2 questions

stu12345_2

i stated if you start to save at mid 40s , then you potentially have a a sum that you could use drawdown between 55 and 65, and then repeat same value of money via state pension, housing benefit, council tax benefit, without the need to start a pension in your 20s or 30s.
albeit your state pension you would have paid into for 35 years prior

thus a 7500 state pension is worth a 150000 annuity, 5500 housing and council tax benefit a further 100000 annuity.
thus you you can save 100000 by drawing down private pension between 55 and 65.
so you could get a 13000 index linked pension simply by contributing say 15 a week national insurance for 35 yrs
so you get 3 annuities that only cost you 2 pots of savings

jamesd

stu12345 wrote: »

what advice do you give someone aged 60 with no private pension, that maybe rents housing association ... such as myself concerning mortgage it may be foolish to start one at my age nearly 50,as mortgage wont be finished until after retirement and as for ongoing repairs when retired, no way, better renting council with full maintainance and also full housing benefit, you cant take it with you as they say.

What part of the country are you in? I know of areas where you can buy a home for under £50,000. Rightmove currently has 22 flats at under £50k and 33 houses under 50k, though all but two of the houses are holiday and/or park homes. Excludes retirement and shared ownership places. Another 10k significantly increases the choice to 66 more flats and 16 more houses, a few of which are really houses not park homes. A mortgage doesn't have to be for 25 or 30 years, it can be for less.

At 60 there are 7 more years to go, enough to make a difference. At 50 there are at least 17 years to go, easily enough to make a big difference.

stu12345 wrote: »

why cant each generation work hard and then spend hard when retired, fully using all their cash they grafted for, a cycle that makes more sense.

Because your plan relies on means tested benefits and it is the rule of our society that those are not intended to produce a very comfortable life, just take care of the common needs. Most of us will want more.

patanne

Any plan based on future means tested benefits is doomed to failure. Look at how they have changed in the last 5 years. Who knows if they will change the single persons housing benefit down to a room in a shared house as it is for 20somethings. Do you really want to be in your 70s sharing a bathroom & kitchen with other people? Personally I can think of very little that could be worse (except having to go in a care home).

stu12345_2

im in cornwall, aint cheap houses here and i rent council dirt cheap, but flat is 50 yrs old, but modern inside and maintained and upgraded for free.
if i bought it id be hit with leasehold repairs upgrades for the street not just my flat, dont fancy bills of thousands for new roof, electrics, roughcasting, pavements, gardens when im 65.if i fail to pay, im evicted and can boycott the whole lease.
we rent nice 1 bed low rise flat with rent and room size appropriate and rent low and hence fits all benefit criteria
my wife and i have very secure but low paid jobs.

its the cost of maintanance that worries me, look at those that did right to buy on flats and got hit with bills of 20000 or more due to decent homes 2010.

i get new roof combi boiler central heating,soffits,power shower, door entry, cavity insulation, kitchen, bathroom etc all included in low rent. and when retired on a fixed income last thing i need in ongoing big unexpected repairs, upgrades which can be forced on me.

main advantage is if i get frail i move into oap council bungalow and free adaptions, be impossible if i bought flat and had to sell it cos there is a big price diff between a flat and a bungalow.
our council offer folk over 60 into low rise flats or little bungalows, wet rooms, wider doors etc
they dont put then into room and kitchen hostels for the unemployed under 25s as the last poster suggested!!!!

my neighbours flat is bought for 98000, but they got hit with thousands of compulsory upgrades, repairs from the council who are the freeholder, how does 60 a week rent compare. rent goes up every 2 years cpi plus 1%, beats greedy btl landlords.

oaps can get along quite reasonably compared to those on jsa, if me and wife was on jsa we get 104 between us plus free rent and council tax, maybe have to pay 10%. but if retired we get 150 each and still get partial housing and council tax reduction, i plugged in figures to entitled2,
pensioners aint that poor, especially couple pensioners in council or housing association properties.

Bootsox

stu12345 wrote: »

...oaps can get along quite reasonably compared to those on jsa, if me and wife was on jsa we get 104 between us plus free rent and council tax, maybe have to pay 10%. but if retired we get 150 each and still get partial housing and council tax reduction, i plugged in figures to entitled2,
pensioners aint that poor, especially couple pensioners in council or housing association properties.

Stu, sounds like you have managed to hit a "sweet spot" in all this.

No guarantee though that the people behind you will do the same.

The recent massive influx of EU nationals will also be looking to retire in 20/30/40 year's time and this will swamp the system.

stu12345_2

most eu nationals imo rent private and the landlords say no to housing benefit, look at the btl king , fergus,in kent is it, thats only renting to polish as they pay out their wages, he evicted unemployed on housing benefit

in cornwall there is at 10 yr waiting list for council homes, eu workers rent private or caravans, none i know have housing association or council, so if they lose their jobs or retire here, they are in trouble, no dss is in 99% in private rents

Bootsox

stu12345 wrote: »

in cornwall there is at 10 yr waiting list for council homes, eu workers rent private or caravans, none i know have housing association or council, so if they lose their jobs or retire here, they are in trouble, no dss is in 99% in private rents

LOL, Polish lass at work, her and husband looking for a council house, number 999 on the housing list.

Husband "walks out", single lass and child advance to No.1 spot.

Few weeks later her and husband "reconciled".

All hunky-dory.