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Original poster

How can I help my retired mum with money?

107 replies

Flame76 · 07/03/2022 22:05

Not sure what help I can get, but feeling desperate so it's worth a shot asking for advice here! My mum is close to 70 years old. Lives in a 3 bed house. She's single and very lonely, also has a history of depressing and anxiety/stress. Screwed over in a divorce decades ago so zero savings. Her pension covers basic living costs (council tax and other bills, small budget for food etc) but she has nothing left for one off expenses, like house or car repairs. Her fence blew over in the recent storm. The repair cost has to go on her credit card. Her credit card bill is gradually going up and up. She has no money to pay it off. Luckily it's zero percent interest. But this can't go on forever. How can I help? She won't be able to afford the energy price rises later this year. It makes me sick to see other people's parents going off on cruises while my mum is crying down the phone to me about affording a fence repair. Am I missing any obvious benefits she may be eligible for? Does she have to pay council tax despite her age? The only avenue I can see is selling her house and downsizing, which she would do. But the cost of selling/buying, I don't think this will free up cash to keep her going forever.

OP posts:
Original poster
Flame76 · 07/03/2022 22:40

Yes I have gone through money coming in and outgoings. Not really many avenues for savings. My statement wasn't meant to be dramatic. If the pension covers the basics and we free up £50k by downsizing, literally what happens when that £50k runs out?

OP posts:
Killermontstreet · 07/03/2022 22:42

It's also worth checking eligibility for charitable grants. You can do this via the Turn2us website.

whysoserious123 · 07/03/2022 22:43

Downside
Rent out rooms
Live with you
You live with her

EmmaH2022 · 07/03/2022 22:44

Lots of good advice so just adding the info for winter fuel payment

www.gov.uk/winter-fuel-payment

BonnyandPoppy · 07/03/2022 22:45

My friend of a similar age loves having lodgers. It’s company for her and stops her being so lonely. It could be a positive thing for your Mum.

MrsMoastyToasty · 07/03/2022 22:47

Does she get the 25% discount on her council tax for single adult occupancy?
Does she have building and contents insurance which would cover things like fallen fences?

PinkDaffodil2 · 07/03/2022 22:52

If she downsizes she will be paying less for housing costs so her monthly outgoings will be less? Council tax, heating would be less in a smaller place.

Luredbyapomegranate · 07/03/2022 23:02

Worth talking to help the aged.

But downsizing seems like the logical thing. The other option is an annuity (where she signs over the house to a finance company in return for a pension - these can be a screaming rip off so get advice.)

Is it your Dad she divorced from? If he’s still around is there any chance of guilting him into helping out?

Babyroobs · 07/03/2022 23:13

Does she qualify for pension credit ? if any health conditions then maybe Attendance Allowance. Has she applied for council tax support?
Can she downsize to one of these little retirement complexes ? In my village they are about a third of the cost of a three bedroom property ?

TheVillageShop · 07/03/2022 23:21

If your mum is happy living where she is it might be worth looking into equity release. It is regulated now and not the rip-off it used to be, and interest rates are reasonable at the moment.

Here is a link to equity release on Martin Lewis's website (he is not a fan of these plans but acknowledges that in some instances they are a reasonable option to consider):

www.moneysavingexpert.com/mortgages/equity-release/

The most flexible and affordable is a Lifetime Mortgage. She could release enough cash for repairs and to supplement her annual income - you can take the money in stages so you only pay interest on what you've taken so far. You still own your home, it is like any other mortgage so you haven't handed over your home to anyone.

The loan does grow because of compound interest, but you usually have the option of paying some of the interest which reduces the compounding of the loan so it doesn't grow too much.

The amount owed is taken from the estate after death.

Original poster
Flame76 · 07/03/2022 23:28

Thanks all. I will make an appointment with CAB and double check she gets the 25% council tax discount (pretty sure she does) and the winter fuel allowance. Yes, it is my dad she is divorced from. I am trying to guilt him into gifting some money, but he's not known for generosity. Will keep pushing it though. She says she's looked at pension credit and doesn't qualify, but she's in such a state I don't know how thoroughly she will have investigated anything like this and council tax support so will go over it all myself. I have been thinking about the lodger thing and just don't think she'd want to do it (I'd hate it myself too, so understand) but have told her she can move in with me if she needs to (we'll all hate that though!!!). I am also getting her a doctor's appointment as she's just not coping with the stress of this.

OP posts:
Akire · 07/03/2022 23:30

Plenty of older people need rent a room it doesn’t have to be a 25y old who’s out partying it could be a working woman in her late 50s who would love a quiet home to come back to of an evening.

