Standing in front of a mountain

Cottage_Economy

Ninnins wrote: »

Hi Cottage - to be honest, where I live, £150,000 wouldn't even buy a parking space ... !!! It would mean a big move into a slightly less urban area - maybe around 25 miles down the road. I feel a little sad about that as since my father passed away three years ago my mother has needed more care, and I keep thinking that I may be a grandma soon .... still, what are my options?

Is you mother in a home of her own? Could the two of you buy something together?

Alternatively, could you buy something with your son and have work done to split the property into two living spaces for each of you?

My maternal grandparents and uncle did this and lived together for nearly 25 years. Both had separate doors to the property, but one lived upstairs and the other downstairs. They were able to maintain quite a sizeable property in London this way, didn't get under each others feet and the uncle's kids got to see their grandparents all the time.

Ninnins

Hi again, I'm 55 and could retire at 60 (public sector employee) but would need a combo of my state pension and private pension to survive, hence, I'd need to go to the full 63 which is when the Department for Pensions has notified me that I am eligible.

Glad you're thinking along the same lines as me about the pension - I had thought that I might take the lump sum, which would pay-off the unsecured debt. The problem is the residual amount would be subject to a huge tax hit as it wouldn't be enough to live on and I'd need to carry-on working.

Cottage_Economy

Ninnins wrote: »

Hi again, I'm 55 and could retire at 60 (public sector employee) but would need a combo of my state pension and private pension to survive, hence, I'd need to go to the full 63 which is when the Department for Pensions has notified me that I am eligible.

Glad you're thinking along the same lines as me about the pension - I had thought that I might take the lump sum, which would pay-off the unsecured debt. The problem is the residual amount would be subject to a huge tax hit as it wouldn't be enough to live on and I'd need to carry-on working.

Might be worth popping over to the pensions and retirement planning board and asking for advice there to see if anyone can help you come up with a reasonable plan for moving forward. They guys over there can be a little bracing sometimes but their hearts are in the right place and they're very good at cunning plans.

Ninnins

Thanks Cottage, I will have a browse on the Pensions forum - loving the idea about splitting the property, this is also something I've considered and need to talk it through with DS. Thanks for your support. Please come back and chat again - I feel a lot better having got it off my chest!

Lets_say

Ninnins wrote: »

Hi again, I'm 55 and could retire at 60 (public sector employee) but would need a combo of my state pension and private pension to survive, hence, I'd need to go to the full 63 which is when the Department for Pensions has notified me that I am eligible.

Sorry, bit confused here. If you are currently 55, surely you won't be getting your state pension until you are 66?

Ninnins

Yes, you are absolutely right!

I am the one who's confusing you - my original planned retirement would've been 63 (my brain is still fixated on that age) but as you rightly point-out the state retirement age is now 66 - so effectively there are 11 more years to go before I am "state-retired". I realised a while ago that any thoughts of retiring with my work-related pension was out of the window. I know there are millions of us in the same boat!

I suppose this gives me more time to work and pay-off my debts!!

getmore4less

Need that SOA,

Your income is healthy but the spends are very high.

Jenniefour

OP, I notice from your previous posts that debt is a problem you've been posting about for some years, albeit not often. You are in the right place to get some useful advice and suggestions. But you need to give some thought to what you are going to do very differently now, so that when you retire you are not worried about how to pay the next bill. Whatever you have been doing in the last 6 years, when you became aware of this, has not worked, and different decisions need to be made now.

I think of retirement as the place of no return i.e. once I've retired the earned income has gone, for good. I use this as motivation to keep me on track with pension provision and so on, so I will have enough to live on in retirement - using my current earnings to do this. You can use your current earnings to do the same - by reducing debt. This is the way of taking care of yourself in future when you're relying on pensions.

You could contact your HR to enquire about your pension - exactly when you will get it and a forecast of how much it will be, including any lump sum.

Is your mortgage interest only or repayment? When does your mortgage end?

Have you considered getting a lodger to increase your income? You are allowed to earn £4250 tax free every year.

I notice your reluctance to post a soa, and maybe this means you're not ready yet to face this. I don't know that for sure but only you can decide when you're ready, no-one can do it for you. What needs to happen so you will be ready? What I'm saying is please don't continue to put this off as this simply delays the time when you could be free of debt. And free of the worry and stress. You will feel much better when you know you have proper control of your finances by making wise decisions now.

There are one or two very sad threads on here about people who have already retired and are in serious debt, and others from the adult children of such people who are terribly stressed by the financial circumstances of their parents. You can make sure you are not going to be one of these by deciding that now is the time you are going to make very big changes to ensure your future and enjoy your retirement. You have the time and means to sort this out - without using that as a reason to keep putting off changes that will lead to a solution.

longtermplanner

Ninnins wrote: »

I still have DS2 living at home trying desperately to get on to the property ladder - he contributes but as he is also saving it would be counter-productive to ask for more.
.

Sorry but you have to sort out your own financial future first. You are approaching retirement and don't have as many options as he does, If he is in work, then he should be paying you about £300-£400 a month.

I guess you now have a spare room? I think you should get a lodger.

If you don't want to do this, then you need to sell and downsize. And the sooner you do this, the less of your money you will waste on interest payments.

katejo

longtermplanner wrote: »

Sorry but you have to sort out your own financial future first. You are approaching retirement and don't have as many options as he does, If he is in work, then he should be paying you about £300-£400 a month.

I guess you now have a spare room? I think you should get a lodger.

If you don't want to do this, then you need to sell and downsize. And the sooner you do this, the less of your money you will waste on interest payments.

I agree with this absolutely. I am similar age to you (just about 4 years younger) and am also on a final salary scheme. I am apprehensive about adjusting to a lower income once retired but I don't have any outstanding debts other than the remainder of my mortgage which will be paid off by 65. I would be worried if i were in your position.