Pensions Planning: The NUMBER

bluenose1

atush wrote: »

insert some ads onto your webiste.

Exactly what I was going to say to SingleSue. Must be some niche motor products so maybe some specific companies would be interested.

SingleSue - have you checked you are getting all the benefits you are entitled to?

SingleSue

Unfortunately we are hosted on a free site which carries their own adverts, I had looked at word association adverts but we have a very fickle crowd who would protest rather loudly if they found themselves inadvertently clicking on something they were not expecting.

We can't move away from our hosting site to another one which would allow our own adverts because with an average of 3 million page views per month during the British season it would cost a medium fortune in fees each month due to the amount of bandwidth needed. Youngest has looked at us having our own server though which brings its own costs as the demand is spectacularly high during a meeting (and we generally have more than 1 meeting, sometimes as many as 6 all at the same time) and we would need one man enough and big enough to deal with it.

Re benefits - I receive housing benefit, council tax benefit and PIP enhanced for both elements (mobility element exchanged for an adapted car) but do not claim Universal credit and would prefer not to. I know at some point that will have to change as they move everyone over and housing benefit will go over with it but I will do everything in my power to avoid it. It's fine if you have a static income paid monthly but mine goes all over the place) and is paid weekly and the finances would end up completely beggered and confused with the claim being closed one month and opened another time after time. My mental health would never be able to cope with it and physically, it would drain the little I have left for going to work (and being able to work is extremely important to me)

Thanks for the suggestions though, even though it may not seem like it, everything is taken on board and gets the little cogs in my brain working and planning rather than getting stuck and going into meltdown.

Gatser

cloud_dog wrote: »

There's a name from the past. Unfortunately I had a wee run in with WF back in the day (2006 :eek:).

Gatser - I see he left a little parting gift for you on his profile page :rotfl: (bless his cotton socks).

How sweet! I had not noticed.... I never knew he cared!

Anonymous101

SingleSue wrote: »

Unfortunately we are hosted on a free site which carries their own adverts, I had looked at word association adverts but we have a very fickle crowd who would protest rather loudly if they found themselves inadvertently clicking on something they were not expecting.

We can't move away from our hosting site to another one which would allow our own adverts because with an average of 3 million page views per month during the British season it would cost a medium fortune in fees each month due to the amount of bandwidth needed. Youngest has looked at us having our own server though which brings its own costs as the demand is spectacularly high during a meeting (and we generally have more than 1 meeting, sometimes as many as 6 all at the same time) and we would need one man enough and big enough to deal with it.

I'm not an expert at all but it sounds to me that you've got a very successful site there and certainly something that you could make a good income out from. With that level of traffic I'd be looking at every avenue possible to get control over your ads etc. Your "free" provider is probably making a fortune out of you and will be making it as difficult as possible for you to move.

I think it would be worth investing in either having your own server or paying for the bandwidth required. I think you're seriously missing out on a lot of potential income.

DairyQueen

SingleSue wrote: »

I have an ideal number and the blooming scary realistic number.

My ideal is around 18k for a single person to allow for some luxuries and not having to scrimp and save, the realistic unless an absolute miracle happens is probably closer to 10k (SP plus a very very small private pension)

I'm late to the game, I'm 50 this year, work part time due to disabilities and even though retirement is still 17 or so years away,

As you are disabled and receive PIP at the enhanced rate, the mobility element will continue after SP age although the basic allowance will stop? This isn't means-tested and will be paid in addition to your SP and small private pension. Plus, it's likely that you will continue to receive housing and council tax benefit which will reduce your rent/council tax to zero-to-small amount so housing costs would be minimal. Possible you would also be entitled to pension credit.

At current values:
SP = 8767
PIP (mobility element) = 3182
Total = £11949 (index-linked)

Add your small PP and it would sum to around £13,000 but it would mean foregoing your car.

Your current household income may include carer allowance paid to your son (3439p.a.) so that may be foregone once you reach SPA if not before. However, support would be provided by the LA if you were without carer-assistancer from your son or A N Other.

