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 !

Nonetheless having wealth on paper gives you more options than non wealth on paper.

My MIL has been retired for 25 years on a similar sum. 25 fucking years and is fit as a butcher’s dog, another 10 to go absolute minimum

Have you see the cost of McCarthy and Stone flats? Very little incentive to downsize.

Indeed. And an absolute bastard for your kids to sell when you pop your clogs, they’re almost impossible to get rid of.

A 1 bed retirement flat round me is less than half the price of my ex LA house. Would free up a lot of cash and be cheaper to run.
Would be a very sensible option if money is tight.

I'd never heard of Mccarthy and Stone. Just googled now. The ones near here look bloody lovely! Each to their own but I think I'd love something like that when I'm older! Perfect.

This is a flat in the nearest place to me. It’s a characterless new town with the highest crime rate in the county and no public transport. It’s absolutely tiny.

www.mccarthyandstone.co.uk/retirement-properties-for-sale/uplands-place-cambourne/property-13/

For the same money you could buy this. Walking distance to town centre, railway and bus stations.

www.rightmove.co.uk/properties/128999507#/?channel=RES_BUY

Now tell me what a great idea retirement flats are.

The accept fees are pretty much 50% of any profit that you make in addition to a flat a few thousand administration fee and that’s without the maintenance costs for exam for 25 grand to paint the hallway. Split between 10 residence.

*exit fees

Have you see the cost of McCarthy and Stone flats? Very little incentive to downsize.

Don't downsize to a retirement flat then. Never heard of McCarthy & Stone. My wider family just downsized to smaller houses.

I think we've already reached that point.even up north, the areas with jobs, facilities, transport links etc. are too expensive for the average person to buy a home in.

There are some very cheap areas of the north, but those aren't the areas where there are good quality jobs and prospects for young people.

That's a 2 bed 2 bath new build. There's obviously going to be more affordable options.

I'd like to downsize to a bungalow but where I live they are sold off for a fortune and the land used for massive homes.

My 3 bed terrace to a 1 bed flat would save £150k+. Would still be worth it. If people don't want to and can afford not to downsize that's fine but it's disingenuous to pretend it's not a viable option.

It’s all that’s on offer in the entire county from McCarthy and Stone. You can have a two bed rabbit hutch in a desert with no public transport for the same price as a period three bed house close to amenities. You’d be a financially illiterate idiot to buy the flat.

The thing that kills your disposable income is debt. In your parents' case, they have paid off their big ticket assets like house and car. They have no childcare costs to cover. Theyve been wise in their working years by making provision for retirement like this. Hats off to them. You sound a bit unpleasant. Would you be happier if they didnt own their own home, had to rent and couldnt afford to turn on the heating? Your parents have 'played the game', done the right things, paid tax all their lives. looked ahead and made provision for their old age. Thats commendable. Honestly, its hard to believe the posts you read on here sometimes..

@Iwantmyoldnameback get your bungalow asap. There is a dearth of suitable accommodation for the older population, my mil was telling me about it. She downsized last year.

Many employers didn't offer workplace pensions. It was a given that if you wanted one you had to work in the public sector. Low wages, good pensions

Obviously, they are mortgage free, have adult child (children), so they have lots of disposable income. My parents live off one salary and save other. They just bought brand new decent SUV for cash. No way in the world for such scenario in my house. My parents were much poorer though when they were my age, if it's some sort of consolation.

I really can't afford to, they are like hen's teeth here apart from the social housing ones which I don't qualify for.

Share your sentiments exactly

Sorry meant that for ZIPPS !

They are here too. They don’t build bungalows because they need a larger plot and there’s less profit in them. We’ll just stick a stairlift in if the time comes when we can’t manage the stairs.

I genuinely think that retirement flat looks lovely! Obviously if the location is shit that's a different matter but it looks much more suitable for someone elderly than the house to me. How would you cope with stairs in your 90s? These are things people should consider before they become a problem, surely?

How is it suitable for someone elderly when it’s a bus ride from any shops and there’s no bus service? My dad was going upstairs until he died - he was 99. And stairlifts have been around for a very long time.

I posted the two to illustrate what shocking value for money retirement flats are. Add in that they’re virtually impossible to sell - which would be a real issue if you needed residential care - and the £80 a week service charge, they’re a pretty rubbish idea altogether.