£100K - difference of opinion on how it should be spent.

My DP (57) has had bowel cancer and a stoma out of nowhere. We've had, healthy/average lifestyle friends die in their early 60's. I was widowed in my 30's. I'd travel now. I know on here posters think that healthy living equals healthy aging, but i.m.e it doesn't. It's very much a matter of luck. I think that you are being over cautious.

They’re not ‘comfortable’. They are late 50s and in debt to the tune of £190K.

Ultimately, I think it’s your dh’s decision, but I would pay off debts and mortgage, and then use the £1200 a month you save to travel.

I mean, unless you’re planning one of these £100k round the world 18 month cruises, saving for 6-12 months would give you a wonderful holiday.

I love to travel, but it’s a luxury. If you got sick tomorrow and couldn’t work (I’m 44 and have been off sick for a year). Would you be more grateful you took a holiday or more grateful you aren’t going to lose your house?

How have you managed to get such high DB pensions on your salaries? That seems very strange.

Travelling. It's your husband's inheritance, so I think he should get the deciding vote and you're in agreement with the rest of his plans for the money. Life is so short and you don't know what your health might be like in future. I would do the things you want to do while you can.

I definitely wouldn't consider paying off the student loans. They only need paying back if your child earns over a certain amount. Most people end up with some or most being written off. And it's your child who gets the benefit of the education so that should be on them to repay. You're already planning on supporting very generously.

@Wrinkledretainer I understand your nervousness. What you need to do is break the pensions down into what each of you would have if the other sadly died. This would partly inform how much lump sum each of you take as I would be aiming for the same pension/widows pension so who ever is the survivor has the same amount.

You have a house worth £600k once the mortgage is paid off. This can fund a smaller downsized property with lower running costs which cuts outgoings and potentially releases capital.

Life is about a balance and you both agree on paying off the debts, the patio and new car which is sensible. That leaves about £60k, personally I would probably go for £30k off mortgage and the rest on travel/savings. However, this is DHs inheritance so I would defer to him.

This calculator https://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator/ shows how much you can save by overpaying the mortgage. If you reduced the mortgage by £20 or £30k but keep on paying the same monthly amount how much would you save in interest and how many years earlier would you pay it off. Once you have no mortgage you have £1200 a month to save and use for holidays.

Surely it doesn't have to be all either mortgage or travelling. Can you not spend say £30k travelling and have an amazing time and put the rest left over on the mortgage?

Given your ages, have you considered paying AVCs into your pension? I appreciate that you have a very healthy annual pension already but you could pay into AVCs tax free (you would get a rebate from HMRC assuming you haven’t maxed your pension allowances) then you would be able to draw this down tax free.

It’s probably worth a quick call with a financial advisor. It isn’t always best to reduce the mortgage but it’s nuanced and very much case- dependent

Live now OP. You are comfortable already and no one knows what’s around the corner. Enjoy the money, esp as it’s DH’s inheritance and his preference

yeah that...
plan B: split the money and use £50k towards each strategy.

I also wouldn’t worry about a mortgage on 85 k a year pension. If DH dies you will still be on at least half of that anyway.

Plus you will have 200k pension lump sum too.

What age are you planning to retire?

What are does your £85k a year kick in?

My guess is that once you hit 63 you will be ready to retire.

I would do whatever enables you to retire soonest and THEN do all your travelling. If you retire early enough you will have plenty of early retirement years.

In DH’s plan you fit your travelling in now in between work but then might be tied to work for longer.

What’s your plan for paying off your mortgage? And managing before state pension kicks in?

£85k a year with no mortgage to pay seems a v v generous amount to me.

I would prioritise the debts, allowing you more free cash every month.
You've experienced travelling, you will again, debt free would be a huge relief.

I'm not really sure why it's one or the other. If you pay however much off the mortgage and have an extra £1200 a month, couldn't you spend that on travelling each year? That's enough to do some fantastic trips.

My understanding is in for a penny in for a pound.

You are in a hybrid weird half in half out situation with the students loans imo.

If I had spare cash from an inheritance and was wondering what to do with it I would clear the student loans and do it as an interest free loan or 2% or whatever you feel comfortable with.

Plus your DC is earning while at Uni this shows great character and commitment too.

If one of you dies before 70, and you have travelled, at least you did that together. If one of you dies before 70 the remaining spouse may care less about the patio and wish they had had the chance to see the things they had talked about with their spouse. The widowed party of the couple I knew found everything less vibrant after being widowed, nothing was as enjoyable as it had been, and I know there was regret and sorrow until their own terminal diagnosis. At least if they’d managed to do the trips they’d planned together, there would have been some comfort there.

Enjoy yourselves now.

You never know what’s round the corner.

Well, assuming that it's the husband who inherited the money (as his parent died), then he decides what to do with it.
When my husband had a similar substantial inheritance from his late mother, I never asked exactly how much or what he did with it, because it wasn't left to me! I'm sure I've benefited from it in all the years since, but wouldn't dream of telling someone what to do with their own money.

Is there not a middle ground? Pay off a lump of the mortgage and save the rest for travelling! Takes a chunk off the finance debt burden but means you live now rather than one or the other?

Hate to say but “YOLO” isn’t an excuse if the worst happens as you’ve said - as someone whose parents lost a business in their 50’s/60’s - you’d rather have the mortgage paid off a few years earlier when I’m SURE you’ll be living fit and healthy a decade from now.

you don’t sound like you live so frugally now you look back with regret. If you regally want to cut money I’d get a very cheap, newish car as a run around as cars only ever depreciate 🤷🏻‍♀️ up to you both!

If one of you dies surely that’s a reason to travel now?

So you’re doing some really prudent things but he wants to spend the rest on some fun. I do think, as it’s his inheritance, he gets to have a bigger say especially as you’re getting a lot of what you want too. And, as a retiree, I know a number of friends who never lived to reach retirement age. Tomorrow isn’t promised. Live a bit.

I would pay for my DC education and clear their student loans. Possibly ask them to pay back interest free at the same level as student loans.

Invest 30k.

Use the rest for fun.

Is the 60k pension (not state) equally split? 30k each? If one dies the other gets half so 15k?