Retiring

hammocity said:
Downsizing, Equity release and RIO's are a way to unlock capital in retirement. The first is the best option but do it sooner rather than later. Some people can't bear to part with houses where they have brought kids up or it holds some sentiment.

A Rio and equity release are best accessed once the savings or drawdown pensions are gone. I'm budgeting to do this if I make it to around mid 70's as I draw down my pension, it will be gone by then, in my case it will be equity release as to get a RIO you still need the requisite income which I won't have, will just be the state pension by then.

As a final point, a Financial Adviser I know told me it's incredible these days that some people factor in inheritance, if it's a big estate then there's no problem. However if it's say around 100k that money would soon go if the person leaving the estate were to be placed in a care home, £3k per month, leaving just £23k ring fenced to pass on, it soon goes. I'm in that boat with my old man who's 88 but I've not factored that to my finances, anyone could have something like a stroke at anytime and need lifetime care.
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RIO?
 
hammocity said:
Downsizing, Equity release and RIO's are a way to unlock capital in retirement. The first is the best option but do it sooner rather than later. Some people can't bear to part with houses where they have brought kids up or it holds some sentiment.

A Rio and equity release are best accessed once the savings or drawdown pensions are gone. I'm budgeting to do this if I make it to around mid 70's as I draw down my pension, it will be gone by then, in my case it will be equity release as to get a RIO you still need the requisite income which I won't have, will just be the state pension by then.

As a final point, a Financial Adviser I know told me it's incredible these days that some people factor in inheritance, if it's a big estate then there's no problem. However if it's say around 100k that money would soon go if the person leaving the estate were to be placed in a care home, £3k per month, leaving just £23k ring fenced to pass on, it soon goes. I'm in that boat with my old man who's 88 but I've not factored that to my finances, anyone could have something like a stroke at anytime and need lifetime care.
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Regards the pensioner in a care home, my Auntie was the typical example of this
After her fall so she couldn't live in her own home, we sold her house and found lovely sheltered accommodation with a carer visiting twice daily
The funds from her estate were eroded hugely in two years
 
abu13 said:
What are peoples thoughts on the tax free withdrawal of 25%, i know 3 people who withdrew this as soon as they could at 55. Seems a little silly to me unless you are desperate for the cash.

They have used the money for holiday's, new cars and other "treats" rather than a desperate need for it.
I understand the live for today thinking but seems short sighted to me.
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I've had this conversation with Mrs Lady.. she thinks we should take the 25% because we can?! She wants a new kitchen but she's totally missing the fact that she can have a new kitchen out of the savings we already have....

I am due to speak with an IFA but she'll undoubtably get her way ;-)
 
dickie davies said:
Regards the pensioner in a care home, my Auntie was the typical example of this
After her fall so she couldn't live in her own home, we sold her house and found lovely sheltered accommodation with a carer visiting twice daily
The funds from her estate were eroded hugely in two years
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Very expensive at around £3k per month, around £6k from the State Pension (for a lot of older females) and it's £30k a year out of the estate, as you say really doesn't last long.
 
abu13 said:
What are peoples thoughts on the tax free withdrawal of 25%, i know 3 people who withdrew this as soon as they could at 55. Seems a little silly to me unless you are desperate for the cash.

They have used the money for holiday's, new cars and other "treats" rather than a desperate need for it.
I understand the live for today thinking but seems short sighted to me.
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My mate who’s the same age as me did that but he did lose his wife in 2020 with cancer . He knew she was dieing so he withdrew it all . Don’t blame him really . Im 56 in May but I’m leaving mine until it’s full maturity which is when I’m 62 .
 
sky tot said:
My mate who’s the same age as me did that but he did lose his wife in 2020 with cancer . He knew she was dieing so he withdrew it all . Don’t blame him really . Im 56 in May but I’m leaving mine until it’s full maturity which is when I’m 62 .
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I can understand his position completely, i think i would do the same in those circumstances and make the memories while they had the time.
 
abu13 said:
What are peoples thoughts on the tax free withdrawal of 25%, i know 3 people who withdrew this as soon as they could at 55. Seems a little silly to me unless you are desperate for the cash.

They have used the money for holiday's, new cars and other "treats" rather than a desperate need for it.
I understand the live for today thinking but seems short sighted to me.
Click to expand...
take it whilst your health lets you see the world .
 
