Worried about renting and retirement

sixtiesgal_2

Hi, I hope someone can help to put my mind at rest. I am nearly 59 and will be due to fully retire at 66/67 which doesn't seem so far away now. I have worked for the Civil Service for 32 years so far so will get quite a decent pension, or at least I thought I would. I am divorced and live alone in a one bedroomed Council flat. My rent is £403.00 per month. I can well afford this now I am working but I worry about what will happen when I retire. Because I will get a lump sum and a pension from the Civil Service as well as the state pension, does this mean I won't get any housing benefit?

The reason I am worried is because I've tried to work out the figures, though I'm not good with Maths, but when I retire my income will be less than what it is now. If I don't get any help with paying my rent, it makes me wonder if I would have been better off not paying into a pension at all as once I am living on my pension the rent will be less affordable if I have to pay it all myself.

I love my home, I have no desire to buy a property and I worry about the roof over my head in the future, I don't have long left now to full retirement.  I moved into this flat a year ago. Prior to this I lived in a flat where the rent was cheaper and this worry didn't enter my mind then and I have always felt safer in rented property but since moving and paying more rent I have started to worry.

When I moved here I was aware the rent was more but I thought it was the same for all of the estate. It wasn't until I moved in that I found out my flat had previously been bought on the Right to Buy Scheme and sold back to the Council and they have now have a policy where they class such  properties as 'affordable rent' rather than 'social rent' and they put the rent up by £10.00 per week as opposed to other properties on the same estate which I find very unfair. I have contested it but can get nowhere and have just been told that's the rent on my flat and the rent will still go up every year like all others. I also worry that my rent is not classed as Council rent though the Council have assured me it is and that I am still a Council tenant, but would this affect my rights to any housing benefit in the future?

I have no desire to move again as I am  back living where I used to live years ago and have always wanted to come back. I got the chance to move back and am happy about that but this worry is making me unsettled and driving me mad. Can anyone advise please?

NinjaTune

Being a council or affordable rent property should not have any affect on your ability to claim Housing Benefit.  Your lump sum, however, will have an impact depending on how much it is.

Will you genuinely struggle to cover the basics after retirement, or will it just mean living a more frugal lifestyle than currently?

sixtiesgal_2

NinjaTune said:

Being a council or affordable rent property should not have any affect on your ability to claim Housing Benefit.  Your lump sum, however, will have an impact depending on how much it is.

Will you genuinely struggle to cover the basics after retirement, or will it just mean living a more frugal lifestyle than currently?

Thank you for your reply. My lump sum at present is around £29,000 but that will go up by the time I retire to say about £32,00 or so.  I would maybe need to tighten my belt a bit but my main worry is the rent because its the biggest bill I have to pay and its the roof over my head.

Catwales

You won't get any help with rent if you have over £16000 in savings. Check out Age UK website for information on housing benefit/benefits in general

JayRitchie

can you work out how much your pension from the civil service plus old age pension will come to? My guess is that you have a great deal with that flat. No repairs to worry about, no service charges. 

bouicca21

The state pension will More than cover the rent, leaving you with the civil service pension to live on.  Work out how much that will be. It will almost certainly be enough.

luvchocolate

My state pension is £201 per week..I'm on old pension but deferred for 2 years to increase my weekly income. 
My works pension is £300 a month. 
I live in housing association flat and have no trouble paying all bills and have surplus. 
It was important to me to be self sufficient and take responsibility for myself. 
I feel benefits are there for people that have a genuine need

sixtiesgal_2

JayRitchie said:

can you work out how much your pension from the civil service plus old age pension will come to? My guess is that you have a great deal with that flat. No repairs to worry about, no service charges. 

I've worked it out approximately and its still less than my wage which is the main worry.

sixtiesgal_2

luvchocolate said:

My state pension is £201 per week..I'm on old pension but deferred for 2 years to increase my weekly income. 
My works pension is £300 a month. 
I live in housing association flat and have no trouble paying all bills and have surplus. 
It was important to me to be self sufficient and take responsibility for myself. 
I feel benefits are there for people that have a genuine need

Thanks, this is very reassuring. Can I ask how much your rent is if you don't mind? I feel if I had a cheaper rent like before I wouldn't be as worried.

Martin_the_Unjust

Don't forget that generally your outgoings are less once you have retired.

Norman_Castle

Once your savings drop below £16,000 you can apply for housing benefit and council tax benefit. When below £4,000(?) they will be paid in full. You're in a much better position than many people who have no savings and a basic pension.

Be sensible with your spending but don't be overly concerned.