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MSE News: Time to recession-proof your finances?
Former_MSE_Guy
Posts: 1,650 Forumite
This is the discussion thread for the following MSE News Story:
"Here are 10 things everyone needs to know about economic downturn ..."
"Here are 10 things everyone needs to know about economic downturn ..."
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Comments
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There is a problem with savings and benefits. This problem is long standing and is not one party or the others fault. If you have savings and are under 60 and have savings of over 6000 then it is assumed by some miracle of finances that you can make 1 pound of income for every 250 pounds in savings per week. This is a 23% per annum rate. This rate is taken from income related benefits. Benefits are reduced up to a savings total of 16K for which you get nothing.
Don't even consider buying stuff / hiding the money as it is fraud via deprivation of income at the unimaginable but legal rate of 23%.
Be prepared ! Be prepared to get zip.
J_B.0 -
Joe_Bloggs wrote: »There is a problem with savings and benefits. This problem is long standing and is not one party or the others fault. If you have savings and are under 60 and have savings of over 6000 then it is assumed by some miracle of finances that you can make 1 pound of income for every 250 pounds in savings per week. This is a 23% per annum rate. This rate is taken from income related benefits. Benefits are reduced up to a savings total of 16K for which you get nothing.
Don't even consider buying stuff / hiding the money as it is fraud via deprivation of income at the unimaginable but legal rate of 23%.
Be prepared ! Be prepared to get zip.
J_B.
That's not really a 'problem' though is it, it just means if you have a big pile of cash, you are expected to use it to look after yourself until such time as only a certain amount is left. I don't want my taxes going to give some millionaire unemployment benefits while he has a 7 figure sum in the bank. I have savings over the minimum threshold myself - in terms of being made redundant, I have always thought 'what can I do to help myself', and saved up. Not 'what can the state do to help me'.0 -
That's not a realistic example. It's more likely that someone hampered by those rules have saved up for something like a deposit for a house or further education.0
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