Retirement and me: Mom torn between selling her house or withdrawing her pension early | Personal finance | Finance
To combat growing financial pressures caused by the cost of living crisis, many Britons are taking steps to reduce their monthly costs, such as canceling streaming services, switching broadband providers or changing place where they do their grocery store. However, many in the UK have already taken the necessary steps but are still struggling to cover the cost of bills at the end of the month. Alison Luck, 56, from Medway in Kent, told Express.co.uk the cost of living is tipping her budget. Alison, who works part-time as a secretary and supports her teenage daughter, is already struggling to cover the cost of her bills each month.
Putting further pressure on her finances, Alison has to pay for urgent private dental treatment as she struggles to find an NHS dentist who is accepting new patients.
This bill, says Alison, will force him to withdraw money from his modest £30,000 pension pot early, as his monthly finances cannot cover the cost.
Alison said: “I just have no other choice, I have to get this dental work done as it affects my daily life and work, I have no savings to fall back on, it’s so my only option.”
Alison is also afraid of the ripple effects of having her pension taken away from her benefits, as the money she takes out of her pension could be considered income, which means the tax credits for working that her claims could be lost or reduced.
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The single mother is stressed that her problem would not be solved if she worked full time as she would still not earn enough to survive and she would lose her NHS exemption and other help she desperately relies on.
Alison is extremely concerned about the cost of energy and fuel, only using her car to get to work.
She said: ‘My energy bill was £62 a month and now I’m paying £122 and it’s going to go up again? I just can’t stretch any further.”
Alison shared how she’s already cut her costs to the bone, getting the cheapest broadband and phone plan, buying the cheapest food for herself so her daughter can eat well, and buying cheaper second-hand clothes from charity shops. if she needs anything.
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“If something goes wrong in my house, like the shower leaking or the boiler breaking, I can’t afford another unexpected bill like that. If I’m renting, it would be the landlord’s responsibility to pay. the problem. But I won’t have my house anymore.”
Alison says she is lucky compared to others: ‘There are so many people who are worse off than me right now’ – but she is ‘unable to see a way out’ and doesn’t know where she can go go get help.
Alison also thinks more needs to be done to help others who are facing a crisis at the moment.
Vanquis research found that six in 10 UK adults think they need extra financial support to help with the cost of living. However, more than half don’t know where to find it.
The government this year announced a £37billion cost of living support package for vulnerable households, with the government recently urging people, especially those applying for pension credit, to check whether they are eligible for additional help.
Express.co.uk has contacted the DWP for comment.
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