New pension rules query

atush

Well from your previous posts, you hadn't figured in all your living costs.

So your mobile is fine, but I still say you need to keep more of your capital for income in retirement, and fund 2 months a year elsewhere- as I presume your are restricted from staying there 12 months a year.

After all, your child will presumably inherit your Mobile home and left over assets later on.

barnsleynanna

Hi Atush.... you need to be updated a little on what modern mobile homes are like these days ! We have three bedrooms, a fully equipped kitchen, central heating, double glazing, a wrap around veranda with ramp, terraced seating area, washing machine etc etc.... Gas and electricity are much cheaper than at home and we have more storage than we could use. Furniture would either be given to my daughter or sold/given to charity. The site we're on is very secure and a mere 10 minutes walk from the town centre. Eating there is also cheaper as there are many farm shops etc. With regard to finding somewhere to live for 2 months, this is unlikely. There is a campaign at our site to keep open for 12 months of the year, and even if it closes for a very short while, my daughter and future son in law are looking at properties with converted garages and/or granny flats, and we'd just stay with them. We want to enjoy our retirement whilst we're still young enough to .. time enough for having cheaper holidays when we are much older .......
Based on anticipated state pension (higher rate at £155 per week or unaltered at £113 per week if people who contracted out of SERPS are penalised). Add this to an anticipated annuity of around £3400 per year for investing £60K, and self employed work, we think we'd be quite comfortable ..... We already have around £25k in savings which will be added to before retirement.......

dunstonh

Based on anticipated state pension (higher rate at £155 per week or unaltered at £113 per week if people who contracted out of SERPS are penalised).

its not penalised. It is reflecting that the SERPS element was factored into contracted out benefits.

Add this to an anticipated annuity of around £3400 per year for investing £60K, and self employed work, we think we'd be quite comfortable

And when work is no longer an option, what then?

We already have around £25k in savings which will be added to before retirement.......

The equivalent of one years average salary then. Yet you have 30 odd years to cover. I think you are leaving yourself short on capital.

barnsleynanna

dunstonh wrote: »

its not penalised. It is reflecting that the SERPS element was factored into contracted out benefits.



And when work is no longer an option, what then?


The equivalent of one years average salary then. Yet you have 30 odd years to cover. I think you are leaving yourself short on capital.

You may be right, and we'll look into things regarding the capital. The income I mentioned above is only from my husband's pension .. later on my private fund of £65K will also kick in and obviously the joint state pension will be a little more than Ian would get at age 65. It is also likely that we will receive an inheritance from my parents, which I don't want to figure in as it's an unknown with regards to potential care costs etc.... We feel that with our nest egg, plus tax free 25% from the pension pot, plus annuity payments, plus part time work will cover most of our basic living costs. I don't really see where the giving of our sale of house funds affects very much. We wouldn't keep the house on anyway, or it would be empty for 9 months of the year and we don't want to rent. Why not use the money to give our family a leg up? If we stayed in the house during retirement, the money would go do them when we die anyway .. I'd much rather watch my kids and grandkids benefit from the money while we're still alive to watch them enjoy it... However, that said, I take on board all of the very useful and interesting points made... thank you all very much.. no doubt I will be back with more questions !!!

atush

Basically that is what I was saying. I don't really care about your mobile home as I said. Be in love with it all you like.

My point was Dunstones point. That you are leaving yourself short of capital if you give too much to your child.

And I think long term, living with them for 2 months a year could cause problems down the line. I see people that fall out after 2 weeks on vacation with parents/in laws.

rpc

atush wrote: »

And I think long term, living with them for 2 months a year could cause problems down the line. I see people that fall out after 2 weeks on vacation with parents/in laws.

2 months a year, every year, for the next 30 years or so.

You would expect that the children will want to move in that time and grandkids could have grown up and left.

It is a massive commitment to hold your daughter to and you won't have enough income to make alternative arrangements if it falls through.

barnsleynanna

rpc wrote: »

2 months a year, every year, for the next 30 years or so.

You would expect that the children will want to move in that time and grandkids could have grown up and left.

It is a massive commitment to hold your daughter to and you won't have enough income to make alternative arrangements if it falls through.

Your family is obviously different to mine! If the kids move, we'll move with them .. if the grandkids grow up and leave (which of course they will !), more space in the house... so what's the problem there?... and if you think 2 months a year every year would be an issue, then your family obviously isn't as close as mine !! We've had them all living with us for months on end whilst waiting for different army accommodation. My daughter is only 17 years younger than myself .. we are more sisters than mum and daughter.. anyway, we'll leave it there, I've had some good ideas/comments and will take them all on board. Thank you everyone for your input .

atush

You might want to move in with them.

Not so sure I'd live with the MIL/FIL. Not so sure they'd want me for 30 years even if I got a bigger house off them early on.

If they a re army he will retire sooner rather than later. Have you asked him his thoughts? Or better yet asked someone else to? AS he would not dare tell you he'd rather not.

I know you know your daughter, but if he is home and not away I can't see him going for this.

and yes, you are right we dont know how close you are to your daugher.

I dont have any,only sons, and I wasn't a teenage mother so there are obv differences in that dynamic. But our advice is based on normality, where people are not as old as I was when I had my first (30) but not as young as you were either at 17. I was in high school at 17, and didn't graduate university till 22.

You lobbed a question at us, and even though you are still giving out tiny bits of info at a time, my opinion still stands.

You need to keep most of your capital due to your age (long retirement ahead for you), and not to live in their pockets 2 months a year (maybe 2 lots of 2 weeks with a month away somewhere cheap?)

bristol_pilot

Jeez, both your pension pots are 'peanuts' in the scheme of things as is the capital to be realised from the sale of your house. You can't afford to give away a single penny!

I can't believe your daughter is even considering allowing you to do this.

I don't think that there is anything that can be done to prevent a large part of a gift going to a partner if they marry then divorce after a few years.

Possibly the most 'bonkers' retirement plan I have seen on these boards.

noh

One other factor that the OP hasn't considered is that static caravans have a limited lifespan and most parks have conditions stating that caravans sited there must be under a certain age. Within the next 10 to 15 years they will be looking at needing to purchase a new or refurbished caravan.