Savings left after moving

Who knows what the future will bring? My parents and MIL all died suddenly in their late 70s without having been ill before. My FIL and my husband both developed Dementia. FIL was admitted to an NHS hospital where all care was free - My DH eventually had to go into a Care Home, the fees took almost all his (but not my savings) if he had lived another month the Council would have taken over paying the fees as his remaining savings were below the limit. However, the authorities could not force the sale of our home as I was still living there. I know that is just one scenario - there will be every permutation you can think of.

I'm also thinking that with rampant inflation savings are decreasing in value all the time, while house prices are rising at an amazing rate. So my advice would be to invest your savings in your dream home, enjoy it, and stop worrying about a future which might never happen, but safe in the knowledge that if the worst did happen, you would be able to borrow against your asset - the value of the house -to meet any medical bills.

I have read on here how people moved to the country and then a few years later they find it difficult to travel to the shops, doctors etc., as well as help in the house and garden.
Good luck in your search,

In time to come, if you needed more money and had used up your savings, you could sell your property and rent.

As others have said, no one knows what is round the corner. You might spend the next 20 or so years worrying about scenarios that never happen.

Also, the OP hasn’t actually said they want to move to the country mokryna.

Perhaps their dream home is in the city?

Buy the dream house if you have the money now. the future is unknown, and as others have said, your home is a financial asset (and won't go down in value like the savings will)

There is predicted to be a drop in house prices on the horizon, makemineajammydodger.

But historically, property is a pretty safe bet, investment wise kittylester.

Re drop in house prices. That prediction is always coming and going from the experts! At the start of the pandemic it was predicted the property marked would grind to a halt with big drop in values. As we all know that was the polar opposite of what had and is still happening . So get the house you want and enjoy it. No one knows what tomorrow will bring. Good luck.

It’s difficult to give an opinion because having ‘some savings’ left after the move doesn’t really mean much. What to some is a comfortable cushion is ‘not very much’ to others.

I would grab your dream house while you can. There is a shortage of houses on the market at the moment and while you are thinking about it it could be snapped up.

Whereas we should perhaps not look too much in the future, there may come a time when you need to contact a gardener or decorator to do necessary tasks, and you will need the funds to employ them. Just a thought.

There is a website www.home.uk that uses all the local market forces for an area to predict the future and past moves in the market. As far as it can. These a lot of local information as well
The information is presented in easy to understand graphs.
But, if you’re going to be happy, then I’d go with your heart on a house you like.

If you need to, then you can always "downsize" later on, although I realise this isn't ideal as you will be older and possibly in poorer health. But it would free up money for your care.

This is a problem I think about a lot. I have already downsized but have savings. Do I use them to enjoy myself and have holidays etc, or do I keep them to enable me to pay for help in the house and with personal needs later on?

Germanshepherdsmum

It’s difficult to give an opinion because having ‘some savings’ left after the move doesn’t really mean much. What to some is a comfortable cushion is ‘not very much’ to others.

I think this is true, up to a point. I don’t think it matters whether other people would think your savings are a lot or not very much; but it does matter whether you would be able to live comfortably on your pensions (both as a couple and on your own when the time comes for one of you), and whether your remaining savings would cover likely future needs.

I don’t think you have to budget for absolutely anything that could happen (insurance can cover a lot of that), but if you needed dental treatment or a new car (or whatever matters to you) would you be able to pay without too much cutting back?

I understand your thoughts about not being able to replace your savings. I am also uncomfortable about that, but equally, you need to decide what savings are for. Have you saved to have a comfortable retirement or to cushion yourselves against uncertainty? Do you want to leave money behind for your children, or do you feel that now they are adults that is no longer your responsibility? Do you have ‘bucket lists’, and are they expensive? If so, how disappointed would you feel if you didn’t tick off the items? Where is the bungalow on your priority list?

Only you can answer any of these questions, and any others that apply to you personally.

