why I'm going to spend, spend, spend.

dodger1

I'm nearly 60 and have been looking ahead 5 years to retirement. I rent a flat and have close to the magical £16,000 in savings and from what I've gathered from this forum and my local council there is no incentive for me to save a penny more.

At age 65 my council will cover nearly all my rent providing my savings are below £16,000 and none of my rent if I have over the threshold. If I was to save a further £6,450 over the next 5 years (which I could) I would lose the full amount paying my rent for 1 year. So I may as well spend every penny I earn over the next 5 years and not save anything, or am I missing something?

Surely it's a daft system that encourages people not to save!!!

Teahfc

Blame successive governments who have encouraged the idle with benefits and tied the hands of employers making it almost impossible to sack the unreliable, continually sick employee and courts only to willing to give massive payouts to the idlers. :mad:

Newly_retired

I'm all for claiming what you're entitled to but against deliberately planning to depend on government hand-outs. Just my opinion.

elainey_2

I would be careful about doing this:

1: The lower capital limit for most benefits is £6,000. Between this and the upper capital limit of £16,0000, your benefits are reduced by £1 per £250 (this increases to £1 per £500 for people over 60 who are not on income based Jobseekers Allowance/ Income Support/ Income based Employment & Support Allowance if you are claiming Housing benefit or Council Tax benefit).
So even if you have just under £16,000 in savings, the amount of benefit you would recieve would be minimal.

2:If you are spending savings with the deliberate intention of reducing them to claim benefit, the benefits agency can still count the spent money as capital, which again, could affect your rights to benefits.

Hope this helps

love Elaine xxx

[Deleted User]

Teahfc wrote: »

Blame successive governments who have encouraged the idle with benefits and tied the hands of employers making it almost impossible to sack the unreliable, continually sick employee and courts only to willing to give massive payouts to the idlers. :mad:

Have you anything to contribute?or did you just fancy a rant?

Teahfc

woodbine wrote: »

Have you anything to contribute?or did you just fancy a rant?

Post Count: 220
Thanked 119 Times in 80 Posts

:beer:

My opinion is a contribution.

dodger1

Newly_retired wrote: »

I'm all for claiming what you're entitled to but against deliberately planning to depend on government hand-outs. Just my opinion.

But why should I literally throw away £6,450 over the next 5 years, it makes no sense at all. I've never claimed a penny in 43 years of work and instead of spending my weekends in the bookies or every night of the week in the pub I've actually managed to save a little unlike many, many people who have earned the same wages as me but have had 2 holidays a year, always had nice new cars etc.

I'm not even planning to reduce my savings in any way but just do what other people have been doing all their lives. What I'm really getting at is the total unfairness of the benefits system.

Let's say 2 people have had the same jobs and salary over their working lives. One has had a great life travelling the world and having most of the luxuries available throughout his working life (and good luck to him) while the other has been very careful and saved £64,500. They both rent so in 10 years of retirement the £64,500 has gone in rent. So all I'm saying is the system is totally wrong when there is no reward for saving.

It's all very well to critisize me or anyone else for planning to get retirement benefits but the system will never change unless everybody did the same. If the government had to give everybody housing benefit at retirement age then the system would have to change, councils wouldn't have the money to finance the system. They would then have to offer incentives for people to save and reduce HB at the same time. I for one would be happy to see that.

elainey_2

dodger1 wrote: »

But why should I literally throw away £6,450 over the next 5 years, it makes no sense at all. I've never claimed a penny in 43 years of work and instead of spending my weekends in the bookies or every night of the week in the pub I've actually managed to save a little unlike many, many people who have earned the same wages as me but have had 2 holidays a year, always had nice new cars etc.

I'm not even planning to reduce my savings in any way but just do what other people have been doing all their lives. What I'm really getting at is the total unfairness of the benefits system.

Let's say 2 people have had the same jobs and salary over their working lives. One has had a great life travelling the world and having most of the luxuries available throughout his working life (and good luck to him) while the other has been very careful and saved £64,500. They both rent so in 10 years of retirement the £64,500 has gone in rent. So all I'm saying is the system is totally wrong when there is no reward for saving.

It's all very well to critisize me or anyone else for planning to get retirement benefits but the system will never change unless everybody did the same. If the government had to give everybody housing benefit at retirement age then the system would have to change, councils wouldn't have the money to finance the system. They would then have to offer incentives for people to save and reduce HB at the same time. I for one would be happy to see that.

I absolutely agree with you - you're encouraged to save on one hand, but get penalised for doing so on the other...

But the benefits system is generally unfair - working as a CAB adviser I see this happening on a daily basis, unfortunantly.

love Elaine xxx

bigbill

I think you will find that the £16,000 limit on savings stops when you hit 60 as long as you get Pension Credit Guarantee.

dodger1

elainey wrote: »

I would be careful about doing this:

1: The lower capital limit for most benefits is £6,000. Between this and the upper capital limit of £16,0000, your benefits are reduced by £1 per £250 (this increases to £1 per £500 for people over 60 who are not on income based Jobseekers Allowance/ Income Support/ Income based Employment & Support Allowance if you are claiming Housing benefit or Council Tax benefit).
So even if you have just under £16,000 in savings, the amount of benefit you would recieve would be minimal.

2:If you are spending savings with the deliberate intention of reducing them to claim benefit, the benefits agency can still count the spent money as capital, which again, could affect your rights to benefits.

Hope this helps

love Elaine xxx

Thanks Elaine. The HB weekly rate for a 1 bedroom flat in my area is £124.04 per week. With £16,000 in savings I would have £20 taken off HB leaving £104.04 in pocket each week. Apparently the first £6,000 of savings is ok so I would lose £1 per £500 of the rest. Also I have no intention to reduce my savings but just spend all I earn over the next 5 years.

alwaysonthego_2

Teahfc wrote: »

Post Count: 220
Thanked 119 Times in 80 Posts

:beer:

My opinion is a contribution.

and your point is???