Parents with no pension, I’m a higher earner

Sea_Shell

As you're not an only child, I'd seriously consider being completely open and transparent with your siblings if you do end up doing something that involves any charge on the house or any expectation of repayment.

We hear too many stories of good intentions going bad.

Goodproblems

Yes I would be completely transparent with my siblings, no issues there. 

I don’t think the mortgage is interest only or has a fixed term but I’m checking. I know it sounds bizarre but I think you can get these bespoke arrangements if you’ve been with a bank long enough and never defaulted on your payments...

Marcon

Brenster said:

maybe you could purchase their house as a pension investment, for maybe a negotiated lower price you could purchase and let them live rent free (securing your future and giving them more financial freedom in there retirement).  Obviously possible with siblings but prob would get more complicated.  

Wouldn't work. It would have to held within a SIPP and SIPPs can only hold commercial property - and if parents are living there rent free it isn't going to meet that requirement.

Anonymous101 said:

Have you looked at equity release schemes?
Like many people my initial reaction to these is to be hesitant however I know that the Meaningful Money podcast covered them recently and said they were vastly improved over recent years. Perhaps its worth a sceptical look into especially as you're not relying on any inheritance by the sounds of it.

As I mentioned earlier, if OP has the cash, they could effectively do their own version of 'equity release' by lending cash on a formal basis to their parents (not necessarily with a charge over the property though, and of course without any of the commercial mark up associated with equity release).

Nick9967

Do what my sister did for my parents, purchase a new house for them, allow them to save/invest/spend the proceeds of their sale , don't take any income from them for rent etc , they have cash to live with and spare, you have a further investment property for your pension in the future, worst case is capital gains and stamp duty, other than that happy , comfortable parents , a good thing to do and everyone's happy 

Sea_Shell

Nick9967 said:

Do what my sister did for my parents, purchase a new house for them, allow them to save/invest/spend the proceeds of their sale , don't take any income from them for rent etc , they have cash to live with and spare, you have a further investment property for your pension in the future, worst case is capital gains and stamp duty, other than that happy , comfortable parents , a good thing to do and everyone's happy 

Does she have the full responsibility and obligations of being a landlord, even if no rent is changing hands?

Goodproblems

They definitely don’t want to move house...

Thrugelmir

Goodproblems said:

I don’t think the mortgage is interest only or has a fixed term but I’m checking. I know it sounds bizarre but I think you can get these bespoke arrangements if you’ve been with a bank long enough and never defaulted on your payments...

You may do if you bank with Coutts. Mainstream banking somewhat unlikely that there's anything bespoke. A £100k of debt is a lot to be heading into retirement with. Possibly a question of sticking ones head in the sand. Time eventually catches up. 

atush

Dazed_and_C0nfused said:

You could read the thread about paying £2,880 into a pension, getting £720 tax relief and then, ideally, taking it in tax years where there are unused Personal Allowances.

Each person can do this as a non earner and could pay in more if they have pensionsable earnings greater than £3,600.

Do this, and pay in for them.  You could also help them pay off their mtg, using some of your TFLS from one of i assume your many different pensions?

Goodproblems

@Thrugelmir you are quite possibly right. I am doing some digging...

Ciprico

How old are you... if over or nearing 55 could be and option to max out your pension contributions to gain max hrt relief and gift them from your existing after tax savings. So indirectly getting hrt relief on same sum of money you give away...
Another thought. Maybe not much point in gifting a large lump sum/paying off mortgage as this may attract iht in future so you end up paying potentially 40% iht on money you've already paid i/c tax on. Maybe better to drip feed an £x per month allowance  so they don't accumulate...