Living on savings

AnotherJoe

bigadaj wrote: »

Well your 'non guaranteed' income is almost certainly more guaranteed than most income streams, safer than salary, benefits, rental income etc etc

Income is always more guaranteed if you are the one paying it.

All very good points but I suspect that finance companies haven't yet cottoned on to the big changes in retirement income away from third parties paying it. I'll post back what happens.

Will they just take my word for my income for example, will need to see bank statements, or what ?

bigadaj

AnotherJoe wrote: »

All very good points but I suspect that finance companies haven't yet cottoned on to the big changes in retirement income away from third parties paying it. I'll post back what happens.

Will they just take my word for my income for example, will need to see bank statements, or what ?

You're generally dealing with poorly trained sales and customer service people who are just following a script.

Drawdown of regular sums can reasonably be described as regular pension income, the fact there is effectively a lump sum there to pay any purchase off fully at any point should be an advantage.

The whole issue around financing a car purchase is probably more complicated, taking finance options to benefit from discounts and incentives is often the preferred option, to then settle the finance a few days or weeks later to avoid any significant interest.

AnotherJoe

colsten wrote: »

It might be safer to pick a number upfront and stick to it, as what you tell insurers will be lodged in at least one industry database (National Hunter etc).

I didn't know that, thanks for the info. Well I've picked my number, which is what I'm currently "paying myself" so that's documented via payments into my bank account, and will stick to that should it come up again in a similar context though i dont expect it to as a car is the only place i can see me getting finance (and I'm only getting finance because its far cheaper than buying)

westv wrote: »

Can you lease cars using non guaranteed income?

I guess it depends what you mean by "non guaranteed" As another poster said, income from a job isn't actually guaranteed either, so arguably a pension even if from drawdown is more stable than from a job.

As it turned out they didn't quiz me as to my source of income, but accepted it, and the deal is now done. Roll on new car

westv

I suppose I was probably more thinking of mortgages where proof of income is required. In that respect employed income is more guaranteed than drawdown income as far as most lenders are concerned.

bigadaj

westv wrote: »

I suppose I was probably more thinking of mortgages where proof of income is required. In that respect employed income is more guaranteed than drawdown income as far as most lenders are concerned.

Though in many senses, less guaranteed, in the real world.

Teacher2

This is a very relevant thread for me as my OH was expecting to be able to work on a three day week until six years' time when we both collect our state pensions which were going to be the last piece in the jigsaw of keeping us afloat financially.

Unfortunately, he was made redundant this week which has thrown our plans into disarray. We might be able to hang on by adding £500 a month from his small redundancy payout to our small occupational pensions and using our son's financial contributions to the housekeeping. The money will run out just as we are to collect the state pension. It will be a very near run thing and won't allow for expensive purchases like cars or boilers. Luckily we just replaced these items without knowing how fortunate this would prove.

So, from being savers we are plunged into spending capital to survive. I am reeling from this as it is anathema to my way of life and not at all what I had planned. I am also upset that we cannot continue to save my son's maintenance money for a deposit for a property for him.

On the other hand, my OH could have got an even smaller redundancy payout if he had just been offered the statutary minimum so there is that to be grateful for.

It is all a bit uncertain, especially with savings interest being at rock bottom and inflation rising. An added problem is that I am already so money savvy that there is little fat to trim and running our house costs a fortune.

We'll see. Never say die. Thank gooodnes we live in the best country in the world with free medical care and pensions.

stoozie1

@teacher2 sorry to hear things are tight and the redundancy.

One possible suggestion, could you post a SOA on the debt-free wannabe section of this forum, for advice on any ways your expenditure might be able to reduce to adjust to this?

They are very good, even if the issue isn't specifically accrued debts.

atush

Any chance of him getting some paid work either full or PT?

AnotherJoe

Teacher2 wrote: »

This is a very relevant thread for me as my OH was expecting to be able to work on a three day week until six years' time when we both collect our state pensions which were going to be the last piece in the jigsaw of keeping us afloat financially.

Unfortunately, he was made redundant this week which has thrown our plans into disarray. We might be able to hang on by adding £500 a month from his small redundancy payout to our small occupational pensions and using our son's financial contributions to the housekeeping. The money will run out just as we are to collect the state pension. It will be a very near run thing and won't allow for expensive purchases like cars or boilers. Luckily we just replaced these items without knowing how fortunate this would prove.

So, from being savers we are plunged into spending capital to survive. I am reeling from this as it is anathema to my way of life and not at all what I had planned. I am also upset that we cannot continue to save my son's maintenance money for a deposit for a property for him.

On the other hand, my OH could have got an even smaller redundancy payout if he had just been offered the statutary minimum so there is that to be grateful for.

It is all a bit uncertain, especially with savings interest being at rock bottom and inflation rising. An added problem is that I am already so money savvy that there is little fat to trim and running our house costs a fortune.

Why? can that be fixed?

We'll see. Never say die. Thank goodness we live in the best country in the world with free medical care and pensions.

Why not? No pockets in a shroud etc.

jamesd

Teacher2 wrote: »

he was made redundant this week which has thrown our plans into disarray. We might be able to hang on by adding £500 a month from his small redundancy payout to our small occupational pensions and using our son's financial contributions to the housekeeping. The money will run out just as we are to collect the state pension. It will be a very near run thing

Are you using the trick to pay £2880 net a year into a pension then take out £3600 gross and make an extra £720 per person tax free each year (assuming income tax personal allowance is available)?

Your husband could also pay in more than £2880 this year because the limit is taxable pay. And at least 25% taken on the way out will be tax free even if there is some taxable part, so in effect he'd get back some of the income tax paid this year, via the pension as a step in the middle.

Teacher2 wrote: »

with savings interest being at rock bottom and inflation rising.

In this post I give a mixture of peer to peer lending that would produce about 7% interest on average, after allowing for bad debt. Unbolted with its protection fund and security is a pretty good choice, though don't put more than a quarter of your money in any single P2P place because there is no FSCS protection. The amounts there are for £200,000 to invest because that was right for the person I was writing to but you can scale it down to less.