Elderly parents living in poverty

greenglide

At the age of 80 (and he could be older) he is entitled to a Cat D pension but the OP has not responded to multiple postings saying this.

ognum

A legitimate use of their money is to prepay their funeral expences, a friends father did this to lower his funds in order to get financial aid.

greenglide

A legitimate use of their money is to prepay their funeral expences, a friends father did this to lower his funds in order to get financial aid.

But that gives the absolutely no benefit in terms of todays problems.

They need to spend some of the savings on things that will be of use today - the things it is claimed they cannot afford but in practice they can but choose (misguidedly) not to.

atush

Cheeky_Monkey wrote: »

My understanding of the OP is that her father isn't eligible for a State Pension because although he worked for years and was self-employed, he chose not to pay his National Insurance Contributions :eek:

The point is they ARE eligible for some sort of State pension, and have not been claiming it for approx 18 years. which means it has been deferred with a nearly 200% uplift?

TBagpuss

I agree with PPs - they were given terrible, and inaccurate advice by both the CAB and the nurse.

They should be using their savings NOW to pay for the things they need NOW, whether that is improvements to the property, day to day living expenses or a mixture of the two.

They need to look into the position with regards to pensions and other benefits. Your dad may well be entitled to some pension, if they have health problems then look into attendance allowance and other disability benefits (some of which are non-means tested)

In terms of care fees, if that situation arises, then if one of them needed residential care the fees could be charged against the property and then the property would be sold to pay these once neither of them remained living in the house. So they don't need to hoard their existing savings for that potential cost.

Another option which has not, I think, been mentioned yet, is Equity release, which would allow them to unlock some of the capital in their home if they need to do so.

Have a look at the Age UK sitehttp://www.ageuk.org.uk/money-matters/claiming-benefits/benefits-calculator/

They have benefits information and general advice - if your parents are not comfortable using online services there is also a helpline 0800 169 6565, and details of local groups.

le_loup

TBagpuss wrote: »

I agree with PPs - they were given terrible, and inaccurate advice by both the CAB and the nurse.

Or they misunderstood.
Or they chose to hear what they wanted.
Or they have cognition problems.
Or this whole thread is a wind up.
"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."

TBagpuss

NB - for pension credit, their capital of £40,000 would be taken into account and assumed to amount to income of £60 per week. (5p per week per each £500 over £10,000)

So spending some of their capital on current needs would potentially bring them into a position where they would qualify for pension credit and council tax benefit .

Your Dad claiming the Cat.D pension he is entitled to would give them an extra £3,600 per year.

Cheeky_Monkey

le_loup wrote: »

Or they misunderstood.
Or they chose to hear what they wanted.
Or they have cognition problems.
Or this whole thread is a wind up.
"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."

I suspected as much from the beginning. The whole scenario is so ridiculous it's laughable :rotfl:

margaretclare

downshifter98 wrote: »

I don't get the impression that the main issue is deprivation of assets - it's just someone who finds themselves becoming responsible for elderly parents and desperately looking for ways to take control of the situation in a way that the parents would go along with - all of the advice given here is spot on but it can be awkward to make other people live in a fashion that goes against a lifetime of habits. The moral of the tale is don't get to your 80's with savings unless they are a considerable amount - sums such as £40,000 leave you in no mans land - sans benefits but scared to spend.

I disagree. I've always been pleased when I had savings to pay for unexpected things that arise, and the reverse when I hadn't. Both situations have arisen in the past, and that's why, at the OP's parents' age, I'm still saving, because we simply do not know what may arise in the time we still have left to us. But that doesn't mean we don't spend, on essentials of course, but also on enjoyment.

As a former nurse and midwife I would never have strayed into the realm of financial advice, an area I was not qualified in. The nurse previously mentioned was acting well outside his/her levels of knowledge and expertise in giving that ill-advised 'advice'. It may not even have been advice seriously given. It may have simply been an off-the-cuff remark - 'oh you should do so-and-so...' - rather than something meant to be followed, serious advice about health and lifestyle. People hear what they want to hear, or they select parts that suit their own way of thinking.

Mojisola

TBagpuss wrote: »

In terms of care fees, if that situation arises, then if one of them needed residential care the fees could be charged against the property and then the property would be sold to pay these once neither of them remained living in the house. So they don't need to hoard their existing savings for that potential cost.

If only one of the couple needed residential care and the other continued to live in the house, its value would be ignored.