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

xylophone

You see to me, the "giver uppers" are those who assume there will be no state pension or housing benefit in 25 or 30 years time.

If the new state pension is just above the level where means tested support would be available, you might not enjoy retirement much?

seven-day-weekend

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 are 42. You have another 25 years to work.

How do you know HB will still be available then, or that a certain LL will accept it?

Or that indeed you might get a better job, or be left an unexpected inheritance (This happens, it happened to me last year).

Just pay into the pension and give yourself an element of choice.

Alice_Holt

What an odd set of negative responses by the OP.

Because (as others have posted) -
You are foregoing "free" money from your employer;
The HB withdraw rate is not £1 for each £1 of income;
It may give you more options when you come to retire;
The benefits system is complicated, subject to change, difficult to navigate, and may not be available to you in any case;
You have more than 2 decades left of your working life.

To opt out of a pension on the grounds that future benefit systems will indemnify you is short-sighted and foolhardy.

Comstock

Thanks to everyone who has helped me with this difficult decision.

I will definitely be opting out first thing monday morning......

MacMickster

Comstock wrote: »

Thanks to everyone who has helped me with this difficult decision.

I will definitely be opting out first thing monday morning......

So you had clearly decided to do that before starting this thread, as none of the responses have suggested that you do that.

Only you will know whether you will live to regret your decision (whilst your employer will be delighted with it as you have just saved them a whole heap of money).

Just before you do opt out, I would suggest that you have a read through the benefits board. There are some stories on there about the effects of changes to the benefits system, or suddenly being told that you no longer qualify for a benefit that you have come to rely on which make harrowing reading.

Contribute even 3% of salary (no more than 2.4% after tax relief) to a pension scheme for the next 25 years, with that amount matched by your employer then your pension pot is worth 150% of your salary plus any return on those investments. If you find that your finances do improve over the that period then aim to increase the amount that you contribute each year.

There are few certainties in this world, but one certainty is that you won't be worse off in retirement by contributing to pension scheme than you would be if you opt out.

Comstock

MacMickster wrote: »

So you had clearly decided to do that before starting this thread, as none of the responses have suggested that you do that.

No, but the several nasty posts I've had above have made up my mind what to do.

missbiggles1

Comstock wrote: »

No, but the several nasty posts I've had above have made up my mind what to do.

There haven't been any nasty posts.

Comstock

missbiggles1 wrote: »

There haven't been any nasty posts.

Well I count several, including #16 which I have reported to the mods.

Honestly, ask a simple question....

MacMickster

Post number 16 is in no way a nasty post.

You have stated that you intend to rely on benefits (ie money paid by the taxpaying public) rather than making any effort to provide for yourself. You also let your employer off the hook as they don't have to pay towards your pension to help you to provide for yourself.

Comstock

I don't see what is wrong with asking if I'll be better or worse off with a particular given option.

As for suggesting it is somehow morally wrong for me to be concerned if I can get housing benefit after a lifetime of working in low wage jobs, paying tax and rent to a landlord all the time, well I suggest you catch yourself on.