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Original poster

Is anyone going to be living just on state pension when they retire?

378 replies

Shinyseas · 21/04/2022 22:23

It looks like I will be. Never really earned enough to put money aside for a pension, married someone who was terrible with money and at the age of 51, have youngish DC so even though I’m earning better money now, I’ve got to get them through teenage years, then off to Uni. All feels too late to save anything decent. I’ll be early 60s before my youngest leaves home.

When I checked this week, my private pension is set to give me 1.5k a year 🙁

People do survive on the state pension I know - but it must be very very tight.

OP posts:
Blossomtoes · 22/04/2022 19:53

How is it possible to just sign a house over to your kids when others have to pay ?

It’s not. Local authorities go back a very long time to check deprivation of assets and if you do hand it over you have to pay market rent to stay in it. It’s a load of old bollocks.

kitcat15 · 22/04/2022 19:54

Fireflygal · 22/04/2022 11:40

@CharSiu, 80 is a tough age to downsize. The advice is to move earlier when you are more able. I think mid 70s at the latest.

Companies previously provided good pensions (defined benefits) so the idea of being poor when elderly didn't register for quite a few people.

It is absolute worth prioritising a pension, any amount you can save as with tax relief and long term (10 years) it adds up.

Op, what does your employer contribute?

My Mum downsized at 81….she had all kids and GC to help ….now lives in a lovely little bungalow…with a lovely little garden….been here 4.5 years….81 was the right age for her to move…we are all different

YogaLite · 22/04/2022 19:59

OP, don't forget that if your pension is a defined contribution type, not only your employer chips in but the investment will grow hopefully over and above the inflation rate.

Also, u need to look at it differently: DC type is a pool of money and u will probably be better off using it as a flexible drawdown rather than a set amount per year/month, it's a different concept than a steady income.

That way u could use more when u are still young enough to do more and only much later try to limit to live within state pension only.

Interested in this thread?

Then you might like threads about these subjects:

General money Retirement & pensions
kitcat15 · 22/04/2022 19:59

Blossomtoes · 22/04/2022 19:53

How is it possible to just sign a house over to your kids when others have to pay ?

It’s not. Local authorities go back a very long time to check deprivation of assets and if you do hand it over you have to pay market rent to stay in it. It’s a load of old bollocks.

Not if the house is put into a family trust when you are fit and well….lots of people do this and then have to pay no care costs when their savings run out.

StarCourt · 22/04/2022 20:09

This will be me. I turned 55 last year and used my small pension pot to buy a shared ownership place for me and DD13. Been renting since my divorce 10 yrs ago and this is security for us.

giggbig · 22/04/2022 20:28

It’s not. Local authorities go back a very long time to check deprivation of assets and if you do hand it over you have to pay market rent to stay in it. It’s a load of old bollocks.

People put their money in trusts though.

Blossomtoes · 22/04/2022 20:31

My dad had the bright idea about a trust. His solicitor told him that the local authority would see straight through it and their lawyers were more effective and expensive than him. He strongly advised against it unless he wanted a world of pain.

XenoBitch · 22/04/2022 20:37

I am on UC, and even when I did work, my Band 1 NHS pension would have been worth sweet fuck all anyway.
Am pretty sure I wont make retirement age anyway.

kitcat15 · 22/04/2022 20:37

Blossomtoes · 22/04/2022 20:31

My dad had the bright idea about a trust. His solicitor told him that the local authority would see straight through it and their lawyers were more effective and expensive than him. He strongly advised against it unless he wanted a world of pain.

Was your Dad infirm at the time ? Or had a health condition? My aunty did it at 82 ( fit and well) …..went into a home years later…,once her savings were used up LA paid for her care….my cousin got proceeds of her home when she died ( just as my aunty wanted)

Alphabet1spaghetti2 · 22/04/2022 20:41

Blossomtoes · 22/04/2022 20:31

My dad had the bright idea about a trust. His solicitor told him that the local authority would see straight through it and their lawyers were more effective and expensive than him. He strongly advised against it unless he wanted a world of pain.

This so much this. My in laws did this and it cost them so much money and ultimately their children via less inheritance. They still had to sell the family home and pay all care cost. They were advised against doing so - I was a care home manager then, so had experience of the system. But apparently ‘children’ know nowt. 🤷‍♀️.

Blossomtoes · 22/04/2022 20:44

Was your Dad infirm at the time ?

