Pension query, please!

DairyQueen wrote: »

Good advice.

This forum is great at providing sign-posts and detailed information on specific retirement/investments issues but, from the info. provided, the scope of your problem appears too wide for us to suggest anything specific that could substantially help you. You require a detailed financial review and support from a personal advisor, and the best source of free advice is CAB.

You indicate that things were OK until OH retired and that he only retired two years ago. You have since sold a nice home in which is invested (for most in their 60s, and even if mortgaged) a sizeable chunk of equity. Yet, within this two-year period you have used-up all of your savings. Presumably this includes all of the house equity. In such a short period that would require a lot of spending.

It suggests there were sizeable debts that were settled from the house proceedings and/or you were living substantially above your means for a long period prior to OH's retirement. The former could be the result of the latter.

The situation you describe couldn't happen so quickly unless the financial foundations were already rocky. OH may have been in denial for some time prior to retirement and, after a lifetime of financial dependence, you may have been too detached from financial issues to realise what was happening.

Until your husband accepts reality you will be hard-pressed to begin solving the consequences of the lack of planning but at some point he will have to face the facts and address them. Seeking information independently in the meantime will ensure that you are prepared for his reality check.

If the over-spending has been going on for years then there may be unsecured debts - credit cards/personal loans/overdraft. You may not be aware of these. If there are (and you are) then head over to the debt forum. The people there will be able to point you in the right direction. This site is anonymous so don't be afraid to reveal all of the painful stuff. Yes, you may be judged negatively from some members but many more will be helpful.

If you can find a job it will be as beneficial mentally as financially. Even a low-paying, part-time position will make a big difference to your finances and confidence. Are there any small stores near you? Places like the Co-op are enthusiastic employers of retirees. OH has financially supported your household for decades and now you have an opportunity to help return the favour. You are only 67. That's no age.

Malthusian is correct that the Pension Reforms would not have been the solution for your situation, although they may have provided more flexibility in resolving specific issues. The reforms would not have increased your pension pot and it's the size of that relative to OH's former earnings that has triggered the extreme drop in lifestyle.

The bottom line is that you both failed to plan and save for retirement. You have both overspent/undersaved during most of your productive lives. I am not lambasting you but It may help you engage with OH if you accept that you are also responsible for this situation and that you want to be part of the solution.

Also, thank you for sharing your story. It will be helpful to younger readers to understand why retirement saving throughout life isn't a discretionary expense. I am just sorry that others may learn at the expense of those who, like you, suffer real hardship.