Pension when renting a council house

Scottish79 · 19 February 2019 at 2:31PM

Looking for any information if possible, 1st post on the forums.

I rent a council house and don’t have a private pension or workplace one. I’ve worked over 40 years so I qualify easily for the state pension.

My belief was that when you hit retirement age your rent and council tax gets paid aslong as you don’t have any savings??

So would I get my rent and council tax free if I only get the state pension for a single person , have no savings or any assets.

Thank you for any help

Silvertabby · 19 February 2019 at 2:38PM

It depends on your actual income.

If you don't have private or occupational pensions, then it may be that your State pension (with protected SERPS/SP2) will be more than the single tier rate of £165 per week, which is also the means test limit.

Even if you do qualify for housing and council tax relief then you are unlikely to get the whole lot for 'free'. Housing benefit, for example, is based on need rather than want - and so could be capped at the rate for a one bedroomed property. If you want to carry on living in your house, if it is larger, then you may have to pay the difference between your housing benefit and your actual rent yourself.

Browntoa · 19 February 2019 at 2:40PM

See bedroom tax

http://england.shelter.org.uk/housing_advice/benefits/how_to_deal_with_the_bedroom_tax

If applicable

Scottish79 · 19 February 2019 at 2:48PM

I live in a 1 bedroom house so the bedroom tax shouldn’t matter.

Don’t understand the income bit?? As when retired my only income will be the state pension with prob only my last wage from work in the bank

Silvertabby · 19 February 2019 at 2:55PM

Scottish79 wrote: »

I live in a 1 bedroom house so the bedroom tax shouldn’t matter.

Don’t understand the income bit?? As when retired my only income will be the state pension with prob only my last wage from work in the bank

It depends on the actual amount of your State pension. From what you have said, this will be at least £165 per week, but could well be more. You won't be entitled to pension credit (as an income of £165 per week is just over the means test limit) but you may be entitled to help with your rent and council tax.

Do you have an estimate of your State pension? Once you have that, you will be able to use one of the on-line benefit calculators to see how much you may be able to claim.

Scottish79 · 19 February 2019 at 3:01PM

What is “means tested” limit , wound this mean I have to pay full rent if only on £165 a week?

Regarding the estimate of state pension , how does that effect my pension as I’ve worked all my life full time and have over 35 years paying into NI contributions etc

Again thanks for any help

xylophone · 19 February 2019 at 3:02PM

Have you obtained a state pension statement?

https://www.gov.uk/check-state-pension

How old are you?

Silvertabby · 19 February 2019 at 3:10PM

Scottish79 wrote: »

What is “means tested” limit , wound this mean I have to pay full rent if only on £165 a week?

Regarding the estimate of state pension , how does that effect my pension as I’ve worked all my life full time and have over 35 years paying into NI contributions etc

Again thanks for any help

No, breaching the means test limit just means that you can't claim any extra money such as pension credit.

It really does depend on your State pension. Not everyone automatically gets the single tier rate of £165 per week - many people, like me, who have other pensions will get less than that whilst many others will get more than £165 because of the scheme change transitional protections.

As you don't appear to have any other pensions you won't have been contracted out, so it's reasonable to assume that you will get at least £165 per week. However, it may be much more than that - it depends on your earnings.

No-one can say anything for certain until you obtain a forecast of your actual State pension. It may be that you do get your rent paid in full - or it may be that you only get help towards your rent. Without knowing what your State pension will be it's all just speculation, I'm afraid.

ADD: See xylophone's Post 7 for the State pension calculation link.

Further Add: Who do/did you work for? It's unusual to have worked full time for 40 years without accruing some occupational pension benefits.

Scottish79 · 19 February 2019 at 3:37PM

I have working in retail and big shops , Asda Woolworths etc but have never taken any pension plans or joined any.

xylophone · 19 February 2019 at 4:27PM

I have working in retail and big shops , Asda Woolworths etc but have never taken any pension plans or joined any.

A pity - some of the retail giants had excellent pension schemes.

Have you now checked your state pension forecast?

As it would appear that you have been contracted in for forty years or more, it is quite possible that your starting amount at 6/4/16 was higher than the full new state pension.

https://www.gov.uk/new-state-pension/how-its-calculated

System · 19 February 2019 at 4:53PM

Plenty of people renting privately or socially have private or work place pensions. Surely you must have thought a little about providing for yourself after retirement? Why did you not join any pension schemes? I can understand maybe not having any significant savings as retail does not always pay well. However to work for over 40 years and not plan for retirement seems a bit daft to me. I think you may be making a big assumption if you think council tax and rent will be paid in full. If you haven't saved or paid into a pension when working, you are going find living on just the state pension quite difficult. Even with some SERPS or whatever it may only be about £10000 or so a year.
I hope things work out for you though.

Pension when renting a council house

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