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

robin61

HappyMJ wrote: »

The OP will lose what would currently be 85% of the pension when it's paid.

65% is housing benefit deductions and 20% is council tax reduction.

They'd get 0.8% extra on their net pay on earnings in excess of £5,824. So if OP earns £7.20 and works 37.5 hours a week they'd get an extra £1.26 a week now.

Yes but there is no guarantee this will still be the position in 25 years. The benefits system may be less or maybe more generous. Nobody knows.
The OP could use the pension to take the 25% PCLS which would provide savings to fall back on. Probably these would be handy but not enough to impact means tested benefits. The OP could use the rest to retire a couple of years earlier than would otherwise have been possible then fall back on the benefits system if needed. Whatever is in the pension pot will have been partially funded by his employer and by the government. Seems a no brainier to me providing the OP can afford to do something without it having a huge impact on their living standards now.

pathtofreedom

So lets forget all about the pension for the moment, I'm going to give you the benefit of the doubt you're not trolling.

So assuming the gov doesn't put the pension age up again, you have 25 years till you can retire. How do you want to spend that time? Do you LIKE the job you have now, does it make you exited to go their, or is it just something to pay the bills and live?

In the past 20 years for example, I used the internet for the first time in 1996 and thought it was incredible. No one could have thought 20 years ago that every one would have smart phones and tech would be so part of everyones lives. I am lucky I guess I started in IT then, as no one could have imagined what it would grow into so fast, or in turn how quick it goes out of date so you're constantly having to learn new things. So in another 25 years time I can't imagine what the world will be like, but I know it won't be like it is now, I expect driverless cars will be pretty much standard, jobs we all do today will again no doubt be very different, industries will change just like that already doing with globalisation and privatisation let alone tech advances. I for many years have done jobs where I can work from home half if not all the time, as that works best with my health issues. I'm sure there will come a time this will become more and more common place in other industries, just as office space is too expensive in some areas, and everything can be bought online now a days.

So do you like to work alone or with people, inside, outside? What is your "stressful" that is putting you off looking for other jobs or expanding yourself outside of work? As either way the world isn't going to stand still for you, if you ask we can help point you at courses, or places who can help you figure out hopefully a career rather than a job, as much as people don't like change, you're going to have to find a way to learn how to adapt. You might never buy a house, it isn't compulsory, but you might be able to see a future for yourself. Then maybe the next 25 years, and the following 25, might not seem quite so bleak. Saving a bit of money then, so you have a way to treat yourself might seem worth it then. Yes some or all of it might all go in means testing, or whatever the gov of the day does then, but I trust myself a lot more than I trust any gov to look after me.

HappyMJ

robin61 wrote: »

Yes but there is no guarantee this will still be the position in 25 years. The benefits system may be less or maybe more generous. Nobody knows.
The OP could use the pension to take the 25% PCLS which would provide savings to fall back on. Probably these would be handy but not enough to impact means tested benefits. The OP could use the rest to retire a couple of years earlier than would otherwise have been possible then fall back on the benefits system if needed. Whatever is in the pension pot will have been partially funded by his employer and by the government. Seems a no brainier to me providing the OP can afford to do something without it having a huge impact on their living standards now.

There'll be some sort of benefits system. Most people are saying it'll be less generous which means the deduction rate will most probably increase from 85% to 100%.

Comstock

edinburgher wrote: »

As for thinking you are having a wind up, I found it an odd coincidence that your user name is the surname of the depressed character from Orwell's 'Keep the Aspidistra Flying', who spends 99% of the book skint and railing against the bloodiness of the modern world until finding a degree of success and happiness

Always good to meet a fellow Orwell reader.

Yes, I can certainly relate to my fictional namesake in 'Aspidistra' The film very much sanitised it, making it more of a romantic comedy with a happy ending.

But the fictional Gordon Comstock was ultimately middle class, and he always had the option of a better paying job waiting for him with his old employer. Trust me, If I had that offer I would certainly take it.

In that respect me and my namesake differ.

Anyway, thank you to you and the other people who offered sensible advice on this one. I have a little while to decide.

missbiggles1

Comstock wrote: »

The point, kim kim, is that i'll need to rent in retirement anyway. That makes my untypical,because even today most people still own their houses.

So therefore I need to consider if a typical pension plan is suitable for my atypical circumstances.

I still think the accusation of 'living off benefits' is ridiculous, when I will have paid 40 years rent, tax and NI by that point. So I'll hardly be getting something for nothing.

Paying rent is no more contributing to society than paying a mortgage is, I'm afraid, and low earners (although not always not their fault) are nowhere near net contributors. Your years of paying around £100pm in NI/tax goes very little way towards paying a pension of £150pw,much less with HB on top.

missbiggles1

HappyMJ wrote: »

How about 55 years of age. Butler Court £414.21 per month.

http://www.anchor.org.uk/our-properties/butler-court-burton-trent

HB would cover £353.51 of that so you would pay £60.70 per month from your benefits/pension.

That's my plan....retire at 55 with my private pension and savings spend the lot before I get to state pension age at 67 and live off that.

Well, hopefully there may be many changes to the benefit system before you get to that point.:D

edinburgher

I've never seen the film, well thumbed paperback copy in my house

Ultimately it boils down to choices. Choosing to start the pension will give you more options further down the line. Without meaning to be too hyperbolic, opting out will be a) accepting that there are (and never will be) alternatives and b) will be depending on the state to do the right thing by you further down the line. The UK population is getting older, I would *assume* that things can only get worse.

It might not feel like it now, but a positive choice on your part can lead to great things in future, even if you can't see them yet. I understand depression from a personal standpoint, I use positive choices such as always having a pension, sticking to a job that I don't love (but pays ok) to anchor me to the fact that things can work out ok if you make some sensible choices along the way.

bigadaj

I'd disagree that many of the lower paid jobs are less stressful as well.

For many people as they move up the managerial chain they manage to successfully pass the cramp down the line, it does depend on your interpretation of stress though. For some people it can be theoretical responsibility for others works, for some legal, financial or regulatory pressures etc

To me I far prefer the managerial issues than the face to face hassle, working at a low level in the public sector particularly with benefits claimants would be high on my stress indicator.

Kim_kim

Comstock wrote: »

The point, kim kim, is that i'll need to rent in retirement anyway. That makes my untypical,because even today most people still own their houses.

So therefore I need to consider if a typical pension plan is suitable for my atypical circumstances.

I still think the accusation of 'living off benefits' is ridiculous, when I will have paid 40 years rent, tax and NI by that point. So I'll hardly be getting something for nothing.

Unless you earn 35k a year (at current rates) you're not actually paying in.
You get more back in your life time in education, medical, services, benefits & pension.

Andypandyboy

You have 25 years left to work. It is not too late to retrain and get the job and the pension that suits you best. How sad to settle for less at 42.