Question: I currently live with my partner, teenage daughter, and elderly father. When my mother passed away a few years ago, my dad and I sold both of our houses and bought a large house for all of us (I was not with my partner at that time).
My children are worried the house will go to my partner, even though we are not married and it is in my name. For complete security, I am looking to boost my pension pot – how can I do this?
From your letter, a few key themes emerge: how to strengthen your retirement position, how to protect the family home, and how to navigate future decisions like marriage in a way that doesn’t jeopardise your assets or your peace of mind.
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In practical terms, this means that even though the house is legally in your name, part of its value might still be included in your father’s estate when he passes away.
If you were to marry your partner without a prenuptial agreement, the house could potentially become a marital asset in the future.
A properly drafted legal agreement is essential to protect the asset, especially if your children are worried about it passing to someone else.
It is worth asking the LGPS for an early retirement factor breakdown. They can show you the impact on your pension if you retire at 60 versus 62 or 65. Even delaying retirement by a couple of years can make a meaningful difference if you rely on the £35,000 in pension pots.
You currently have £11,000 in premium bonds, but these offer low and unpredictable wins. It may be worth moving some or all of this into a high-interest cash ISA or fixed-rate bond to provide more reliable growth. It may be worth considering this now as savings rates are falling alongside the Bank of England’s base rate.
However, the biggest unknown is your household spending. Mapping out your monthly outgoings and what you expect them to be in retirement is essential. It will help you see how far your pension will stretch and whether part-time work or a phased retirement might be needed.
However, you should be aware that if he starts contributing towards the mortgage or other costs related to the property, he might later have a claim on the home. This is why it’s important to seek legal advice and consider putting a cohabitation agreement in place to clearly outline financial boundaries and protect your assets.
You’re clearly trying to do the right thing by everyone, but you mustn’t lose sight of what security looks like for you. It is easy to sleepwalk into a situation where your financial vulnerability increases over time. With a bit of planning now, you can protect the home, shore up money for your retirement, and still plan a positive future with your partner.
Rosie Hooper, chartered financial planner at Quilter Cheviot
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