Private pension - council rent after retirement

karben · 17 January 2018 at 10:03PM

Hi. My first time posting so forgive any faux pas!

I'm a single male council tenant (yes, a rare thing). Age 55, followed advice to contract out about 25 years ago.

Will my council rent be paid for me once I retire, or will it have to come out of my private pension? If it does, as my pot is almost useless anyway and I'm looking at a beans and toast lifestyle at best, can I get back to a place where my rent would be paid by the state? That would at least make beans and toast affordable.

Thanks,
Karben

molerat · 17 January 2018 at 10:07PM

You will possibly be entitled to benefits dependant on your income be that from employment or pension. When are you intending to retire, if before state pension age access to those benefits may be limited.

wullie · 17 January 2018 at 10:28PM

Have you thought of buying your house with the right to buy scheme ? I'm almost your age and thought it was too late , but managed it .

kidmugsy · 17 January 2018 at 11:48PM

karben wrote: »

can I get back to a place where my rent would be paid by the state?

You mean "by the taxpayer". But why should I pay your rent?

xylophone · 17 January 2018 at 11:52PM

Have you obtained a new state pension statement?

Are you currently contributing to a pension?

Your eligibility for means tested benefits will depend on......your means?

ProDave · 18 January 2018 at 9:59AM

karben wrote: »

.... can I get back to a place where my rent would be paid by the state? That would at least make beans and toast affordable/....

Thanks,
Karben

Are you saying the state pays your rent at the moment? Why should they carry on paying it forever?

I always mention this in the debate over renting vs buying a house. If you rent, then you had better put more money into a pension to continue paying rent into your old age.

Don't forget your state pension. Possibly the best thing to do with a small pension pot is to dear i in the years running up to state pension in effect giving you the state pension amount a little earlier.

Terron · 18 January 2018 at 12:14PM

Currently it is unlikely that your rent will continue to be paid whether or not you retire. You will be changed to Universal Credit and be expected to pay the rent out of that. After you reach state retirement age you would get the higher Pension Credit rather that Universal Credit.

karben · 18 January 2018 at 10:57PM

Thanks for all your helpful replies. Apols for the delayed ack but I work long shifts. If the council paid my rent now, I wouldn't need to!

Your collective replies tell me in which direction I need to seek personal advice - thanks. It seems the answer lies with means testing and state pension, not private, and entitlement to benefits and means testing. I feel better already!

Buying isn't an option - I'm in the London area so it would take a small fortune to do so, even with the max discount I'm entitled to. Maybe I should marry an heiress. Or maybe I shouldn't have taken out a private pension - all that funding could have bought my place 15 years ago.

Cheers,
Karben

zagfles · 18 January 2018 at 11:18PM

If you're claiming housing benefit or UC with a housing element now it's unlikely you'll be worse off when you retire, you'll either still get housing benefit if on a low income or pension credit will include a housing element. Benefits are more generous for pensioners. Though obviously if you get a pension, that will count as income which could reduce your benefits - but overall I doubt you'll be worse off. But who knows what changes will be made to the benefits system by then.

To give you an idea check on https://www.entitledto.co.uk/benefits-calculator/

karben · 19 January 2018 at 2:35AM

Just seen your post zagfles. Ta. For clarification, I'm working FT and not claiming any benefits, pay 100% of my rent myself, and expect this to continue until at least age 65 if my health holds out. My private pension pot is worth somewhere around 60k - peanuts.

badmemory · 19 January 2018 at 4:15AM

Your private pension may be peanuts but how much would your right to buy be? Having to pay rent once retired is becoming the biggest problem faced by retirees & can have a significant effect on their futures & not just financial futures but their health too. I know that if I had to pay rent I would not be able to have kind of life I have now & would not have the "peace & security" that I have (as long as the roof doesn't blow off in the latest gale).

Private pension - council rent after retirement

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