Im getting £250,000 Inheritance ,,, benefits will stop .. Best way to invest it ?

poppystar

moneytree999 said:

Eco_Miser said:

How did you arrive at that  £25,000 a year to live figure?  I live on much less than that.

Rent £300 +  Council Tax, Gas / Electric, Service Charge ..... Bills + Food etc etc...I might need even MORE than £25,000 pa !

You seem unsure exactly what you might need. £25000 seems quite high as others have noted. Maybe use as a starting point the amount you get paid in benefits and to cover housing now - what does that currently add up to? Is it really close to or more than £25000? 

kempiejon

I got a quote about £18kpa, 61yo non-smoker from a level annuitiy.

jimjames

moneytree999 said:

Alistair31 said:

Then just use it paying your way until it is fully spanked and then your benefits will be reinstated, no?

Taxpayers will thank you. 

It seems a shame to go through the whole lot , and NOT have security for me when i reach 70+ ...But might be only option 

What would you have done age 70 if you'd not had it? I'd think the logical thing if you want security is to buy your own property, then you can't be turfed out through whatever else changes in future.

There are plenty of options to invest it and get a decent income from £250k long term but most would involve taking some risk which you might not feel comfortable with. If that's the case then using an IFA might be a worthwhile option.

QrizB

kempiejon said:

I got a quote about £18kpa, 61yo non-smoker from a level annuitiy.

There's a time and place for level annuities, bit I'm not sure this is it.

moneytree999 said:

Eco_Miser said:

How did you arrive at that  £25,000 a year to live figure?  I live on much less than that.

Rent £300 +  Council Tax, Gas / Electric, Service Charge ..... Bills + Food etc etc...I might need even MORE than £25,000 pa !

I agree with the posters above. You need to work out a proper budget, based on your current income and outgoings.

My retired parents - both about 80 - live quite happily on £20k a year total excluding rent (they own outright).

kimwp

Worth noting that (presently at least), it seems to be better to not have the full state pension than to have the state pension if you have no savings or other income because having pension credit opens up other benefits such as council tax reduction, free healthcare etc (I don't know exact details)

So OP, if you are unable to work for the rest of your life, you are in a pretty good position getting this money (or at least better off than you were without it) - you can live off it at a higher spend than you currently have, until it runs out  then get your non-full state pension, pension credit and other benefits.

If this is the plan, it would be sensible to use some of the money to invest in things that may be less available when you are back on benefits - the most obvious thing being a house, but maybe good quality pots and pans, knives etc (although tbh I think inexpensive ones do the job just as well), health related things maybe?

Devongardener

moneytree999 said:

Alistair31 said:

Then just use it paying your way until it is fully spanked and then your benefits will be reinstated, no?

Taxpayers will thank you. 

It seems a shame to go through the whole lot , and NOT have security for me when i reach 70+ ...But might be only option 

Well in effect it’s no different to people working until retirement, spending what they earn through their working life, and then claiming benefits if they need to.  

You could put the maximum allowable into a pension to ensure you have more income in retirement.

njkmr

Get yourself a little part time job to top up...?

QrizB

njkmr said:

Get yourself a little part time job to top up...?

OP is in sheltered housing and has qualified for LCWRA. Your suggestion seems unlikely to be an option.

I realise this is the "savings and investments" board not the "benefits" one, but please think before posting.

powerspowers

Hi moneytree 
it seems you’re feeling a bit overwhelmed by the inheritance and what to do next. 

you’ve had some unkind comments on here, I think people forget that not everyone is super
savvy with their money. it can be overwhelming and feel easier to keep things as they are. I understand why buying a house feels out of reach. 

I agree you need first to do a realistic budget. Don’t try and make it too tight as you are best having wriggle room if things go up. 

Then look into annuities and see if you can get an estimate of how much you need to spend vs yearly income. Also check if it is fixed income or rising each year. 

Take into account that you will have  your state pension soon. So maybe think about pension +annuity, and keep back the same amount as your state pension in savings (so maybe £7k each year until your state pension age)

If you can’t get an annuity that covers enough, I think your option is to invest the money and live off it each year, then look at HB and PC when eligible. 

Do your housing providers have any tenancy support workers who can help you with your budget? Or money helper may be able to help https://www.moneyhelper.org.uk/en/contact-us/money-guidance

powerspowers

There’s been some rather unkind comments on here!  I think people forget that not everyone is experienced with managing money. For someone with no experience of buying property or managing larger sums of money, with health conditions and perhaps some other vulnerabilities as to why they are living in sheltered housing, it can be overwhelming and feel much easier to keep things as they are. Not everyone has family support they can trust. There are plenty of parasites who will happily take advantage of someone in this position.