How much money do you consider 'sufficient' in Savings.

Those of us who have some savings are fortunate, if you live hand to mouth, they are a luxury. We are fortunate now, but earlier in life when our children were you, the annual MOT was a dread. trying to keep an old banger on the road which was essential if I was to get to work.

We have a little savings put by, for emergencies, and manage to add a little each month, it is not a lot, but our funeral plans will help with those expenses, and we do not go on holidays these days, can't be bothered. Like life as it is and with the little bit 'put by'are comfortable to live as we do.

My abiding fear is having to go into care and being dependent on the state to pay for me. I have spent 30 years of my life visiting friends, family and others in care. I have seen every type of care home from the superb to the absolutely dreadful and the one thing that come through is: you get what you pay for, if you can't pay your last years will be spent in cramped limited conditions with indifferent care. The more you can afford to pay the better your living conditions and care will be. I accept there will be exceptions but the general rule holds.

So how much is 'sufficient savings'? Sufficient savings is sufficient to be able to afford really good quality care for both DH and myself for at least 8 years. Nowadays the average stay in a care home is two and a half years but over 10% are in care for 6 years plus. The cost of a really good quality care home will be around £1,000 a week. So that is £52,000, or £104,000 for two, take away the average income of pensioner households, £20,000 and it brings the cost down to £32,000 a year, for 8 years that is £560,000

If you accept that care costs could be as high as £560,000, take away the value of your house and what is left is the level your savings should, ideally, be

Most of us will probably not go into residential care, certainly not both spouses for that long, but that is the worst case scenario, and the one I always have in mind.

Those figures which I don't doubt are way beyond what the majority can afford so we had better stay fit and well.

Well I think what we will be doing is trying to future proof our home as much as possible to avoid going into care preferring to have care in our own home which will be more comfortable and far less expensive.

I'm still hyperventilating

(after reading M0nica's calculations)

Personally I'd prefer to have a substantial nest egg above & beyond retirement income. We've worked out we'll have enough to live on, & through a combination of careful management & good fortune we'll have a 'cushion' as well. (I do realise not everyone is in this position, but when I compare myself with my brother in exactly the same situation it is clear we are better at managing money than he is). I just want to be sure I can pay for things like major repairs, new car etc. My children are doing fine & will have our house to sell when we kick the bucket, providing it's not eaten up in care home fees of course. We may revisit nearer the dreaded day & start gifting to them within the tax limit if we need to.

Makes you wonder where some of us will be in 10-20 years time, doesn't it?

Do they have unlimited, fast broadband in these homes

For that price, I blooming hope so!

As Hilltop and Ana pointed out, there are restrictions on gifting whilst still living as to amount and the time that must pass before YOU pass for it not to attract taxation:

www.moneyadviceservice.org.uk/en/articles/gifts-and-exemptions-from-inheritance-tax

I'd save most of it for your needs, and when you are gone, they can have what is left. You never know what your needs may be as others have said.

I want to keep £10.000 which is what I believe it costs to use DIGNITAS, I would not spend a penny on what passes for 'care' in this country.

Don't be fooled by current contribution thresholds they can be altered at whim. My advice is that if you have any spare cash, spend it on making your home as user friendly as possible so you can hang on at home for as long as possible........

Give your money to the people you love if you can help them.

The future is so uncertain now.

I hope that I don't have to go into a nursing home. Or my husband for that matter. We'll whatever savings you have you may need in the future as we don't know what will happen. I think you should hang onto that money just in case, if you have a will they may end up with it anyway.

I made a mistake. I took the pensioner household income from care costs for one person and multiplied up instead of two.

So my calculations are: £102,000 a year for 2, less £20,000 = £82,000 x 8 = £656,00 - value of house = necessary savings

Maggiemay, sorry for the extra hyperventilation this will cause you

I think it is going to be extremely hard for our children and our grandchildren to be able to have the lifestyle that we oldies have enjoyed. Housing prices have rocketed, bills for energy have done the same and as for a car well, you have to get to work don't you? You can hardly call that a luxury if you live out in the sticks as we do. Then of course if your grandchildren go to university your children may even have to remortgage their house to pay the bill thanks to Cameron and Clegg, that is if they have one of course. I think it is only right that we help our children and their children.

We have paid off our mortgage. The money from the house will either pay for our care or they will inherit it. I have opened accounts in trust for our grandchildren and pay a certain amount in to them which they cannot have until they reach the age of 18yrs. It is not going to be a fortune but it will help a bit. If anyone can tell me of a better way to give them more I would like to hear it. We also have a lot of treasures in the loft, left to us by our parents, which they can sell and our furniture they can share or sell as well. Hopefully as we are now the age at which our parents died we will not need to go in to care but we cannot see the future so we have life insurance policies too.

When we were growing up it was the norm to rent. Today because of Maggie Thatcher's drive to get everyone to buy their own home (in order for the government to tax it) most people of our age own their house. She sold off council houses at a give away price for the same reason. The problem is that renting is now as expensive as having a mortgage.

I think the OP was right to give her share away, maybe it would be wiser to say that that would happen upon the last survivor's death?

Anything more than the €3.38 which I have in the bank at the moment, wearing out the card reader checking if my monthly money is in the bank yet

Savings can be very useful, for those that have them. In the past few months we have spent several thousand pounds on out of the ordinary spending. No, not holidays, but vet and dental charges. It soon mounts up, yesterday,£200 at the vets, next week, £500 at the dentist for the pleasure of having root canal fillings, not me, my husband, I had mine three months ago!! Money can sometimes just melt away.

I agree with your post re varying standards care M0nica, but in fact I am inclined towards radicalnan's post.
I've never been to Switzerland and I understand it is very beautiful. If someone could just take me on a quick tour of the country first then that will suit me.

and I agree with annsixty

Well, I would rather spend £10,000 each and leave my house to my DGC than spend it on making care home owners rich.

I'm still hyperventilating
(after reading M0nica's calculations)
Maggiemaybe
Calm down dear, watch your blood pressure

Wow what a lot of very interesting views. I agree with those who said "give with a warm hand" . I have enjoyed seeing them spending some of it and using the majority to pay down their mortgages. My dad, who was a manual worker and died very young, really struggled to pay that mortgage. He would have been so proud of his grandchildren, if he had lived to see them.

The reason I posted, was the comment from my brother that, "I must be mad" . It did not make me reconsider my decision as it had been my intention to give them the money for many many years.

My OH and I both have the same amount in Savings. For us,the Savings that we have is earmarked for any major house expenditure, possible private health treatment if necessary, care home fees or preferably dignitaries.

The proceeds from the sale were the same amount that I have in Savings. So my balance would have doubled. As we save from our income it seemed unnecessary to put it in the bank. For my brother, the inheritance was, 'a drop in the ocean'.

We never really came financially comfortable until our late 40s . We did not buy our house until we were almost 40. When the children went to,senior school I got a job and my husband a promotion and suddenly we had money in Savings. We seem to have passed our frugal ways onto our children.

Glad you have passed on the saving gene to your kids. The best present you can give them

The council can take money for care home if they recon you ve deliberately given it away. I spent £1 k getting legal advice and our house will be half in trust for my kids if I pass before my hubby and vice versa. We are using our savings to support our daughter, hurt in an accident, and it's rapidly getting used, but glad to do it. I think u can be too money conscious, and if I have it I give it to family if they need it when they need it , as it won't be worth much by the time I die!

Why don't you leave some to the grand children, they might need it more as they get older.

Glad you have passed on the saving gene to your kids. The best present you can give them
Well, you can try but sometimes it is like leading a horse to water
Some are good with money, some not!