Preparedness for when

MrsCD

moneyistooshorttomention wrote: »

Now racks brains...because somewhere or other I read about the money set aside specifically for State Pension payments (ie from our NI stamps) as being an account that's actually in surplus and by quite an amount too. Apparently the trouble is that account keeps getting raided and used for other things (sort of equivalent of using the grocery money to buy make-up in my terminology).

From memory...that was the gist of what I read.


Of course the cynical little thought has often crossed my mind that the path is now "nearly open" to euthanasia on demand (something I personally firmly believe in) partly for the humane reasons we are being told - yay!

But....I am far from unaware that it would suit the Government too if people were able to freely say "Up with this (ie a major level of ill health) I will not put...where's the way out?" Reason being because they wouldn't have to find the money to fund the high healthcare bills of people who had made their own personal decision to "opt for the Exit" rather than put up with incurable ill health.

Very very much a matter of individual personal choice....but I can see exactly why the Government is moving in the direction of this being possible...and its for their own reasons (ie and not out of "common humanity and not wishing to see people suffer against their will") and, almost incidentally, saving money on the State Pension bill.

Anyone else remember the film 'Soylent Green' with Charlton Heston?:eek:

GreyQueen

I simply don't think that there are enough light-duties type of jobs to absorb the amount of workers who would need them. And not everyone has the literacy skills to handle a sedentary type job.

As usual, real life will have to collide at speed with millions of people before the imbeciles in the grubbyment are willing to concede that they may have possibly not thought through all the ramifications.

I'm another who has had her state pension goalposts moved thrice already - present pension age is 67. And my local government pension will be kicking in at the same age as my state pension, so no chance of trying to limp along on one until the other is in payment.

I can easily see that, unless you are wealthy enough to buy yourself free of state pension dependancy, that the state pension age per se will be abolished. You will work until signed off permanantly as unfit for work, at whatever age they can drag it out to.

Now, gotta go get me some of those Greek grubbyment bonds.......

VJsmum

moneyistooshorttomention wrote: »

..and meanwhile everyone still intends to Have A Retirement and the preferred route (it would appear) for those who can manage to find the money to do so is to get a "buy to let" or two or three. I can understand why people who fear as to how to have A Retirement otherwise would do so on the one hand. On the other hand though is the knock-on effect of these people are competing with home-owners to buy these starter places.

We are in this category - we took the opportunity to grab a portion of OH's pension that had been frozen (the mechanics are too complicated to go into), we bought a buy to let. Using the income from that, plus the remaining pension and bonuses we bought another. We rent them to students. Nearly all of the houses in this particular square mile or so are rented by students, so i don't feel that we are pushing starter home buyers out.

We have little in the way of pension provision left - a few years of OH's "unfrozen" portion, and some for me in a local authority type scheme (so not much then). THese houses are pretty much the pension. We have assumed that we will get no state pension - though i guess some may come our way eventually - and haven't taken any inheritance into the equation either (though OH's mother will leave him enough to buy another house, probably). If state pension becomes means tested (as well it might) then we probably won't get any - yet we will have paid out more in taxes than most. But that's ok - that's what taxes are for, I guess.

Our family and friends think we are loaded, because we own several houses, but we don't take any of the income from them as "income" - it is all invested back. If this was in a pension fund, being invested back, no-one would be any the wiser.

We have taken a chance doing this, our eggs are still in one, albeit different, basket.

[Deleted User]

I was awake in the night and pondering the dilemma of growing older in a changing and uncertain world. I'm slightly older than most of us and have had the state pension for the years since reaching 60 so I guess am one of the luckier ones and the uncertainty about whether or not I will actually get a pension is not an issue. The question of whether or not I will continue to get a pension in the future IS however something that I have to consider. For us as a couple we have his works pension and the state pension and live beneath our means so are currently not having difficulties in living the life we have chosen to live, even managing to save every month. We have, all our lives together CHOSEN to live a simpler and less materialistic lifestyle. We both feel content with what we have and with what we have made happen in all areas of life. We don't have that feeling that life is fairer to others than it is to us or the feeling that we're missing out. We are content with our lot. It's not something I'm aware of amongst our peers and many younger folks I come into contact with. The conversations on the bus etc. all seem to focus on just how others have more things, more money, a better time, more holidays, more disposable income etc. etc. etc. I know I'm preaching to the converted here but perhaps a more positive outlook on an uncertain future would be to make the changes in life, lifestyle, expectancies, what you individually consider to be things that are imperative to your comfort and well being and actually start to live life in a way that will let you continue to thrive should your income be lessened in the future. We are happy with second hand and rescued things, we are lucky enough to have the garden and allotment and to be able to provide a percentage of our food. We both have a bus pass and use them rather than the car. We did save up and have the woodstove installed and as a result don't have huge energy bills because we don't run the central heating at all. We don't expect to have holidays several times a year, in fact when the children were younger we never had more than a week away and only in the UK never abroad. We've effectively tailored our garment to our cloth and live contented, simple and good lives rather than feel envy of our peers who still pop off all over the world for 3 weeks at a time and come back with all sorts of ailments that cost the NHS considerable sums to put right. Look at making changes NOW, don't wait for the axe to fall before doing it. If it's a choice and not forced on you as an individual your mental outlook will be a much happier one.

