Has anybody done anything daft with their pension

Re tax on pensions, just bear in mind they add your state pension to your private/works pension and treat it as income, pensioners tax free allowance has been frozen, so as your Govt pension increases the more likely you are to pay some of it back in tax if your private/company pension is worth a few quid per year.
Take the lump sum, reduce your pension and buy the car/camera/whatever before you can't appreciate it.
Then again my Dad died aged 53, brother at 63 and I am currently 61, both died suddenly, so I am looking over my shoulder for the shadow of the grim reaper
 
Yes a lot of people who opted out of Serps are now being told their government pensions will be reduced when the new standard pension for all comes out.
 
When I got my lump sum from my private pension ,I bought myself a nice bmw as a treat ,I hated it ,the wife hated it and it's now gone ,sometimes your dreams aren't what you really want it's just an illusion .if I had the money now it would probably go on a 1dx2 and a 600mm L .but your aspirations change with age
 
I'll be 49 this year and thus I'll be able to cash in my fairly modest private pension in 6 years time. I'd much rather cash it in now and use that to pay off what's left of this small mortgage and improve the house in the process. And then the money saved by not having to pay into a mortgage would vastly outweigh what I am paying into the private pension anyway (provided I don't move to a bigger house, which is unlikely as I'm happily single with no kids, not to mention being a home carer looking after an elderly mother).
I'm not into buying fast motors as I gave up driving six years ago, just simply don't like cars. I'd much rather keep things as simple, cheap and cheerful as I possibly can and I reckon being mortgage-free would help.
 
It's always decisions, decisions, decisions when it comes to 'what to do next'

I have 95% retired and have no debts. My kids have got their inheritance and all was good....

The 'swerve ball' arrived late in January 2015.... I had a stroke.

It's taken a year to recover (though recover does not mean - back to normal).

Allowed to drive is a start.

The NHS was brilliant, as usual, and so what next at 61 going on 62....

A small/medium motorhome, and a long planned solo excursion to Scotland to start with, probably June. (The midges have never found me tasty enough to chew on so not a great issue). Camera gears updated and selected.
Busy scouting motorhomes online so stuck between new or vg used. Deadline is mid April to get what I want at least fully ordered. Plenty of used examples down here in Somerset.

Moral of tbe story.... None of tbe male line in my family has lived beyond 84 for over 4 generations, the average is 73 with the youngest 61yo! I had huge MI (x4 in 2006 with by-pass done) now a stroke a year ago. So to hell with the future. I have no debts, a reasonable income from some (fair) rental houses/flats, kids sorted (gave them my company). It's me time now. So if any TPers see a grumpy but 'good looking' old fart, sitting behind a red Monfrotto BeFree One tripod with a 70D on it and an IPad in my had, obviously 'waiting for the light', come and say hello. The least I can offer is a mug of tea or a cold 'tinny'. No politics or camera boasting. I can no longer be ^rsed. Ming you, if my motorhome has a trailered BMW M4 attached to it..... then I will have totally lost the plot. I started the ball rolling.... I have a decent MiFi unit with a 3 data SIM already with 15Gb monthly allowance. I am almost ready for the off!
For any of those wondering whether retirement will be boring.... not have enough to keep you going? Well I have been busier in the last 4 years of semi retirement than most years of full employment!

So do the sums and decide - do you really need to be the wealthiest person in the graveyard or too old to enjoy your senior years? That feeling of someone going through your pockets counting out loose coins is real..... it's a civil servant doing the government's bidding to get the last groat out of you...... spend it first - you won't need it after you take your last suck of air.
 
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I had never thought much about this until last month, when I received the annual statement for one of my pensions. As some of you may know from previous posts, both me and the missus have been out of work for the past nine months (apart from some short term temporary jobs), getting little or no help in benefits, and having to sell stuff to pay our mortgage.
Well, we had a big discussion after I looked at the pension statement, and realised that we could cash it in and pay off our mortgage (without early repayment penalty), and have a fair amount of money left over. We will have to tell the DWP when it all goes through, because the money will be enough for them to stop all our benefits, but I don't really care.
I started a course last week to become a fitness instructer (level 2 personal fitness instructor), which is two days a week for thirteen weeks, and if I pass then it would be a way to totally change career.
 
