State Pension

xylophone

When I am old enough for the SP I won't lower myself to be paid weekly.

Hm....I know a professional gentleman on an excellent DB pension (and quite savvy enough to manage his savings and investments very efficiently) who has chosen to have his SP paid weekly...... very MSE, he regards it as better in his pocket than the government's especially as he pays higher rate tax and has made his final tax relieved contribution to his SIPP...

BikingBud

Brie said:

BikingBud said:

How do they manage council tax and water bills that tend to only require paying as a single payment or more usually 10/12? Possibly utilities at 3/12, or car tax, car servicing or car insurance or many other non-regular payments.

Let's go back to paying people in cash, weekly, that'll solve all the problems won't it? Nope still doesn't match up with the sometimes random outgoing cycle. 

But nothing is impossible and suggesting it is provides excuses for those that only want to be victims and do not want to "learn" to manage their money. Yes unfortunately this is a significant educational shortfall but it is what it is and there are resources to improve this: https://www.moneysavingexpert.com/family/financial-education/ but we should focus on showing empathy and steering them toward education rather than just saying "yeah its impossible". By that we route we just continue with learned helplessness.

If their income is low enough (likely if they only get SP) then there is little or no CT (perhaps) and water bills are small(perhaps) .  Rent (what rent?) goes into arrears and then is caught up . But the big problem is utilities (really? as you seem to be adding bits in and out what about winter fuel, cold weather payments and warm home discount?)

It's called budgeting and doesn't really matter what the incomings and outgoings are, see my first post on this topic.

Qyburn

poseidon1 said:

Bit perplexed about this so called budgeting difficulty  with the 4 week option.

I'm sure I could manage that, but why bother when weekly gives a more consistent "monthly" income.

p00hsticks

Qyburn said:

poseidon1 said:

Bit perplexed about this so called budgeting difficulty  with the 4 week option.

I'm sure I could manage that, but why bother when weekly gives a more consistent "monthly" income.

I'm not sure I agree. 
If you are paid four-weekly, you will receive the same amount for 11 months of the year (although at different times of the month). And double for one month. 
If you are paid weekly, then you will get one (4-week) amount for eight months of the year and and a higher (5 week amount) amount for the other four months. The latter option seems less consistent to me. 

As per my previous post, the simplest way to get a consistent monthly income is to receive the pension into a separate bank account and transfer the money over to your main account by monthly standing order. 

poseidon1

p00hsticks said:

Qyburn said:

poseidon1 said:

Bit perplexed about this so called budgeting difficulty  with the 4 week option.

I'm sure I could manage that, but why bother when weekly gives a more consistent "monthly" income.

I'm not sure I agree. 
If you are paid four-weekly, you will receive the same amount for 11 months of the year (although at different times of the month). And double for one month. 
If you are paid weekly, then you will get one (4-week) amount for eight months of the year and and a higher (5 week amount) amount for the other four months. The latter option seems less consistent to me. 

As per my previous post, the simplest way to get a consistent monthly income is to receive the pension into a separate bank account and transfer the money over to your main account by monthly standing order. 

Unless one is leading a quite literal hand to mouth exsistence with zero cash reserves, can't see this  requirement for a 'consistent monthly income' .

 Until the SP kicked in last year, bulk of my income was either quarterly or half yearly. This may sound like a feast/ famine scenario, but simply kept sufficient cash on interest bearing  current account to cover routine standing orders/ DDs, whilst day to day out of pocket expenses ( shopping, petrol, entertainment etc) funded from a Chase account topped up on an ad hoc basis.

Weekly SP, is now a useful filler to less frequent income sources.

Seems to me one of the benefits of retirement is the excess spare time and mental bandwidth to juggle one's finances to best advantage, unless the preference is for an 'auto pilot exsistence '.

Qyburn

p00hsticks said:

Qyburn said:

If you are paid four-weekly, you will receive the same amount for 11 months of the year (although at different times of the month). And double for one month. 
If you are paid weekly, then you will get one (4-week) amount for eight months of the year and and a higher (5 week amount) amount for the other four months. 

Weekly means you get the money earlier, which has a benefit in interest earned. It also spreads the "extra" into a number of five week months spread throughout the year. Four weekly the "extra" comes in larger lumps, less frequently.

Q .. "Would you like this week's pension?"
A .. "No thanks, why don't you hold it back for three weeks" 

Qyburn

There are more ways of budgeting than you can shake a stick at. Someone might want to budget for the four weekly amount as their "monthly income" and treat the double month as a bonus.

Myself I prefer to get money into my hands as soon as it's available and make up my own mind how to manage it.

MACKEM99

molerat said:

The DWP benefits system is set up for weekly and multiples thereof payments and it would be difficult to change it.  If you really cannot manage on 4 weekly payments opt to have it paid weekly which will lead to 4 or 5 payments per month, still not perfect but will stop the big double payment once a year.

The only reason I can see that the monthly payment option is not available, is so the government can hold on to our money longer to gain interest for the treasury.

Another conspiracy theorist I see.  The pension is paid immediately it is due at the end of the 4 week period, no one is holding on to your money.  As above, opt for weekly and it will be paid at the end of the week it is due.

I do wish people would stop calling it a benefit.  

MACKEM99

Many years ago when I was in the military we were paid based on a daily rate and thereby paid different amounts every month so for example February 28 days and other months 30 or 31, but of course it still added to to the full amount for a year.  Some particularly those on the higher incomes always used to moan in February saying the only had 28 days pay to last them till next pay day on 31 March!  When I pointed out that on 31 January they had been paid 31 days pay to last till 28 February they did not seem to grasp that part!

Silvertabby

MACKEM99 said:

molerat said:

The DWP benefits system is set up for weekly and multiples thereof payments and it would be difficult to change it.  If you really cannot manage on 4 weekly payments opt to have it paid weekly which will lead to 4 or 5 payments per month, still not perfect but will stop the big double payment once a year.

The only reason I can see that the monthly payment option is not available, is so the government can hold on to our money longer to gain interest for the treasury.

Another conspiracy theorist I see.  The pension is paid immediately it is due at the end of the 4 week period, no one is holding on to your money.  As above, opt for weekly and it will be paid at the end of the week it is due.

I do wish people would stop calling it a benefit.  

Why?  'Benefit', as a word, is used throughout the pensions industry.  Have you never received a 'Benefit Statement' from your occupational/private pension provider?