What do you think about retirement and when will you do it?
- Thread starter RubyBlue
- Start date
muscovyduck
Good IT skills and food hygiene competent
FWIW when I get some proper advice in a month or so I'm going to be asking about how to reduce the damage of any investments I have. Will be interesting to see how much admin it is and how much of a hit I'll take financially
Am I right in thinking even the money that's sitting in my current account is potentially being used by the bank to invest?
Am I right in thinking even the money that's sitting in my current account is potentially being used by the bank to invest?
bellaozzydog
rolling turds in glitter
ETA I’m not even joking I’ve only ever worked maximum six months in a year since 2002. Some times less. Only corona year had me actually putting in a proper years work (1 month holidays) and that was because I got stuck at workBeen doing this for 20 years
Ah well thank you all very much for your opinions on BtL.
I’m a bit unconvinced still on the ethics. I don’t think owning a flat or house (that my lad would probably end up living in for at least some of the time) is that bad. Say I put my monthly excess of £500 in my private pension (SIPP)- that’s like a medium high risk fund. Even tho I chose this:
“High” on some “Environmental, Social & Governance” scale… I bet it still goes to fucking sweatshops, oil companies, non unionised, zero hour gig economy businesses etc etc. Is that really worse or better than buying a flat in town. Dunno tbh.
Anyway, will very much have a think about what’s been said. Maybe I do just stick it in my private pension (which has got like 20k in or some token amount) and go from there. Deffo food for thought. Ta xx
I’m a bit unconvinced still on the ethics. I don’t think owning a flat or house (that my lad would probably end up living in for at least some of the time) is that bad. Say I put my monthly excess of £500 in my private pension (SIPP)- that’s like a medium high risk fund. Even tho I chose this:
“High” on some “Environmental, Social & Governance” scale… I bet it still goes to fucking sweatshops, oil companies, non unionised, zero hour gig economy businesses etc etc. Is that really worse or better than buying a flat in town. Dunno tbh.
Anyway, will very much have a think about what’s been said. Maybe I do just stick it in my private pension (which has got like 20k in or some token amount) and go from there. Deffo food for thought. Ta xx
UnderOpenSky
baseline neural therapy
I think a lot depends on how much deposit you can bring to the table. I think the landlords who are probably "struggling" most are those who put the minimum in and got an interest only mortgage expecting to take an "income" from their properties. I think with a larger deposit and not planning on taking money out of it, it leaves enough to overpay the mortgage and still have money to put aside to keep the property to a decent standard for the tenants. Rent protection insurance I think is also available to reduce the risk of someone not paying then having to wait a long time until they leave.
LDC
On est tous des pangolins
Leaving the ethics/politics aside I know a few people who rent a place out, and they all have a constant stream of nightmare issues to sort out, it all seems very stressful and time consuming really.
Agent Sparrow
the age of slippers and migraines
8 pages in 3 days! Either the average age here really has crept up fast or we’re all wishfully thinking ahead… 
I’m in my early-mid 40s now and have been paying into an NHS pension since 2006, which should be complete before the national retirement age but no idea when as they keep changing it and who actually reads each lot of T&Cs?? It’s the third biggest reason for why I’m still soldiering on in the NHS
(the first reason being that I’m still passionately committed to the idea of free at the point of use, available to all healthcare; the second being that private practice would require additional admin skills I couldn’t manage and evening working).
I’m in my early-mid 40s now and have been paying into an NHS pension since 2006, which should be complete before the national retirement age but no idea when as they keep changing it and who actually reads each lot of T&Cs?? It’s the third biggest reason for why I’m still soldiering on in the NHS
(the first reason being that I’m still passionately committed to the idea of free at the point of use, available to all healthcare; the second being that private practice would require additional admin skills I couldn’t manage and evening working).
mx wcfc
Well-Known Member
I may not have much choice about it soon. I'm employed and relatively well paid, but I have very little actual work to do, and am being "managed out". I'm just clinging on to the paycheck for as long as possible.
37 years of paying NI, so should get the full state pension. Company pension scheme worth diddly squat, as I only ever paid in as little as possible, due to high mortgage costs and the expectation that smoking 20 fags a day would kill me early anyway.
