In our
My Approach to Managing Finances
series,
our objective is to discover how individuals in the United Kingdom manage their finances through expenditure, savings, and investments in order to cover expenses and attain their objectives.

This week, we interview Melanie O’Reilly, 69, residing in Lancashire. She is the mother of a 39-year-old son and grandmother to a four-year-old child. Although she has a partner, they do not share a home. Melanie, raised in South Africa, left her high-pressure call-center position but hasn’t worked sufficient years to qualify for full retirement benefits.
The UK will be eligible for a complete state pension.
She is concerned about the increase in the state pension age and believes the triple lock should remain in place. Melanie has faced financial difficulties and resides in a shared housing unit known as an HMO.

Monthly budget

My monthly income:

State Pension: £456.89; Pension Credit: £451.56; Housing Benefit: £368.20.

My monthly outgoings:

Rental fee: £433; payment towards a bank loan: £134; fuel for the vehicle: £80; internet service: £33; phone bill: £17; life insurance: £17; Amazon Prime subscription: £9; Netflix membership: £11; cloud backup services: £1.59; non-prescription medicine: £30; vehicle registration tax: £17; personal grooming products: £50; clothing purchases: £50; presents: £50; leisure activities: £100. Unplanned expenses may add up to around £100 each month. I am exempt from paying local taxes and utility charges. My child assists with covering the cost of my automobile insurance.

I was raised in a middle-income family in South Africa, enjoying a comfortable life. My father held the position of logistics manager at Unilever, whereas my mother served as a receptionist at a cookie manufacturing company.

I initially resided in the UK between 1978 and 1987, then relocated to California along with my former husband and newborn son. Following our separation, I had to go back to South Africa as I didn’t have the legal permission to remain in California.

My second move from South Africa to the United Kingdom took place in September 2019. I left South Africa as it is experiencing significant turmoil, which led Donald Trump to create a refugee relocation program for qualifying South African citizens.

South Africa’s economy is in ruins, making it among the most dangerous nations globally. The country lacks proper infrastructure. Unemployment rates are very high, with frequent power outages lasting several hours daily. This situation is neither sustainable nor acceptable.

From February 2021 until May 2024, I served as a customer service representative at a bustling local authority in the United Kingdom, managing intricate queries related to council taxes and social assistance. My annual salary amounted to £23,500. I found the position unenjoyable due to excessive oversight. This level of control was unfamiliar to me.

While in South Africa, I managed my own enterprise, handling office furniture projects for major corporations. To maintain my physical and psychological well-being, retiring was essential, and I did so last year.

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I became eligible
for the UK State Pension
At 68 years old, I haven’t accumulated sufficient years of contributions to qualify for the full state pension. My current state pension is slightly more than £456 per month, and I believe the triple lock mechanism should remain in place. In addition, I am receiving pension credit and housing benefit.

I believe it isn’t wise for the retirement age to go above 68. By this point, many individuals are at a phase where they wish to slow down and cherish the remaining years of their life. We’ve fulfilled our responsibilities, and now it’s time to relish spending time with our grandkids.

I reside in a shared housing accommodation in Lancashire, with a monthly rental cost of £433. I’m not staying in an HMO voluntarily, yet it is efficiently run. I simply needed
a budget-friendly residence following return
to the UK. The property has just three studios available for individual occupancy.

It’s tidy, extremely peaceful, and fits within my financial means, although the rental fee has gone up from the £340 per month I used to pay when I moved in three years back. Accommodation expenses in the UK are quite steep, and even though I’d prefer more comfortable living conditions, it remains out of my grasp.

Some years prior to retirement, I obtained a £17,000 personal loan from Lloyds Bank, beginning repayments at £500 each month. Additionally, I carried £3,000 in credit card debt with the same institution.

Since I had not accumulated sufficient years of work to qualify for a complete state pension, I soon understood that my earnings would not be adequate to repay both the personal loan and credit card debts within the five-year repayment period. I had suddenly been forced to cease employment, resulting in a significant decrease in income.

I never missed a single payment, yet I realized I needed assistance before things got worse and I began missing installments.

A year prior, I contacted Lloyds Bank to address my issues with them, and they recommended I reach out to Money Wellness. Upon reviewing my reduced income and current expenditures, Money Wellness assisted me in identifying a solution.

They recommended combining my personal loan and credit card debts, and arranged for a significantly reduced and manageable monthly payment of £134 with Lloyds Bank on my behalf. It proved to be an effective approach, with all actions carried out professionally and considerately towards my circumstances.

After Lloyds Bank approved the negotiations, the reduced direct payment began appearing from my bank account smoothly. It felt as though a heavy weight had been removed from my chest, and an unavoidable disaster had been prevented. I nearly cried with happiness. In my former job, I used to get constant frantic phone calls from individuals who were upset, stating that the enforcement officer was arriving at their doorstep.

My finances have been difficult, and I don’t have any funds saved up or invested. Traveling during holidays seems impossible for me.

Although I used to be driven by financial gain during my work years, I have now stepped back from such thoughts since retirement. I’ve been spending afternoons with my grandson, who will start school in September.

I’ve been considering starting my own podcast, possibly focusing on South Africa through the perspective of someone who has moved away or exploring the complexities of post-divorce relationships. I suppose it might take some time before the podcast starts generating revenue, but I’ll need to investigate how earnings from a podcast might affect my qualification for pension credits.

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My Approach to Managing Finances
? Email
money@inews.co.uk