What will happen if I spend my savings?

Indeed, we often learn from a wide range of ideas, Norah, as we veer wildly from subject to subject!

HousePlantQueen

mrsnonsmoker

Thank you to all who gave advice I’ll leave the thread now so that the posters who’ve taken over the discussion can chat away. I’m not sure if they understand that you normally discuss what the OP has posted but hope they enjoy my thread!

I'm afraid that is the nature of thr beast here on GN, we address the question, meander off, come back again, but generally achieve what the original poster wanted. What we are not is a one stop advice centre. There are others such as Citizens advice and Age Concern who are, so if you seek a direct, non rambling answer, they are your best bet. Good luck

Or it could be said that people gave what they thought was an answer that might work - and they were wrong, I was. However, a wide range of ideas is never overall bad advice.

mrsnonsmoker

Thank you to all who gave advice I’ll leave the thread now so that the posters who’ve taken over the discussion can chat away. I’m not sure if they understand that you normally discuss what the OP has posted but hope they enjoy my thread!

I'm afraid that is the nature of thr beast here on GN, we address the question, meander off, come back again, but generally achieve what the original poster wanted. What we are not is a one stop advice centre. There are others such as Citizens advice and Age Concern who are, so if you seek a direct, non rambling answer, they are your best bet. Good luck

Norah

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.

No, it wouldn't be better. Firstly, I'm not sure that Housing Benefit pays for maintenance charges. Secondly, the OP would have spent all her savings and wouldn't have any safety net.

I know somebody who has just bought one of these 55+ apartments, but she's 93 and has sold a property for £400,000. The lady knows that she has (if she's lucky) about 10 years left, so has put money aside from the money she made on the sale of her house. However, the OP doesn't have a significant amount of capital.

Norah

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

The flat in Peterborough doesn't state the ground rent nor the maintenance charge, which is likely to be in the region of £3000+ a year. Not only that, but it only has a 60 year lease left, which means that its value could go down. That's probably why it's so cheap in the first place because most lenders won't lend on short leases.

If it’s any help to you, why not contact Age Concern or Citizens Advice and get a true picture. Might be a better outcome. I’d caution against a retirement flat as while it might be cheap to buy, the monthly outgoings can be worse than a mortgage. My MiLs was nearly £800 each month. And they’re hard to sell if you need to.

Thank you to all who gave advice I’ll leave the thread now so that the posters who’ve taken over the discussion can chat away. I’m not sure if they understand that you normally discuss what the OP has posted but hope they enjoy my thread!

Fried green tomatoes I’m sorry you’ve lost me - I only have 1 house I live in it?

Why not sell your share in the house you part own? That would release a hefty sum and you are not living in it. Apologies if I’m misunderstanding the situation here. That what I meant when I said ‘divorce settlement’? as you seem to be disregarding this potential asset.

In terms of DWP Benefits, deprivation of capital is when someone intentionally reduces their savings or investments to increase their benefits. This can apply to Pension Credit.
Monica is correct about deliberately spending money in order to receive free care though.
This would be a matter for the local authority to decide. It has nothing to do with benefits.

Doodledog

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

I know that.

That is precisely why I suggested what I did - perhaps I was daft.

mrsnonsmoker

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.

It would appear, at least to me, perhaps reducing outgoings would benefit you in retirement. I hope you find something to reasonably purchase with the money you have at retirement. Good Luck with your decisions.

Not all bits of East Anglia are expensive.

The only ones my search brought up were retirement or shared ownership Aldom.

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

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?

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.

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.

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!

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.

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 ...!!

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 ...

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

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.

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

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.