Converting state pension to a monthly income stream

dunstonh

I'm retired and coming up to state pension age, and found it frustrating that state pensions are still paid based on weekly cycles which means the state pension income won't tie up for cycles in settling cedit card bills and paying for utilities.

It appears that some people have tried to set up futile petitions to get the government to provide a monthly payment option but this doesn't look to be on the horizon (I suspect the DWP computer system will need a major, expensive rewrite to hanfdle that!)

An awful lot of the population are still paid weekly or four weekly, so they wouldn't find it frustrating. And it's easier for someone used to budgeting monthly to convert to four weekly than for others to convert to monthly.   Those running on a very tight budget rely on weekly whereas those who can handle a monthly budget are less likely to have the same financial pressure.  

One of the easiest ways is to assume that the four weekly amounts are monthly, but then, in one month of the year, you get paid twice.

3. Set up a Monthly Standing order from the Kroo account for the equivalent of the monthly state pension into my regular "working" current account (i.e. the one most bills are paid from).

Once upon a time budget accounts, as they were known, were extremely popular.  I still operate a budget account (although its called number 2 account now).   On a fixed day in the month, a fixed amount is transferred to the 2 account and all fixed bills are paid out of the number 2 account.    I did that from my late teens as a means to knowing what I had left after the standing order to the 2 account had gone through was mine to spend. 

FIREDreamer

Should be an easy fix, surely, as DWP pays universal credit monthly I believe.

molerat

FIREDreamer said:

Should be an easy fix, surely, as DWP pays universal credit monthly I believe.

But that was a starting from scratch system and cost an awful lot of money to implement. They didn't get it right first time (or second or third .....) and was big news at the time with people not getting paid.  Changing the current system would likely cause total chaos and the cost / benefit / risk factors are not really worth it.

https://www.computerweekly.com/news/2240212145/DWP-to-spend-further-90m-on-much-criticised-Universal-Credit-IT-system

barnstar2077

(Removed by Forum Team)

A little bit harsh perhaps.  I am the least entitled person you could meet.  I, and some others, would just prefer the option to have it paid monthly.  No one has said it is the end of the world.   You did take the time out of your day to type the above, so you clearly feel strongly about the subject yourself.

I don't personally like the buffer idea as I like to budget and know how much money I have left to spend in my current account without working anything out, but to each there own.

LHW99

You can still opt for a weekly payment, which would get over the issue. Can that not be paid to a bank account if required?

Bravepants

It's my experience that some banks (maybe all infact) don't pay standing orders if the payment date falls on a weekend or bank holiday; they'll be paid on the next working day. So you will have to take that into account to be compatible with your other billing/direct debit schedules. You might want to use a float as suggested above.

xylophone

You can still opt for a weekly payment, which would get over the issue. Can that not be paid to a bank account if required?

Indeed it can. 

barnstar2077

Being paid in weekly into my current account wouldn't solve the problem for me, as I would still need the float, which would blur how much money I have left to spend.

I will use a different account to pay the pension into weekly though, and have a float in that account.  Then pay my spending allotment into my current account, and the chunck that goes into my direct debit account, out from there.

Problem solved.

GibbsRule_No3.

When I first started getting my SP I voiced the same question, now three years later it is not proving a problem "But" and a big "But" I am still working and receiving a monthly pay packet as well as work and State pensions, I'm also keeping more in my current account than I'd like to, with payments in/out at various dates. I could well imagine someone suddenly just receiving SP finding it harder. Hopefully when I do manage to stop working I will be used to the 4 week SP payments. Thank you to the person who answered my unasked question about when benefits are paid, monthly/4weekly. Wonder why they were not paid like SP when introduced or did they not get an option for weekly payments?

Hoenir

dunstonh said:

Once upon a time budget accounts, as they were known, were extremely popular.  I still operate a budget account (although its called number 2 account now).   On a fixed day in the month, a fixed amount is transferred to the 2 account and all fixed bills are paid out of the number 2 account.    I did that from my late teens as a means to knowing what I had left after the standing order to the 2 account had gone through was mine to spend. 

Have run a second "bills" bank account for many years. Makes budgeting far easier. Copes with the oddities of Council Tax being paid over 10 months and the one off renewals of various insurances , TV licence etc. Simply keep a list all the items on an annual basis. Ensure sufficient money i.e. 1/12 or 1/13 is transferred across after every "pay day".