Frugalsod

VJsmum wrote: »

We are in this category - we took the opportunity to grab a portion of OH's pension that had been frozen (the mechanics are too complicated to go into), we bought a buy to let. Using the income from that, plus the remaining pension and bonuses we bought another. We rent them to students. Nearly all of the houses in this particular square mile or so are rented by students, so i don't feel that we are pushing starter home buyers out.

We have little in the way of pension provision left - a few years of OH's "unfrozen" portion, and some for me in a local authority type scheme (so not much then). THese houses are pretty much the pension. We have assumed that we will get no state pension - though i guess some may come our way eventually - and haven't taken any inheritance into the equation either (though OH's mother will leave him enough to buy another house, probably). If state pension becomes means tested (as well it might) then we probably won't get any - yet we will have paid out more in taxes than most. But that's ok - that's what taxes are for, I guess.

Our family and friends think we are loaded, because we own several houses, but we don't take any of the income from them as "income" - it is all invested back. If this was in a pension fund, being invested back, no-one would be any the wiser.

We have taken a chance doing this, our eggs are still in one, albeit different, basket.

You do need to be aware that property is over valued significantly as a result of excessive credit creation by the banks. Which is only being sustained by excessive credit creation by the central banks as the banks are over leveraged.

What this basically means is that property is due a major correction eventually and downwards because there will not be the numbers to support the prices at these elevated levels. When deflation hits then the debts sustaining the bulk of mortgages will be unsustainable and eventually the banks and borrowers will have to face big losses. As deflation grinds through sales will fall and so will incomes, so any rents that you expect will also fall. Just because property has done well in the past does not mean that it will forever. Property values have over the long run (over centuries) followed wages and only 2.5 to 3 times income. So the much higher multiples that we see now are going to end eventually they will fall and especially with falling wages. You have to admit that we have a false market when wages have fallen 8% and yet house prices have continued to rise.

It will all end badly especially if you have mortgages attached to those homes.

moneyistooshorttomention

Good points FrugalSod, but the difference is that, over the centuries, I'm not sure how many "ordinary people in the street" have expected to own their own homes AND have freedom of movement (ie not during the time when many were serfs then).

We haven't been a property-owning society basically for that long I believe?? One of my grandmothers owned her own house and, guesstimating when she would have been born, equals her becoming a home-owner at some point late 19th century. But my father is the first home-owner his side of the family. My brother and I have both held onto being home-owners (with distinct struggle and a large bit of luck as regards myself, whereas my brother got his easily courtesy of getting married = 2 incomes).

So, I cant see that "ordinary people" owning houses is something that has been going on very long, but I would think high property prices will still prevail at least until the generation down from mine struggle to buy homes and then things might change. But whilst its still the norm for people to own their own homes then I think there is so much invested (both financially and emotionally) in keeping the status quo that I think any "sea change" is a few decades in the future.

VJsmum

Thanks, Frugalsod, that's why we aren't sure where to go from here?

We don't intend to sell those houses and there should always be students, right? having said that, these houses are usually let by now for next year and at the moment both are still available.

I also have two children and so, push comes to shove, at least they will have somewhere to live (albeit amongst a load of students ). Said houses are also just off a major road into a major city near a large hospital (can you tell where it is yet??;)) and so there should always be a market of sorts and therefore an income of sorts.

Havig said that, we have decided not to invest in further properties there, though may put some money into making those ones more lettable. The decision is where else to invest our pension monies - we currently get a return of around 8% on those houses, not much pays out at those rates.

elaine241

Hello All

Still reading! LOL

To clarify neither of my buy to lets would have been available to any FTB. One was so bad it was a cash only sale and the other ( ex drug den, forced eviction) was totally unmortgageable (sp?) with everything smashed, rubbish and needles everywhere :eek:.
I have always lived well below my means despite having well paid jobs in the past. I have only ever gone on one weeks holiday in this country and that was last year, luckily the week when it was sunny and hot :j. As we have so many animals we only ever get a long weekend away and quiet times of the year. Its not like asking the neighbour to feed a !!!!!!lugs !! we have well over 150 mouths to feed of all different types! LOL

My sister on the other hand has increased her mortgage several times to cover debt, gone on two very expensive holidays to USA plus plenty of European hols. She has always been "not good" with money having a live for today attitude. In her defense this really only kicked in when her good friend died of Hodgins Lymphoma aged just 30 and on mothers day .
But now it is really coming back to bite her! She sees that I have a comfortable, debt free life and is " jealous" saying I have always been lucky!!!

I am following the Make Do and mend thread but minimalising is not being applied due to my preps! Even though I can go out and buy new I have chosen to repair school coat, trousers, swimming trunks and rugby shorts thus saving at least £100.

Anyway rambled on again! Im hoping to get some seeds started in the propagator and then I know Spring is on its way !:j

mardatha

MrsL, we're in the same boat and same mindset - but I have no allotment and its harder for me to grow stuff up here. We have to have a good car, because we're 12 miles from the nearest shop/post office/bank/doctor - so that takes money.
Did you - or anybody- think the state pension is going to be cut? Or just frozen?
I'm ok as long the RV is alive, but his works pension dies with him and I'd be on basic state pension then. I can live cheap but this house takes a lot of heating, so that's where most of my pension would go.

elaine241

Whoops forgot they put !! in place of dodgy words. For those who dont know a Bu g g er lugs is Bedsit Bobs cat! :-)