What would you do if you were me?

[Spendingmymoney]

Firstly, this is a NC for privacy. Secondly, it's not a brag, I'm genuinely interested in other (genuine!) opinions, and for that reason I'm not going into finer details. Thirdly, I'm not looking for savings/investment advice, more the opposite I suppose!

OK, prelims over. I'm retired, in my mid 60s (so hopefully plenty more years of health and foreign travel to come) and have more money and pension income than I need. (I know I'm lucky; but I had years of being very broke and learned thrifty habits which have stood me in good stead. Plus every penny I have, I worked for). I'm in the position of still being able to save a fair proportion of my money each month, without really having any reason to.

If you were in this position, how would you prioritise your money?

So as not to drip feed - out of choice, my LTP and I don't live together.
I have no debts at all. I own my house.
I have one child to whom I've already gifted a 6-figure sum so they are mortgage free.
I have small grandchildren; I could invest for them but I'm not sure that the amount I'd be happy to give, divided between them, would be enough to make a difference to them in 20+ years' time but might make me a difference to me as I age. Neither could I realistically afford private school fees for all. On balance I would rather my child made the financial decisions and provision for the grandchildren.
I have made my will, LPoA etc.
I may downsize at some point but I don't live in a mansion and there seems no rush to do so - If I do, that will only give me more cash anyway!
I don't have anything put by specifically for care as I age, but I could move into the most expensive care home in this town tomorrow and my savings and investments would cover 10 or more years of care before the house had to be sold. My mother and grandmother both lived independently into their 90s!

I could definitely spend more on holidays and on my house but I never really feel comfortable blowing large sums of money. And my partner doesn't like to travel, otherwise I'd go away a lot more.

What would you do if you were me? How much financial cushion would you want for yourself?

Oh why wouldn't you marry, just to pass that on to your partner?

I wouldn't do anything. Sounds like you are comfortably off. Why would you need to do anything except enjoy what you have.

Because it would only pass on to my partner if we had been married at the time that I took it. Post-retirement weddings don't count!

I know you say about not giving too much to grandkids, but I'd be tempted to stick £2,880 each to your grandchildren's pension. This is the max per year, so you could repeat it in future years if you wished.

You get tax relief, so each GC in effect gets £3600. It will compound away and give them a decent nest egg regardless of how their lives pan out. It is a nice thing for a 55 year old drawing a pension to be able to say their Granny started this off for them.

We've started one for our daughter, as it can't be touched unlike her ISA which could theoretically get blown at 18.

For the here and now, I'd finish going through the bucket list. No time like the present and you are fortunate enough to have both time and money at the moment. Yes to any help that will help make your life easier - cleaner, gardener, handyman etc.

Aside from the usual suggestions of travel in style/comfort, future proofing etc can you use some of your excess funds to help a worthy cause? A charity that means something to you, a local thing maybe or even abroad that you visit and feel connected with? I don't just mean donating online but getting involved.
Maybe you already do that but just a thought.

I’d work out what makes me happy and do it.

So for me being a member of a fancy spa place improves my wellbeing.

Buy the nicest food you can.

Definitely travel, either solo, on a group type holiday or would you be willing to treat a friend and go with them?

I wouldn’t go down the school fee route but I would offer to fund (within reason) an activity for each DGC including any kit they need.

Private health insurance

Taking the family away on a trip such as a mini break or holiday if they would like to go.

If I had enough to be secure and comfortable and could have a few holidays then I’d pay into a SIPP, either for dc to protect them in old age (although it sounds like they may not need it) or help them support their own dc as young adults or directly for the dgc as if will make a huge difference to them in old age. I’m always a bit worried about saving directly for small dc who will get unfettered access at 18 in case they are temporarily lacking common sense whereas by 58 they may lack common sense but it’s a permanent condition and they won’t necessarily regret spending grandmas gift on pizza and clothes and a week in Ibiza.

Depending what sort of property you live in and want to live in, don't assume downsizing will result in cash. E.g. my mum downsized from a bog standard 3 bed detached house in the suburbs and paid more for a lovely new build flat in a nice development with maintained gardens etc, nearer to public transport and shops/cafes. Not a retirement flat so none of the issues those have. But it cost more and also came with monthly service charges (for the gardens, lift, maintenance etc) which she hadn't had with the house. Worth it for the easy living and no home maintenance issues to worry about. So worth thinking about how you want to live in future, and as you have the money you can spend it to get what you want if it's not your current house

In terms of cushion, I would want to be sure of having enough to buy in help in later retirement pre care home. I know someone who had two personal assistants to organise everything for him in later old age. He became blind fairly late on and they would sort out transport, finances, gardening, cleaners and carers etc as well as being good fun and checking pills had been taken and food provided.

