Debt in retirement

Maggie "So much in life depends heavily on the hand we're dealt, however much hard work we put in and however much we try to plan ahead. Where and to whom we were born, family breakdown, bereavement, our health and that of our family, the sheer ruddy luck of being in the right place at the right time. Yes but only to some extent and with the emphasis on 'how much hard work we put in".

We were told that we coped with redundancy because we were strong but the person speaking couldn't do what we did to get a new job and couldn't move house because they were not strong. The hand we were dealt with at birth should have meant that we ended up living in much poorer conditions than we do. We now have a more comfortable retirement than many of our contemporaries because of the way I manage our money and because we were prepared to move as and when work required it. We still eat frugally, despite being able to afford not to but it is ingrained. We now spend our money on our family and on experiences to make memories. Several people we know who seemed very well off before their retirement have had to sell their houses to fund retirement and resent it.

I think it is very easy to blame all sorts of things for being a poor OAP, and in some cases it really is unavoidable but not as much as you might think judging by all the complaints we hear. When I walk into a home at this time of year and the heating is blazing and the occupants are wearing Tshirts I don't feel that sympathetic as I sit here wearing a camisole, sweater, bigger sweater and warm cardigan! We cook food from scratch for economy and so that we know what we are eating, a takeaway is a real treat not just because we don't feel like cooking. I could go on and on but basically think that we all knew retirement was coming so many of us could have and should have prepared for it. We made choices when we were younger and now have to live with them.

Crumbs, that was a ramble, sorry.

GoldenAge I disagree it’s Brexit. Sorry.

I shall be a poor pensioner. I've gone from carer to single parent. It is what it is. I don't have any debts though.

We do a part-time job that pays well. I life model two days per week what I earn from that pays the mortgage. We have never inherited anything all what we have we have worked for. I do worry what will happen if we cannot continue to work. We were thinking of downsizing from our 3 bed house to a caravan site but the ground rent is nearly as much as our mortgage so it’s not worth it. We just plod on and live in hope.

An average debt of £33,900 is terrifying! Is it mainly mortgage residues, do you think? I do think that people have got used to low interest rates. I'm 66 and I can remember when many mortgages were at 15%. I lost my first husband to cancer when I was 44, and our mortgage residue was paid off by our insurance. It was all of £16,500! I resolved not to borrow money for any reason, if I could possibly help it, because I realised at that point how fragile life is and I didn't want to put my daughters in jeopardy. My second husband developed early-onset dementia at 57 and retired early from his post as a university lecturer before he was humiliated into forcible retirement. Then I had to retire early from the NHS to look after him. Eventually, he went into a care home, and that was very expensive. He brought no money to the marriage because of a divorce and a child who needed extended financial support (although he did have modest equity in a house). However, fortunately, we were both employed in Final Salary Pension schemes, me in the NHS and him under the universities pension scheme (USS). Half of his university pension comes to me as his widow. Contrary to popular imagination, university lecturers are not paid very much - often less than secondary school teachers - but they did have a good pension scheme. Likewise me in the NHS. However, final salary pensions are a thing of the past and people in the public services will not be able to offset poorer pay against future pension benefits. Life's vicissitudes are not individually predictable, but you'd be foolish not to get a decent private pension if you possibly can or to go into debt for non-essentials such as holidays, cars or new kitchens! People in business for themselves are very much more vulnerable, and need to be very disciplined to provide for the future. I feel very sorry for people in gillybob's situation - through no fault of their own. It was easy for me, in a sense, because that money was taken from our pay at source. I hate the idea of going into debt, but I have been lucky in some ways. I do not condemn people who fall upon bad times, but I have no sympathy for the 3 holidays a year and fancy cars on the drive brigade!

The last company I worked for had a reasonable pension scheme but the youngsters wouldn't join. Even when I explained that with tax relief on contributions and the company contribution, the fact that it was taken out of gross salary etc that it was the equivalent of a 15% pay rise they still wouldn't join. Some said it was because they wouldn't stay with the company all their working life and I explained that they didn't lose the pension just because they moved but it was a waste of my time.

Nonnie I tried explaining that to younger colleagues too. I suppose they think ‘there’s plenty of time to worry about that’ but as we all know it sneaks up on us.