It seems quite a sensible thing to do these days. Even hot hatches from my era are now going for silly money. My mate bought a well used Cosworth for £5k some time ago, now worth about £20k. I can tell you my pension portfolio has not quadrupled in that time! Enjoy ...
 
testbloke said:
It seems quite a sensible thing to do these days. Even hot hatches from my era are now going for silly money. My mate bought a well used Cosworth for £5k some time ago, now worth about £20k. I can tell you my pension portfolio has not quadrupled in that time! Enjoy ...
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The advantage with investing in cars (which is why "celebs" like James Martin and Chris Evans collect them), is because you don't pay any capital gains tax on them, so if you have a bit of money spare, they are a good investment if you make the right choices.
 
andy700 said:
The advantage with investing in cars (which is why "celebs" like James Martin and Chris Evans collect them), is because you don't pay any capital gains tax on them, so if you have a bit of money spare, they are a good investment if you make the right choices.
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More justification for me, thanks!
I also like the fact the ball is on your hands and there is time to react as the market does not shift quickly.
 
the black fox said:
When I got my lump sum from my private pension ,I bought myself a nice bmw as a treat ,I hated it ,the wife hated it and it's now gone ,sometimes your dreams aren't what you really want it's just an illusion .if I had the money now it would probably go on a 1dx2 and a 600mm L .but your aspirations change with age
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Can't say I'm surprised, I hate BMWs too

collected the car, exactly as described, he even filled it with fuel which was a first ever, harlow to warrington on 2/3 of a tank which surprised me, the noise is epic, it has a sports exhaust fitted which may or may not be stopping as he gave me the original with the car if it gets too much

View: https://www.youtube.com/watch?v=4avPyV96Y6s
 
It's the old story knowing when to hold and when to fold.I've been receiving of my company pension last 5 years, I was able to take my pension at 50, plus I sold 40% as lump sum. As I'm only 57 I'm still working as I'm fit and healthy. The dilemma is how much to hold on to for old age. My father died 2 years ago, he had to go into a care home, as he had less than 17K in the bank he didn't have to pay for it, £650 per week FFS. This the future, if you save and/or pay into a pension, buy a house and hope to have some security in your old age and fall ill, the government will take all your money, then force you to sell your house to pay for your own care.
Once my daughter is finished Uni I hope to give up work and live a little. I saw a camper van last week with "Adventia B4 dementia" on the back window, wise words I thought !
 
@jakeblu
jakeblu said:
Ive 4 kids and im never gonna have enough to leave anything of real value to all of them so I've decided to spend it :)

I worked for an LA for a fair while and paid into a pension pot but unlike a normal pension i cant have it yet the new rules dont apply to me. Have to wait till im 62, im 58 this year, if i could have my lump sum now i would be buying a nice new motorhome to replace the 1991 talbot i drive around in at the moment.
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You may be the man I need to speak to ! I was thinking of buying an apartment abroad, but I'm now thinking a motorhome might be a better alternative, problem is, I know nothing about them. What kind of money do you need to spend for something decent, big enough for 2 adults and a very small dog ?
 
jimgallaher said:
This the future, if you save and/or pay into a pension, buy a house and hope to have some security in your old age and fall ill, the government will take all your money, then force you to sell your house to pay for your own care.
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Exactly this!
This is what angers me the most, along with the poor people who paid into pension pots and then lost the lot when the pension companies went broke.
 
jimgallaher said:
@jakeblu

You may be the man I need to speak to ! I was thinking of buying an apartment abroad, but I'm now thinking a motorhome might be a better alternative, problem is, I know nothing about them. What kind of money do you need to spend for something decent, big enough for 2 adults and a very small dog ?
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If you buy new you can pretty much get it fitted out the way you want.

I am looking at a 4/6 berth Swift but fitted out with a double bed only. Shower/WC, Kitchen/Diner converting to a workspace. Decent storage area. Double skinned for all season use and a small central heating unit (diesel) plus AC inverter/hook up.. I am looking at c£45-55K brand new all in... currently.

Essentially pop into a dealership with a wide range of new/used. You can then get a feel for layout/space/facilities. I have been looking at a few and the bigger you go the more you can squeeze in. Blank sheet pf paper time.

Steve
 
jimgallaher said:
@jakeblu

You may be the man I need to speak to ! I was thinking of buying an apartment abroad, but I'm now thinking a motorhome might be a better alternative, problem is, I know nothing about them. What kind of money do you need to spend for something decent, big enough for 2 adults and a very small dog ?
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Considerably less than an apartment abroad unless your talking timeshare. Like everything it depends what you want and if your happy to buy used, new ones are expensive. For me I will be looking for one with a fixed bed, its a pain making the bed up everyday, and a decent sized living area, preferable diesel for the economy, and about a 2.8 TD so you don't crawl up the hills behind the lorry's. For a reasonable one your probably talking in the region of around £30k, thats what I will probably be looking to spend on something about 3-5 years old. Obviously there are cheaper, you could buy something cheaper for half that but it would be nearer 10 year old.
 
