Parental income

[glassdarker]

So, context, just seen 10% pension increase.

At same time I've been talking about doing something jointly with my mum and dad. So as a result we talked about income. My parents worked in manual/ administrative roles, neither went to Uni, but worked hard all their lives. Retired ten years ago, own house and car. I appreciate that many pensioners won't be in that position.

They both have small final salary schemes (one less than 10k, one less than 20k). They both get full state pensions. After normal bills their disposable income is a 2k a month. 2k a month ! I am blown away !

But bloody hell we are both higher rate tax payers and we are counting every penny (though we have a lot of extra spend due to a disabled DC). But AIBU to be a bit shocked by the difference in how we are experiencing the cost of living crisis ? I am glad they are doing OK and we don't need money from them but I am still a bit jaw dropped by this... and fantasy spending even 1/4 of that monthly disposable income !

Here we go again!

You'll get your arse handed to you here but I get your point.

Surely it isn’t a surprise that people who are mortgage free have more disposable income compared to those with a mortgage/rent. It should be basic common sense, not draw droppingly shocking.

You'll get your arse handed to you here but I get your point.

Yep

Of course plenty of pensioners are poor.

However there is huge inter generational inequality largely due to decades of wage stagnation, erosion of pensions & inflation of assets.

Some pensioners are poor, some are not. Those without mortgages and decent pensions will be fine.

I have retired and am mortgage free with a tiny pension in my own right, a state pension and a small pension from my late OH's employment. I have a little bit of savings from downsizing. I consider myself privileged to not have to worry about bills this winter and feel desperately sad for those who cannot say this.

There are many folk like me and it is sad that my DC are working their tripe out and meeting themselves coming back just to stay afloat. I help where I can.

The private pension just under £20k isn’t a small one. Your parents are relatively comfortable. The 10k pension is more typical. Some people’s private pensions are quite small. I do agree though that on average families with children are struggling more than pensioners.

Is that a 20k a YEAR pension? If so that sounds like a lot to me. My salary is just under 30k!

So have they paid off their mortgage. That will be a large reason why your disposable income is less

No mortgage, no childcare. Of course pensioners are going to be better off a lot of the time.

And I'd bloody LOVE a 10% rise. Unfortunately I'll probably get between 1 and 2% again.

YANBU OP. My mum has a private widows pension courtesy of my dad of £40k p.a. (inflation linked), plus she gets the state pension. It irritates me that she's just got a 10% uplift in her state pension which she really doesn't need. I probably wouldn't mind so much if she didn't constantly bang on about being so hard up.

However, there are plenty of pensioners who are trying to survive on a state pension alone - they very much need an inflation linked uplift and I'm pleased they now have that.

We would also have £2k a month spare if we didn’t have to pay mortgage, child related stuff etc

A huge amount of this countries wealth is with people over 65. Yes, there are poor pensioners but they are not the majority.

A huge amount of them vote Tory though, so this was bound to happen.

Average cost of a place in a care home is £700 a week.

@lanthanum You know most pensioners aren’t in care homes right?

They’re mortgage free and were probably paying a serious chunk less than you or I when they were paying it, so that makes a considerable difference in comparison.

All I can say is, good for your parents. They worked throughout their adult lives and do not receive anything to which they are not entitled.

I am in much the same situation and I always worked. Husband and I had periods of being extremely hard up as young/youngish married people and parents. It did improve later on, we were Ok when we reached our fifties.

Now as a retired person I am pleased not to have to worry about money - and grateful. I am well aware that others are not so fortunate, especially younger ones. and if I can do anything to help others, discreetly, I will.

Do you want to hear your parents are struggling or something? They have worked all their lives, finished raising their children and paid off a mortgage. Good for them. Why on earth would you begrudge them this.

I don't know OP. Everyone's circumstances will be different. As you say you have extra expenses due to DC's needs and I'm guessing you have housing costs too whereas your parents are mortgage free. You also mention your parents own their own car, do you have car payments yourself?

We're a family of 3 and my husband and I are higher rate tax payers like yourself but we have more disposable income than your parents. This is largely due to buying a house below our means so we have a small mortgage, being lucky enough to not need childcare and buying a reliable second hand car outright 6 years ago.

Disposable income is so variable depending on choices, circumstances and fortune. I think it's very difficult to compare.

Agree. It’s not a surprise that the conservatives have chosen to protect pensioners who are a core demographic for them, but the idea that they all need a triple locked increase and other support is laughable.

Just to add, that my own parents are pensioners and I don't know the details of their income but I would take a lot of comfort from knowing that they were that comfortable.

My experience with my family is not from the UK (they worked and still live abroad), but my mum alone with her (non-UK) state pension, private pension, and as a beneficiary of my dad's pension (he's been dead 20+ years), which she could also claim from 65, means she is paid about £5000 a month. Yes, you read that right. She was an accountant so had a good professional salary before retirement, but certainly, we were not wealthy growing up. Her partner gets about the same. It's a bit mind blowing.

That's not a criticism, btw. She worked hard and sacrificed a lot for her career and to build financial security, which she hadn't always had. But it's just quite difficult to imagine. Dh and I are high earners, but I truly don't expect to have a pension like that one day.

Your parents private pensions are not small. Most people will never have that. Their 2k bills per month is lots though? How can that be?

£20k final salary pension is in no sense a small pension. That's equivalent to a pot of about £400k for someone in a DC scheme.

Private and state pensions. No mortgage or dependent children. It’s no surprise they have spare cash.