What will happen if I spend my savings?

Barleyfields

It seems you want to spend your money in order to get benefits?

Thats harsh, poster wants to spend her money wisely to look after herself in her older age.
A new car would mean he/she could get around, do shopping and not rely on the children if a parent.
You need to keep some back though for parachute money, washing machines, fridges and white goods go wrong.
Just a thought could you look into shared ownership with your 60k, a small flat, in that case you will have Lower rent. I do know though it does depend on where you live whether you could afford this.

Rightmove shows the only available properties for around £45k in Cambridgeshire are retirement properties or shared ownership. Retirement properties come with hefty service charges and shared ownership come with rental payments (and possibly service charge). It would be singularly unwise to spend all your money and have nothing to fall back on.

rafichagran

Barleyfields

It seems you want to spend your money in order to get benefits?

Thats harsh, poster wants to spend her money wisely to look after herself in her older age.
A new car would mean he/she could get around, do shopping and not rely on the children if a parent.
You need to keep some back though for parachute money, washing machines, fridges and white goods go wrong.
Just a thought could you look into shared ownership with your 60k, a small flat, in that case you will have Lower rent. I do know though it does depend on where you live whether you could afford this.

I think she would need to look very closely at her finances. If she has no (or low) savings, she will probably be eligible for Housing Benefit. I would imagine that Housing Benefit would only pay for the rent, but she would have no savings to fall back on.

Barleyfields a relative of mine has shared ownership, it is not a retirement flat. They are in the North of England though.

I know that shared ownership properties are not retirement properties. I said the only properties for sale in Cambridgeshire for around £45k are retirement properties or shared ownership, and distinguished the outgoings which come with each.

It depends upon what kind of "savings" you have. A pension pot isn't savings. Savings amount to money you have saved, either under the mattress or in a savings account. That's money you can spend, sure, but you won't have it as a cushion against poverty later on.
There was a post similar to this a while ago, when it seemed the OP wanted to find a way to diddle the government out of benefits and still have money/assets of his/her own. That's a dangerous path to tread, as the Civil Service is full of very intelligent people who've been assigned to ferret out scams and "loopholes".
Besides, you can't tell what the benefits system will be like by the time you retire. Better to protect the spare resources you have now rather than relying on theoretical future handouts.

HousePlantQueen

JaneJudge

is that the catch then of these retirement properties, the maintenance charges?

Yes, that is why the market rate is so much lower than non retirement properties. Where and what on earth can you buy for £45k in Cambridgeshire Norah? Not even a holiday park caravan as far as I can see!

Sorry, not relevant to post, just curious

www.rightmove.co.uk/properties/157515977#/?channel=RES_BUY

www.rightmove.co.uk/properties/141430427#/?channel=RES_BUY

M0nica

You can spend the money on anything you like. It is up to the authorities to prove that the intention of any of the expenditure was to deprive yourself of assets in order to obtain benefits - and that is not easy to do, plus you would have a right of appeal.

So spend it as you wish.

I don't understand why having a lovely holiday, buying a reliable car etc would be counted as deprivation of assets.
The money is there, surely, so that you can have a comfortable and enjoyable retirement.
Why live in misery just in case you might need care one day? You might not and what will happen to that money then?

I do think deliberate deprivation of assets specifically in order to avoid care costs ie giving money away when you know you have to receive care is wrong, but what are savings for?

Can you not buy an annuity with the fund, mrsnonsmoker? I've not heard of a pension pot with those restrictions before.

The first property isn’t in Cambridgeshire and the second is a retirement flat.

Barleyfields

Rightmove shows the only available properties for around £45k in Cambridgeshire are retirement properties or shared ownership. Retirement properties come with hefty service charges and shared ownership come with rental payments (and possibly service charge). It would be singularly unwise to spend all your money and have nothing to fall back on.

Would not service charges or lease on leasehold, whilst owning the flat, be better that continued renting? If that was what one could afford.

