Living off savings

yorkiebar

vigman wrote: »

I didn't know Jobseekers allowance stopped after six months

The NI contributions based one does and with the savings you're talking about then that's the only one you'll qualify for I believe.

gordonc888

Mojisola wrote: »

This will only be paid for the first six months so plan ahead for that stopping.

I've always wondered how some unemployed people can claim for years yet those who've worked all their lives and managed to save a substantial amount can only claim for six months.

Or am I just being ignorant and nobody can claim for longer than six months?

Mojisola

gordonc888 wrote: »

I've always wondered how some unemployed people can claim for years yet those who've worked all their lives and managed to save a substantial amount can only claim for six months.

Or am I just being ignorant and nobody can claim for longer than six months?

Contribution based JSA is paid however much you have in savings. After that you go onto means tested JSA and, if you have savings, you are expected to live off them.

missile

vigman wrote: »

Thanks, again.

The 2K per month is 400GBP less than what I am getting at the moment.

You are getting £2,400 per month after TAX? Lucky you :T

Nevertheless, I would suggest when you stop working your outgoings ought to be less and there must be some room for economising? Maybe your daughter can get a part time job? I did when I was at uni.

However that is not the question you asked. I guess after you stop working ISAs will no longer be so attaractive. I would suggest LTSB Vantage accounts would be a good home for your money. I find LTSB Vantage accounts quite a useful vehicle for managing my cash.

olbas_oil

vigman wrote: »

I will get a small work pension based on 15/80ths of my current 40K salary which I will try and hold off taking until 65. There will also be a lump sum.

Do you have the option of taking the work pension now? Would it be actuarily reduced? or would the employer make up the actuarial reduction, instead of paying redundancy? (This is an option for those made redundant in Universities scheme- at least until 2013)

What benefit do you get by delaying the pension until 65, as opposed to the 7 years x £7500 pension income that you'd get if you were able to take it now?

vigman

olbas_oil wrote: »

Do you have the option of taking the work pension now? Would it be actuarily reduced? or would the employer make up the actuarial reduction, instead of paying redundancy? (This is an option for those made redundant in Universities scheme- at least until 2013)

What benefit do you get by delaying the pension until 65, as opposed to the 7 years x £7500 pension income that you'd get if you were able to take it now?

Details are still being worked out, but I had been thinking that the pension would have been reduced for taking it early as in 'normal' early retirement.

It certainly looks like the Lloyds Vantage is the way to go in my case....mind you, I might even get my current job back!

TIA

Vigman

newcastleneil

With reference to the Job Seekers Allowance (Dole money) .I was under the impression that no one qualifies for it if they are in receipt of a pension .I know of a few who have been to see about JSA and as soon as they mentioned they had income from a works pension they were scattered
Regards

missile

vigman wrote: »

I might even get my current job back!

I don't know what your job is but you seem to earning a good salary so I guess you have skills to offer. You might be able to find part time work as a consulatant?

soulsaver

newcastleneil wrote: »

With reference to the Job Seekers Allowance (Dole money) .I was under the impression that no one qualifies for it if they are in receipt of a pension .I know of a few who have been to see about JSA and as soon as they mentioned they had income from a works pension they were scattered
Regards

If you paid the stamps (contribution) and are available for work then you are entitled to 26weeks contribution based JSA is my understanding, even if you get a company pension.

Your mates could get an independent view from the local CAB. If the DW&P are wrong it can be appealed.

p00hsticks

soulsaver wrote: »

If you paid the stamps (contribution) and are available for work then you are entitled to 26weeks contribution based JSA is my understanding, even if you get a company pension.

If you are getting a pension , then that effectively reduces the amount of JSA you are paid, even if it's contribution based.

From the following site
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/Employedorlookingforwork/DG_10018757

"If you get an occupational or personal pension, it may affect the amount of benefit you get."