In a warning to anyone building up funds for their old age, cautious investor David Norton asks... How could my 'safe' pension fund plummet by 30% – a year before I retire?
When this year's statement arrived in the post from his pension company Aegon in February David (pictured) was horrified.
‘Can I get by on the state pension and £34,000 in savings?’
The real problem she, & most elderly folks have, is that we don't know how long we are going to live.
Our financial situation would be so much easier if we knew how much longer we have left.
For example, in her case, if she knew Mr Reaper was going to come knocking next year, she could go & do her travelling now as she'll have no need for money beyond next year.
Conversely, she might be one of those that lives to be 100 which might be nice but would be a problem financially.
‘Can I get by on the state pension and £34,000 in savings?’
The real problem she, & most elderly folks have, is that we don't know how long we are going to live.
Our financial situation would be so much easier if we knew how much longer we have left.
For example, in her case, if she knew Mr Reaper was going to come knocking next year, she could go & do her travelling now as she'll have no need for money beyond next year.
Conversely, she might be one of those that lives to be 100 which might be nice but would be a problem financially.
When you think about how much money you need to retire on, its always more than you have got.
‘Can I get by on the state pension and £34,000 in savings?’
The real problem she, & most elderly folks have, is that we don't know how long we are going to live.
Our financial situation would be so much easier if we knew how much longer we have left.
For example, in her case, if she knew Mr Reaper was going to come knocking next year, she could go & do her travelling now as she'll have no need for money beyond next year.
Conversely, she might be one of those that lives to be 100 which might be nice but would be a problem financially.
The other factor has to be how long will live without going into a Care Home.
My parents were the type to save for a rainy day. Consequently, they lived within their means.
My mother died suddenly, whereupon we discovered she had been hiding my father's dementia.
And all their assets went on Care Home fees and Whisky.
Do I get annoyed that they left me next to nothing? No. I just wish they had spent more of their money on themselves
Which of course brings up another factor in the equation - whether we have family we want to provide for or not.
It was. And it is far, far more common than people realise.
Both the more "able" one wearing out, and 9 years' of Care Home Fees costing more than a House. The whisky, of course, was the bit that might have come to me/my sister. His need was greater than mine
I'm certainly no expert on this. But it is bound to be the case that family provision is key here. Children is the most obvious one.
My best friend is your age. He lives with his Partner (she is my age, so significant age gap :;), and they have no Dependants. House in Joint names. All fairly simple. Whereas, if they did not live together or house not in joint names, it might be wise for them to take advice...
Which of course brings up another factor in the equation - whether we have family we want to provide for or not.
It was. And it is far, far more common than people realise.
Both the more "able" one wearing out, and 9 years' of Care Home Fees costing more than a House. The whisky, of course, was the bit that might have come to me/my sister. His need was greater than mine
I'm certainly no expert on this. But it is bound to be the case that family provision is key here. Children is the most obvious one.
My best friend is your age. He lives with his Partner (she is my age, so significant age gap :;), and they have no Dependants. House in Joint names. All fairly simple. Whereas, if they did not live together or house not in joint names, it might be wise for them to take advice...
Hmm, sounds like I need advice. I'm much the older, no dependants, a Partner, but we don't live together.
Which of course brings up another factor in the equation - whether we have family we want to provide for or not.
It was. And it is far, far more common than people realise.
Both the more "able" one wearing out, and 9 years' of Care Home Fees costing more than a House. The whisky, of course, was the bit that might have come to me/my sister. His need was greater than mine
I'm certainly no expert on this. But it is bound to be the case that family provision is key here. Children is the most obvious one.
My best friend is your age. He lives with his Partner (she is my age, so significant age gap :;), and they have no Dependants. House in Joint names. All fairly simple. Whereas, if they did not live together or house not in joint names, it might be wise for them to take advice...
Hmm, sounds like I need advice. I'm much the older, no dependants, a Partner, but we don't live together.
That's why I expressed it that way. Never been my field, and I am now retired bordering on dangerous :;
Also, if you have a private pension, check who the beneficiaries are
We did a will, and Power of Attorney, a couple of years ago. It just seemed sensible to have someone you can trust, to make decisions on your health, and finances, should you become incapable, for whatever reason.
We did a will, and Power of Attorney, a couple of years ago. It just seemed sensible to have someone you can trust, to make decisions on your health, and finances, should you become incapable, for whatever reason.