Smudgeis13 · 07/03/2022 23:36

I suggest looking into Attendance Allowance. If she is entitled, it is £60 or £85 p.w. Also once a person receives AA they are entitled to a higher rate of Pension Credit, or, if not previously been entitled, they could then be. Plus she would pay no Council Tax.

PermanentTemporary · 07/03/2022 23:42

Pension credit does at least seem fairly straightforward to work out - my Dad used to get it. If she currently has an income of less than £177.10, with no savings she should qualify to have a top up to that. But I never helped my Dad with his application so I don't know how hard it is to get. My biggest advice is always, always get help with benefits applications from a specialist adviser, unless you are a specialist yourself!

PermanentTemporary · 07/03/2022 23:42

£177.10 a week I mean

Friendofdennis · 07/03/2022 23:45

If she is unwell in any way physically or mentally might it be worth her putting in a claim for pip (personal independence payment). She could get a financial check through Turn 2 Us Further down the line if she starts to feel better could she do AirBnB occasionally to raise some extra money. It could just be for a couple of months a year perhaps

Bagelsandbrie · 07/03/2022 23:53

@Friendofdennis

If she is unwell in any way physically or mentally might it be worth her putting in a claim for pip (personal independence payment). She could get a financial check through Turn 2 Us Further down the line if she starts to feel better could she do AirBnB occasionally to raise some extra money. It could just be for a couple of months a year perhaps
It won’t be PIP - which you can only apply for if under 65 I think - it will be attendance allowance. But definitely look into this. If she has depression and anxiety she may be able to claim for this.
PermanentTemporary · 07/03/2022 23:53

Another thought. What about renting out the house and renting somewhere else to live, perhaps to test out a particular street, block of flats or area?? Or perhaps just coming to stay with you for a precise time period (3 months??) so that she can put 3 months' rent received into a savings account?

That has all sorts of pitfalls - I look around my house and think how much I would have to spend to make it at all rentable... plus there are always unexpected and up front costs to renting out a house. But just putting it out there as an option.

Friendofdennis · 07/03/2022 23:55

With reference to my previous post - I think she may be too old now to claim PIP but she could try attendance allowance. The fact that you she needs emotional support suggests that she could be eligible for it. I also wonder whether she might be up to one shift a week in a non strenuous job. I work a few hours a week for a charity and it makes a big difference financially

Ithinkimalonenow24 · 08/03/2022 00:05

Age uk have benefit specialist that could help,do a benefit check

TheVillageShop · 08/03/2022 00:19

It is very hard to qualify for Attendance Allowance, unless you are terminally ill.

It says on the government website:
Attendance Allowance helps with extra costs if you have a disability severe enough that you need someone to help look after you.

You can get Attendance Allowance if you’ve reached State Pension age and the following apply:

you have a physical disability (including sensory disability, for example blindness), a mental disability (including learning difficulties), or both
your disability is severe enough for you to need help caring for yourself or someone to supervise you, for your own or someone else’s safety
you have needed that help for at least 6 months (unless you’re terminally ill)

You have to need a high level of 'personal care', it doesn't cover mobility needs or cooking, housework or gardening etc.

Babyroobs · 08/03/2022 00:30

@TheVillageShop

It is very hard to qualify for Attendance Allowance, unless you are terminally ill.

It says on the government website:
Attendance Allowance helps with extra costs if you have a disability severe enough that you need someone to help look after you.

You can get Attendance Allowance if you’ve reached State Pension age and the following apply:

you have a physical disability (including sensory disability, for example blindness), a mental disability (including learning difficulties), or both
your disability is severe enough for you to need help caring for yourself or someone to supervise you, for your own or someone else’s safety
you have needed that help for at least 6 months (unless you’re terminally ill)

You have to need a high level of 'personal care', it doesn't cover mobility needs or cooking, housework or gardening etc.

I have helped hundreds of people to claim AA and really don't think it's hard to get an award as long as appropriate medical evidence is provided. They don't even do assessments. In my experience there's a very low threshold for being awarded it !
TheVillageShop · 08/03/2022 00:35

@Babyroobs Thanks, that is good to know. I'm in the process of claiming for my seriously ill DH and will carry on with the form now - I had been led to believe it was really hard to qualify.

StrawberryPot · 08/03/2022 00:36

It is very hard to qualify for Attendance Allowance, unless you are terminally ill.

Not at all my experience.

Babyroobs · 08/03/2022 00:39

[quote TheVillageShop]@Babyroobs Thanks, that is good to know. I'm in the process of claiming for my seriously ill DH and will carry on with the form now - I had been led to believe it was really hard to qualify.[/quote]
It will be fine. Just make sure you include photocopies of medical letters, prescription lists and Gp details etc and expalin as fully as possible the care/ supervision he needs.