After watching a place in the sun a lot you'd be surprised how cheap some property abroad is. The spanish cave properties are particular bargains. One woman found one for £18k. 3 bedroom. Decent size. That wasn't the cheapest they saw either. One was £14k which was smaller. Florida also seems pretty cheap as well. 3 bed pretty large house for £92k. That's fairly recently filmed as well.
 
jimgallaher said:
@jakeblu

You may be the man I need to speak to ! I was thinking of buying an apartment abroad, but I'm now thinking a motorhome might be a better alternative, problem is, I know nothing about them. What kind of money do you need to spend for something decent, big enough for 2 adults and a very small dog ?
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There's a fairly recent thread here that might be worth a look

https://www.talkphotography.co.uk/threads/motorhomes-anyone-have-one-rent-one-use-one.613857/

srichards said:
After watching a place in the sun a lot you'd be surprised how cheap some property abroad is.
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I was surprised when a friend of mine picked up a decent sized 2 bed property in a small French hamlet for less that 20,000 Euro's.
Admittedly it needed work, ( some modernisation) but was completely liveable, as was.
 
I missed out on a lovely 1 bed apartment in Lanzarote last year at 65k euro, I think bricks and mortar can only appreciate in value, but a motor home can take you where ever you fancy. I'm gonna have to do a bit of research and see if there are campsites in the places I want to go to.
 
Thx cobra I'll have a read at that thread.
 
My tuppence worth: I jumped out of the work world 2 years ago, though my pensions don't kick in till the end of this year. We sold our big house, stuck the money in various investments and now live in the cottage we bought thirty years ago and held onto when we moved elsewhere for work. No mortgage, no debts, just food and utilities to buy. Looking back, we did the right things for the wrong reasons and I keep wondering when they'll catch up with us.

Now the kicker: when my parents got to my age, they'd been dead for twenty years. So, am I going to spend my pension on fun? You can just bet I am! :D
 
Sejanus Aelianus said:
My tuppence worth: I jumped out of the work world 2 years ago, though my pensions don't kick in till the end of this year. We sold our big house, stuck the money in various investments and now live in the cottage we bought thirty years ago and held onto when we moved elsewhere for work. No mortgage, no debts, just food and utilities to buy. Looking back, we did the right things for the wrong reasons and I keep wondering when they'll catch up with us.

Now the kicker: when my parents got to my age, they'd been dead for twenty years. So, am I going to spend my pension on fun? You can just bet I am! :D
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Bravo! Go for it.

After my heart attacks and stroke, allied to a potential errant gene that kills off the male line on my dad's side of the family (incl him) early whilst the female line seems indestructable (my great aunt is 103), time to break loose.....

Steve
 
Funny how the care costs cap which was supposed to limit care home fees to a max of £72,000 starting in April has been delayed until 2020

I wonder how many pensioners voted based on that policy , strange how policies that have money going in are in force before the ink is dry

http://www.bbc.co.uk/news/health-33552279
 
wack61 said:
Funny how the care costs cap which was supposed to limit care home fees to a max of £72,000 starting in April has been delayed until 2020

I wonder how many pensioners voted based on that policy , strange how policies that have money going in are in force before the ink is dry

http://www.bbc.co.uk/news/health-33552279
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Buy a house in Ireland, in your child's name, rent a room in the Uk in a child's house. Blow all but £10K in the UK and go into a UK care home when the time comes.

All my investigations have not revealed a way this can be stopped. So when the £72K cap is rolled back to 2024, then 2028.....then....
 
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I don't get all this talk of care homes. Why do you presume you'll end up in one? My dad remained in his own house and had 3 carer visits a day.
 
ST3 said:
I don't get all this talk of care homes. Why do you presume you'll end up in one? My dad remained in his own house and had 3 carer visits a day.
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Contingecy planning....

The day I started work, the government put a monkey on my back and from that day I paid my income tax, national insurance and later ERNIC. I started my own compsny, employed people who paid tax etc, I always paid company tax and VAT. In all my efforts mean I have paid in more than average so 'if' I need care in the future and I have assets above a set amount I have to pay again.....

Oh, back to the monkey.... it's still there, I hardly notice it these days but every now and then it gives a wiggle and I look over my shoulder. The inane grin is still there and the clawed fingers still gripping hard.... it's just the face that keeps changing.
 
Hugh Jarse said:
Contingecy planning....

