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What happens if your pension pot is depleted?

C_Mababejive
C_Mababejive Posts: 11,668 Forumite
Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
in Pensions, annuities & retirement planning
As per the question, do you throw yourself on the mercy of the state and get signed up for assorted benefits?

If yes,,thats something.

If you had a DB pension, it would get paid until you snuff it and you would be taxed month in month out and be unable to claim anything

Have a DC pot, deplete it,,,then claim benefits..?
Feudal Britain needs land reform. 70% of the land is "owned" by 1 % of the population and at least 50% is unregistered (inherited by landed gentry). Thats why your slave box costs so much..
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Comments

  • Brynsam
    Brynsam Posts: 3,643 Forumite
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    Exactly which benefits do you feel might be payable, particularly if you have 'depleted' your pot in a way the state sees as a deliberate disposal of capital?
  • C_Mababejive
    C_Mababejive Posts: 11,668 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Im not saying you blow it all on around the world travel. I mean if it is just naturally depleted as a result of taking a reasonable annual income..
    Feudal Britain needs land reform. 70% of the land is "owned" by 1 % of the population and at least 50% is unregistered (inherited by landed gentry). Thats why your slave box costs so much..
  • Brynsam
    Brynsam Posts: 3,643 Forumite
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    Penury in old age, I'm afraid. Nobody is going to come along and rescue you; it will be subsistence level benefits only. Your concept of 'reasonable' has to be tailored to match the amount you have in savings balanced against that great unknown: how long you'll live.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    C_Mababejive wrote: »
    I mean if it is just naturally depleted as a result of taking a reasonable annual income..

    Reasonable being subjective. Naturally should last 30 years by simply constantly adjusting.
  • zagfles
    zagfles Posts: 21,684 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Chutzpah Haggler
    Brynsam wrote: »
    Penury in old age, I'm afraid. Nobody is going to come along and rescue you; it will be subsistence level benefits only. Your concept of 'reasonable' has to be tailored to match the amount you have in savings balanced against that great unknown: how long you'll live.
    So called "subsistence" level benefits for pensioners is over twice that of working age people. £163 a week for single person or £249 for a couple, and housing costs (mortgage/rent/council tax) benefits on top.

    https://www.gov.uk/pension-credit/what-youll-get
  • Teaandscones
    Teaandscones Posts: 149 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Thrugelmir wrote: »
    Reasonable being subjective. Naturally should last 30 years by simply constantly adjusting.

    Perfectly reasonable to expect at 65, maybe not at 95 though.
  • Brynsam
    Brynsam Posts: 3,643 Forumite
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    zagfles wrote: »
    So called "subsistence" level benefits for pensioners is over twice that of working age people. £163 a week for single person or £249 for a couple, and housing costs (mortgage/rent/council tax) benefits on top.

    https://www.gov.uk/pension-credit/what-youll-get

    ...won't stay that way - simple arithmetic points out the impossibility.
  • zagfles
    zagfles Posts: 21,684 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Chutzpah Haggler
    Brynsam wrote: »
    ...won't stay that way - simple arithmetic points out the impossibility.
    And don't tell me - the state pension will become means tested. We'll lose the TFLS. NHS will collapse. Tax rates will be 50%. Etc etc.
  • ffacoffipawb
    ffacoffipawb Posts: 3,593 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    zagfles wrote: »
    And don't tell me - the state pension will become means tested. We'll lose the TFLS. NHS will collapse. Tax rates will be 50%. Etc etc.

    Anything possible under a Corbyn regime.
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
    10,000 Posts Fifth Anniversary Name Dropper Photogenic
    C_Mababejive wrote: »
    As per the question, do you throw yourself on the mercy of the state and get signed up for assorted benefits?

    If yes,,thats something.

    If you had a DB pension, it would get paid until you snuff it and you would be taxed month in month out and be unable to claim anything

    Have a DC pot, deplete it,,,then claim benefits..?

    You can but you won't get any because the new SP is set at a level where it's deemed you don't get benefits.
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