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  1. #1

    Frivolous, ageing parent - financial advice

    Hi, hoping I can get some advice.

    My mum is around 10 years away from retirement and has no formal plans, savings or substantial pension.

    What she does have is about 4 years of a pension, a pot of money from downsizing mortgage free (it’s prob less than 50k) and no job atm due to relocation.

    From her perspective she’s more affluent than she’s ever been and whilst being out of work she’s getting very spendy. Every time I see her there’s a new item in her house or that she’s wearing, or waiting for delivery of.

    She’s not worried due to the cash sat in her bank, but she could easily live another 30 years. And there’s no contingency for illness, or anything else that could happen.

    I’m really worried about her. I’d like her to get IFE but a quick look online I get quotes of 500 fees. She can be very shortsighted/tight and doesn’t seem to understand what benefits and peace of mind she’ll get from getting advice. She just seems to think so long as she can cover the bills she’ll be fine.

    Am I missing any support I can direct her too?

  2. #2
    Do you mean IFA? Most unfortunately wont be interested for only a50k pot.

  3. #3
    Has she obtained a new state pension statement?

    If so, what does it say?

    Is she looking for another job? If so, she'll almost certainly have a pension scheme that she can join.

    What kind of pension is the "4 year pension"?

  4. #4
    Thanks for the replies. She’s looking, yes but has mentioned part time. Shes always been under the national average salary.

    I’ll get her to check her state pension and no, I don’t know what her private one is, but she won’t have had much to pay in as she had a mortgage until very recently.

    I’ll be honest, I don’t have a great amount of knowledge myself. So maybe the IFA is the wrong service. I’d just like her to get some financial advice on how and what she needs to do to best provide for her future.

  5. #5
    1. Ask her when she plans to retire, and work out if she'll be able to cope on SP.
    2. Point out the free money she can get, by saving into a pension now (Once she starts working) and paying much less tax when she withdraws it. eg if she saves 800 now, that will be bumped up to 1,000, when she withdraws that she might end up paying about 100 tax or less so that's a free 100 at least.
    3. Point out that she can still get free money now even if not working, if she pays 2,880 into a pension the government will kindly make that up to 3,600.


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