Perhaps I'm confused.

Service charges on retirement properties can be very high.

Barleyfields

The first property isn’t in Cambridgeshire and the second is a retirement flat.

First is not in Cambridgeshire - correct. Looked out of my border.

Second is retirement flat, correct -- and ?

Barleyfields

Service charges on retirement properties can be very high.

Would the service charges not be less than renting?

I will be renting into retirement and not really able to afford the rent

Can you put your name down now for a Council or Housing Association property? The rent would be cheaper, you'd have assured tenancy and the waiting list would probably be so long there might not be one available until your retirement age anyway.

Unlikely Norah, they are very high and increase every year.

Would it be worth getting a financial advisor for a one off consultation? I am sure your questions could be answered and you might even end up being better off in the long term , make sure they are registered with the IFA, if you have been a member of a union you may be able to access one via them. There is a good article on financial planning on the Yours magazine dated, Jan 21st- Feb 3, issue 472, Martin Clunes is on the cover. If you can find a copy.

Also if you are renting why put in a new kitchen, surely that is for the landlord to do.

I love the way Barleyfields came on to berate me for even thinking about whether or not I'd qualify for pension credits and is now using the thread to have their own discussion on housing in Cambridge ...

Just to answer a few questions, I will be in shared ownership accommodation so part buy part rent, so my "divorce settlement" as someone put it is protected in the house, but I still have rent and a small service charge. My private pension is from a very old employer scheme with restrictions, I took a lump sum from it at 55 for renovations to the house I was living in then, and as such I can no longer get an annuity, no idea why. I am still working, so again as someone said, good to look into this, at this stage.

Sorry I'm forgetting all the names I think it was NonGranny who said the civil service may come after me ...!!

My rent is currently around £700 a month, so no way can I continue to pay that, in retirement, on the ordinary state pension. I need to plan. I could do various things including sell my share in the house, but then where would I live? I'd have to get a very small flat which is great if they are available for the money I have at that time. Or I could move to Cambridge.

The current weekly amount of pension credit is £218.15 per week, more if you get DLA or PIP.
The only deprivation of assets I knew of was a case where someone received a large redundancy payment and spent the lot in a few weeks in order to qualify for JSAIB.
The DWP will not come after you. That would only come into play when someone fails to declare their savings or occupational pensions. That is not the case here.
I don’t know the rules regarding housing benefit and council tax though, but I think you should certainly apply. (Nothing ventured, nothing gained).
Anyway, good luck mrs nonsmoker!

Barleyfields

Rightmove shows the only available properties for around £45k in Cambridgeshire are retirement properties or shared ownership. Retirement properties come with hefty service charges and shared ownership come with rental payments (and possibly service charge). It would be singularly unwise to spend all your money and have nothing to fall back on.

I had a very quick look at Rightmove and found properties, one bedroom flats, in Ely and Peterborough from £30,000 upwards.

Since mrsnonsmoker has no reason to suppose she will go into care in the foreseeable future, as I said before she is entirely free to spend the money how she choses, including staking every penny she has on the favourite for the next Grand National.

Deliberate deprivation of assets only applies to people in a situation where they can reasonably be expected to know that they may have care needs in the foreseeable future and deliberately spend their savings ahead of that event, in order to get subsidised care.

Aldom

Barleyfields

Rightmove shows the only available properties for around £45k in Cambridgeshire are retirement properties or shared ownership. Retirement properties come with hefty service charges and shared ownership come with rental payments (and possibly service charge). It would be singularly unwise to spend all your money and have nothing to fall back on.

I had a very quick look at Rightmove and found properties, one bedroom flats, in Ely and Peterborough from £30,000 upwards.

Quite confusing, innit?

I always prefer to own land. It is a step out for me to suggest leasehold flats or retirement properties, however I assumed owning a part to the building securely was worth something, apparently not?

I'm sure most people prefer to own land 😀. It's not an option for everyone though.