My mortgage finishes in May . If I use some of the money I used to pay to my mortgage to top up my pension, will have to pay Prudential set up charges ?
 
hammocity said:
Downsizing, Equity release and RIO's are a way to unlock capital in retirement. The first is the best option but do it sooner rather than later. Some people can't bear to part with houses where they have brought kids up or it holds some sentiment.

A Rio and equity release are best accessed once the savings or drawdown pensions are gone. I'm budgeting to do this if I make it to around mid 70's as I draw down my pension, it will be gone by then, in my case it will be equity release as to get a RIO you still need the requisite income which I won't have, will just be the state pension by then.

As a final point, a Financial Adviser I know told me it's incredible these days that some people factor in inheritance, if it's a big estate then there's no problem. However if it's say around 100k that money would soon go if the person leaving the estate were to be placed in a care home, £3k per month, leaving just £23k ring fenced to pass on, it soon goes. I'm in that boat with my old man who's 88 but I've not factored that to my finances, anyone could have something like a stroke at anytime and need lifetime care.
Click to expand...
My mum and dad have written a will so that when one dies that part of the house is passed onto the kids, therefore if the other had to go into care then they could not be forced to sell the house. If the other then died in care they could only take the value of the 50% of the property so the kids don’t lose out. Pisses me off that someone who has never saved for old age would have sod all and would get the looked after for basically free yet someone who’s done the right thing would essentially be penalised and anything they’d saved to pass on would be gone.
 
Bluemanc100 said:
I've had this conversation with Mrs Lady.. she thinks we should take the 25% because we can?! She wants a new kitchen but she's totally missing the fact that she can have a new kitchen out of the savings we already have....

I am due to speak with an IFA but she'll undoubtably get her way ;-)
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Without being nosey, it also depends how much it is. If it's out of the pension it can't grow assuming it's all left in a SIPP. You should be able to get at it quickly if needed if you leave it in the SIPP anyway.
 
hampshireblue said:
Without being nosey, it also depends how much it is. If it's out of the pension it can't grow assuming it's all left in a SIPP. You should be able to get at it quickly if needed if you leave it in the SIPP anyway.
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25% is £25k.. the company pensions I have were always a top up after my time in the mob .. the MOD pension and SWMBO’s NHS pension are our main income
 
sky tot said:
My mortgage finishes in May . If I use some of the money I used to pay to my mortgage to top up my pension, will have to pay Prudential set up charges ?
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I'd recommend giving them a call to check if you can still pay in if you're not paying anything in at the moment. If you ARE currently contributing then usually you just ring them to increase the monthly payments but there are lots of different kinds of pensions with different rules. Most times you can get this info online on their website or customer account portal.
 
TheRemainsOfTheDave said:
I'd recommend giving them a call to check if you can still pay in if you're not paying anything in at the moment. If you ARE currently contributing then usually you just ring them to increase the monthly payments but there are lots of different kinds of pensions with different rules. Most times you can get this info online on their website or customer account portal.
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Cheers pal, yea I’m still paying in . I will give them a ring in May
 
Blue Maverick said:
My mum and dad have written a will so that when one dies that part of the house is passed onto the kids, therefore if the other had to go into care then they could not be forced to sell the house. If the other then died in care they could only take the value of the 50% of the property so the kids don’t lose out. Pisses me off that someone who has never saved for old age would have sod all and would get the looked after for basically free yet someone who’s done the right thing would essentially be penalised and anything they’d saved to pass on would be gone.
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Have you checked the deprivation of assets rules about that strategy?
And mum and dad ought to pray the kids never divorce.
 
Blue Maverick said:
My mum and dad have written a will so that when one dies that part of the house is passed onto the kids, therefore if the other had to go into care then they could not be forced to sell the house. If the other then died in care they could only take the value of the 50% of the property so the kids don’t lose out. Pisses me off that someone who has never saved for old age would have sod all and would get the looked after for basically free yet someone who’s done the right thing would essentially be penalised and anything they’d saved to pass on would be gone.
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Thats a way too simplified view of it, and you need to remember it isnt about yours. Its theirs, for them however that needs to be divvied up and spent. Yours comes later out of what is left
 
Uncle Wally One Ball said:
Thats a way too simplified view of it, and you need to remember it isnt about yours. Its theirs, for them however that needs to be divvied up and spent. Yours comes later out of what is left
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So if the house is worth £200k and one dies, £100k is left to the kids as shared ownership. The other then goes into care and then dies later, the house is sold the £100k that was left to the kids is safe and the other £100k would be used to pay any care bills? Is that not how it works.
 
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