mean test pension credit

mei388

I am a pensioner, I strongly believe that the goverment mean test pension credit on saving income  is extremely unjustified . It said " £1 a week income per £500 of savings above £10,000 " so if you have saving of £17000, saving income £14  per week £728 per year. Do they know that you will need annual saving interest of  4.3% to earn £728 saving income. 4.3% is far from the currant rate of £1.8% or may be 3% one year fixed, weekly income £200 or more, not qualify to claim  pension credit. Full state pensions is just over £185.10/week, the currant cost of living criss and the likely approaching recession scenario, what can this little saving of £17000 can help an old age pensioner.  not much I guess  
On the other hand, According to an Open Democracy report in April, MPs had charged taxpayers £420,000 for energy bills on their second homes over three years. High earner can claim from the tax box without mean test without limits, how can it be justify?
I am very disappointed indeed!

p00hsticks

mei388 said:

Do they know that you will need annual saving interest of  4.3% to earn £728 saving income.

Of course they do - but that's not the point. The rate isn't set at a level where you can maintain your savings at the initial level, whisl;t still claiming a means tested benefit.

The intention is that those with a reasonably substantial amount of savings (and I suspect that £17,000 would be well over that of the average households) should at least partly use those savings to supplement their income when claiming some Pension Credit. As their savings gradually deplete, so the amount of pension credit they are entitled to would increase (providing the person is not seen to have intientially deprived themselves of the savings by e.g. giving it away).

The same principal is being applied to those of working age claiming Univeral Credit - if you have savings you are first expected to live off that before you are eligible for UC when they drop to under £16,000

Caroby

We were eligible for pension credit a few years ago and found the whole procedure of applying a bit humiliating. I know they have to see proof of income beforehand but it still felt odd sending bank statements in for someone to peruse how we spent every penny. Having said that, it was worth it in the end as we qualified for 100 per cent council tax rebate which at the time was around £1200 p.a.
It helped us for a few years until our savings changed after an inheritance.

arnoldy

Get 1p under the means testing pension limit and the door opens to a treasure trove of benefits and freebies, for example no TV licence, access to all sorts of heating benefits and schemes, council tax £thousands off.....

You really are worse of if you are just over the limit, very unfair and a disincentive for saving and doing the right thing if you are better off casting yourself on the state. How can this possibly be right?

[Deleted User]

There has to be a limit somewhere. Be grateful you have savings, many do not. 

Flugelhorn

[Deleted User] said:

There has to be a limit somewhere. Be grateful you have savings, many do not. 

I think that having savings is often down to luck for which we should be grateful but more down to being careful and not spending every bean there is.  I have loads more savings than my friend (same job) but she travelled the world and bought expensive cars and is now feel short on savings 

[Deleted User]

Flugelhorn said:

[Deleted User] said:

There has to be a limit somewhere. Be grateful you have savings, many do not. 

I think that having savings is often down to luck for which we should be grateful but more down to being careful and not spending every bean there is.  I have loads more savings than my friend (same job) but she travelled the world and bought expensive cars and is now feel short on savings 

However, she has probably enjoyed the travel and the cars. Much better than taking it to the grave. Yes I understand you do need to plan for your future self but there needs to be a balance. Life is for living. I find myself increasingly at odds with the philosophy of some of the boards and threads on MSE that champion building wealth, tax evasion, saving and leaving loads for the family above all else. Plus of course work another year to make that pot a little bigger. When I look back on my life I have more regrets about the things I haven’t done or the risks that I didn’t take rather then having a few savings  in the bank !

arnoldy

[Deleted User] said:

There has to be a limit somewhere. Be grateful you have savings, many do not. 

Yes, but that's not luck. I have savings because I was careful, earned what I could, put a way a bit each month however modest and denied myself things. I tried to do the right thing and be responsible like millions of others in UK.

Many (not all) who have no savings could have had savings if they took responsibility for themselves and got a grip.

Flugelhorn

[Deleted User] said:

Flugelhorn said:

[Deleted User] said:

There has to be a limit somewhere. Be grateful you have savings, many do not. 

I think that having savings is often down to luck for which we should be grateful but more down to being careful and not spending every bean there is.  I have loads more savings than my friend (same job) but she travelled the world and bought expensive cars and is now feel short on savings 

However, she has probably enjoyed the travel and the cars. Much better than taking it to the grave. Yes I understand you do need to plan for your future self but there needs to be a balance. Life is for living. I find myself increasingly at odds with the philosophy of some of the boards and threads on MSE that champion building wealth, tax evasion, saving and leaving loads for the family above all else. Plus of course work another year to make that pot a little bigger. When I look back on my life I have more regrets about the things I haven’t done or the risks that I didn’t take rather then having a few savings  in the bank !

Interestingly I retired 4 years before her, pension pot couldn't get bigger  and she is still having to work as still paying off some debts oh and moaning because she hates work.
different things make us happy  - I'm sitting here overlooking the sea in my weekend house, my kids live in property I have funded and OK I haven't bungee jumped in Asia or wherever but I'm not sure I would want to 

[Deleted User]

Flugelhorn said:

[Deleted User] said:

Flugelhorn said:

[Deleted User] said:

There has to be a limit somewhere. Be grateful you have savings, many do not. 

I think that having savings is often down to luck for which we should be grateful but more down to being careful and not spending every bean there is.  I have loads more savings than my friend (same job) but she travelled the world and bought expensive cars and is now feel short on savings 

However, she has probably enjoyed the travel and the cars. Much better than taking it to the grave. Yes I understand you do need to plan for your future self but there needs to be a balance. Life is for living. I find myself increasingly at odds with the philosophy of some of the boards and threads on MSE that champion building wealth, tax evasion, saving and leaving loads for the family above all else. Plus of course work another year to make that pot a little bigger. When I look back on my life I have more regrets about the things I haven’t done or the risks that I didn’t take rather then having a few savings  in the bank !

Interestingly I retired 4 years before her, pension pot couldn't get bigger  and she is still having to work as still paying off some debts oh and moaning because she hates work.
different things make us happy  - I'm sitting here overlooking the sea in my weekend house, my kids live in property I have funded and OK I haven't bungee jumped in Asia or wherever but I'm not sure I would want to 

Lucky old you. First prize for smugness! 

[Deleted User]

arnoldy said:

[Deleted User] said:

There has to be a limit somewhere. Be grateful you have savings, many do not. 

Yes, but that's not luck. I have savings because I was careful, earned what I could, put a way a bit each month however modest and denied myself things. I tried to do the right thing and be responsible like millions of others in UK.

Many (not all) who have no savings could have had savings if they took responsibility for themselves and got a grip.

Not everybody has the same opportunities or means to save. Second prize for smugness.