Planning for Retirement

Blackfort

I read recently that people were no longer saving up for retirement and wondered 'why would they!'

I may have this all wrong but the way I see it is this. You pay off a mortgage and pay into a pension scheme. Some years down the line you need to go into a home so the government takes your savings and sells your home to pay for residential care.

The question I'm asking is, upon retirement or close to it, could I sell my house, move into rental accommodation and spend like crazy, holidays etc. If I need to go into a home sometime, hopefully there'll be very little left for them to take.

Apart from leaving no inheritance for the children, is anyone aware of any snags to this plan?

NAR

As long as it is not seen as Deprivation of Assets then there is nothing wrong with your plan. If you spending it on yourselves and not giving it away to family then IMHO you should be ok.

Golden_Anemone

Blackfort wrote: »

Apart from leaving no inheritance for the children, is anyone aware of any snags to this plan?

You might survive in good health for many, many years and, having spent everything, you could struggle to pay for the necessities in life.

tara747

What is Deprivation of Assets?

saverbuyer

tara747 wrote: »

What is Deprivation of Assets?

"Gifting" your home (or other assets) to avoid having to use these to pay for care.

Includes "gifting" part or all of an asset e.g. selling bellow "market" value to a relative.

It also as NAR says includes extravagant expenditure like expensive holidays.

There's no time limit on how far local authorities can check back until.

wanchai_2

You're not entitled to spend your hard-earned on expensive holidays if you want to????

*speechless*

saverbuyer

wanchai wrote: »

You're not entitled to spend your hard-earned on expensive holidays if you want to????

*speechless*

Not if you expect care to be provide free of charge, particularly if this was 6 months before entering care. It'll be assessed on an individual basis, the key being did you/does it appear you deliberate reduce capital to avoid paying care fees.

NAR

wanchai wrote: »

You're not entitled to spend your hard-earned on expensive holidays if you want to????
*speechless*

If you were medically 100% fine when you went on the holiday it would not be seen as Deprivation of Assets; it would be only if you were already ill and got worse medically afterwards.

quintwins

saverbuyer wrote: »

Not if you expect care to be provide free of charge, particularly if this was 6 months before entering care. It'll be assessed on an individual basis, the key being did you/does it appear you deliberate reduce capital to avoid paying care fees.

thats all well and good but assuming your kids couldn't afford it/do it themselves, surely he would still get a place in a home? if he's unable to look after himself someone would have to, he won't be made homeless in old age surely

personally i would enjoy your life now op, you could be hit by a bus tomorrow, i would like a house to leave my kids but the main reason i would like to own a house is the security it gives me in my old age if it's paid for i will always have a roof over my head. my hubbys grandparents had alot of wealth he died a good 10 years ago and she died last year there is nothing left as she was in a home for along time thats just how it goes sometimes- she was the one of 4 people in the home of around 30 who paid her own bill

Blackfort

Golden_Anemone wrote: »

You might survive in good health for many, many years and, having spent everything, you could struggle to pay for the necessities in life.

If I'm lucky I might have a bit of a pension to keep me going but as you've probably guessed, the thought of working all my life, paying tax and Nat Ins and still having to use my house and savings to pay for care that has been available for the past 60 years keeps me awake at night. Think I need to chill/get out more

Blackfort

saverbuyer wrote: »

"Gifting" your home (or other assets) to avoid having to use these to pay for care.

Includes "gifting" part or all of an asset e.g. selling bellow "market" value to a relative.

It also as NAR says includes extravagant expenditure like expensive holidays.

There's no time limit on how far local authorities can check back until.

As a public sector worker who is having my pension whacked unfairly in my opinion, I think I'll be taking the risk. If I've spent it and need to go into a home, who'll pay? Methinks it'll be my turn to take something back from all the state payments I've made over the years.