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What do you think about retirement and when will you do it?

Puddy_Tat said:
Don't think descendants get in to debt - doesn't state funding kick in when someone's savings are down to a certain amount?
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Depends how you think about things like money. They might not take your money but if they know they're the ones who'll have to pay the care bill they'll just leave the elderly person to fester and let the family (ie, the closest available female relative) pick up the slack, to the detriment of their own income, career, and general outlook.
 
Puddy_Tat said:
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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Yes indeed.

See, in principle I don’t think it’s a bad thing because there’s an increasing familial device between those with assets/money and those who don’t. Same with inheritance tax (with provisos for situations where the property is still someone’s actual home). The problems are a) these measures don’t effect the actual rich who hold most of the wealth :mad:, and b) our governments blatantly don’t use that money to provide proper services for those without money/to even the playing field.
 
muscovyduck said:
Depends how you think about things like money. They might not take your money but if they know they're the ones who'll have to pay the care bill they'll just leave the elderly person to fester and let the family (ie, the closest available female relative) pick up the slack, to the detriment of their own income, career, and general outlook.
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well, yes - that can often be the case if state care doesn't happen for whatever reason

and yes, usually but not always female relative (one of my uncles ended up effectively retiring in his late 40s to look after his mum - he had to put up quite a fight with his civil service employers because the rules at the time only allowed female staff to take career breaks for caring responsibility) and i'm aware that mum-tat doesn't really have any near female relatives...
 
I felt I couldn’t do a sudden stop so went part time towards the end, and even a few casual spells after retirement. It helped ease me into a different lifestyle and to get used to less money coming in.
The big advantage for my generation has been the ability to buy a home, and therefore have something to leave the kids. In order to do so I never went away on formal holidays as such during my working life.
House prices are ridiculous right now, but if you don’t especially downsize you have to pay out what you get in.
 
Agent Sparrow said:
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 :(
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My best friends mum got into a lovely home mostly paid for by the council, there was a top up of £150 a month I think. But she had zero assets, lived in a council house which was 3 beds opposite a primary school and had dementia, it suited the council to move her. She loved the home when she moved in, it def improved her quality of life, and my friends. But the last 4 years she was incoherent, incontinent and bedridden - I wouldnt want to live like that
 
metalguru said:
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.
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A hard lesson for old Tory voters who were told Corbyn would take their house off them
 
muscovyduck said:
Depends how you think about things like money. They might not take your money but if they know they're the ones who'll have to pay the care bill they'll just leave the elderly person to fester and let the family (ie, the closest available female relative) pick up the slack, to the detriment of their own income, career, and general outlook.
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The simple solution to all these end of life financial issues is simple

Be filfthy rich enough to engage accountants and solicitors to aggressively game the system to protect your assets by putting them in trusts/buying huge swathes of woodland/etc
 
Edie said:
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.
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Typically, you need a 25% for a BTL mortgage I.e. £50k. Plus conveyancing costs - say £1k - and stamp duty of £6km.
 
Agent Sparrow said:
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 :(
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Descendents don't get into debt no, what happened with my Mum is that the council assessed the assets that my parents had (cash, property) and determined that half belonged to my Mum. Because my Dad is still living in the house they can't sell it but we had to pay (roughly £1400 per week) until half of my parents cash was down to £14.5K at which point the council stepped in and pays all of my Mum's care costs except for £95 pw which is covered by my Mum's old age pension.
If my Dad dies before my Mum we will have to sell the house and half the profits will go to pay for my Mum's care until that runs out then it's back to them paying.
An interesting question is what would happen if my parents owned another house but were renting it? (they don't) I presume the tenants would have to leave and the house be sold. Another poster asked that question a while back IIRC but no-one seemed to know.

The aging renters thing is going to be a massive crisis in a couple of decades especially those that don't have private pensions and rely on the state one, they're going to struggle to pay private rents on the state pension to say the least.
 
Numbers said:
.
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Changed quickly too, when we bought our flat in 97 , we had a combined income of about £30k & it was affordable.

When my Dad died 6 years ago , mum decided to give his half of the house to us , signed it over. Then a few years later downsized & we got a "few bob" out of it. That few bob will help me do this place up , eventually we'll sell it and probably move out of London .
 
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Edie said:
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:
View attachment 359359
“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
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My sister has a few BTL properties for her pension , she's had a few hassles with one of them , damage & rent issues.
 
Edie said:
Gen Z are also extremely clued in financially. My two know quite a bit about pensions, shares, mortgages, credit etc aged 17 & 19. Internet generation.
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I hear you, my son (16) earns his pocket money via youtube, mainly because he never got enough from me
marty21 said:
My sister has a few BTL properties for her pension , she's had a few hassles with one of them , damage & rent issues.
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one form of hell would be getting older with the desperate illusion of some previous grandeur that needs to be maintained. The best form of pension plan has to be one of a philosphical retreat. To end with nothing, go out as you came in ...would be the ultimate plan.
 
tep said:
I hear you, my son (16) earns his pocket money via youtube, mainly because he never got enough from me

one form of hell would be getting older with the desperate illusion of some previous grandeur that needs to be maintained. The best form of pension plan has to be one of a philosphical retreat. To end with nothing, go out as you came in ...would be the ultimate plan.
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kind of my book plan . I have mentioned on other threads that i got my book collection down from about 6000 to 3000. When i get old and infirm I will read each book again and then give it to charity. When I finish the last one I shall die...
 
On a practical level, I will retire when my mum dies. With what I have saved, and the flat with <10k left on the mortgage that will be enough. There are some benefits to being an only child.

I dearly hope that isn't any time soon, of course. Don't know that I won't be silently urging her on in 20 years' time though! (I kid. If I can manage to stay at the University that long, the pension would be pretty decent.)
 
Despite what I said up thread, I would love to retire, after 36 years of work. I'm actually desperate to jack it in. I just can't afford it. I know this is snotty, but the thought if stacking shelves at Sainsbury's when I'm 70 just so I can afford to go out occasionally just terrifies me. I used to do bar work to do that in my 20s.

If we are penniless, we could do a retirement mortgage/ equity release thing. My daughter is apparently the sole beneficiary of my mother's will, so hopefully, she'll die soon (my mother, not my daughter) so my daughter gets a better start on the property ladder. (she is an only child, and as my sister's kid's are stupidly rich, they don't need anything)

hey, fuckin ho.
 
pbsmooth said:
On the renters time bomb - home ownership rate has actually gone up in the last 10 years.
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One of the reasons I've focused on getting the house paid for is that the concept of paying rent after a lifetime of work appals me.

I hate calling people out over stats, but I thought it was the opposite?
 
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