Why shouldn't they apply for everything that is going? My father worked all his life without claiming anything, it was my mother who got family allowance not him. Tax credits, children and working, didn't exist when me and my brothers were growing up.

Did you not know that there are millions of pensioners that are not getting the benefits they are entitled to because they haven't claimed for them.

After reading the nasty comments on here I told my Mother and him to spend it on a cruise, in fact my Mother has now decided to go on a cruise and when they get back they will be at the council tax offices and wherever necessary to claim for every penny in benefits that they are entitled to.

There are a couple of insurance policies to pay for their funerals that I never knew about so they don't need to keep money for them.

And if they have too much money and too much savings and get nothing, so be it. At least they will not be one of the millions who did not apply.

I suppose that we will get the deprivation of assets posters coming out of the woodwork now. So what, are you not meant to spend your hard earned money enyjoying life?

And if they need anything for the house like new heating or a new roof or new windows, well, there are bound to be grants or benefits for poor old age pensioners who spent all their money on enjoying life.

If you are going to quote somebody, it is good manners not to edit the quote in such a way as to change what it means.

I was going to add this to the previous post but didn't.

Benefits are there for those that need it, not for those that want it, but need it.

My dad is entitled to a motobility car, he would rather pay for his own, as he is in a position to afford it.

£14000 a year is a lot of money to live off in retirement, that is a fact, not a nasty comment, but a fact.

If as somebody has posted you are entitled to DLA or Incapacity Benefit, or are entitled to Carers because you need them, then fill your boots, you paid in to have this safety net, but only if you need it, not because you want it.

Care is provided on the basis of need, as they own their house with no mortgage then they will have to fund this themselves, either by selling the house and moving to sheltered accomodation or a smaller house. Not saying I agree with this, as those that have never paid in or saved towards retirement will get this free. So in my opinion we should all get it free.

If they are entitled to benefits then the decision will be based on their financial position, how much disoposable income they have, not because they want a reduction in council tax.

My parents were frugal and saved, are mortgage free and pay full council tax, doesn't matter what you have in the bank, if it is within the rules you will get it.

But I would seriously check what they are entitled to using your local autority website, you can then enter the financial position now and when they spend the £10k.

But do you seriously think just under £270 a week isn't enough to live on?

I personally think it is plenty, I know a bloke at work that did 40 years for the NHS, his pension is £336 a week, he hasn't spent his lump, he finished off his mortgage with some of it and still works a few hours a week to keep him active and give an increase in his disposable income.

As far as grants go, there may be some available. These will be available if they meet the criteria laid down by the government.

You are exhibiting the true bulldog spirit that made the UK great, oh actually you aren't.

Not to worry the tax payer will be along soon to pick up the tab.

To conclude I would never advise my parents to spend their last bit of financial security on a stupid holiday.

This post may now qualify, in your eyes, as nasty, but your attitude is the kind that is ruining this country. The spend now and let the taxpayer sort it out attitude.