Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • redscarf
    • By redscarf 15th Apr 18, 2:43 PM
    • 7Posts
    • 1Thanks
    redscarf
    new state pension and additional benefits
    • #1
    • 15th Apr 18, 2:43 PM
    new state pension and additional benefits 15th Apr 18 at 2:43 PM
    Sorry if this is the wrong forum to post this, but not quite sure where to, as new to all this!
    I am due to retire in 4 years time and have checked my projected state pension, which will be half of my current take home pay. My outgoings will still be the same in 4 years time (or higher), will I still be able to claim things like housing benefit (as I live in a rented property), or will that system no longer exist?

    I know it is a while away, but I am worried the pension will not cover my outgoings.
Page 1
    • Silvertabby
    • By Silvertabby 15th Apr 18, 2:51 PM
    • 2,564 Posts
    • 3,553 Thanks
    Silvertabby
    • #2
    • 15th Apr 18, 2:51 PM
    • #2
    • 15th Apr 18, 2:51 PM
    Will you get at least the full single tier pension of 160 per week? If so, that's just over the means test limit for pension credit.

    It would seem that other means tested benefits, such as housing, council tax, etc may still be available - but I'm afraid you won't get a definite answer - on here or from DWP - regarding your entitlement so far ahead.

    Will you - or your spouse/partner - have any other pensions, income or savings?
    • Dox
    • By Dox 15th Apr 18, 3:59 PM
    • 357 Posts
    • 208 Thanks
    Dox
    • #3
    • 15th Apr 18, 3:59 PM
    • #3
    • 15th Apr 18, 3:59 PM
    It sounds like a pensions question, but I think it's more to do with benefits. The experts are https://www.turn2us.org.uk and will be best placed to help you now and in the future.
    • PasturesNew
    • By PasturesNew 15th Apr 18, 4:08 PM
    • 62,188 Posts
    • 363,970 Thanks
    PasturesNew
    • #4
    • 15th Apr 18, 4:08 PM
    • #4
    • 15th Apr 18, 4:08 PM
    It's likely you'd get:
    ~160/week as a single person without any additional income, as you'd get the top up minimum income amount.
    - rent would be covered at the 1-bed rate. There are other variations around this depending on your situation, but "your rent will be paid" to the 1-bed rate at least.
    - council tax will be paid. It might be in full, it might be in part. You'd be getting the single discount too.

    However, Having asked an initial question some people then add other relevant information into the mix ... which they didn't say at the start.
    • Xbigman
    • By Xbigman 15th Apr 18, 4:37 PM
    • 3,067 Posts
    • 1,314 Thanks
    Xbigman
    • #5
    • 15th Apr 18, 4:37 PM
    • #5
    • 15th Apr 18, 4:37 PM
    Have you no other pension provision? Even auto enrolment?



    Darren
    Xbigman's guide to a happy life.

    Eat properly
    Sleep properly
    Save some money
    • redscarf
    • By redscarf 15th Apr 18, 6:21 PM
    • 7 Posts
    • 1 Thanks
    redscarf
    • #6
    • 15th Apr 18, 6:21 PM
    • #6
    • 15th Apr 18, 6:21 PM
    Thank you for your responses.

    As I said initially, I know it is 4 years away and many things could change between now and then, but I was concerned that if my current income was halved at pension time, how could I pay the shortfall? which is why I hoped that there would still be some sort of benefit one could claim. This bedroom tax is a little concerning, but as a single person in a one-bedroomed property, unless I sleep outside, there's not a lot I can do - lol!
    Thank you again.
    • Silvertabby
    • By Silvertabby 15th Apr 18, 6:47 PM
    • 2,564 Posts
    • 3,553 Thanks
    Silvertabby
    • #7
    • 15th Apr 18, 6:47 PM
    • #7
    • 15th Apr 18, 6:47 PM
    Thank you for your responses.

    As I said initially, I know it is 4 years away and many things could change between now and then, but I was concerned that if my current income was halved at pension time, how could I pay the shortfall? which is why I hoped that there would still be some sort of benefit one could claim. This bedroom tax is a little concerning, but as a single person in a one-bedroomed property, unless I sleep outside, there's not a lot I can do - lol!
    Thank you again.
    Originally posted by redscarf
    There's no such thing as 'bedroom tax' - it was just political scaremongering. What it means is that housing benefit is paid in accordance with your needs - ie, if you live alone then you only need a one-bedroom property and not a mansion.
    • comeandgo
    • By comeandgo 15th Apr 18, 7:23 PM
    • 2,001 Posts
    • 2,707 Thanks
    comeandgo
    • #8
    • 15th Apr 18, 7:23 PM
    • #8
    • 15th Apr 18, 7:23 PM
    My mum only gets a state pension and then benefits top it up. She does not pay rent and only pays part of council tax. Also gets fuel allowance, free bus travel and some sort of fuel discount. She lives well, goes on holiday but does not drive a car.
    It is definitely doable.
    • humptydumptybits
    • By humptydumptybits 15th Apr 18, 7:28 PM
    • 152 Posts
    • 297 Thanks
    humptydumptybits
    • #9
    • 15th Apr 18, 7:28 PM
    • #9
    • 15th Apr 18, 7:28 PM
    Remember you will be paying less tax and no NI so even if income in halved you will actually have more than half in your pocket.
    • xylophone
    • By xylophone 15th Apr 18, 7:29 PM
    • 25,190 Posts
    • 14,837 Thanks
    xylophone
    https://www.ageuk.org.uk/globalassets/age-uk/documents/factsheets/fs48_pension_credit_fcs.pdf

