What should I spend my money on to avoid the Universal Credit savings limit?

oopsiedoopsie

Thanks for all your help.  I do not like spending money, you have worked that out correctly.  I suppose it is a bit odd coming to a money saving site asking how to spend money.  I'm not living badly, but you have given me pause for thought.  I suppose there are quite a few things that most people have that I feel are excessive.  Perhaps netflix or a second pair of trousers isn't a wasteful extravagance.

On the other side of things, it did occur to me that I should make sure my NI contributions are topped up.  I guess that would be a good idea.

The other thought that occurred to me was pensions.  I only ask because this page seems to imply that it does not count towards the limit unless you take money out of it.  https://www.onlinemoneyadvisor.co.uk/pensions/personal-pensions/personal-pension-benefits/#Does_having_a_personal_pension_affect_Universal_Credit It says money you take out of a pension can affect your UC amount, but doesn't seem to mention money you put in.  I assumed that a pension counted as savings but now I don't know.  This doesn't seem to mention pensions either does it? https://www.entitledto.co.uk/help/Working-out-the-value-of-your-savings-and-other-capital-Universal-Credit 

calcotti

oopsiedoopsie said: On the other side of things, it did occur to me that I should make sure my NI contributions are topped up.  I guess that would be a good idea.

You will currently be receiving Class 3 credits towards your State Pension. Do not make any decision about filling any gaps in your record without first checking your State Pension forecast as filling gaps may not increase you entitlement. https://www.gov.uk/check-state-pension

Money in pension pots does not count as savings. Moving capital into a pension pot could be seen as deprivation of capital although making modest regular contributions could, I think, be considered reasonable in the circumstances.

oopsiedoopsie

Ok, thank you all again.  I feel like I am well informed now.  I should be able to manage this better.

tazwhoever

I was just thinking generally, if OP goes over £16k, s/he can't claim UC. How would s/he get contributions paid for benefits and pension?

Pollycat

oopsiedoopsie said:

Thanks for all your help.  I do not like spending money, you have worked that out correctly.  I suppose it is a bit odd coming to a money saving site asking how to spend money.  I'm not living badly, but you have given me pause for thought.  I suppose there are quite a few things that most people have that I feel are excessive.  Perhaps netflix or a second pair of trousers isn't a wasteful extravagance.

Definitely not an extravagance if you can afford it.

And it seems like you can.

MovingForwards

Someone did ask about using surplus benefits to pay into a pension. It would be worth doing a search to find it, as I'm not sure if it was on this board or the pensions board. 

MovingForwards

In addition to the above, be mindful that having a small pension could negate any top up benefits on retirement, which could also have a knock on effect to other things.
- Based on today's retirement benefits as who knows what will be in place when you retire.

However, it could also sway the other way in which you have a sufficient personal pension to more than cover anything you do not qualify for.

srpsrp

I"d definitely spend it on something which retains its value, buy a low depreciation car for example. If they see big cash sums coming out they'll all what it was spent on, they asked me but I just said what I've spent it on and they were ok I bought some computers and a digital piano and stuff.

deannagone

Yes a decent pc that doesn't need upgrading within a couple of years could easily cost £1.5k but make sure you research who you are buying from first, components going into it etc.;  It could add a few pleasures to your life too. Don't just look at how much things cost (so you regret spending on something you don't actually want) get additional value by making sure you spend the money on things that will add to your life.  I bought a fairly expensive fridge freezer, and washing machine, knowing full well they would save me on energy and water costs compared to the ancient second hand things I had a year ago.  It did hurt spending the money but I haven't regretted it.  Mind you, I expect them to never break down and last my entire life time (lol).