After 60!!

edited 30 November -1 at 1:00AM in Pensions, Annuities & Retirement Planning
6 replies 676 views
millstone_et_almillstone_et_al Forumite
8 Posts
From the age of 60 in two years time, I'll have an occupational pension of 620 p/m and a repayment mortgage of 240 p/m; plus very little in the way of savings. I'm male and married. Can any of the benefits experts in here advise me of whatever benefits I may be entitled to, assuming that I'll not be working.
Many thanks in anticipation.

Replies

  • CISCIS Forumite
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    You most likely will not be entitled to any state benefits (unless your disabled), your income £215 per week will be well above the pension credit level.

    EDIT:

    Your correct dunstonh - I haven't had enough coffee yet this morning :D - Pension credit is deffinetly an option at 60 - but unless the rates chnage dramatically will almost certainly cease at 65.
    I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.
  • dunstonhdunstonh Forumite
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    At age 60, you can get pension credit. This guarantees a single person a minimum income of £114.05 p.w. and a married person (or partner) £174.05 p.w.

    So, with your £143 p.w. you will get that topped up to at least £174.05 until age 65. At that point, the basic state pension will take you over the threshold and pension credit will be removed.

    You do have to apply for pension credit and can do so 4 months before 60.

    This is a means tested benefit and savings will have an impact. This includes taking a tax free lump sum from the pension. Although that still may be the best course of action to clear the mortgage. In which case it wouldnt impact..as much, if at all (lump sum minus mortgage repayment = whats left).

    edit: I notice CIS reads your income to be £215pw which would result in no benefits. I make your income 620pm x12 /52 = £143 p.w.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Many thanks dunstonh and CIS.
    Your answers more or less match research that I've carried out. I was curious about whether I'd missed anything. My occupational pension is already in payment and the lump sum was used to remortgage out of a badly performing endowment plan into a fixed rate repayment scheme.
    I've tried sites such as 'Entitled to' and various local authority benefit calculators and they give surprisingly different results, ranging from around £45 to £65 p/w. This may well be due to the way they calculate in the interest element of the mortgage. The 'Entitled to' site also indicates that my council tax payments would reduce to zero. Is this correct? As it would certainly help.
    Lastly, you state that Pension Credit may be applied for 4 months before the age of 60. Does this mean it could be payable from this time?
    Thank you again.
  • CISCIS Forumite
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    Its not payable before age 60.

    Have you tried the official pension credit calculator ?
    http://www.thepensionservice.gov.uk/pensioncredit/calculator/home.asp
    more info here
    http://www.thepensionservice.gov.uk/pensioncredit/
    I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.
  • isasmurfisasmurf Forumite
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    Many thanks dunstonh and CIS.
    Your answers more or less match research that I've carried out. I was curious about whether I'd missed anything.
    If you do qualify for the guarantee element of Pension Credit that CIS and dunstonh have mentioned, then you should also qualify for full Council Tax Benefit (CTB). CTB must be applied for separately from Pension Credit.
  • sleepless_saversleepless_saver Forumite
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    OP hasn't said if his wife is earning - if she is then is her income not taken into account in calculating any pension credit guarantee he might be entitled to?
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