Worried about renting and retirement

Chandler85

The price difference between social rent and affordable rent is £40 a month.  You will get a good pension from the civil service after working there so long and you will get a state pension (about £175 a week).  The state pension overs your rent, and probably most bills (except food),  your private pension will have to cover your food and your enjoyment, which I am fairly sure it will.

Separately your rent isn't unfair, it is what it is.  You aren't on social rent which is cheaper (for the most needy) but you also aren't on private rent which is more expensive.  The rent is still artificially cheaper for the area to help allow everyone to be able to live in it.

daveyjp

sixtiesgal_2 said:

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.

Without a magnitude of 'less' its difficult to comment.  10% probably not an issue, 75% probably is.

If money is tight do a statement of financial affairs listing all your outgoings while you are currently working and see what you can avoid spending when you retire.

luvchocolate

sixtiesgal_2 said:

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.

£400 per month. 
I have less coming than when I was working but to be honest its it's not a problem. 
My pension lump sum will cover replacing white goods furniture etc. 
No interest in expensive holidays did much of that in the past. 
It all depends on your lifestyle...I'm in a good place..no financial worries 

Barny1979

Maybe work for longer and save that cash for rent?

wilfred30

You've got another 7 years to save for your retirement which is plenty of time.

As has been said, you won't get housing benefit any more once you take your CS pension but, with that and your State Pension, you won't need it.

GibbsRule_No3.

Sixtiesgal-2
I was in a similar position six years ago, approaching retirement in six years and wondering what to do. I was renting a two bedroom ground floor social flat, the new neighbours upstairs were a nightmare and then salvation reared it head in the form of a one bedroom, age protected bungalow but with a fly in the ointment more expensive.  I worked out that my State Pension due in that six years would pay for the rent and almost all the council tax, the sums after that meant my Civil Service Pension and (tupe over so same terms as CSP) work pension would be enough to live on and if I need to I can dip into the lump sum for any necessary holidays and electrical goods. I hope the £200 heating allowance is not scrapped, as that has been factored in and will make a difference per year.
I made the decision to stay at work for three days and COVID19 has actually helped me save, so glad I stayed working. I am single so being involved online has kept me occupied and now I am back one day a week, the other two O go in and pack PPE that my company got involved with. You don’t say if you drive, drink or smoke, I don’t so none of those expenses. I do like holidays and new tech and lump sum covers that. 

Just add up everything monthly bill wise, add any annual payments for me NT and RHP memberships, then take it away from your (predicted SP, you have got a forecast? I hope) and CSP then you can see what state you are in.

I’m sure it won’t be that far out if you have 32 years, I had nearly 50. BTW my rent is £200 more a month than you are paying but I would not give up where I live for anything now.

sheramber

Unless you are already claiming housing benefit or are entitled to pension credit when you retire you cannot make a new claim for housing benefit. It comes under UC now.
In 7 years who knows what benefits will be or who will be eligible for them.
 

lincroft1710

On a £32k lump sum and annual rent of £4836, that alone would cover your rent for 6 years without having to use the income from either pension. Do remember that because of the personal income tax allowance, your drop in net income once retired won't be as great as you might believe

sixtiesgal_2

Chandler85 said:

The price difference between social rent and affordable rent is £40 a month.  You will get a good pension from the civil service after working there so long and you will get a state pension (about £175 a week).  The state pension overs your rent, and probably most bills (except food),  your private pension will have to cover your food and your enjoyment, which I am fairly sure it will.

Separately your rent isn't unfair, it is what it is.  You aren't on social rent which is cheaper (for the most needy) but you also aren't on private rent which is more expensive.  The rent is still artificially cheaper for the area to help allow everyone to be able to live in it.

Thanks for your reply. Sorry but I think it is unfair. How can the Council justify charging more for my flat when it is exactly the same as my neighbours flat. They say its affordable rent because it was sold back to the Council but this isn't my fault. I could understand it if it was a new build estate and they were making all the rents affordable ones on new properties but that's not the case here. Its like the Council are trying to recouperate their money from me because the person who lived here before couldn't pay the mortgage which isn't my fault.

Just to add, the flat I lived in before was a cheaper rent, I wasn't needy when I lived there but still lived there.

sixtiesgal_2

Barny1979 said:

Maybe work for longer and save that cash for rent?

Thanks for your reply. If I use that cash for rent or even my lump sum, what happens when the money runs out, I still have to pay the rent.