Left savings but dont have job

pete91210

Hi there,
So bit of a long explanation but will try to cut it down.
Sadly my father in law died last year of covid and left my mother in law a widow. My mother in law doesn't work and hasn't worked for over 35 years now (raising children) but is still only 59 so of working age.
As of now she has savings of £55000 and is using this to live off. Obviously this is not going to see her through to state pension age and her daughters are explaining to her that she is going to need a job eventually.
If this money wasn't there then she would have to claim UC while looking for work.
Basically what we want to know is, should she get this money spent for her then to be able to claim, or spread this money over a longer time and live cautiously until it is gone?

calcotti

What do you mean by 'get this money spent for her'?

If she spends her money reasonably then she can apply for UC when it drops below £16,000.

If she gives it away or spends it frivolously then she may be treated as having deprived herself of capital in order to qualify for benefits in which case she will still be treated as having money that she is considered to have deprived herself of.

It would probably be sensible to get a State Pension forecast.

(She may also want to consider working.)

sheramber

Why do you think she should spend her money so she can claim UC?

What benefit do you think there will be in her claiming UC?

pete91210

Of course getting a job for herself is a must for the future but obviously 35 years out of work and having just lost a husband is still raw at this stage.
Maybe i should of said it better than " getting this money spent for her" but all we really want to know is can she spread this money over say a 2 year period and not be classed as depriving herself of assets. 

theoretica

This is a money saving site, so spending more than you need to is unlikely to be recommended.  Finding her own income while she still has the safety of savings will likely be much less stressful too.

calcotti

pete91210 said:

.. all we really want to know is can she spread this money over say a 2 year period and not be classed as depriving herself of assets. 

It all depends on what the money is spent on. What is reasonable depends on her circumstances.

TELLIT01

Currently she is roughly £40k above the upper limit for UC so spending at £20k per year will see an entitlement to UC in approximately 2 years.  I don't think that is excessive spending as she will presumably either have rent to pay or the upkeep of a property along with all the other bills - which are rising rapidly.  She can certainly spend money on maintaining the property (if owned) and replace 'white goods' and furnishings when necessary.  She can also clear any debts.

MEM62

pete91210 said:

As of now she has savings of £55000 and is using this to live off. Obviously this is not going to see her through to state pension age and her daughters are explaining to her that she is going to need a job eventually.

Why eventually? Seems a little short sighted.  If she seeks employment sooner rather than when the money runs out she will still have a nice sum to offer some support & security in her later years.

LADYXXMACBETH

I would suggest she find employment. If she spends £20k a year and gets used to that then when she finally gets UC it will be a shock. I'm on nowhere near that with 2 children. 
If she starts work now then she will get an income and have a nest egg that will definitely come in useful when she does retire. 

turnitround

It would be a massive mistake to 'get rid' of £40,000 in order to claim benefits. That money should be a cushion for later years a living on a single pension wont be easy.

calcotti

OP, to be clear, as a single claimant and if she has no rent to pay her UC entitlement would £324.84/month.