Gransnet forums

Chat

Whatever happened to "saving for a rainy day"?

(289 Posts)
Grandmagrewit Tue 09-Aug-22 14:11:41

I've just been listening to a Radio 4 phone-in about the luxuries we can't give up, even with the rising cost of living. Callers cited things like the gym, expensive perfumes/ soaps, nice cars, designer clothing and a daily copy of The Times. When asked by the interviewer, none of the callers appeared to have any problem with affording these things although some said they were swopping their supermarket shopping to Aldi to cut back on spending! A finance expert on the programme said that Covid restrictions and lockdown resulted in many households having a stash of spare cash and people are now spending that on holidays, clothing, home improvements and such like. Now we have another shocking announcement about the expected energy costs over winter and I'm wondering how many of those households are putting away that spare cash to cover these terrifying bills. The concept of saving for emergencies (for those who can afford it) seems to have all but disappeared in the under 50s, probably not helped by low savings interest rates for many years. Do people now just rely their credit card - or the State - to help them? I have just a basic state pension for my income but as I have saved all my life, even when I was a single parent, my modest savings now disqualify me from any additional benefits, and so I will need to use them to meet my energy costs this coming winter. I'm 70 and beginning to think that the savings habit I grew up with is just not worth it any more. Have others chosen to spend rather than save?

Farzanah Sun 14-Aug-22 11:46:17

I am not against privatisation of services per se, if it can be demonstrated empirically that they are better and more cost effective, but decisions seem to be made on an ideological basis of “small state” and money saving, rather than a proper evaluation and comparison of cost and quality. I’m also concerned about regulation, accountability, training and fair pay.

When jobs of NHS cleaning staff were put out to tender to private companies many years ago (to save money) standards declined, along with wages and conditions. Privatisation has since accelerated without independent evidence to show that it is superior.

icanhandthemback Sun 14-Aug-22 12:28:28

On top of the £1400 per week we pay for nursing care, we have to pay for her nappies, podiatry services, hair cuts, toiletries, low sugar and fat yogurts, etc. Her nappies used to be prescribed but now she has a catheter fitted she is only on a couple a day for bowel incontinence so doesn't fit the criteria.

Grantanow Sun 14-Aug-22 12:49:40

Care homes are run to make a profit. And residents who have to pay are usually cross-subsidizing those whose Councils are paying. The weasel Johnson claimed he had fixed the care system but I see no sign of change whatever. My mother aged 103 is still paying and when her money runs out I guess the local Council will insist she moves to a cheaper room or a cheaper care home as I can't afford to supplement.

Casdon Sun 14-Aug-22 12:56:03

caretobedifferent.co.uk/how-relevant-is-the-coughlan-decision-today/
Local Authorities have never managed care homes for people with nursing needs, only homes for people who needed residential care. The need for residential care homes has drastically reduced with the advent of care in the community models, as people prefer to live in their own homes as long as possible.
What you are suggesting Doodledog would be a complete revolution in care management arrangements, as well as the taxation proposal, so a whole new service would be required. I’ve enclosed an explanation of funding arrangements and how they came about in case anybody is interested.

icanhandthemback Sun 14-Aug-22 15:16:18

Grantanow

Care homes are run to make a profit. And residents who have to pay are usually cross-subsidizing those whose Councils are paying. The weasel Johnson claimed he had fixed the care system but I see no sign of change whatever. My mother aged 103 is still paying and when her money runs out I guess the local Council will insist she moves to a cheaper room or a cheaper care home as I can't afford to supplement.

The weasel Johnson claimed he had fixed the care system but I see no sign of change whatever.

Grantanow, in all fairness, the changes weren't due to come in until 2023 so you wouldn't see any change yet. However, I have a horrible feeling that this will all disappear with the change in leadership.

Fleurpepper Sun 14-Aug-22 15:22:32

One huge worry is that so many people nowadays have put off having a pension pot for far too long. to have more money to spend on other things, and realise too late that they will have to work into their 70s and beyond. Some will be OK because they will inherit from parents and sale of house, others ?????

Fleurpepper Sun 14-Aug-22 15:26:36

Talking about care homes, one DD has been looking after her ery elderly neighbour throughout the pandemic and beyond. She had a fall a couple of months ago, and was taken to hospital and then to a Care Home. Fiercefully independent, she has found it hard to adjust, but is finally settling in the care home where she was placed. Her AC thinks the care home is too expensive, so wants to move her again to a cheaper one. She is distaught about this. When she dies, the AC will inherit of a house and very large plot in one of the most expensive places in the UK, and sell for a couple of millions or more!

Makes my blood boil.

Norah Sun 14-Aug-22 16:44:44

Fleurpepper

One huge worry is that so many people nowadays have put off having a pension pot for far too long. to have more money to spend on other things, and realise too late that they will have to work into their 70s and beyond. Some will be OK because they will inherit from parents and sale of house, others ?????

DHs happily works into 78th year, must be an anomaly. smile

goose1964 Sun 14-Aug-22 17:46:39

My children can't foresee owning property until they get their inheritance from us or careers change. I wouldn't say they are frivolous but they spend money ensuring their children have a great childhood

Pammie1 Tue 16-Aug-22 20:19:12

Fleurpepper

Talking about care homes, one DD has been looking after her ery elderly neighbour throughout the pandemic and beyond. She had a fall a couple of months ago, and was taken to hospital and then to a Care Home. Fiercefully independent, she has found it hard to adjust, but is finally settling in the care home where she was placed. Her AC thinks the care home is too expensive, so wants to move her again to a cheaper one. She is distaught about this. When she dies, the AC will inherit of a house and very large plot in one of the most expensive places in the UK, and sell for a couple of millions or more!

Makes my blood boil.

Wow. So who’s paying for the care home ? It would be beyond most ordinary people without either the sale of their home to fund the care, or input from LA - which wouldn’t be until private funding has been exhausted.

Fleurpepper Tue 16-Aug-22 21:31:12

she is paying for it, with HER money- and then the sale of her home, which is VERY valuable. I can only imagine they want her to move to a cheaper home so there is more left eventually.

effalump Thu 25-Aug-22 17:15:07

Credit cards!!!

Pammie1 Fri 26-Aug-22 13:45:22

Fleurpepper

she is paying for it, with HER money- and then the sale of her home, which is VERY valuable. I can only imagine they want her to move to a cheaper home so there is more left eventually.

But that’s not their decision, it’s hers, and if she doesn’t want to move to a cheaper home they can’t force her. It depends on whether they authorised to act for her as Lasting Power of Attorney, and if so, whether they are acting for sound financial reasons - for example if the funding source won’t sustain the level of expense. If you or DD are sure of the facts it might be worth reporting to SS as a safeguarding concern. If the family does have her Lasting Power of Attorney, they have to include her in all decisions as far as possible and any decisions they make on her behalf have to be in her best interests, and where possible, with her agreement. If whoever is acting as her Attorney is going against her wishes, they could end up in serious trouble. If you know there is an LPA in place and you have concerns, report it to the office of the public guardian, and they will investigate. If an attorney is acting improperly, the court will appoint an independent guardian to act for her.