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AIBU?

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Original poster

AIBU for sacking off pension contributions in anticipation of large inheritance?

108 replies

minormajor · 27/05/2025 22:11

If you knew you would be getting a large (c.£1m) inheritance, would you bother paying into a pension at all or prioritising retirement savings if you are on a lowish income?

Dh & I are 52, both self employed ticking along nicely but far from flush and didn’t start paying into a pension until our 40’s & even then minimal amount as that’s all we could afford.
Our kids are older: one at uni one working/training so we’ve both taken on more work and finally in a position to save so naturally thinking about increasing our pension contributions.

Parents are 80 & 81 in pretty good health and I have a sibling who would be joint beneficiary. Inheritance could be 15/20 years off if parents live as long as their parents did and I’ve accounted for IHT and potential care home fees on the £1m estimate. No inheritance on DH’s side.

AIBU : make your own retirement provisions don’t rely on inheritance or
YANBU there’s a decent inheritance coming your way so no need to prioritise your pension

OP posts:
x2boys · 27/05/2025 22:17

Thelonelydonkey · 27/05/2025 22:15

Do you know that they haven't left everything to cats' protection?

I assume the Op knows what's in their parents will ,my parents have told me exactly how their will is laid out.

MidnightPatrol · 27/05/2025 22:17

I fear there’s a lot of people out there who have earmarked their parents assets as their future meal ticket, which are going to be very disappointed.

A high-risk strategy from you IMO. And - if your parents are going to leave you £500k, is that not better off helping your children out with homes etc?

You have spare money to save, so do so. Save it in ISAs if you don’t want the limitations of a pension on it.

AlohaRose · 27/05/2025 22:17

I'm not sure what you mean by having accounted for care home fees in your estimate of any inheritance? Heaven forbid anything should happen to either of your parents any time soon but one of them could have a catastrophic health incident next month and end up in a care home for a decade. If the total estate is worth £1m than it's all eaten up on looking after that parent. Even if you mean that you estimate £1 million left after care home fees, there's no way of knowing how long a parent could be in a home or possibly both parents. I think you would be very foolish not to continue to make the maximum pension payments which you can reasonably afford.

Mischance · 27/05/2025 22:17

Sounds somewhat crazy to me!

Nursing homes hoover up funds, including value of house when ready cash dwindles.

I am afraid you will just have to keep paying in .......

Whiteflowerscreed · 27/05/2025 22:15

YABU nothing in life is guaranteed

WheresMyPlanetGone · 27/05/2025 22:15

EmeraldRoulette · 27/05/2025 22:13

They might live well into their 90s and need a care home. Are you familiar with the costs?

i'm guessing you have other savings. Hopefully you aren't talking about just spending all your money willy-nilly in case you get an inheritance.

The OP said she’s aware that her parents could live for another 15-20 years and that she’s accounted for care home costs in her OP.
I don’t think I could bring myself to rely on it completely OP, you never know what will happen. I’d be making my own provision regardless.

Thelonelydonkey · 27/05/2025 22:15

Do you know that they haven't left everything to cats' protection?

EmeraldRoulette · 27/05/2025 22:13

They might live well into their 90s and need a care home. Are you familiar with the costs?

i'm guessing you have other savings. Hopefully you aren't talking about just spending all your money willy-nilly in case you get an inheritance.