Myth of pensioners who splash the cash

[Jan Rosser]

Just read an item online in the Daily Wail that today's pensioners are saving and not spending their retirement cash. The study was carried out by the International Longevity Centre and apparently once we hit 70 we save rather than spend on holidays and meals out etc. Does this mean that in two years time when I hit the big 70 that I will change - I don't think so somehow Apparently the study says many of us want to leave cash to our children but why - my two sons are both in good jobs and in fairness to them tell me to enjoy myself while I can so I'm doing my best How many of you think like me?

[qbman1]

No, I think you should save as much as you can and give it to me.

[barney]

I have an elderly Mum, Jan, and I encourage her to have the best of everything while she can.

There is something deep inside us that makes us want to leave some sort of legacy.
I see it every day in my work.

Some are very reluctant to spend and enjoy what time they have left.
I do Wills and LPA's and I am sometimes amazed at folks assets while living very frugally.

A sensible policy of spending what you can afford while making sure that you have enough for the essentials is the way to do it.

If only we knew when we were going to die, it would be much easier to plan

[qbman1]

I think you are right there, Barney.

My parents, who were never particularly well off, always insisted they wanted to leave something from us but we eventually managed to persuade them to blow as much as they could on a car and as many holidays as they could cram in. Fortunately they did, and lived pretty well for their last few years. They had earned it.

[Quizzical Bob]

By the time I reach 70 in July 2019 all my cash will have gone.

[Gill W]

I think it can be true that the older one gets, the less one spends.

There comes a point where your health and mobility decline to the point where you are no longer able to spend on things like holidays and meals out.

But I'm thinking that's a lot older than 70. My dad was 86 when he died and my mum a few years younger, but she had to go into a care home when my dad died. When I cleared the house there was about £3000 in cash in the house. It looked like they had drawn their pension out and literally couldn't spend it all. In the preceding months, my dad had passed several thousands in cash to me, so I could pay it in to their savings accounts, so the cash in the house was the tip of the iceberg.

We have no children, so we'll be spending our money while we can. Later I may consider equity release as well

[qbman1]

By the time I reach 70 in July 2019 all my cash will have gone.

Don't worry, QBob, we'll all have a whip round. I am sure that nice Mr Corbyn will see you right too.

[Romig1]

I think you are right Jan. If an elderly parent's offspring are comfortable, then there's no need to feel the need to save for their inheritance. Even if the children do need the cash, then someone shouldn't feel (or be made to feel) guilty about spending on themselves.

I encourage my Mum to spend her money (though with cruises and other hols she doesn't take much persuading).

[Jan Rosser]

I think it can be true that the older one gets, the less one spends.

There comes a point where your health and mobility decline to the point where you are no longer able to spend on things like holidays and meals out.

But I'm thinking that's a lot older than 70. My dad was 86 when he died and my mum a few years younger, but she had to go into a care home when my dad died. When I cleared the house there was about £3000 in cash in the house. It looked like they had drawn their pension out and literally couldn't spend it all. In the preceding months, my dad had passed several thousands in cash to me, so I could pay it in to their savings accounts, so the cash in the house was the tip of the iceberg.

We have no children, so we'll be spending our money while we can. Later I may consider equity release as well

I agree with you Gill about health and mobility issues affecting your ability to take holidays etc. My mother is 93 next month and becoming increasingly frail but up to a couple of years ago was quite active - she spends on the essentials like food and heating etc. but the surplus simply accumulates and she is very generous to my sister and myself giving us a cheque to "treat" ourselves which we don't want or need but it makes her happy. I cannot envisage not being able to do all the things I do now but who knows what the future holds. I made a decision when I lost my husband to carry on with the life we had - cruises in particular being our thing and being encouraged to do so by my boys I am glad to keep on cruising for as long as I am able

[Mervyn and Trish]

We're with you all the way Jan. We encouraged our parents, particularly Trish's Mum, who was all for saving some for us, to spend it while she could. And we're doing the same. We only have one daughter, who is not well off by any means, but she's not on the breadline and nor will we let her be. But when we finally pop off she'll inherit the house, which we have done all we can to protect from the government getting their hands on it. The cash is ours to enjoy.

We saved while working. We didn't smoke, didn't drink excessively, and days out were modest. We invested in our Madeira timeshare, paying out while we were working, to get good holidays cheaply now. And ditto Holiday Property Bond.

I keep a careful check on the money and future plans, with the aim of spending the lot but not falling short. That's quite difficult, not knowing how long that will be, but we don't want to run out of money and spend or final years scrimping, nor do we want to pop off tomorrow, or become unfit to do things, wishing we'd done stuff earlier.

I do think what Gill says is true though. As we get older and unfitter we will not want to gad about as much as we do today. But hopefully that's a long way off yet.

[Silver_Shiney]

My BIL once said to my mother that she should sell up, move in with them and watch me and my sister enjoying the inheritance. She quite rightly said, no, I want them to watch me spending the inheritance.

[qbman1]

Sounds like a nice chap - your sister is far too good for him !!

[Silver_Shiney]

You don't know the half of it mate. He's taken out umpteen remortgages on the equity, they've no hope of ever repaying the mortgage, he sleeps all day on the settee. Absolute waste of space. He even said to my mum a few months ago that, while he hadn't put a penny into the house, if they split, he'd be entitled to half. Our only hope is that, being some 15 years or so older (I think he's 63 now), he'll pop his clogs well before her so she'll have the chance of some happiness in later life.

[qbman1]

Lovely - bet it's a bundle of fun at Christmas ! You have my sympathy. I'm sure your sister must have seen something in him.