    may be worth a read.

    Even if you do not qualify for GPC, a low income may mean that you would be eligible for help with rent and council tax.
    • redscarf
    • By redscarf 16th Apr 18, 7:59 AM
    • 7 Posts
    • 1 Thanks
    redscarf
    but did she start claiming her pension before the new system, as I believe if pensions were claimed before, then nothing changed, but the new one may affect 'benefits'.

    I guess I'll have to wait until a bit nearer the time. So long as my bills are paid and I can eat, that's all I ask!
    • dunstonh
    • By dunstonh 16th Apr 18, 10:48 AM
    • 92,223 Posts
    • 59,404 Thanks
    dunstonh
    will I still be able to claim things like housing benefit (as I live in a rented property), or will that system no longer exist?
    Benefits are lower with the single state pension compared to the old state pensions. That was an objective with the new scheme.

    However, as mentioned, there are still some benefits.

    This bedroom tax is a little concerning, but as a single person in a one-bedroomed property,
    As mentioned, there is no such thing as a bedroom tax. And as a single person in a single bedroom, the benefits will be assessed on you on that basis.

    I know it is a while away, but I am worried the pension will not cover my outgoings.
    Benefits are there to bring to or just above the breadline. In some areas, that is actually not as difficult as other areas. However, if you have a consumer spending lifestyle at present then you are not going to be able to continue that in retirement. If you are already living on the breadline then you will be used to it and that will continue.

    It's difficult to be more specific without knowing current income and expenditure. It may be worth you going through an exercise of anlysing how you spend your money and classify each spend as compulsory or discretionary and see what you will be able to stop in retirement. Then when you know what income you are getting and what benefits, you can see if its affordable or not and if you can keep spending in some of those discretionary things.
    Last edited by dunstonh; 16-04-2018 at 10:50 AM.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • redscarf
    • By redscarf 18th Apr 18, 7:18 AM
    • 7 Posts
    • 1 Thanks
    redscarf
    thank you all for your comments. I have already worked out what my potential outgoings will be, as I have a monthly spreadsheet already for expenses and did not include current 'non-essential' expenses, as I appreciate I will not be able to buy clothes, go to the cinema - or even the dentist!!
    I'm not on the breadline currently, but then neither do I currently have a lot of disposable income either! My bills are paid and a little put by for 'emergencies', I'm in private rented accommodation, so long as I can still cover these, I'll be happy. I accept a holiday will probably be out of the question, but so long as I am mobile, I can go for a walk and maybe take an occasional day trip - it will beat having to get up for work every morning - lol.
    But when rent will consume 65% of your income, it is a concern!
    I'll just wait a few more years to see what, if anything, is available then.
    • mgdavid
    • By mgdavid 18th Apr 18, 12:44 PM
    • 5,536 Posts
    • 4,828 Thanks
    mgdavid
    If you are currently working, do you have an active pension scheme?
    I'm puzzled at to why you avoided responding to the questions in posts 2 & 5.
    The questions that get the best answers are the questions that give most detail....
    • redscarf
    • By redscarf 18th Apr 18, 7:59 PM
    • 7 Posts
    • 1 Thanks
    redscarf
    I have not avoided answering any questions. I have just been taken into a company pension, so when I retire in 4 years it might be worth the grand sum of 1000.
    I've always worked and paid full stamp, so should be entitled to the full pension, but if my rent takes up 65% of that, well!!
    • luvchocolate
    • By luvchocolate 19th Apr 18, 9:46 AM
    • 1,532 Posts
    • 1,398 Thanks
    luvchocolate
    Hi when I was due to retire I continued to work a further 2 years and deferred my state pension and saved as much as I could, I also put my name down on various housing associations for over 55's accommodation the rent is so much cheaper than private renting, and more secure.
    • redscarf
    • By redscarf 19th Apr 18, 9:10 PM
    • 7 Posts
    • 1 Thanks
    redscarf
    I have my name down for social housing, so fingers crossed. But I think that retiring at 66 is long enough and I want to be able to take a rest from work after working full time for 50 years, although I might do a little part time job.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

290Posts Today

4,019Users online

Martin's Twitter