[Misc] Retirement

Triggaaar · Nov 1, 2024

PeterOut said:
What is this 'inheritance' that you speak of?
If you are fortunate enough to live long enough into old age to need residential care of some kind at the end of your life, current fees are in the region of £2K per week.
£100K per year!

BTW, most aren't that expensive

Professor Plum · Nov 1, 2024

PeterOut said:
What is this 'inheritance' that you speak of?
If you are fortunate enough to live long enough into old age to need residential care of some kind at the end of your life, current fees are in the region of £2K per week.
£100K per year!
Given my circumstances, inheritance tax is simply not on my radar. I do not anticpate being able to leave my house to my kids, as much as I would want to. I anticipate that any 'estate' that I may have will simply be handed over to some company or other that will pay minimum wage to the fabulous people who provide care in such places. Hopefully the value of my house will cover the fees for a short while.
Sadly, some American corporation will likely get the benefits of my life's work, my kids will get nowt. Unless I get a plane to Switzerland, of course...

Sorry if the above sounds really down - I am just livid at the number of people who I know who have had to move into care homes, and the financial impact that it is having on them and their kids. Rant over.

Is there not some scheme where your house is protected from being forcibly sold to pay care home fees? Can’t recall the details but I think if you have a spouse who needs to keep on living in the house you get some protection. Mind you the rules may have changed now. I suppose even if the house is protected I guess you still have to pay the fees somehow. Something to get advice about.

A mex eyecan · Nov 1, 2024

PeterOut said:
What is this 'inheritance' that you speak of?
If you are fortunate enough to live long enough into old age to need residential care of some kind at the end of your life, current fees are in the region of £2K per week.
£100K per year!
Given my circumstances, inheritance tax is simply not on my radar. I do not anticpate being able to leave my house to my kids, as much as I would want to. I anticipate that any 'estate' that I may have will simply be handed over to some company or other that will pay minimum wage to the fabulous people who provide care in such places. Hopefully the value of my house will cover the fees for a short while.
Sadly, some American corporation will likely get the benefits of my life's work, my kids will get nowt. Unless I get a plane to Switzerland, of course...

Sorry if the above sounds really down - I am just livid at the number of people who I know who have had to move into care homes, and the financial impact that it is having on them and their kids. Rant over.

and you are so, so right. Both my Mum and Dad in care, there about enough left from their entire working lives for a few more months then that’s it. It is so scary when you see how quick the proceeds from selling their bungalow disappear when you have one in care, when you double it it’s terrifying.

I was listening to a care home owner on R5 this morning. He was saying that when the residents placed there by social services the money SS pays is below the break even figure to cover the true costs. He went onto say that those who are self funding not only pay for themselves but are also subsidising those on SS.

A mex eyecan · Nov 1, 2024

Triggaaar said:
BTW, most aren't that expensive

beg to differ. When looking around for parents and relatives the cheapest we found was £1900 pw. Some way north of £2250.
Perhaps it may be a regional difference?.

A mex eyecan · Nov 1, 2024

Professor Plum said:
Is there not some scheme where your house is protected from being forcibly sold to pay care home fees? Can’t recall the details but I think if you have a spouse who needs to keep on living in the house you get some protection. Mind you the rules may have changed now. I suppose even if the house is protected I guess you still have to pay the fees somehow. Something to get advice about.

A charge is put on it, so It’s protected until second death and at that time when it’s sold the money the care would have cost goes to social. As I understand things anyhow.

Triggaaar · Nov 1, 2024

A mex eyecan said:
I was listening to a care home owner on R5 this morning. He was saying that when the residents placed there by social services the money SS pays is below the break even figure to cover the true costs.

I'm not sure I buy that. They don't have to take SS patients, so if it's costing them money, why would they?

A mex eyecan said:
He went onto say that those who are self funding not only pay for themselves but are also subsidising those on SS.

I work in a care home, and the owners make a shed load.

A mex eyecan said:
beg to differ. When looking around for parents and relatives the cheapest we found was £1900 pw. Some way north of £2250.
Perhaps it may be a regional difference?.

Blimey. The residents in the home I work in require a high level of care and the fees aren't nearly that high. In Sussex.

A mex eyecan · Nov 1, 2024

Triggaaar said:
I'm not sure I buy that. They don't have to take SS patients, so if it's costing them money, why would they?

I work in a care home, and the owners make a shed load.