[Manoverboard]

Couples in their 70s will start to spend less if one of them develops a reluctance to fly or to be away from home for too long or a dozen other reasons including a fear that they may need to hang on to the money in case dementia kicks in. Such rationale has nought to do with leaving money to their children. Travelling less could simply be a matter of them not wishing to pay excessive insurance premiums or a matter of them losing their confidence or having difficulties with their hearing or eyesight.

[Boris+]

Our situation is all sorted out and decided - and whilst it is intended to leave something to those younger than us, we jolly well plan to have a great time as long as possible. That doesn't necessarily mean holidays of the long distance or hedonistic variety, but as long as we are able, enjoying our time is very important.

Ok, so we are lucky to be in a position to be able to do both things, but I feel a sense of responsibility to those younger ones, and knowing that they will be well situated gives us peace of mind.

[Stephen]

What's this new thing called 'cash'

[qbman1]

Royalty is excluded from this one chap !

[daib GC]

I think it can be true that the older one gets, the less one spends.

There comes a point where your health and mobility decline to the point where you are no longer able to spend on things like holidays and meals out.

But I'm thinking that's a lot older than 70. My dad was 86 when he died and my mum a few years younger, but she had to go into a care home when my dad died. When I cleared the house there was about £3000 in cash in the house. It looked like they had drawn their pension out and literally couldn't spend it all. In the preceding months, my dad had passed several thousands in cash to me, so I could pay it in to their savings accounts, so the cash in the house was the tip of the iceberg.

We have no children, so we'll be spending our money while we can. Later I may consider equity release as well

Gill your story is mirrored by mine. My mother was very frustrated in her final years as she had more money than she had had in her life. Then she could not get out and spend it.

There was only about £1000 in cash as I had got her to put it in the BS but she did not want too. Your last sentence also fits us and that is why we cruise as much as we do.

You are a long time in the other place.

[Stephen]

Royalty is excluded from this one chap !

That's you out then.

[ITWA Travel Writer]

This can be a very emotive subject. Our generation, those of us close to or as in my case at 70, were in the main brought up with the firm belief that you only bought something after you had saved for it. You should only spend what you have. This also imparts that inbuilt mind-set of saving for a rainy day scenario.

Having been self-employed for much of my working life and having amassed, lost and amassed again money and property, I was fully aware of the multitude of tax pitfalls, personal social care cost liabilities, ongoing property costs and family responsibilities which wealth brings with it. Like Mervyn and Trish, Lady Macbeth and I have only one daughter. She is comfortably off and now that she is married, both she and her husband have decided on their long term financial strategy so there is no apparent need for us to save for her future.

Accept!!

The bl..dy tax man and the other government and social care robbers out there just waiting in the wings.
This we decided required forethought and action.

So what did we do?

Well we have disposed of all our assets. Yes we now own nothing!! The title deeds of our Moray Castle and its contents; even this computer I type on have been transferred to our daughter and we rent the castle for £1 a year as we do with the house in Malcesine. Our cars are leased, so they do not belong to us. All of our savings are in a joint account again with our daughter, last survivor being accountable and we now live on our collection of pensions, which HMG annually pilfer what they perceive to be their fair share which I have already paid tax on. Very bitter subject!!

So Jan and everyone. Yes, spend, spend, spend whilst you still can and when the time comes for Lady MacB and I to shuffle into a local nursing home, let the powers at be pay for it, because I have paid my own way throughout my life and I have no qualms about anyone else picking up my end of life costs, including a private jet to Zurich and car to Forch and Dignitas.

[gfwgfw]

This can be a very emotive subject. Our generation, those of us close to or as in my case at 70, were in the main brought up with the firm belief that you only bought something after you had saved for it. You should only spend what you have. This also imparts that inbuilt mind-set of saving for a rainy day scenario.

Having been self-employed for much of my working life and having amassed, lost and amassed again money and property, I was fully aware of the multitude of tax pitfalls, personal social care cost liabilities, ongoing property costs and family responsibilities which wealth brings with it. Like Mervyn and Trish, Lady Macbeth and I have only one daughter. She is comfortably off and now that she is married, both she and her husband have decided on their long term financial strategy so there is no apparent need for us to save for her future.

Accept!!

The bl..dy tax man and the other government and social care robbers out there just waiting in the wings.
This we decided required forethought and action.

So what did we do?

Well we have disposed of all our assets. Yes we now own nothing!! The title deeds of our Moray Castle and its contents; even this computer I type on have been transferred to our daughter and we rent the castle for £1 a year as we do with the house in Malcesine. Our cars are leased, so they do not belong to us. All of our savings are in a joint account again with our daughter, last survivor being accountable and we now live on our collection of pensions, which HMG annually pilfer what they perceive to be their fair share which I have already paid tax on. Very bitter subject!!

So Jan and everyone. Yes, spend, spend, spend whilst you still can and when the time comes for Lady MacB and I to shuffle into a local nursing home, let the powers at be pay for it, because I have paid my own way throughout my life and I have no qualms about anyone else picking up my end of life costs, including a private jet to Zurich and car to Forch and Dignitas.

Wooooeeee ! ! !

[The Tinker]

Hope neither of you will ever need a Nursing Home placement as the council funded ones are grim and there is no guarantee that you would be placed together.

[GillD46]

Hope neither of you will ever need a Nursing Home placement as the council funded ones are grim and there is no guarantee that you would be placed together.

I'd second that! The Social Care cost is crippling this country.

[Mervyn and Trish]

Ah you forget Tinker and Gill, our good friend lives in the land of milk and honey, Scotland, where thanks to subsidy from us Little Englanders social care is better than that we are left with after shipping the dubloons north.