Elderly parents living in poverty

margaretclare

Anyone who has £40K in savings cannot be said to be 'living in poverty'.

People living in poverty, usually, have no savings at all. Have never earned enough to save a penny-piece, all income has gone as fast as it arrived, just to pay for normal living expenses. There are various definitions of poverty, but that's mine.

It's entirely their choice. I speak as one who's in the same age-group.

The suggestion to give away these savings so as to qualify for state benefits is contemptible, leave aside being completely illegal.

I believe they could have £26K in savings, value of house disregarded, in order to qualify for means-tested pension credit. If they're in poor health, what about Attendance Allowance - has that been thought of? It's non-means-testable and non-taxable. The person with mini-strokes may well qualify, needing help with personal care.

atush

The are both above SPA- are they taking their state pension? If they haven't, it is now way ]ast time to claim and they would have a large deferral built up? But if the one spouse is:

Cannot the spouse get the 60% SP based on their spouses record? This does not stop until next year- for new retirees. Those over SPA now can claim this, and it seems it may have been deferred by not claiming. Have you called DWP with them?

I agree with all above. They have the money for the work they need. Spend some getting it done.

Spelunthus

I'm sympathetic to the OP. What they mean is "Elderly parents CHOOSE to live as if they were poor"... and that's not an uncommon occurrence for the 80s-90s generation. They're being "frugal" - it just looks like "mean". IMHO this is a human-relations issue, not a financial one. The OP needs to get into major dialogue with parents ; what do they want, can they see how contrary they're behaving etc. and encourage them to spend on themselves, downsize, equity release or whatever. You may consider talking about POA as an option, if they are truely unable to cope. All these views from my own experience. Good luck.

fiscalfreckles

They have to use their savings - simple. Nobody likes it, but you can't claim extra cash just because you don't want to spend your own!

Do they get a council tax reduction? Each Council is slightly different, but they may qualify as pensioners.

somethingcorporate

It actually beggars belief they want to give away money to get more money.

Logic fail right there.

Spend. The. Money.

Money_maker

Or is it really them that wants to give it away?

A shroud aint got no pockets so are the family putting pressure on?

margaretclare

Both are in ill health, need emergency dental treatment, have had mini-strokes, need small operations etc - but because they are living in borderline-poverty and are keeping the savings for retirement home time - they are just falling in to ill health more and more.

They refuse to do a means test any more because the value of the property is high and they have the savings. Yes they should sell the house but it's all they have and have lived there for 60 years. Neither want to move and both want to end their days there.

If they want to end their days in their own home then why are they keeping savings for a retirement home? These 2 statements do not add up.

Hoonay

No, I don't 'know this would be fraud'. If I did, I would not be asking so openly. I thought this was an open forum where you come to ask advice which is what I am doing.

My wording is terrible. By retirement home, I/they mean a care home, if health deteriorates further, post strokes.

By benefits, I mean dental care specifically and any council tax deductions for low income. They need to be means tested and although income is less than £7k per year, because the house they live in has high value and because of savings, they cannot qualify for discounts it seems. If that's what it is, fine - I'm asking for advice.

Yes POVERTY. Strong word isn't it? When OAPS wrap themselves in newspaper to stay warm in bed in the winter, can't afford nursing, heating, emergency dental, orthopaedics, new shoes etc.

They visited Citizens Advice Bureau a couple of years ago for advice and were told to not spend a penny of any savings as it will be needed for when one goes in to a care home and will probably get them a year to two years max. So they are now terrified to dip in to savings as it's kept only for that reason. They don't want to be separated and put in to hospices or homes so are imposing this on themselves - yes imposing being the operative word before the peanut gallery starts up again.

As a concerned daughter, of course I am going to ask in general what can be done.

A NURSE suggested my father gifts his savings to a family member to look after so he can get a discount on council tax.

Hoonay

le_loup wrote: »

I think you probably know that this would be fraud.

Nope, that'll be why I'm asking on a public forum, but thanks for the assumption.

Hoonay

Spelunthus wrote: »

I'm sympathetic to the OP. What they mean is "Elderly parents CHOOSE to live as if they were poor"... and that's not an uncommon occurrence for the 80s-90s generation. They're being "frugal" - it just looks like "mean". IMHO this is a human-relations issue, not a financial one. The OP needs to get into major dialogue with parents ; what do they want, can they see how contrary they're behaving etc. and encourage them to spend on themselves, downsize, equity release or whatever. You may consider talking about POA as an option, if they are truely unable to cope. All these views from my own experience. Good luck.

Yes, exactly and thank you. It's very difficult to stand by and watch OAPS do this to themselves because of a fear of losing everything. The house is in disrepair - was bought by a grandparents as a tumble down old cottage - the area has become up and coming, old cottages there are now worth 6 figures and that's affected the value of theirs - but they've been there 3/4 of their lives and just want to end their days there - can't see how that will be possible. But thanks for the understanding.