We did a will, and Power of Attorney, a couple of years ago. It just seemed sensible to have someone you can trust, to make decisions on your health, and finances, should you become incapable, for whatever reason.
This is important, and something more people should do.
However, it is worth pointing out that, after you have become incapable, both you and any Lasting Power of Attorney cannot do various things that could be done earlier.
We did a will, and Power of Attorney, a couple of years ago. It just seemed sensible to have someone you can trust, to make decisions on your health, and finances, should you become incapable, for whatever reason.
We did a will, and Power of Attorney, a couple of years ago. It just seemed sensible to have someone you can trust, to make decisions on your health, and finances, should you become incapable, for whatever reason.
This is important, and something more people should do.
However, it is worth pointing out that, after you have become incapable, both you and any Lasting Power of Attorney cannot do various things that could be done earlier.
We did a will, and Power of Attorney, a couple of years ago. It just seemed sensible to have someone you can trust, to make decisions on your health, and finances, should you become incapable, for whatever reason.
This is important, and something more people should do.
However, it is worth pointing out that, after you have become incapable, both you and any Lasting Power of Attorney cannot do various things that could be done earlier.
Like what Phil.
Certain reorganisations of assets can only be done before certain conditions become inevitable, rather than theoretical.
Comments
When this year's statement arrived in the post from his pension company Aegon in February David (pictured) was horrified.
https://www.thisismoney.co.uk/money/pensions/article-12682773/How-safe-pension-fund-plummet-30-year-retire.html?ico=mol_desktop_home-newtab&molReferrerUrl=https://www.dailymail.co.uk/home/index.html&_gl=1*16ky5ig*_ga*NzA4MDc0MDk5LjE2ODk2NjMyNjI.*_ga_XE0XLFFF16*MTY5ODU1ODM5OC45My4xLjE2OTg1NTkyMTIuMC4wLjA.&_ga=2.5854579.171167092.1698558399-708074099.1689663262
https://www.msn.com/en-gb/money/other/ns-i-raked-in-7-7billion-of-saver-cash-in-september-fuelled-by-its-best-ever-one-year-fix-of-6-2/ar-AA1j5tDo?ocid=msedgntp&pc=NMTS&cvid=25dc534572c24838ac8bc76d12d7d71a&ei=16
https://www.msn.com/en-gb/money/other/pocketing-40-of-the-interest-from-client-s-cash-is-not-fair-and-should-be-illegal/ar-AA1jkPct?ocid=msedgntp&pc=NMTS&cvid=cee662dd64ca4281b3cc50383ff74a1b&ei=14
https://uk.yahoo.com/finance/news/don-t-caught-tax-cash-070034071.html
https://uk.yahoo.com/style/state-pension-34-000-savings-115756404.html
‘Can I get by on the state pension and £34,000 in savings?’
The real problem she, & most elderly folks have, is that we don't know how long we are going to live.
Our financial situation would be so much easier if we knew how much longer we have left.
For example, in her case, if she knew Mr Reaper was going to come knocking next year, she could go & do her travelling now as she'll have no need for money beyond next year.
Conversely, she might be one of those that lives to be 100 which might be nice but would be a problem financially.
My parents were the type to save for a rainy day. Consequently, they lived within their means.
My mother died suddenly, whereupon we discovered she had been hiding my father's dementia.
And all their assets went on Care Home fees and Whisky.
Do I get annoyed that they left me next to nothing? No. I just wish they had spent more of their money on themselves
@Essexphil
Crikey, that must have been a shock.
Which of course brings up another factor in the equation - whether we have family we want to provide for or not.
Both the more "able" one wearing out, and 9 years' of Care Home Fees costing more than a House. The whisky, of course, was the bit that might have come to me/my sister. His need was greater than mine
I'm certainly no expert on this. But it is bound to be the case that family provision is key here. Children is the most obvious one.
My best friend is your age. He lives with his Partner (she is my age, so significant age gap :;), and they have no Dependants. House in Joint names. All fairly simple. Whereas, if they did not live together or house not in joint names, it might be wise for them to take advice...
Hmm, sounds like I need advice. I'm much the older, no dependants, a Partner, but we don't live together.
Also, if you have a private pension, check who the beneficiaries are
Good point as to private pension, thanks Phil.
It just seemed sensible to have someone you can trust, to make decisions on your health, and finances, should you become incapable, for whatever reason.
Seems like you did that in the nick of time.
However, it is worth pointing out that, after you have become incapable, both you and any Lasting Power of Attorney cannot do various things that could be done earlier.