Blimey. The residents in the home I work in require a high level of care and the fees aren't nearly that high. In Sussex.

would you PM me please and let me know which home your at? keen to see other options to what M&D have.
thanks

Triggaaar · Nov 1, 2024

A mex eyecan said:
would you PM me please and let me know which home your at? keen to see other options to what M&D have.
thanks

Sure

studio150 · Nov 1, 2024

Triggaaar said:
BTW, most aren't that expensive

But the lifetime cap that was to be introduced has been scrapped by The Labour Government, so you are continuing to pay until you have exhausted your funds.

dazzer6666 · Nov 1, 2024

Professor Plum said:
Retirement is f***ing fantastic, especially the first 10 years or so as most people have all three sides of the ‘golden triangle’ intact — money, time, and good health. For most of our lives we have just 2 out of the 3 available. Depends what age you retire but generally 65-75 can be like one long glorious holiday. I’m 67 so I hope I have at least another 8-10 years at least to enjoy it.

100% this. I was lucky enough to be able to make a decision at 54 (earlier than planned). Not regretted it for a second.

dazzer6666 · Nov 1, 2024

A mex eyecan said:
A charge is put on it, so It’s protected until second death and at that time when it’s sold the money the care would have cost goes to social. As I understand things anyhow.

Change house ownership to tenants in common. Each parent then separately deals with their share in their own will - upon death of the first, their share is then in trust, with the survivor staying in the proprietor as a beneficiary of the trust until their death or sale of the property. Only the survivor’s share can be used for care home fees as the first deceased share will have been left to others so will get distributed.

Triggaaar · Nov 1, 2024

Doonhamer7 said:
My company pension provider website says to have a really good pension lifestyle you need £43k a year for a couple, this seemed to match a lot of other sites (they said £32k for comfortable and £20k needs real management).

Is that £43k (and I realise you posted this a while back) plus state pension? So for a couple, that's more like £43k plus 2 years increase + £23k state pension, which is closer to £70k now.

Doonhamer7 · Nov 1, 2024

Triggaaar said:
Is that £43k (and I realise you posted this a while back) plus state pension? So for a couple, that's more like £43k plus 2 years increase + £23k state pension, which is closer to £70k now.

It was including state pension and I think after tax but the numbers have gone up a lot due to inflation

Home - PLSA - Retirement Living Standards

Home - The Retirement Living Standards have been developed to help us to picture what kind of lifestyle we could have in retirement.

www.retirementlivingstandards.org.uk

Triggaaar · Nov 1, 2024

Doonhamer7 said:
It was including state pension and I think after tax but the numbers have gone up a lot due to inflation

Home - PLSA - Retirement Living Standards

Home - The Retirement Living Standards have been developed to help us to picture what kind of lifestyle we could have in retirement.

www.retirementlivingstandards.org.uk

Oh ok, thanks. I assumed it wasn't because £20k (needs real management) for a couple, including state pension (while appreciating you wrote that two years ago) sounds tiny.

Doonhamer7 · Nov 1, 2024

Triggaaar said:
Oh ok, thanks. I assumed it wasn't because £20k (needs real management) for a couple, including state pension (while appreciating you wrote that two years ago) sounds tiny.

I agree if your relying on just state pension your going to be really strugglin. I think the numbers for ‘comfortable‘ are high based on what my mum and mother-in-law get as both are actually saving on lesser amounts (but they are both in their 80s)

Triggaaar · Nov 1, 2024

Doonhamer7 said:
I agree if your relying on just state pension your going to be really strugglin. I think the numbers for ‘comfortable‘ are high based on what my mum and mother-in-law get as both are actually saving on lesser amounts (but they are both in their 80s)

I guess they're not out spending as much in their 80s as we might want to in our 60s/70s.

dazzer6666 · Nov 2, 2024

Triggaaar said:
Is that £43k (and I realise you posted this a while back) plus state pension? So for a couple, that's more like £43k plus 2 years increase + £23k state pension, which is closer to £70k now.

Wouldn't think £43k (post tax) is an unreasonable ballpark for a couple to be comfortable (assuming no rent/mortgage/debt). Our 'non discretionary' spend is a fair bit less than that.

Daddies_Sauce · Nov 2, 2024

@Doonhamer7 https://nortr3nixy.nimpr.uk/threads/retirement.393877/post-11290463

HalfaSeatOn · Nov 2, 2024

dazzer6666 said:
Wouldn't think £43k (post tax) is an unreasonable ballpark for a couple to be comfortable (assuming no rent/mortgage/debt). Our 'non discretionary' spend is a fair bit less than that.

Challenge is keeping debt off the table by keeping a contingency for big non discretionary spends eg boiler, windows, soffits, car etc. Failure to do so eats in to ‘moderate’ lifestyle.

Paulie Gualtieri · Nov 2, 2024

dazzer6666 said:
Change house ownership to tenants in common. Each parent then separately deals with their share in their own will - upon death of the first, their share is then in trust, with the survivor staying in the proprietor as a beneficiary of the trust until their death or sale of the property. Only the survivor’s share can be used for care home fees as the first deceased share will have been left to others so will get distributed.

Wasn’t aware of the ringfencing for state care. Thanks for this, will check my mums title as pretty sure they were tenants in common

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