Thoughts of a carer

  July 2022  I’ve been helping out my sister and my mother recently; like many in their early sixties, I’ve also been looking at my finances, and trying to work out what I might need in the future.  My mum’s situation has given me food for thought - serious thought. After nearly thirty years of retirement she found herself in hospital at the tender age of 89, and the doctors declared her medically fit for discharge - which sounds fine, but she’s really struggling with her mobility. The hospital and social services between them agreed her discharge was ok; social services proposed she should be at home, with four care visits a day to help with meals and dressing. That, basically, is what our health and social care system might provide for you when you’re old and unable to look after yourself.  With the experience I’ve had with Viv, I was horrified - as was my sister. My mum has lived alone for the last twenty five years in a tiny, one bedroom bungalow (that was once p...

  My stepmother passed away last summer; my father had died some fifteen years before. They were both a good age, he made it to 81, she to 89. They’d had a good retirement in their bungalow together, travelling around Europe quite widely, enjoying a good standard of living funded by their pensions which, including their state pensions, were perhaps providing them with combined income of around £40K. I didn’t know details of their income, or outgoings, when they were alive. People don’t talk about money; many, I believe, don’t even think about it in quite the way they should. *** Viv and I have a number of spreadsheets which document our possible finances in a number of differing scenarios. We know what our pension can pay for now; we also, perhaps, are lucky that we don’t have to buy annuities to use them, and can plan to have the amounts of money that we might need at a time in our lives that we might need it. One of the scenarios we’ve considered is that I die in my seventies, le...

A few years ago, when I worked in an office, we once briefly discussed pensions. I was staggered that all of the new recruits - clever graduates in their mid twenties - had chosen not to pay into the company pension scheme; they felt they had other priorities, and that they would be able to save for a pension later in life. Anyone in that position now should read the following and perhaps consider where they might be in forty or more years time. + + + This morning I was updating a spreadsheet I keep on Viv's and my pensions. I like to update it every year, tracking our finances and at least making an attempt to work out how long it is that our savings might last. It's something that I think many of us are recommended to do, especially those of us that don't get substantial final salary pensions. To produce such a plan you need to make some assumptions about your financial needs in the future; you need to think about how your lives may change, whether both of you will live i...