Is the state pension really that bad?

drumtochty

I look after my mother in-laws finances. Basically checking she is not getting ripped off and getting some interest on her current account, she actually handles her own cash. I do a rough monthly spreadsheet to make sure she does not run out of money etc.

Her state pension is £590 a month averaged out to include some 5 week months. She further gets say £250 a month in investment dividends. We also help some times ie. when she need a new TV we paid half of the costs so say add a further average of £40 a month to her income. Total income £880 a month but she pays a one bill you will not have of £130 a month. Therefore like for like with you she has £750 a month net into her account to compare her to you.

Up until recently she was on average saving say £30 a month and her bank account was healthy. She is a good age and not a new retiree.

She now needs cleaners to come in and she gets her windows cleaned once a month and also now buys ready made meals to put a cost on that say £150 a month. Therefore she is now spending say £120 a month more than is coming in.

My opinion is that you are a bit tight with your estimate and that you will need a chunk of that few hundred a month or so from your works pension to top things up and pay your unexpected bills.

Overall with your works pension you will have some room not to be too short of money in the next 10 years or so.

thorsoak

I am in reciept of DWP pension of £655 per 4 weeks, and a private pension of £110 per month. No mortgage - and apart from 25% council tax discount, I receive no additional benefit.

I have no mortgage to pay but I find that I can survive on my pensions - but cannot really factor in such things as I might wish to do on a regular basis - such as yoga classes, u3a etc. You might need to think about that whilst you can.

Marvqn1

thorsoak wrote: »

I am in reciept of DWP pension of £655 per 4 weeks, and a private pension of £110 per month. No mortgage - and apart from 25% council tax discount, I receive no additional benefit.

I have no mortgage to pay but I find that I can survive on my pensions - but cannot really factor in such things as I might wish to do on a regular basis - such as yoga classes, u3a etc. You might need to think about that whilst you can.

The 25% council tax discount you mentioned, is that a standard amount of discount that people who have reached pension age get or does it depend on things such as what your income is?

molerat

Marvqn1 wrote: »

The 25% council tax discount you mentioned, is that a standard amount of discount that people who have reached pension age get or does it depend on things such as what your income is?

Single person discount, nothing to do with age.

Pollycat

haras_nosirrah wrote: »

I guess it depends if you want to live or want to merely exist.-

After working for 45-50 years I want more from the remaining 30 years of my life than sitting at home watching television as I can't afford to leave the house

By sacrificing a decent wedge of my income now I plan to retire by 60 and enjoy my free time, travel etc rather than sit at home choosing between eating or putting the heating on.

You can exist on state pension - you will be kept alive but it sounds a pretty crap existance

I too want much more from my retirement.
We take at least 3 holidays abroad each year.

WobblyDog wrote: »

The state pension doesn't feature heavily in my retirement planning because:
- I won't receive it until I'm 67 at the earliest. Several of my relatives died before reaching 70.
- Of all pension types, it's probably the one most subject to political interference. It might even become means-tested in future.
- At present, although I live a pretty frugal lifestyle, I could spend a five figure sum on house repairs or helping out a relative if I wanted and barely notice. The thought of not having that kind of financial freedom is scary.

It didn't feature at all in our retirement planning.

And that was a pretty good decision we took as my state retirement date was pushed back by 15 months (woman born late 1953 - but that is another debate altogether. ) and I took early retirement aged just over 50.
My state pension date will also give me free bus travel (I hope) giving me an additional £60 per month in my pocket.

Silvertabby

Marvqn1 wrote: »

The 25% council tax discount you mentioned, is that a standard amount of discount that people who have reached pension age get or does it depend on things such as what your income is?

It's the single occupancy discount for those living alone. It isn't age related or means tested.

molerat

DavidJulie1955 wrote: »

...........

Please stop spamming your ill informed rubbish.

As you can clearly see I will receive £ 37.25 per week less that I believe I should which is £ 1937.00 per year.

