Example of things not to do regarding retirement

bostonerimus

JoeEngland wrote: »

It would have been good journalism if the Guardian had used that woman as an example to give advice on good financial planning.

I agree. The Guardian has many great sections and it's the paper I read ,first being an old working class northern intellectual....it should never have left Manchester.....But it's money section is pretty poor and like most papers the personal finance coverage is really bad.

atush

Clifford_Pope wrote: »

Actually she said:


" so that I can contribute small amounts to help my sons get on to the property ladder."

Same as I said, she spent her retrement money/capital helping her children out

JoeEngland

atush wrote: »

Same as I said, she spent her retrement money/capital helping her children out

Is there a financial version of the Darwin award?!

bugslet

JoeEngland wrote: »

She had a mortgage free house worth 600k and so should have no trouble tiding herself over to 66. There are parts of the country where you can get a nice 3 bedroom detached house for 250k, which could have given ~350k after moving. I imagine there are women in genuine hardship as a result of the pension age change, but she isn't one of them.

If you can tolerate the horror of living in a semi, you can buy mine for 170k, and it's an end with a big garden, New roof, Windows, bathroom, kitchen.....

As a woman that at 18 had a pension. age of 60, I'm not a jot bothered that its 67
now, and I remember it being talked about.

DairyQueen

JoeEngland wrote: »

It would have been good journalism if the Guardian had used that woman as an example to give advice on good financial planning.

The Conservative press is no better. The Telegraph's and Mail 's money pages are equally focused on emotive stories designed to provoke reader indignation without apportioning any responsibility to the 'victim' for the consequences of bad decisions. The press exploit the financially naive, vulnerable and ill-informed as vehicles through which to attack the current government, or previous governments, or possible future governments.

As a nation we have a history of failing to educate/inform people about finances and Pension Freedoms have helped highlight the problem. In the private sector the unprepared (i.e. most of us) now carry all of the responsibility and risk without benefit of information and advice.

I think it would be a good use of public money to provide a free, mandatory consultation with an IFA at key ages. Say ages 23, 40 and 55. Hopefully this would dispel illusions, catalyse more (and better informed) saving and pension provision, and save future taxpayers from the need to provide so much financial support to an increasing number of seniors.

Of course, it may also prompt people to save rather than spend less on 'stuff' now. As we rely on consumption and debt to fuel the economy this may be good for the individual but a tad problematic for the national purse.

System

Silvertabby wrote: »

Well, it would have been more than the odd fiver if it was enough to help pay for their house deposits !

No sympathy. She knew well in advance that she wouldn't get her pension at 60, yet still chose to dole out money to her sons.

Annoyingly and suspiciously, she didn't say how much.
But she could have given £10,000 each to three sons out of her £600,000 or whatever it was without it making much difference to her situation.


I agree she doesn't deserve much sympathy, but the notion that she doled out all her money isn't actually supported by any of the (limited) facts we are given.

atush

No one said ALL her money. Just some/enough to make her poorer.

Esp if she is only using cash and not investments to provide an income. And Esp if she is only working 7 hours a week.

AnotherJoe

Clifford_Pope wrote: »

Annoyingly and suspiciously, she didn't say how much.
But she could have given £10,000 each to three sons out of her £600,000 or whatever it was without it making much difference to her situation.

I agree she doesn't deserve much sympathy, but the notion that she doled out all her money isn't actually supported by any of the (limited) facts we are given.

It certainly would, she has 3 years to bridge to her SP, £10k a year income (£30k/3) would likely double her present income.