I took early retirement and get a public sector pension which, because it was non contributory is less than those in the private sector doing a similar job. At first we were more than comfortable, my husband had his public sector pension (a bit less than mine) and his state pension as he was older than me. Then he died. I received bereavement benefit for a year but now have to manage on my pension and 50% of his until I hit the magic age of 66. I’m better off than a lot and I can manage but my social life has been hit hard (at a time when I need one) as I can’t afford to eat out so much and that is what my friends want to do when we meet up.

I've been retired for 8 years although my state pension started 13 years ago.
In 2016 I had a letter from the DWP saying that an inspector would be visiting on a certain day...ooh-er ?
She asked me to sit down then told me that because they hadn't given me the option (in writing) of deferring my pension, they were in a position to pay me £22,766.80 which included interest at the relevant rates for each year.
I was shocked...
I had been working as a pa/carer after I retired from my original profession (lawyer) and wasn't short of cash so I decided to put it aside.
I live alone through choice and my partner (both divorced) lives about 7 miles away. He's a good many years younger and I'd feel uncomfortable living together, that said, I orefer my own space. I got half the house when I divorced but ex suggested that I could let it, invest the income and rent elsewhere which is what I do. When we jointly decide to sell it I will get half but neither of us are in a hurry. I moved to a smaller period house in a market town in Surrey green belt. The marital home was far too large for me to rattle around in anyway so I'm very fortunate not to have a mortgage, never use my credit card and bank reduced my £11k overdraft facility to £200 as I've never used it. I don't lend money to my children either as they are all working f/t and I expect them to live within their means. Did it twice with D3 and she changed phone number and declined to repay when I emailed. 30s, not married, no children, no idea of saving. Owed money to many. I said I would apply for an AoE and explained what that meant. She decided to offer a monthly DD. There's a difference between a loan and a gift which she chose to ignore and we haven't spoken since she paid in full. I can live with that.

Urmstongran You are right so don't be sorry!

For those of you who have retired and have health problems you can apply for attendance allowance which is a non means tested benefit. Simply Google attendance allowance and you will get all the information

Life in the 1960's -70's wasn't a doddle either.Yes there were homes to buy as estates were going up all over the place making up for those lost, or were to be built, during the war years
It was a homebuyers dream. If you could afford one. Interest rates were high on savings if you were lucky enough to be able to save but interest rates were also high on mortgages. A mortgage we could afford was to be DH and my self problem. Unlike now, the social housing situation was much easier 60's-70's but we wanted to buy.Thrifty DH saw it as an investment as well as a present home and we ' won't always be young'.The only way DH and self were able to obtain our mortgage was to up our deposit so as to reduce the size of a mortgage. We were fortunate to have a relative lend us the extra. I got myself an evening job as DH was able to look after our two small children of an evening so we could pay this loan
DH cycled the three miles to his work winter and summer. We had no car.
I sympathise with those for who ill health has meant they are now struggling in their later years. For many unfortunately, and a couple I have encountered, the future appeared to them to be one that would take care of itself.Life can be and for many a struggle and hard work but aren't all of us capable in our earlier years, our health and our circumstances permitting, of looking ahead and not assuming all will be handed to us 'on a plate.'

My own situation is I am not wealthy financially nor will be in pension years.

Fled the ex 17 years ago taking 4 now adult youngsters by him after 16 years with him, enough was enough.

We had to start again with nothing. The aftermath was horendous. I still live with the ramifications today physically, emotional and financially wise.

I live in a council house now (ex is not in my youngsters live either as they chose to disown him) I get disability as I can not work to an employer's timetable or expectations.

I tell you this I have more today than I had with the ex. I am happily remarried to a man who treats me like a princess and is the dad he didn't have to be to my four. All of mine are stable good jobs and happy relationships.

We have worked hard to ensure they are happy and have good lives.

Tell you something stick all your money. Been there and had it. Bought me nothing worth having.

We live simple lives, don't drink or smoke. We save for what we do and live comfortable. I have insurance policies for my children and pre payment insurance plan.

This post is about giving another side of the equation financially. As 1 in 4 women will suffer abuse in there lives there is alot more women like me who won't have the financial stability of wealth

I agree with the last paragraph of sarahellenwitneys comment that many people, especially when they're young, expect (if indeed they think about it at all) that the future will tske care of itself. 4 of my 5 children are excellent managers of their finances and live comfortably within their means, though not all at the same level of comfort as it depends it on income. Five of my 7 grandchildren are working full time having gone through college and done some travelling. The other two are still in education but have part-time jobs.
We are lucky that none of us have any health issues whatsoever, which is one issue which can hamper the ability to stay in work but you can never be complacent.
I worked 3 jobs when I left school so that I could buy the things I wanted and not be limited to just what one wage packet could buy me. Of course, I gave my parents board and keep at a rate much higher than most of my friends as I earned more and I'm now able to support Kssair and the RNLI plus volunteer at Sams. Many of GNs stories show how selfless they are and it's humbling to read of their struggles, triumphs and happy times.