I appreciate that disability involves extra costs but, unless you had capital above the threshold, you would receive taxpayer support for equipment/adaptations in addition to your benefit income.

I am no expert on benefits but it looks like SP + PIP mobility element + PP would be some ,000s more than the income foregone, at SPA, from earnings and PIP basic element. You would therefore be better off once retired.

i appreciate that I may be missing something obvious.

SingleSue

We have looked seriously (and continue to look seriously) at the second option, our own server. Youngest needs to finish uni first (or at least get this year out of the way - dissertation year before his Masters year starts) as he is the one with the technical know how as he's doing an integrated Masters in Computer Science with a specialism in AI, VR and AR.

And re missing out - Yep, don't I know it. I could kick myself for how I set it all up and my wonderful but naive views at the time. My glasses were most def rose tinted back then....

SingleSue

DairyQueen wrote: »

As you are disabled and receive PIP at the enhanced rate, the mobility element will continue after SP age although the basic allowance will stop? This isn't means-tested and will be paid in addition to your SP and small private pension. Plus, it's likely that you will continue to receive housing and council tax benefit which will reduce your rent/council tax to zero-to-small amount so housing costs would be minimal. Possible you would also be entitled to pension credit.

At current values:
SP = 8767
PIP (mobility element) = 3182
Total = £11949 (index-linked)

Add your small PP and it would sum to around £13,000 but it would mean foregoing your car.

Your current household income may include carer allowance paid to your son (3439p.a.) so that may be foregone once you reach SPA if not before. However, support would be provided by the LA if you were without carer-assistancer from your son or A N Other.

I appreciate that disability involves extra costs but, unless you had capital above the threshold, you would receive taxpayer support for equipment/adaptations in addition to your benefit income.

I am no expert on benefits but it looks like SP + PIP mobility element + PP would be some ,000s more than the income foregone, at SPA, from earnings and PIP basic element. You would therefore be better off once retired.

i appreciate that I may be missing something obvious.

That all depends on what our very fickle government decides to do and/or change. I may receive PIP now but one eek assessment and that can all change, if I am still in receipt once retirement comes, then that will obviously improve things financially (my son's tell me I am worrying about nothing as I am 'bad' enough but nothing is guaranteed when it comes to disability benefits)

If on retirement PIP is still in payment, both elements continue as is if they have been awarded, if it is lost before retirement then attendance allowance can be claimed which is for care only, not mobility.

I'm hoping that my middle son is not my carer for that length of time to be honest, he went to uni and got a degree and I would rather he has a life than be stuck with me but it works for us at the moment until I am ready to allow outside agencies in to take over that care (not sure if I have mentioned that I am a stubborn mare :rotfl:) although I am encouraging him to seek work in his studied profession and not feel guilty about doing so.

Maybe I am just being pessimistic but I do like to be prepared and plan things rather than leave it to chance and the whim of whatever government is in power.

jimi_man

SingleSue wrote: »

We have looked seriously (and continue to look seriously) at the second option, our own server. Youngest needs to finish uni first (or at least get this year out of the way - dissertation year before his Masters year starts) as he is the one with the technical know how as he's doing an integrated Masters in Computer Science with a specialism in AI, VR and AR.

And re missing out - Yep, don't I know it. I could kick myself for how I set it all up and my wonderful but naive views at the time. My glasses were most def rose tinted back then....

From what you’re saying you are getting three million views a month on your website, which takes an international team of 60 people to run and you aren’t getting a penny from it! I don’t know how many hours each person spends on it, but there must be a serious time commitment there which in itself is a massive cost. I’d suggest that the ‘fickle crowd’ probably aren’t actually that fickle – especially when you consider that the free hosting site already has adverts from what you say.

Out of interest, what is the real purpose of it? If it’s a charitable thing (not sure that motor racing is generally known as being particularly charitable!) then there is nothing wrong with that. If it’s a fun thing (for all 60 people) then fine, but even fun things can generate income. But from what you are saying it’s got to the stage where it’s now too big to be ‘just’ a fun thing and has become rather all-consuming in terms of time? How much time do you and the other 60 odd people spend on it each month?