I also know someone who could afford to be in a care home but also be taken out everyday to wherever she wanted to go. She would even go on holiday via this arrangement. This premium level of help would be good.

Also just because your partner doesn't love travel, you should do you and do what you want now.

I would enjoy some weekends away in cosy pubs, enjoy being able to take a taxi rather than drive/take the bus, enjoy using expensive soap and drinking good wine and coffee and I would take out health insurance that covers home treatment (if possible) if I got cancer. Also turn up my heating 😀😀.

You don’t have to spend all your money, you can leave any extra to your child/the grandkids. And you may find with inflation or a market crash that it isn’t worth as much as you anticipate in 20 years!

But having that cushion that makes life comfortable is just lovely.

If it were me, I’d help to fund a charitable cause I was passionate about. Depends how much money you’re talking about but for me, I’d genuinely enjoy being part of the solution to someone else’s problem.

Do you know who Sophie Kinsella (real name Madeleine Wickham) was? She was an author who died recently. She had a terminal brain tumour so she knew she was dying. Her husband asked her how she wanted to live for the end of her life. Bucket list etc. After a lot of thought she decided that she just wanted to live her normal life “but nicer”. So buy her favourite cheese even if there is perfectly pleasant cheese on offer. Upgrade to the nicer hotel room. Buy the lovely new jumper in red and blue rather than choose between them.

I have started trying to do that a bit. Rather than thinking “that’ll do” instead think “what do I really want”. I don’t mean spend money without thinking about it. But if I can have something nicer by spending a bit more then I will.

I think I would go with:

Spend more on holidays - with your kids, just you, whatever. If you get into solo travel it's very enjoyable.

Put some money into pensions for the grandkids. If you put even just £1000 into a pension that can do an enormous amount of compounding in 50-60 years so I reckon it would be worthwhile.

Definitely post the max amount into Grandchildren's pension for a few years. Go on a lovely holiday altogether that you pay for. They’ll cherish the memories. Basically I’d be spending it all in dribs and drabs on my child and grandkids. They’re going to probably have a hard future. Save enough for help and a couple of years of care home/full care at home.

You've certainly all given me food for thought, thank you!

I honestly hadn't thought of just investing a smallish amount now for the children and leaving it to grow, I suppose I'd been thinking either of a large amount or an ongoing programme. I'll look into that and talk to their parents as I'm pretty sure something (maybe a jISA) is already in place.

I'd love to go on hol with them but at their current ages I'd just be babysitting! So that will wait for a bit. I'd already thought that I'd love to go interailing with them individually when they each reach a suitable age.

As for nice cheese etc - bring it on! I bought some expensive towels recently, I recommend little touches like that - I smile whenever I use them :)

I actually want a 2 seater sports car, but it obviously wouldn't work as a family car and I don't do enough mileage to warrant running 2 cars. Otherwise I'd pop out tomorrow and buy one! So fluffy towels are the practical alternative! Lol

Maintain your security. Future proof your surroundings for old age/frailty. Enjoy yourself: theatre, opera, days out, occasional restaurants, holodays and have nice things, because you are worth it.

What makes you happy?
What makes your life easy?

My in-laws are in a similar position, they did the once in a life time trip last year, loved but also said they couldn't do it again. The travel and the jetlag were too much. They decided to relocate near to us to be nearer the grandchildren. They have opened accounts for the grandchildren and put a small amount a month in it. The bank/building society it's with donates a % of the saved amount to a children's charity too. This money is in the kids names and whilst we are also saving for them we have kept it in my name and to be used for them as and when it's required. Hopefully it will provide a good balance of money that they have control of from their teens whilst some of it being held back until they are better at making decisions in the longer term.

My parents are in a comfortable position but not in the same league. They have taken to having regular mid week breaks around the UK. They racked up 90 days away in 2025 and I think they are on 70 for this year.

Definitely travel and buy nicer things day to day.

Any expensive 'bucket list' holidays you're interested in while you're still in good health? Japan, Antarctica? Just go alone if your DP doesn't want to travel. Unless you're one of those people who can't function without someone to talk to, solo travel is fab, you get to go at your own pace and do exactly what you want all the time, eat where you like etc without having to consider someone else's wants and needs.

Even small amounts invested over the long term can grow significantly, eg £100 pm for 15 years at a fairly modest growth rate of 7% in a Junior ISA will grow to over £30k, which could go a long way towards education, a house deposit or a car/driving lessons etc.

For the sports car, you could look at hiring one for a few weeks in the summer, or book yourself on some track days?

If I were you (and I’m not) I would save some so that I have a nice little buffer if things go wrong. I’d make my lifestyle as “green” as possible with electric car, solar panels and whatever. I’d join a nice gym with a good pool. I would study for a masters in a subject I was passionate about. I would make generous contributions to practical and ethical charity. I would travel, as ethically as possible.