low pension - advice please

Karinia

I posted the below on retirement page and it was suggested I post it here also.

my nan and grandad (64 and 66) are still working. My nan gets £57. week pension and grandad £54. week pension. He has a private pension of £36. per week.
He went abroad in his young days and is short of NI stamps. In 2000 he paid 6 years arrears but now they aren't counting those into his pension (they say they don't count) even though he paid up £1800 then!
They would like to retire soon as nan isn't well but don't know how they can live on what they get in. They have savings of £45,000 approx but obviously are concerned if they spend it too quickly.
Any ideas would be appreciated please.

healy

Karinia wrote: »

I posted the below on retirement page and it was suggested I post it here also.

my nan and grandad (64 and 66) are still working. My nan gets £57. week pension and grandad £54. week pension. He has a private pension of £36. per week.
He went abroad in his young days and is short of NI stamps. In 2000 he paid 6 years arrears but now they aren't counting those into his pension (they say they don't count) even though he paid up £1800 then!
They would like to retire soon as nan isn't well but don't know how they can live on what they get in. They have savings of £45,000 approx but obviously are concerned if they spend it too quickly.
Any ideas would be appreciated please.

That is quite a lot in savings but you could try this:

http://www.direct.gov.uk/en/Pensionsandretirementplanning/PensionCredit/DG_180167

wildbri

They would get pension credit, but not with that amount of savings. Worth filling in the form on line. regards bri

Whiteknight

With the figures you quoted the amount of Pension Credit they are likely to get would be just short of £20 a week if neither of them were working - this amount would be made up of savings credit. (assuming that they don't have a mortgage or any applicable housing costs) based on the 2009 rates with the £10,000 disregard.

If your nan is not well has she considered making a claim for a disability benefit (depends on what's wrong with her but could be an extra income coming into the household)

suelees1

I've calculated it the same as whiteknight

Karinia

Thank you for your replies. If you get pension credit do you still have to pay rates on your home? This is a big amount of app £1900 per year.
Thanks for help.

healy

Karinia wrote: »

Thank you for your replies. If you get pension credit do you still have to pay rates on your home? This is a big amount of app £1900 per year.
Thanks for help.

How is Pension Credit taken into account for Housing Benefit and Council Tax Benefit purposes?

Pension Credits are taken into account as income whenever Housing Benefit and/or Council Tax Benefit is calculated.

However, the rules about Housing Benefit and Council Tax Benefit for claims made by pensioners have been changed to make sure that the value of the extra money awarded in Pension Credits is not lost due to reductions in Housing Benefit and Council Tax Benefit.

Those entitled to Guaranteed Credit normally qualify for full Housing Benefit and Council Tax Benefit. However there are exceptions to this rule when full Housing Benefit and Council Tax Benefit may not be paid such as: -

- When other adults live in the home (except a partner or carer)

- If the rent charged for non council owned accommodation is too high

If you only receive the Savings Credit or are not entitled to the Pension Credit, the Council will work out your Housing Benefit and Council Tax Benefit by taking into account the income and capital that you have (including the Savings Credit).

However, unlike The Pension Credit, if you only receive the Savings Credit you will not normally be able to claim either Housing Benefit and Council Tax Benefit if the total value of your savings and investments is more than £16,000. There are however exceptions to this capital limit rule and you should contact us for further advice if you require more information.

If you receive the Guaranteed Credit, this capital limit will not apply

Taken from: http://www.swansea.gov.uk/index.cfm?articleid=2542

Karinia

I don't understand all this stuff as I don't pay any bills etc (still at school) so I will get my nan to read it all off my computer.
Thank you for your help.

Mojisola

I would get your grandparents to ask for someone from the Pensions Service to come and look at their situation. They will go through everything they may be entitled to and make all the claims for them, including health benefits if they have needs.

Karinia

Thank you I think that would be a good idea.

Just as a thought from my mum. If they were to live in Spain (my uncle lives there and he could look after them) would they be able to get the same benefits that they could here. Neither of them have major illness problems - they say its just old age - my nan has problems with her asthma, thats all.
Thank you.

healy

Karinia wrote: »

Thank you I think that would be a good idea.

Just as a thought from my mum. If they were to live in Spain (my uncle lives there and he could look after them) would they be able to get the same benefits that they could here. Neither of them have major illness problems - they say its just old age - my nan has problems with her asthma, thats all.
Thank you.

They would able to receive their State Retirement Pensions but they would not be able to receive means tested benefits.