The house is bought and paid for, thankfully, and we've not no car loans/credit card debt but I won't have any actual money to do very much.
I'm only 60, so could get a part-time job, do a bit of freelance, I guess.
37 years of paying NI, so should get the full state pension. Company pension scheme worth diddly squat, as I only ever paid in as little as possible, due to high mortgage costs and the expectation that smoking 20 fags a day would kill me early anyway.
The house is bought and paid for, thankfully, and we've not no car loans/credit card debt but I won't have any actual money to do very much.
I'm only 60, so could get a part-time job, do a bit of freelance, I guess.
beesonthewhatnow
going deaf for a living
You’re not being cynical. I know my mum and dads biggest fear right now is that everything they worked and saved their entire lives for - and wanted to pass on to me and my brother - is going to end up being used to pay for their end of life care.
bellaozzydog
rolling turds in glitter
Apart from the ethics of BTL I think views on here are somewhat skewed/heavy on the “downsides”
However
I would probably say that BTL is moving way out of the affordability range of most people as the interest rates make payments so high that you would have to evidence considerable income/disposable cash versus monthly outgoings.
Mortgages have always had an element of personal finance stress testing (affordability if rates rise) as part of the process/equation but the current rates are going way beyond that.
The whole buy to let frenzy seems to have been based on low interest only payments, property price hikes and refinancing to get a deposit for “the next one” while generating cash flow(reaping tenants cash)
BTLs are basically hiring property off banks and rinsing tenants. Amatures with “portfolios” of property don’t own anything other than the first deposit they put down and if the rents are left behind by brutally rising interest rates landlords will have to sell their properties or eventually lose even their deposit
It’s fucked up and in the last 6 months it’s put the final nail in the next generations prospects of ever “owning” a house
Bear in mind mortgages are just treadmills that we chain ourselves to for life.
The materials were paid for the first time the property was built, after that property prices are just an imagined/made up tax on life and human productivity
MickiQ
In My Defence I was left Unsupervised
Yes but given your money is totally safe and given the right kind of account will even return you interest why would you object?
Yeah tbh I’m not looking at making a fortune. I’m looking at a modest two bed flat or back to back circa 200k with a 20k- 40k deposit.
Rent would hopefully cover most of a capital repayment mortgage. I’ll chuck any extra I have on top.
My lads can live there when they need/want and their rent will be going towards their own asset not a landlord.
In 20ish years I own a 200k asset for my lads, which for my retirement pays me a grand a month or something in rent.
That’s… it.
Altho I will now consider just chucking it in my diddy pension.
bellaozzydog
rolling turds in glitter
That’s the healthy way of looking at it, long term without the desperate level of greed that landlords end up exhibiting and rinsing from tenants
Still it’s a fucked up system
Agent Sparrow
the age of slippers and migraines
When this all hit the news not so long ago I was a bit confused, as both my nan and granddad and my granny had to sell their homes for care home fees and this was before/on the turn of the century. Hasn’t it always been the case or was this our family’s choice to get a place at somewhere they felt was slightly nicer?
Numbers
an ting!
Mrs Numbers and her 3 sisters inherited a fully paid off 3 bed maisonette when their Dad died which they rent out, they’re planning on selling it this year as it has been an absolute nightmare with tenants.
They’ll inherit the main family home when their Mum dies, hopefully not for a long time but she’s 82 now and is showing signs of ill health. That house is fully paid off too.
Between those 2 properties + a house in Guyana, also fully paid off, between the 3 it’s a fair amount.
What’s really interesting is her Mum & Dad were able to buy and manage all 3 properties - her Mum was an auxiliary nurse and her Dad a BT engineer, neither on a big wage so shows how times have changed.
They’ll inherit the main family home when their Mum dies, hopefully not for a long time but she’s 82 now and is showing signs of ill health. That house is fully paid off too.
Between those 2 properties + a house in Guyana, also fully paid off, between the 3 it’s a fair amount.
