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

HappyMJ

zagfles wrote: »

Where do you get 85% from? Current HB taper is 65%, current UC taper is also 65%.

Rather than messing with tapers and reducing incentives even more, I think it's far more likely that they'll reduce the applicable amount for pensioners to the same as younger people (like they've already done with tax thresholds, the AA is a "benefits threshold" - the amount you can earn before HB etc are tapered). The AA for pensioners is over double that of the under 60's, and nearly treble that of the under 25's! That sort of discrepancy is hard to justify.

This would save the govt a shedload, and increase incentives to save at the same time. It wouldn't cause anyone to starve since a pensioner wouldn't be any worse off than an unemployed younger person. It would mean pensioners claiming housing benefit would need to spend a good chunk of their state pension on rent before getting housing benefit.

They probably couldn't do it for existing pensioners, but they could for future ones.

The other 20% is council tax reduction.

zagfles

HappyMJ wrote: »

The other 20% is council tax reduction.

CTB is now localised, different councils have different rules.

HappyMJ

zagfles wrote: »

CTB is now localised, different councils have different rules.

The vast majority of council's are using something very similar to the default CTR scheme which is 20% of the income above the applicable amount is to be used for council tax and 65% of the income towards rent.

atush

Comstock wrote: »

But I'm far from convinced that A is correct. No one amid the five pages (five!) of this thread has really addressed this point. They've all been far too busy labelling me a benefits scrounger.

Yes, we have addressed this point. But i'll address it as well. If you put 8 into yor pension, teh govt gives you an extra 2. Makes 10. Then if your employer also puts in 10, you get 20 for your 8. Does tht sound like a good deal to you?

And I NEVER called you a scrounger.

I just say you will be better off in the pension/./

Andypandyboy

I really don't think that is what they wanted hear. I think the OP had already decided how they wanted to proceed.

atush

Which is why in an earlier post I asked him why ask if you dont want to know?

HardCoreProgrammer

People do not set out to be intentionally poor. It is a very bad thing to say this.

Assuming OP starts retraining now by studying a degree full time (and not everybody can afford to do that, takes even longer if part time), he/she will be at least 45 when finished. Now how many employers will give a chance to somebody starting out in a new career at this age? I have >20 years in my career, and I am worried that nobody would employ me if I get the P45 post 45!

Some of my relatives finished school and started work in factories, lost their jobs as they closed in the 80s, and ended up on the breadline at old age. My mother entered the civil service when she finished school, and ended up comfortable post retirement as she has a final-salary pension. She did not know the value of the pension benefits when she joined, and there was nobody who told her that it will make a big difference in her retirement. She simply made a random choice and got lucky.

It is quite possible that OP made a wrong decision and ended up on the treadmill unable to change their life. Hindsight is a wonderful thing, and some may not have the benefit of luck or advice. It is very easy to criticise from a position of comfort, but while it puts you on the moral high ground, it does not help the person asking for advice.

I tend to believe OP that he/she is just trying to make the best of the current situation, and feel sad that the request for advice led to all this. It is really unfortunate that Martin Lewis has allowed this kind of abuse to go unchecked and unchallenged on this forum.

Pollycat

HardCoreProgrammer wrote: »

I tend to believe OP that he/she is just trying to make the best of the current situation, and feel sad that the request for advice led to all this. It is really unfortunate that Martin Lewis has allowed this kind of abuse to go unchecked and unchallenged on this forum.

Is the OP trying to make the best of the current situation though?

It appears to me that he is making financial decisions based on what he thinks will happen in 25+ years time.

As for the abuse you allege, there is a 'report' button under every post.
Use it if you feel any post is abusive or bullying.

edinburgher

HardCoreProgrammer wrote: »

I tend to believe OP that he/she is just trying to make the best of the current situation, and feel sad that the request for advice led to all this. It is really unfortunate that Martin Lewis has allowed this kind of abuse to go unchecked and unchallenged on this forum.

On balance, I think a lot of helpful advice has been offered that the OP would be wise to adopt. I'm no fan of the 'boostraps' mentality that would suggest he should just buck up and get on with it, but incremental changes could make a real difference.

For example, small pension contributions matched by an employer and perhaps working another few hours at the weekend at a p-t job might make a real difference to their retirement. If you really need to work, there is usually some out there who can use you, unless you're living in an area of mass unemployment and have been looking for years...

This seems far more attainable than your 'get a degree' option (which you put forward as probably unworkable). There are plenty of people who retire with a degree of comfort without the benefit of a white collar job! Of course a graduate job probably isn't as likely at 40+, it doesn't mean that there are no alternatives.

saver861

If OP pays into a pension at least he knows how much will be there. Not so for the benefits.