Retirement with no assets

always_skint

I am due to retire shortly, I have no savings, living in local authourity 3 bed house paying full rent and council tax at the moment.

The only things I claim at this time is working tax credit and child tax credit for one child, plus winter fuel allowance.

I have been informed by someone in the same situation as myself that if nothing changes with my circumstances when I actually do retire I will not have to pay rent or council tax.

Can someone please advice me if this is correct.

PasturesNew

As I understand it, I'd expect to get:
- rent paid
- council tax paid
- basic state pension (single person about £85)
- minimum income guarantee - taking it up to about £105

Plus all those other "goodies" like the winter fuel allowance (£200?); free local bus travel?

Only "wild card" in your equation seems to be a child ... as not many pensioners are still popping out kids.

But, if there's a child, bound to get more money of some sort.

krisskross

do you have any pension to be claimed from occupational or private pensions?

If no then certainly I would expect you to get basic state pension plus pension credit taking it up to ~£120 and of course no housing costs to pay if you are eligible for pension credit.

I agree with the previous poster that a child appears to have an 'open sesame' effect on benefit treasure chests.

always_skint

Only "wild card" in your equation seems to be a child ... as not many pensioners are still popping out kids.

My "child" will be nearly 16 when I actually retire.

Famous older fathers such as Sir Paul McCartney, Rod Stewart, David Jason, Eric Clapton and John Humphrys have all raised the profile - and average age - of the older dad.

do you have any pension to be claimed from occupational or private pensions?

No.

So what I understand is, It doesn't pay to have any assets in one's retirement years

krisskross

always_skint wrote: »

So what I understand is, It doesn't pay to have any assets in one's retirement years

Don't just have a little bit in assets because it may well be enough to take you over the thresholds. Far better to have nothing especially if you are renting.

Enjoy retirement.

EdInvestor

The OP should contact the DWP to claim his state pension and get a forecast.If he has always worked and has been on average pay, he may be eligible for quite a large dollop of SERPS/S2P, the top-up state second pension. Someone with a full NI record might get double the basic state pension. That would take him out of means-tested benefits .

www.thepensionservice.gov.uk

PasturesNew

EdInvestor wrote: »

Someone with a full NI record might get double the basic state pension. That would take him out of means-tested benefits .

www.thepensionservice.gov.uk

Oh, that's the first I've heard of that. I always assumed I'd just get the pension+minimum income guarantee

That serps thing, whatever it is, I've got that. No idea what it means, what it's about. But some financial advisor told me to sign the forms years ago so I did. I remember doing it.

They make these things so complicated, nobody has a clue what they've got or are doing! Things could be so much simpler

Biggles

PasturesNew wrote: »

That serps thing, whatever it is, I've got that. No idea what it means, what it's about. But some financial advisor told me to sign the forms years ago so I did. I remember doing it.

That's slightly worrying. There were no forms to sign for SERPS, the only time you had to sign anything was to opt out of it, which would usually be if you had an occupational or private pension instead.

Debt_Free_Chick

SERPS - is the State Earnings Related Pension Scheme.

Introduced in 1978 it provides an additional pension based on earnings between two limits - the lower earnings limit (roughly equal to the lower limit for paying NI) and the upper earnings limit.

In 1978, SERPS aimed to provide 25% of your earnings between those limits, but it's been eroded by successive Governments over the past 30 years - but work on roughly 20% of earnings. Use last years earnings between the LEL & UEL for a very rough estimate.

Someone who has been continuously employed since 1978 would get the Basic State Pension plus SERPS.

Pension credit only kicks in when total pension income is less than £100 pw - but pension credit unlocks the door to a number of other benefits e.g. Housing Benefit, Council Tax benefit etc.

margaretclare

Hi

Remember that Child Benefit doesn't stop at age 16 if the said child continues in full-time education.

My daughter is still getting it for her youngest, who will be 20 at the end of this year. http://www.direct.gov.uk/en/Parents/Moneyandworkentitlements/YourMoney/DG_10016699

HTH

Margaret

EdInvestor

The Pension Service will tell you if you are opted in or out of SERPS/S2P.They might even be able to tell you which pension the money is in, if you've forgotten.

They also run a free pensions tracing service.