It’s a nice ‘problem’ to have though, and gives you both a chance to re-evaluate you lives and make informed decisions

We intend to move to the coast. There are no children to leave the property to and the relations, parents, sisters, brother etc are all financially independent and not expecting inheritance. Just out of curiosity in this situation what do people think is a comfortable savings cushion to have. Also, as I have said above no one is expecting any inheritance so would people in our situation consider equity release although hopefully many years in the future if the savings ran out. It so nice to get other peoples views and I thank you for your replies.

Ddog has said exactly what I was thinking. Most of my friends say they intend to use their savings and the children can have the house. Even if they end up in residential care and the house has to be sold, the permitted remainder is still an inheritance for them.
I know it’s not the perfect solution, but there’s always equity release or a lifetime mortgage to consider? My DH died at 70 - we never know what’s around the corner.

Crossed posts truman

If you have decent pensions to ensure a reasonable standard of living I would place less emphasis on savings as interest rates are negligible and could work against you should you need care in the future, thankfully you are in good health now but things can change. There will always be value in property in desirable areas despite peaks and troughs in the market. DIL has worked for estate agents for many years and says bungalows are like gold dust.

I’m not sure anyone can define ‘a comfortable savings cushion’. It depends on so many things - your lifestyle, what you consider essential to maintaining that lifestyle, your health. What one person would think comfortable another would consider precarious. Will your pensions be sufficient to maintain your lifestyle without regularly dipping into savings?
You say you’re moving to the coast - which could be a rural area or a town. I live in a village near the coast which is wonderful, but we both drive. There is absolutely no public transport, nor any facilities within walking distance - and we are so far from a hospital that there’s a good chance of dying before an ambulance arrives. Things to consider as you get older!

I would recommend seeing an IFA truman, they can give you an accurate prediction of your financial needs in the future. Mine is based in Norfolk, but does travel to see me in Northumberland.

I downsized to this bungalow last March, and am packing to move out because I've now discovered all the floors are rotten. I did have a L3 survey but the carpets were fully fitted, in hindsight I should have had a damp/timber survey as well. I'm having to use all of the equity from my sale to pay for the floors, and will have to use my 'care' fund for the new carpeting. I had hoped to use the equity to get me through to next April when I receive my State Pension, it was a horrible shock.

Last yearwe moved from a 4 bedroomed house in south London to a 3 bedroomed one in the centre of a market town in southern England. The plan had always been to liberate some capital - that never happened as we have paid a premium to be within walking distance of good shops, station, doctors etc. I am so please we did this - we are in out late 60s as well and I can foresee a time when we won’t want to drive as much. As other people have said you don’t know what the future holds, my mother is approaching 100 and we had to sell her home to fund care.

Depends where you are Jane. Here in north Norfolk there are masses of bungalows, roads full of identical little boxes. Always plenty on the market. Not my cup of tea.

Just do it.. You don't know what's around the corner. Life is for living others have given all sensible answers, it's all covered.
Grab it quick before someone else does.
Good luck everything will be fine.

Could an option be to rent. Pros and cons of course but it's worth considering.

If my dream house costs £500,000 and I can rent the same house for £20k p.a. I will have to live another 25 years to spend the same amount and that seems quite unlikely at my age. From the day I move I have £480,000 in my bank account to travel, enjoy and cope with future issues.

Expensive maintenance is the landlord's problem, not mine and if it doesn't work out it is easy to move. Obviously rent can go up but I won't be paying to maintain the structure so can offset that.

I would really advise examining your dream very carefully. I moved to my dream bungalow by the coast three years ago. I have found it very hard to meet like minded people. Cultural activities are very limited and transport links non existent. The only GP in town has just left and I have an 80 mile round trip to a dentist. I am bored to tears, feel isolated and the winters are utterly bleak. I've just sold and am moving back to rent a dear little flat in a vibrant part of my home city where I can walk out to galleries, the theatre, a lido and the GP. Can't wait.