pensions and social housing rent

jdjd1969

talking to a collegue he said he wont take out private or workplace pension because he is in social housing. when he retires he would have to pay his rent and be no better off than if he has no private pension. if his only pension is state pension the rent is paid for him.
I am also in social housing (housing association) so am very interested in if this is true. google search isnt providing much info.

p00hsticks

I don't think any one can tell what the benefit or social housing system will be like in ten or twenty years time. He may be right and he'll get his rent paid in his existing house, or it may be that if all you have is a basic pension you get a bed in a hostel dormitory somewhere, or something in between.



It's your gamble

AnotherJoe

Best to post on the benefits forum but AIUI, there is a sliding scale of reduction, so that for example if he got an extra £100 a month income, his benefits would be reduced by £25, not £100. So he'd still be £75 better off. (All numbers made up)

maisie_cat

If his income is below a certain level in retirement he will be entitled to pension credit and all sorts of other benefits including housing benefit. My MIL has a reduced pension because she paid married womens NICs for years and gets none of her ex husbands pension. She gets £4000 or so a year in state pension, this is topped up by another £15000 or so in various other things including housing and council tax benefits. She is comfortable enough but lives in a horrible council flat with no option for living somewhere better. If she'd had a pension lump sum she could have bought her flat for a few £000, in London there is always demand for even the ugliest flat, then moved somewhere nicer

sammyjammy

What a sad attitude to life.

crv1963

Only you can make the call/ gamble. It's the Benefits Trap! Do you save/ join pension scheme in case a future Government turns round and says we gave you the opportunity to save with your employer compelled to contribute and us giving you taxpayers money towards it so we'll give you X amount based on what we think you should have saved and now have coming in.


Or do you think the Government will say "It's okay that you didn't save when you had the chance we'll give you all you need anyway".


My money is on the former. I think the auto-enrolment is a way for future Governments to say to people "We'll assume you have x amount from your private pension and x amount from your State Pension so we'll only give you z amount now- you should have saved!"


Politicians are looking to cut the benefit bill, UK State Pension is amongst the lowest, there will come a point when they can't increase the SP age any higher, with an ageing population they will look at how to reduce the benefits further in my view.

Silvertabby

Even if he does get housing benefit he will only get £160 per week (either the single tier pension or the old pension plus pension credit) to live on. That's not a lot after paying council tax, utilities and other essentials.

worried_jim

sammyjammy wrote: »

What a sad attitude to life.

Tragic. Each to their own, but to be dependent on the state and live in near poverty when you could have planned for your future is a shame. A life not fulfilled.

Marcon

Given the way state benefits are being cut, it's not a risk I'd take - but if you are happy to contemplate a future scraping by in poverty...

badmemory

One of the joys of retirement is the removal of most of the dealings with jobsworth tick boxing & the like. Having to make claims for means tested benefits which can be removed at any time ruins that joy. Just because pensioners have been protected from the "bedroom tax" until now does not mean they will in the future. Especially if many have this attitude of I could provide for my future but I won't. These benefits are supposed to be for those who can't not those who won't.

McKneff

Just take responsibility for yourself. Why should taxpayers pay for your retirement when you are qute capable and can afford to do it yourself.

As said, a sad attitude towards life.

Not aimed at you personally op, just easier to type that way