newly retired parents struggling on pension

[SarfEasticated]

My parents have always been very generous with my brother and I, and have recently retired. They both have private pensions from their employers, but obviously their investments aren't worth so much now. I hate to see them struggling, and although they aren't poverty-stricken, they are having to watch the pennies and are worrying about their long-term security. They own their own house it will be left to my brother and I when they die. They are both in excellent health and have very long-living genes. My concern are that their retirement fund will have to last for about 20-30 yrs and that they will have no spare money for new cars/house repairs/emergencies.
SO! Any ideas how we can improve their quality of life without them having to accept 'charity' from us. An aunt of mine sold her house to an insurance company and lived on the proceeds, does that still happen, and if so, where do I start looking?
Any advice or information would be very much appreciated.

This is going to become increasingly common, with people's pensions not performing as well as predicted, or, even worse, people who haven't made their own pension provision and rely on the very meagre state pension.

I would be very wary of encouraging them to look at any schemes which claim to 'help' them. My understanding is that a lot of these are scams and they could end up handing over their main asset for a lot less than its worth.

My suggestion would be: give it a year to see how they settle into their new lifestyle. If they were earning and have only recently retired, they're having to adjust to their lower income. It doesn't have to mean living in poverty, but maybe they haven't appreciated the little adjustments they need to make to cut down their costs. And also maybe they haven't taken advantage of the financial perks of being a pensioner. Check out whether they know all the things they're entitled to.

If after a year they really are struggling, then the other option is always to sell the house and downsize to something smaller and more economical to heat and maintain. Selling on the open market will give them the best price, rather than trying to do some deal, and they can then invest the equity they don't need on the new smaller house.

Make sure they are claiming any pension credits, winter fuel allowance etc they are entitled to these are not automatic.
Downsizing can help, though if they want to stay in their family home there are loads of grants for pensioners for loft insulation and cavity wall insulation that can make it much more efficient and cheaper to run whilst also keeping them nice and snug in the worst weather.
Are they still active? Would either of them consider a part time job? My mummy works 4 hours a week doing the books for a very small company (too little for any full time bookeeper to consider) she earns £60 a week doing this no big wow to you or I, but as she is no longer paying NI and below tax level a big Wow to her. My Dad is a JP and gets expenses on his days so petrol to and from the court and covers his lunch, as they live in a small village in the country with no shop he does the shopping on the days he is in court again small saving that adds up.
From your post it seems you are more interested in their current welfare than any potential inheritance and maybe you need to tell them this as many people of their age feel they have a responsability to provide their children with an inheritance.

Thanks for both of your replies. Yes I think they are getting all of the benefits they are entitled to, my mother is an avid Martin's Money Matters follower. I am trying to encourage her also to get a part-time job too, mostly because I know she misses the camaraderie of work, and also to keep her mind sharp.
I doubt we'll be able to persuade them to move, they love their garden, and also live in quite an expensive part of the country, so not likely to get anywhere cheaper near their friends.
I had wondered if my brother and I could get a mortgate to 'buy' them out of a percentage of their house now, just to give them some capital, but am not sure if that would work or not.
Thanks again

How active are they? I know of 'retired' people in our village who earn quite a bit as gardeners/home-helps/nannies etc (all cash in hand!!). I wouldn't rush into the mortgage-as-capital idea. If they just invest it, they will get a really low return, and I expect it could be spent quite quickly. How about just taking on one or two of their regular monthly bills? I paid the CounciL Tax and Water Rates for my parents. They really wanted to stay in their house, and it was the best idea finacially in the long term, as the house grew a lot in value

How old are they?

How long ago did they retire?

I think many of us will be working much longer than we originally thought/planned due to longer life expectancy and poorly performing pensions/investments.

I would strongly advise against selling the house, or doing anything to threaten that long term investment/security.

I think they need to look for some part time work - nothing too onerous, just extra top up money. Which leads me to the next question: how much additional money per month do you/they think they need to be comfortable?

Hmm, not sure really Earlybird, but that's a good idea Dragon, taking on a bill. I'll bring it up. I'm kind of trying to help them by stealth as they really don't want to feel like a charity case, I just feel that they have always helped us and I'd like to do my bit for them/stop them worrying.