Going to be claiming Housing Benefit when I retire- worth having employers pension?

Comstock

Hi,

I'm about to be auto-enrolled into a workplace pension scheme and I have one month to opt out.

The think is, I'm a fully paid up member of Generation Rent, and ,at 42 with little savings and a low income-realistically that isn't going to change now.

So I'm going to be claiming Housing Benefit when I retire. Frankly that doesn't bother me because there are some nice retirement flats in my area that accept HB.

The thing is, is there any point in paying into a private pension that is just going to be taken straight back off me in HB?

I assume everything I have over and above the basic state pension will be claimed back penny for penny in HB?

JoeCrystal

Depending on what kind of workplace pension scheme it is, so how high the percent the employer is paying into it? Bearing in mind that you are giving up free money.

It might make a difference between retiring at 67 and few years earlier.

Well_excuse_me.

lol

You're planning based on the current benefits system. Good luck.

Comstock

Well_excuse_me. wrote: »

lol

You're planning based on the current benefits system. Good luck.

Sure. But that is all I have to go on.

If you've got some sort of crystal ball into what the benefits system will be like in 2041, do tell.

missbiggles1

Comstock wrote: »

Sure. But that is all I have to go on.

If you've got some sort of crystal ball into what the benefits system will be like in 2041, do tell.

Being independent is always going to be better than relying on the benefit system. Benefits can we changed or withdrawn at any time, your own money rather less so. (And I wouldn't rely on getting your pension that early either, I'm afraid.)

Well_excuse_me.

Comstock wrote: »

Sure. But that is all I have to go on.

If you've got some sort of crystal ball into what the benefits system will be like in 2041, do tell.

Housing shortages, deficits, debt, more and more old people.
I dont need a crystal ball.

You may or may not be able to provide for your retirement, if you choose not to, dont be surprised if you end up in a crappy bedsit.
As would have been the case pre-loony benefit system.I suggest you elicit the advice of people who remembers how the poor pensioners fared in the sixties/seventies, that was when there werent that many pensioners, and far fewer poor pensioners than there will be in 2041.
Being poor is tough, being intentionally poor is risky, if not stupid.
I suppose you could go for gold or precious stones (wealth you can hide), but to just arrive at 68 skint seems foolhardy at best.
Good luck.

Comstock

missbiggles1 wrote: »

Being independent is always going to be better than relying on the benefit system.

Sure. Absolutely. But the simple fact is I *am* going to be relying on the benefits system to pay my rent when I retire.

I wish it weren't so, I had a time machine etc, but I don't. So I'm trying to make the best of the situation I find myself in right here and now.

bigadaj

Comstock wrote: »

Sure. But that is all I have to go on.

If you've got some sort of crystal ball into what the benefits system will be like in 2041, do tell.

Well the direction of travel is away from means testing, as evidenced by the new single tier pension arrangements.

Comstock

Well_excuse_me. wrote: »

Housing shortages, deficits, debt, more and more old people.
I dont need a crystal ball.

It would seem you do,or at least a basic course in population geography because the number of elderly people is set to peak around 2030.

It isn't rocket science. If you have a baby boom in the late 1940s you will get a lot of people dying in the late 2020s.

pathtofreedom

Depending on your income, you might not even see that much of a drop in take home pay due to the tax benefits, so why wouldn't you want the chance of some free money later?

If your retirement is so far off, is there a reason you can't retrain or find better jobs to boost your income so you can save more for a better retirement for yourself? There are lots of free resources both in person training or online which could help you do this, often so you can still work full time.

I have health problems and the thought of not being able to work later terrifies me as I can't get income protection insurance, I obviously earn more than you now as I do have a mortgage, I just hope my health holds out long enough so I can pay it off, as I have no faith in the benefits system or social housing with all the changes the last few years and the risk of being disabled and homeless keeps me up at night. I'm surprised it doesn't to you unless you have a big family or other means of support you're not mentioning.

HappyMJ

Comstock wrote: »

Hi,

I'm about to be auto-enrolled into a workplace pension scheme and I have one month to opt out.

The think is, I'm a fully paid up member of Generation Rent, and ,at 42 with little savings and a low income-realistically that isn't going to change now.

So I'm going to be claiming Housing Benefit when I retire. Frankly that doesn't bother me because there are some nice retirement flats in my area that accept HB.

The thing is, is there any point in paying into a private pension that is just going to be taken straight back off me in HB?

I assume everything I have over and above the basic state pension will be claimed back penny for penny in HB?

You've got the same attitude to pension as me. I'd rather not save anything in a private pension as I would lose an equal amount in benefits.

You will most probably have a rent shortfall which you will need to use your pension income to meet. Currently pension pays £155 per week plus housing benefit. If you had to pay what for me would be £28 per week towards the shortfall would that be okay. I personally wouldn't mind as I also intend to have some cash to live off as well and having some cash is allowed.