DairyQueen

SingleSue wrote: »

That all depends on what our very fickle government decides to do and/or change. I may receive PIP now but one eek assessment and that can all change, if I am still in receipt once retirement comes, then that will obviously improve things financially (my son's tell me I am worrying about nothing as I am 'bad' enough but nothing is guaranteed when it comes to disability benefits)

If on retirement PIP is still in payment, both elements continue as is if they have been awarded, if it is lost before retirement then attendance allowance can be claimed which is for care only, not mobility.

I'm hoping that my middle son is not my carer for that length of time to be honest, he went to uni and got a degree and I would rather he has a life than be stuck with me but it works for us at the moment until I am ready to allow outside agencies in to take over that care (not sure if I have mentioned that I am a stubborn mare :rotfl:) although I am encouraging him to seek work in his studied profession and not feel guilty about doing so.

Maybe I am just being pessimistic but I do like to be prepared and plan things rather than leave it to chance and the whim of whatever government is in power.

I guess it depends on the nature of your disability as to whether PIP will continue.

My mum (now 80) has primary progressive MS and has been severely disabled for over 25 years. She is in receipt of DLA at the highest rates and never any question of it being withdrawn. Dad (age 82) remains 24/7 carer but I have been visiting for several hours most days since he began suffering ill-health several years ago.

She worked for over 35 years until her early 50s but was of a generation when government policy considered wives as dependents of their husbands. Home responsibilities NI credits weren't available in her day. She therefore receives just a small SP in addition to DLA courtesy of no company pension provision and having paid reduced NI. The DLA has been a life-saver. Without that safety net they would have been in dire straits long before retirement age and I thank providence that we live in the UK.

Dad receives the oSP inc S2P addition. Plus he has an annuity of around £480 per month. Luckily he worked for almost 40 years before needing to retire age 55 and had accrued a reasonable SP.

They own their home mortgage-free and their capital still exceeds the threshold so they receive no state help other than DLA. All disability equipment and housing adaptations have always been financed by them or by the family. We pay for cleaning and gardening services.

Their combined household income sums to around £26k and they live very comfortably on that. However, on the first death things will be difficult. Mum requires 24/7 care and that can't be supplied or funded by the family. Nor will it be available from a cash-strapped LA. She is unlikely to qualify for NHS-funding but, fortunately, their house equity will provide several years of good-quality, self-funded, residential care. She hates the thought of residential care but TBH there isn't any choice unless I take on the commitment 24/7 and that's a step too far at age 60 and with Mr DQ approaching retirement.

If dad is the survivor then downsizing or equity release may be necessary once the capital is exhausted unless we supplement his income. His total pensions of £12,500 will be insufficient to maintain the home and meet necessary expenses. He opted for a non-indexed annuity (big mistake) so, in real terms, his income is reducing.

We have considered buying a share of their property if/when they need the equity but it looks like we would be hammered on tax and so supplementing income may be on the cards.

The irony is that had my mum remained able-bodied she would have received much less income in retirement. She would have continued working without accruing pension benefits, My dad, OTOH, would have continued accruing pensions for another decade, and would have received much more income in retirement.

Your experience, like that of my mum, demonstrates the possible consequences of cutting corners on pension provision when young, and when retirement seems so remote that it's unimaginable. Life has a nasty habit of biting you on the bum when you least expect it.

PJM_62

swindiff wrote: »

If I put my details into the USS benefit modeller these are the figures I get for retirement around the age of 60.

at 60 years and 2 Months £17,280
at 60 years and 1 Month £17,210 reduction of £70 for 1 months service
at 60 years and 0 months £17,140 reduction of £70 for 1 months service
at 59 years and 11 Months £15,650 reduction of £1,490 for 1 months service
at 59 years and 10 Months 15,570 reduction of £80 for 1 months service

As you can see there is quite a large reduction for going before the age of 60, it definitely is not linear at that point.

@swindiff
@bluenose1
Have either of you looked at USS Flexi Retirement?
I'm a year away from 55 and am considering early retirement then if I can afford it.
I'm not sure if the Flexi option is a good perk or not.