He was over 90 - it was as transparent as a plate glass window. 😂 LAs are wise to it now, nobody gets away with it any more - nor should they.

giggbig · 22/04/2022 20:44

@Blossomtoes I'm confused are you saying people don't put their wealth in trusts & that trusts don't work?

MeanderingGently · 22/04/2022 20:45

I shall be surviving on a state pension. I have no savings and don't own my home, I rent in a rural area. I'm 63 and have a low income, not much chance of saving up much between now and when I retire at 66.

I have asked for a state pension forecast, I shall get the full amount so that means I will be over the threshold for pension credit. I do believe I could claim for some housing help as I rent rather than have a mortgage; however, I understand this is up to the council in my area and it may not be available when I retire in 3 years' time.

I currently have a car but it is leased, as I have no money to buy a car of my own. The lease runs out when it retire and I won't be getting another lease car, I shall save £199 (plus petrol) per month by not having a car so I should be able to manage. Currently I have to keep the car as I need it to get to work, in order to pay the rent..........

I live near the rural 'bus route so I shall be able to get around, I'm hoping they don't do away with the pensioner's 'bus pass by the time I get to that age.

My current pay is pretty low, it basically amounts to a pension amount plus extra for the car/petrol, so if I can manage now, I should be able to do it once I am retired. I don't want to continue working when I'm 66; quite frankly, I don't think I could do it. I work in hospitality and the work is heavy, I'm on my feet all day and carrying heavy loads, it wears me out and I have all sorts of aches and pains and backache now I'm older. I know it's the job; when I'm on holiday, all the aches disappear. Coupled with the fact that I would have to keep driving, and I would still be taxed lots more once I start my state pension.

giggbig · 22/04/2022 20:45

Of course doing it at 90 is ridiculous.

SantiagodeCompostela · 22/04/2022 20:48

Accountsdept · 22/04/2022 11:48

I intend to work as long as possible as I fear my private pension will not be up to much either as I only started it at 43 due to being self employed and irresponsible!

Snap!

kitcat15 · 22/04/2022 20:50

Blossomtoes · 22/04/2022 20:44

Was your Dad infirm at the time ?

He was over 90 - it was as transparent as a plate glass window. 😂 LAs are wise to it now, nobody gets away with it any more - nor should they.

Guess he should have done it years earlier then

giggbig · 22/04/2022 20:52

It's far harder to prove deprivation of assets if you get rid of assets when fit & healthy.

YogaLite · 22/04/2022 21:00

I think giving away assets works if the donor survives 7 years? And that would make sense when for and healthy.

giggbig · 22/04/2022 21:02

No that's inheritance tax, deprivation of assets doesn't have a time limit but they have to prove the motivation was care home fees so obviously if doing it at 40 & then needing care at 90 it's very hard to prove.

Alphabet1spaghetti2 · 22/04/2022 21:02

@giggbig which is (ironically) the last thing someone wants to do when they are fit and healthy - head in the sand/won’t happen to me/La La La syndrome. Then people suddenly hit 70-80year age, feel they need help/may die soonish and panic and become easy prey for those pushing unrealistic solutions, when the time for doing anything has long since past.

YogaLite · 22/04/2022 21:02

fit not for grrrr

kitcat15 · 22/04/2022 21:04

giggbig · 22/04/2022 20:52

It's far harder to prove deprivation of assets if you get rid of assets when fit & healthy.

Exactly…,my Aunty who did the family trust at 82…. Was fit as a fiddle….didn’t even take a paracetamol…,.hadn’t been the GP in years….the solicitor said if this hadn’t been the case they wouldn’t have proceeded on her behalf…..so not sure how the LA could have proved deprivation of assets ( not that they did..,they accepted the family trust after seeking the paperwork) ….. she did use her saving s up first though

giggbig · 22/04/2022 21:05

@Alphabet1spaghetti2 it depends on the person, if wealth planning is the norm in your family then not so much.

kitcat15 · 22/04/2022 21:05

YogaLite · 22/04/2022 21:00

I think giving away assets works if the donor survives 7 years? And that would make sense when for and healthy.

That’s inheritance tax avoidance…a different thing entirely

Blossomtoes · 22/04/2022 21:10

kitcat15 · 22/04/2022 20:50

Guess he should have done it years earlier then

Show quote history

No, he shouldn’t have even thought of doing it. I was really pissed off with him.

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