What’s really interesting is her Mum & Dad were able to buy and manage all 3 properties - her Mum was an auxiliary nurse and her Dad a BT engineer, neither on a big wage so shows how times have changed.
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smmudge
i know the smudge is true
Of course, no one's money just sits there. To be able to carry on functioning banks will use the money people deposit in money markets, lending to other people etc. They're required to hold a certain percentage of all deposits in cash, but just a percentage. However they are also required to guarantee the money in your account if you ask for it, and if they go under and can't, the FSCS will pay it instead (up to £85k per bank).
I think it's been the case for a long time - a sort of social care russian roulette. If your grandparents/parents need to go into a home, it has to be paid for by the family even by selling their home (sometimes the home-selling comes at the end of the process).
I experienced it with both my parents: with my dad in a home for 2 years and my mum for 6 years. Even during my Mum's time (2002 - 2008), I think it cost around £36,000 a year. Almost completely cleaning out their assets.
Agent Sparrow
the age of slippers and migraines
So why did it get suddenly reported as a new thing I wonder? 
muscovyduck
Good IT skills and food hygiene competent
I wondered this too. I think it's about the fees increasing, similar to how the NHS has been hollowed out by things like not owning the buildings they're in and other private contractors the same has happened to the care system too. I can't remember but I'm sure someone on here knew?So why did it get suddenly reported as a new thing I wonder?
shakespearegirl
just worked out taglines
I’d rather go to dignitas (or similar) than wither away in a home for years wasting money. Longevity is over rated imo
kebabking
Not a Girly Swot, but I like them....
Yup, a hilltop on a cold night. A bejou hipflask with something from Speyside to lower body temperature and reduce sensation, and float off in the wind....
Isn't it a long-standing problem that no one has been able to fix? I think Theresa May had a manifesto commitment that no-one should pay more than £100k towards the costs - but it fatally damaged her in the 2017 election.So why did it get suddenly reported as a new thing I wonder?
There have been various insurance-based proposals which would involve everyone paying something towards potential costs - but politically its been impossible to put any solution in place.
Agent Sparrow
the age of slippers and migraines
Tbf my granddad in particular didn’t have a bad time at his. He came round our house to see family most weekends, enjoyed regular walks along the seafront, and apparently had a group of old ladies (also residents) who were very keen for his company
Agent Sparrow
the age of slippers and migraines
Maybe it’s due to any fully state paid options being removed for anyone with assets…?
What happens when people don’t have the assets? Does the government fully pay for anywhere within a certain cost bands? Is there a very limited choice of underfunded homes? Do descendants get into debt?
The other big question is what’s going to happen when an increasingly large number of private renters get to retirement age? That’s potentially a huge crisis in the making
I’m aiming for 75 years of good quality life. That’s a stretch goal.
Gives me 30 more years.
After that I’ll be happy to go. I’m not invested in longevity. Like shakespearegirl .
My lads will both have turned 18 this year. Gonna get together a rough plan of some meaningful work, travel adventures, bit of living in the US, some knitting, and enjoying my family, potentially grandchildren, and friends. Good food, good wine. I’m done. Life well lived
Even if I died next year I’d of had a brilliant life so it’s all good
Gives me 30 more years.
After that I’ll be happy to go. I’m not invested in longevity. Like shakespearegirl .
My lads will both have turned 18 this year. Gonna get together a rough plan of some meaningful work, travel adventures, bit of living in the US, some knitting, and enjoying my family, potentially grandchildren, and friends. Good food, good wine. I’m done. Life well lived
Even if I died next year I’d of had a brilliant life so it’s all good
Puddy_Tat
naturally fluffy
So why did it get suddenly reported as a new thing I wonder?
combination of more people being home-owners, more people living to an age where they need social care?
What happens when people don’t have the assets? Does the government fully pay for anywhere within a certain cost bands? Is there a very limited choice of underfunded homes? Do descendants get into debt?
don't think descendants get in to debt - doesn't state funding kick in when someone's savings are down to a certain amount?
the political difficulty is that a lot of voters don't want to have to pay for their / their relatives' care, but the alternative is paying more tax and then they don't want to pay for other peoples' care...
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