How fast could I spend my savings before a claim?

pastmybest

I am just over 60, in rented, had to retire through poor health, and started getting a small pension which is nowhere near covering my (frugal) living costs. I am not able to claim anything as my savings are over the £16,000 limit.

Am I best to have a spending spree, holidays, new furniture, etc or even treat my kids and grandkids but if if I do at what rate could I spend down to a level at which I could claim some benefits.

I can see why some put the money under the bed but do the DWP inspect people beds! - Joke!

dmg24

No, a spending spree will do you no favours at all.

If you search 'Intentional Deprivation of Capital' there are many posts on the subject.

LadyMorticia

dmg24 wrote: »

No, a spending spree will do you no favours at all.

If you search 'Intentional Deprivation of Capital' there are many posts on the subject.

You beat me to it.

You're always so quick. Wish I could type as fast as you.

xx

pastmybest

dmg24 wrote: »

No, a spending spree will do you no favours at all.

If you search 'Intentional Deprivation of Capital' there are many posts on the subject.

I will do a search as you suggest and thank you for replying.

I feel quite angry about the issue (not with you or other on this forum) as I have been in poor health for many years and never claimed anything. In this time I have managed to work part time to eke out a living but progressively working less and less and now had to stop. Because I was prudent many years ago I had saved and have been subsidising my life for a long time.

So now with no income, a small pension the future looks bleak as I can when I will reach a point where my hard worked for savings drop to very little. I am not trying to get rid of money but I have lived frugally trying to stave off the day where I have to look at what I may be entitled to.

I do feel like spending some money on new furniture and holidays and replacing my very old car as it looks, in the future with the savings gone, and little coming in I will never be able to afford to do those things. So does it look like, if I do, I get penalised because the way I feel is I will and d-amn the consequences.:mad:

To me a real Catch 22!!!

JessicaF_2

There is no savings limit for pension credit - have you looked into this?

Your capital is allocated an income of £1 for every £500 of savings you have over £6000.

If you have no other income other than a small pension, then you may get some pension credit. If you get some guarantee pension credit you will automatically get full HB/CTB even though you have over £16,000 of savings as the PC passports you.

Go to a CAB or similar and ask them to check, or indeed the Pension Service have an online calculator.

Jess

nm8553

PC claims are currently (from my experience at least) running at three to four months to process.

From my reading the normal savings limits still apply to HB/CTB though even if you do get Pension Credit

bestpud

pastmybest wrote: »

I will do a search as you suggest and thank you for replying.

I feel quite angry about the issue (not with you or other on this forum) as I have been in poor health for many years and never claimed anything. In this time I have managed to work part time to eke out a living but progressively working less and less and now had to stop. Because I was prudent many years ago I had saved and have been subsidising my life for a long time.

So now with no income, a small pension the future looks bleak as I can when I will reach a point where my hard worked for savings drop to very little. I am not trying to get rid of money but I have lived frugally trying to stave off the day where I have to look at what I may be entitled to.

I do feel like spending some money on new furniture and holidays and replacing my very old car as it looks, in the future with the savings gone, and little coming in I will never be able to afford to do those things. So does it look like, if I do, I get penalised because the way I feel is I will and d-amn the consequences.:mad:

To me a real Catch 22!!!

There is nothing stopping you replacing your car if it is old - that's what most people do. Nothing to stop you going on holiday either, or going with family but funding your self.

The problem comes when you start giving it away and buying things simply to reduce your savings!

It isn't the case that you can't do or spend anything and have to live like a hermit until all your savings have gone though, as that would be ridiculous!

Oldernotwiser

You got the response you did because you talked about a spending spree and reducing your savings quickly to be eligible for benefits as soon as possible!

As Bestpud say, there's no reason why you can't update your car, have a holiday or make your home more suitable for you in retirement.However,treating others extravagantly just to get rid of your capital will have the effects described. and isn't to be recommended. As has been pointed out, you're allowed to have £16,000 of savings and claim benefits, which hardly comes under the heading of "having very little", particularly if you've updated your home and car before you get to that point.

pastmybest

JessicaF wrote: »

There is no savings limit for pension credit - have you looked into this?

Your capital is allocated an income of £1 for every £500 of savings you have over £6000.

If you have no other income other than a small pension, then you may get some pension credit. If you get some guarantee pension credit you will automatically get full HB/CTB even though you have over £16,000 of savings as the PC passports you.

Go to a CAB or similar and ask them to check, or indeed the Pension Service have an online calculator.

Jess

Thanks will look into your tips.

pastmybest

bestpud wrote: »

It isn't the case that you can't do or spend anything and have to live like a hermit until all your savings have gone though, as that would be ridiculous!

This is the bit where I have become very stressful as I have believe it, or not, I have tried my hardest to stay away from benefits and suceeded for 20 years in very poor health. Now I am incapable of earning apart from the small pension the - keeping working part stress - has reduced to almost zero. But what is kicking in is - looking at the next year or two - when I know at some point I will need to claim and beingsurrounded by stuff in need to refurbishment. Heck - not even had a holiday other than weekend away for years.

kaya

Give (ahem) a large lump of money to your grandchildren, put it in an account that they cant access for 20 years which you have control over, problem solved