Life/money decisions - help!

[YourKindPeachMaker]

Not really an AIBU, more a WWYD.
Me and husband, no children, we’re in our 50s. SORRY IT’s SO LONG!!!
We live in the tiniest one bed flat in (fairly central) London that we own outright, it’s not much but we like it, we love the area, we host a lot, we constantly have people staying on the sofa bed and would love to have more space for family and friends to come and stay. £55k combined income, could take on extra work and get to £70k but so far we’ve prioritised quality of life. We have no debt. As it stands the only pension we’ll have is the state one as we put all extra money into paying off the mortgage.
Sadly soon enough we’re likely to inherit a chunk of money that would be enough for one out of 1) move to a bigger flat not too far from here 2) buy a small property with garden in the EU country one if us is from, a dream we’ve been talking about for decades 3) start a private pension pot.

I’m well aware we’re incredibly lucky and privileged and none of the above options is bad for which I’m grateful every single day, but I’d like some outside perspective to help us make a decision.

1. would give us something to enjoy every single day, plus one of us has a hobby for which a spare room would be a godsend - in London where we’ll have to live and work until the day we drop because no pension!
2. seems a bit crazy to me because when would we go and enjoy it? We both love the city and small town/rural life is something we’ve never really tried - if we don’t like it it may be very hard to flog as the housing market is very slow there. Husband is a dreamer and thinks it’ll be great, we’ll grow our veg and friends and family will come and visit and just a big adventure
3. boring now but I’m aware when we’re no longer fit and healthy we’ll benefit from the income. On the other hand husband is a Live in the present kind of guy and always says we could die any time and should enjoy life now

Defo 2 or 3.
London with no private pension will be miserably expensive/restrictive.

For people who are keen on the quality of life you are very non attentive to your quality of life once you are older, tireder, etc.

I would not put the money into a pension until you have spoken to an advisor about how much it might generate for you on a draw down basis.

Can you afford the upkeep, higher council tax etc, on a bigger flat?

Remember wrt moving that the UK state pension freezes in many countries, you do not get the inflationary increases.

Could you rent out your flat (surely at a high price in C London) while you rent in the other country and try it out? You could end up with extra income that way, and have the inheritance ££ in a pension.

I think you need to do a spreadsheet for each option and see in detail how the ££ pans out.

London is a great place to live once you get older though. The O60 Oyster card (fingers crossed that it continues) is a godsend, so many wonderful free galleries, museums and events etc. Great hospitals close by.

This. Well said, LegendInMyOwnLunchtime!
I'm a pensioner. I can't say enough, Pension, Pension, Pension, Pension. But get some good impartial advice first.

I find the opposite, compared to other places.

Free travel within London.

So much on offer that is free

Tine to sign up to cheap ‘seat filler’ agencies to see theatre for a tiny amount at short notice

Groceries in supermarkets so much cheaper in a competitive area, I am horrified at the prices in Budgens in my extended family’s lovely market town .. where there is also no decent public transport and it’s an hour to a hospital…

No need to run a car in London. The central London parks are lovely, free travel covering the big deer parks (Richmond / Bushey etc) and with a Senior Railcard, especially the one for couples, you can get excellent bargains for a day trip to the sea. Quick free bus to Victoria for even cheaper coach travel.

If you want to spend your time in upmarket cocktail bars it will be expensive, yes.

And probably not for a state pension only budget but I had dinner in a Michelin Guide listed restaurant (early evening menu) for £25 a head the other night. (2 courses).

Definitely 3! Boring maybe but 100% the right decision for the longer term

What were your plans before inheritance?
Is the inheritance enough to buy somewhere to live out of London and rent for income?
Will you both get UK state pension at 67?
Is there any work pension?

This is the free Gvt pension advice service:
https://www.moneyhelper.org.uk/en/pensions-and-retirement/pension-wise

It says it is for people who already have a pension in place but they may be able to talk to you if you say ‘we have xxx to put into a pension’

MSE is also an excellent source of advice. Get reading, get pension-literate, this is not a matter for being a dreamer!

https://www.moneysavingexpert.com/savings/discount-pensions/

Good introduction