£90K for a pensioner to live off

HeWhoDares

I'm requesting you advice.
My Mum is a pensioner and due to circumstance has now sold her property and has £90k in her savings account.

She is deciding to rent - approx rate is £600pcm - and has the lump sum to effectively live off for the rest of her life. She is a pensioner on state benefit only and has a part time job in a store for extra cash.

I want to advise her on the best way to utilise the £90k. My initial view is to put it into as whatever high-interest, low tax savings account she can and use the annual interest to clear as much rent as she can. If in the first year she uses £7.2k to clear her first year rent, what is the best way for her to maximise the interest she can earn so she can (hopefully) clear the following years rent by using interest earned?

Any other ideas are welcome.

Many thanks for your help.

dmg24

Probsbly better to repost on the Savings board.

Techno

When you say your mum is on state benefit do you mean a pension or other forms of benefit? Apart from the state pension most benefits are means tested and with £90k of savings she won't be entitled to these

dunstonh

There is a duplicate thread in the savings section.

jamesd

See the other thread but using saving accounts will have her getting poorer as she gets older, so it's an extremely bad idea for most of the money.

Glad

Hi, Martin’s asked me to post this in these circumstances: I’ve asked Board Guides to move threads if they’ll receive a better response elsewhere (please see this rule) so this post/thread has been moved to another board, where it should get more replies. If you have any questions about this policy please email [EMAIL="abuse@moneysavingexpert.com"]abuse@moneysavingexpert.com[/EMAIL].