Understanding Jules Ackerman’s Financial Journey
In a series titled “How I Manage My Money,” we explore the financial habits of individuals across the UK. This week, we feature Jules Ackerman, a 74-year-old woman from Aberdeenshire. As a mother of three and a grandmother, Jules works as a live-in carer and also runs a side-hustle by taking care of dogs. She does not qualify for pension credit and believes that the state pension should be increased to at least £20,000 per year.
Monthly Budget Breakdown
Jules receives a state pension of £959.84 per month. Additionally, she works as a live-in carer, earning around £900 per week before tax. Her dog-sitting income is also variable, typically around £75 per week when work is available.
Her monthly expenses include:
- Groceries: £160
- Council tax and water: £104
- Electric: £120
- Home insurance: £11.44
- Car recovery plan via bank: £18
- Car fuel: £160
- TV licence: £15
- Window cleaning: £12
- National Trust: £8.70
- RNLI donation: £20
- British Red Cross donation: £15
- Guide Dogs donation: £10
- Mobile and dongle: £55.61
Jules adds £250 a month to her cash savings if she is working and able to do so. When it comes to clothing, she prefers to shop at charity shops. She avoids spending on eating out or takeaways.
Early Life and Career
Jules grew up in south-west England as the eldest of five siblings. Her parents had to get married because being unmarried with children was not socially acceptable at the time. Her mother made leather gloves at home, while her father worked on farms. The family lived in a council house, and money was always tight. Jules couldn’t continue her education and had to start working early.
She spent some years working in a hospital as a nurse before shifting to one-on-one care in various settings. Over the years, she has worked in nursing homes, provided care for people with learning difficulties, worked for Marie Curie, and even set up her own care agency.
Jules found hospital work unsuitable for her and preferred individual care. One reason she left nursing was due to the excessive paperwork, which she felt was unnecessary. There was more focus on processes rather than genuine care for patients.
Live-In Care Experience
Since 2018, Jules has been working as a live-in carer for people with dementia or those who are bedridden. When a job comes up, she can earn around £900 a week before tax. However, the work is ad hoc, meaning it is not consistent.
She enjoys helping and being trusted by the people she cares for, many of whom have fascinating stories to tell. Jules believes that carers should be paid and valued more for their work.
Work Motivation and Financial Views
Jules would never choose a job solely for financial reasons. While she isn’t driven by money, she knows it is essential. She feels sad when she sees people in care who are constantly on their phones, which makes her reflect on the importance of genuine human connection.
Jules became eligible for the state pension at 65 in August 2016. She receives £239.96 per week from it. She believes this amount is insufficient for living and thinks it should be increased to at least £20,000 annually. She doesn’t qualify for pension credit, and even basic services like the TV licence are no longer free for people like her.
Jules advocates for an additional state pension for those who have worked for over 30 years in the UK. This would encourage people to work longer. Currently, there is no incentive to do so. She is taxed on both her work earnings and her pension.
Pension and Property
Saving money in pensions was never a priority for Jules during her career. She accumulated a £20,000 NHS pension after working in hospitals for about five years. She withdrew all of it, thinking it would reduce her pension and make her eligible for pension credit, but that wasn’t the case. She believes unused pensions should not be subject to inheritance tax starting April 2027.
Jules sold her property in south-west England to buy a cheaper house in Scotland. She owns a three-bedroom house in Aberdeenshire, purchased in 2020 for £55,000. It was built in 1923, and she has no mortgage. She knew she was approaching retirement and didn’t want the stress of a mortgage.
Government Treatment of Pensioners
Jules feels the government treats pensioners unfairly. Even the free bus pass is under threat, she says. Energy costs are high, yet many pensioners need their heating on all day.
If the state pension were a livable wage, it would make a significant difference in her life. It would also improve the quality of life for many pensioners, allowing them to live without constant financial worry.
Future Plans
Jules may consider fully retiring next year, depending on her circumstances at the time. She needs to pay for renovation work on her house, including insulation in the attic and fixing leaks through the walls. Despite her age, she remains a happy and energetic person, so she will just have to see what happens next year.
For those interested in participating in the “How I Manage My Money” series, they can email money@.