What to do with savings?

Question

If you are only a couple of years off retirement and you have savings,and you spend all but £6000 can the amount you spend be traced, and questions asked?

I am not trying to be dishonest but something has arisen that will take a large part of my savings and I dont want anyone to think that I have hidden it or something if I have to make a claim for benefit later on. It may not happen but I just wanted to be clear

Thank you for you insinuation pgt

Answer 1

What you choose to spend your own money on is your bussiness and nobody elses.I think that you are worried that if your circumstances change at a later date and you have to claim pension credit or something,they would ask you about your savings.This would only apply to your savings at the time of claiming,nothing to do with what you may or may not have spent it on 2 years before!.Stop worrying and spend what you have to and think positive! You may never have to claim anyway!

Answer 2

This is a tricky one, although it is your money and therefore you can do what you like with it. I had some saving when I married my ex, and spent quite a lot on household things before the wedding. When my business folded up the social wanted to know what I had spent my savings on and they wouldn't pay me any money for over a year!
If you have another account - which you may have had for some time - you could gradually pay the £6,000 into it, (important that it is paid in in cash, and is therefore not traceable to the first account) spend the rest and close the account which the larger amount was in. This way, when they ask you to declare any accounts you have you can declare the one with £6,000 in, and any others with small amounts in.
I really regretted having to live off my remaining savings for that year - especially as my ex squandered it on rubbish.
Money is easily spent but very hard to accumulate!

The important things is that you have time to plan what you are gong to do.

Answer 3

Anyone with any common sense would keep receipts for purchases, especially any large purchases. If you need to claim benefits, of course your financial history is gone into with a fine toothcomb, and they go through bank statements, savings accounts etc.

Answer 4

I've read and reread your question and I 'm still missing something here, who are you worried would be able to trace it and why would they want to? If its your money then you can spend it how you like surely, If I don't want any money traced as you put it, I don't use a bank I use a strong metal box that I keep in the house and locked away, then it can't be traced anywhere.

Answer 5

Sorry but I don't understand the question. What is the problem with having lots of savings when you retire if you wish to.

Answer 6

Don't worry about it. Spend as you like and enjoy yourself. I guess that you are worried that if you have too much savings..Your pension will be taxed or you won't be able to claim any benefits?
Nobody can question you...so take a few holidays.

Answer 7

Impossible to trace if in cash,,all that would show up would be the bank withdrawls,,,,,but as it is your to spend as you wish nobody would have a legal right to question you on your spending habits unless it was for illegal purchases like drugs and guns.....

Answer 8

Questions cannot be asked bacause it's your money and you're free to spend it however you see fit. But if, for instance you choose to give it away to family, there could be tax implications for the family members who receive it as it's termed as "unearned income" to them.

Answer 9

start taking it out now and putting it in different accounts

Answer 10

I have spread my savings out into several accounts, do this well before you retire, and only declare one account.