The day I started work, the government put a monkey on my back and from that day I paid my income tax, national insurance and later ERNIC. I started my own compsny, employed people who paid tax etc, I always paid company tax and VAT. In all my efforts mean I have paid in more than average so 'if' I need care in the future and I have assets above a set amount I have to pay again.....

Oh, back to the monkey.... it's still there, I hardly notice it these days but every now and then it gives a wiggle and I look over my shoulder. The inane grin is still there and the clawed fingers still gripping hard.... it's just the face that keeps changing.
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But why do you assume that care will be in a care home? My dad owned his own home and had a fair sum in investments etc. He had a stroke and was semi paralysed, yet as I wrote before, he stayed in his own home and had carers come to him. The cost for that was reasonably cheap too, around £42 a week if I remember rightly up until 9yrs ago when he died at 84. My wife's grandmother has just come out of hospital, she's 90 and requires a carer, she is also staying in her own home and paying not much more per week for her carers.
 
ST3 said:
But why do you assume that care will be in a care home? My dad owned his own home and had a fair sum in investments etc. He had a stroke and was semi paralysed, yet as I wrote before, he stayed in his own home and had carers come to him. The cost for that was reasonably cheap too, around £42 a week if I remember rightly up until 9yrs ago when he died at 84. My wife's grandmother has just come out of hospital, she's 90 and requires a carer, she is also staying in her own home and paying not much more per week for her carers.
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No assumption about anything - as in many things, the actuality varies for each person. I am hoping to be shot at 85 by the outraged husband of a glamourous actress in her 50s....
 
ST3 said:
I don't get all this talk of care homes. Why do you presume you'll end up in one? My dad remained in his own house and had 3 carer visits a day.
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It does get to a point for some people where a care home is the only option, my mother who had parkinsons was unable to look after my father when his dementia became really bad so a care home was the only option. She then was visited by carers 3 times a day, for 10 - 15 minutes per visit, far from ideal.
 
Hugh Jarse said:
No assumption about anything - as in many things, the actuality varies for each person. I am hoping to be shot at 85 by the outraged husband of a glamourous actress in her 50s....
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A glamorous actress sounds too much like hard work, my chosen exit strategy would be on a sunny beach wondering whether melanoma or cirrhosis will get me first, hopefully around my 85 birthday !
 
It all scares me. What is enough? What happens if either my wife or I need residential care and I blew the money on a Porche? Being left with enough money to survive goes against the grain - even though I understand the arguments about not being able to take it with me and the government will bail out the needy. Maybe.

Both my father and grandfather remarried late after the deaths of their wives. My grandfather left his assets to his new wife who in the main left the house and assets to her children, the same recently occurred with my father and his later wife despite always being upset that he had missed out on his fathers estate.

I wish I could enjoy money and envy those of you who can. Maybe you all have far more than I.
 
Well if ever anything enforced my reasoning yesterday was it.

My dad is 82 and having an operation on Friday to remove a leg due to diabetes related problems and gangrene , he had a fall 6 months ago , got passed from pillar to post in hospital before they found a broken hip which meant he became immobile and has gone downhill from there.
 
Tulipone said:
It all scares me. What is enough? What happens if either my wife or I need residential care and I blew the money on a Porche? Being left with enough money to survive goes against the grain - even though I understand the arguments about not being able to take it with me and the government will bail out the needy. Maybe.I.
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You're forgetting where you live, we keep being told we're the 5th biggest economy in the world , it's your money , you can spend it how you like, if you end up with nothing when the time comes they won't dump you in a wheelie bin.

Plus you're forgetting, buying an asset isn't throwing the money away, spending it on holidays or at the bookies is , the actual cost is the difference between buying and selling which in the case of many cars has been a tax free profit as cars are classed as a depreciating asset even when they make money
 
jimgallaher said:
It does get to a point for some people where a care home is the only option, my mother who had parkinsons was unable to look after my father when his dementia became really bad so a care home was the only option. She then was visited by carers 3 times a day, for 10 - 15 minutes per visit, far from ideal.
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I think it's just the shocking cost of care homes, especially if you have money to pay. My wife's Grandmother is being transferred into one for a week whilst her house is rewired. £160 a day for not a lot more than bed, food and probably as much care as she already receives at home is a joke. No wonder more and more care homes are opening up.
 
jimgallaher said:
A glamorous actress sounds too much like hard work, my chosen exit strategy would be on a sunny beach wondering whether melanoma or cirrhosis will get me first, hopefully around my 85 birthday !
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You'll think differently when your 84 ;)
 
What's a pension?

Jokes aside, apart from the "we're all in" work place pension I've been doing since it came into place, I've never had any "excess" income to pay into one, especially not now!
 
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