The above for keffie.

I am almost seventy and last year had to get a part time job in a cafe to make ends meet. When I was married I had nice homes (decorated and renovated by me!) but after a few disasters I have now ended up in a rental house I can hardly afford. I feel fairly bitter and twisted (!!!!) that it's come to this and keep trying to fathom out where it went wrong! I am becoming more and more concerned that the little bit of savings I have are being eaten away month by month just to keep my head above water! I suppose it's too late to die young!!!!!!!!!

Golden age, I don't know what you buy or where you shop but my bills haven't risen by 25%!

Mine neither, kittylester.

jenpax, you probably already know this, so forgive me it it looks as if I'm trying to teach a Gransnetter to suck eggs! But just in case, and for others who may not have realised it, when you withdraw money from your pension pot you only get the first 25% tax free and have to pay tax on the rest. The trouble is, if you withdraw a large amount in one go, it will count as income for that one particular year, so you could end up in a high tax band, losing a lot of it.

My OH paid into a private pension for years as the government advised he should, but that all went pear shaped and he had to scrabble around putting away what he could to make up the short fall from what he expected to get once retired. Of course he wasn't the only one. How can you plan for the future with some many uncertainties?

I am 62 .worked in the fashion businsss successfully and well,paid all my life ..now,unemployable ..totally age related .my skills are there as I have been doing some short term consultancy .I tick all the boxes but age is a deterrent so I am confronted with a deferred state pension and no discernible income..even unskilled work is hard to come by where I live in the country .my partner had his own business but not reaping any significant financial rewards and wound it down and been managing another business ..now abruptly curtailed by seriousillness but with no company pension pot ..just an income abruptly stopped.
I have a single mother daughter making financial demands because she has no income.
Credit cards are being juggled .luckily we own our home so equity canbe released
I can’t believe I have gone from a fairly comfortable independent lifestyle to a situation where I am facing financial stress. I did not anticipate financial insecurity..or being unemployed and by default retired or partner having a seizure that’s rendered him unable to continue his job.
hindsight is a wonderful thing, Care Home fees are terrifying by the way.I am managing my mums financial affairs as she is ina Care Home £5500 per month ,,! I will not be able to afford that.
Unless you have a big fat pension pot or are rich you are going to have financial crises as you get older ...I have never been extravagant or foolish with money but I have never been able to save as I always was forking out for something for somebody else in the family.. or some unexpected expense.any savings I had have been spent!
I have a small company pension of 400 a month andthats it.
We woman who cannot claim our pensions till65 have been cheated out of £ 39000 by my calculation ..ggggrrrr ....

crafty I do realise you are not complaining but to get any pension at all after not contributing is something most of us coul never dream of. Presumably it is also index-linked which almost no one in the private sector has.

sarahhelen social housing certainly wasn't easier where we lived in the 60s and 70s, in two different parts of the country. As I have already said you had to be on the list for years and have a couple of children to earn enough points to be considered for a council property. It is easier now imo.

When our first child was born, no nurseries in those days, DH commuted an hour to and from his demanding job and took on a pools round as well to help pay the bills. That was when our mortgage interest was over the 15% often talked about. We have had it hard at times but always thought we would retire one day and made the appropriate sacrifices. He still worries about money now.

Hi Maggiemaybe thanks yes I did realise that about tax I have looked into it and spoken to pensionwise, I have worked as a lawyer for charities for many years so my salary is not typical for the profession but is in line with civil service pay scales this means I am having to think creatively about my investments and about the best way to generate a steady income to go with my state pension. I have a financial adviser too and feel that in my case it’s a sensible option

golden age I'm another who isn't dealing with 25%/increases in bills.
I voted remain and still see Brexit as a huge mistake but there is no way I'd blame your problems entirely on the outcome of the referendum.
I also object to blanket stereotyping of the older squad who stuck their heads in the sand and voted leave.
I certainly didn't and the same can be said of many posters on GN.
It's a big mistake to conflate the issues and by doing so you lose credibility.