Based on the change in the age using their lower figure of £ 193.25 per week I have already lost £ 10083.51 in that year together with the Extra payment I firmly believe I should get of £ 1937.00 per year the total now is some £ 12020.51.

Just about sums up your greed and lack of knowledge. You will actually receive no more or less than you are due under the old system which is more than you are due under the new system.

Pollycat

DavidJulie1955
you have already received very comprehensive responses to the identical thread you started here:
https://forums.moneysavingexpert.com/discussion/5769344

I appreciate you're a newbie but your issue with your state pension forecast is not relevant to the discussion on this thread.

molerat is correct.
Posting the same thing more than once is against MSE rules:

• What's spam?
  Forum users mustn't post comments more than once on the forum (the only exception is members of the MSE Team; when needed). It's called spamming and most internet forums forbid it. Where spam is reported to the Forum Team, the posts are deleted and the user's posting privileges may be removed. Please don't quote any post you believe is spam, as this causes the team more work.

I suggest you use the 'edit' button to delete your post on this thread.

msallen

Pollycat wrote: »

I suggest you use the 'edit' button to delete your post on this thread.

I would further suggest that it would be wise for them to ....

1) Check their facts
2) Check their spelling/grammar

... before contacting their MP.

longleggedhair

DavidJulie1955 wrote: »

I recently sent the following letter to my M.P.

Dear Conor McGinn M.P.

I would be grateful if I could arrange to discuss with you face to face at any of your surgeries about the current unfair practise by the UK Government.2

In 2013 I have told that the Department of Works and Pensions issued a white paper on the new UK State Pension. It was decided that going forward all UK residents that payed all the required number of years of national insurance contributions would then receive the NEW BASIC STATE PENSION
Of £ 159.55 per week.

My date of birth is 21/09/1955. As we all know due to the recent changes I will not receive my State Pension till I reach 66.

In 2012 I requested an estimate of my State Pension and on 23/07/2012 I was advised the following:-

Basic State Pension = £ 107.45 per week
Additional State Pension = £ 60.00 per week
Graduated Retirement Benefit = £ 1.25 per week.
Total State Pension = £ 168.70.


I recently applied on line to the Department of Works and Pensions on 29/12/2017 and received an updated estimate.

My new State Pension will be £ 193.25 per week when I reach 66.

I enquired how this figure was created. Reluctantly the person I spoke to told me the following calculation that the UK Government have instructed them to follow:-

Under the Old State Pension rules my State Pension had increased from £ 107.45 per week to £ 122.30 per week. My additional benefits had
increased from £ 61.25 per week to £ 70.95 week. Their calculations then gave the new total state pension of £ 193.25 per week.

I enquired why the calculation started with the lower figure from the old state pension rules and not follow the new rules starting the calculation
Of the new State Pension of £ 159.55 per week and then add the additional benefit of £ 70.95 per week giving me a new state
Pension of £ 230.50. I was told that the new rules do not allow this.

As you can clearly see I will receive £ 37.25 per week less that I believe I should which is £ 1937.00 per year.

Based on the change in the age using their lower figure of £ 193.25 per week I have already lost £ 10083.51 in that year together with the
Extra payment I firmly believe I should get of £ 1937.00 per year the total now is some £ 12020.51.

I have all the documents to support the above and would welcome the opportunity to show them to you and if possible I would like to request that you ask the following question in the House of Commons: -

Due to the recent changes in the Department of Works and Pension in the white paper of 2013 there
are people that are reaching pensionable age who are being miss-treated. Please therefore could I ask the Government to confirm how many people are affected by this. (Please give them my details to support the question). What cost would it be to rectify this? For the record all these people have paid their full required contributions to receive their State Pension and others have paid extra in to the pension scheme to receive a higher pension.

You are receiving more money, and are complaining? I know MPs get a bad press but imagine having to deal with someone like the above and having to try and remain polite....perhaps they do deserve that 10% pay rise!