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
    • C_Mababejive
    • By C_Mababejive 17th May 18, 8:28 PM
    • 10,504Posts
    • 9,448Thanks
    C_Mababejive
    What happens if your pension pot is depleted?
    • #1
    • 17th May 18, 8:28 PM
    What happens if your pension pot is depleted? 17th May 18 at 8:28 PM
    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..
Page 1
    • Brynsam
    • By Brynsam 17th May 18, 8:43 PM
    • 1,297 Posts
    • 890 Thanks
    Brynsam
    • #2
    • 17th May 18, 8:43 PM
    • #2
    • 17th May 18, 8:43 PM
    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
    • By C_Mababejive 17th May 18, 8:54 PM
    • 10,504 Posts
    • 9,448 Thanks
    C_Mababejive
    • #3
    • 17th May 18, 8:54 PM
    • #3
    • 17th May 18, 8:54 PM
    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
    • By Brynsam 17th May 18, 8:57 PM
    • 1,297 Posts
    • 890 Thanks
    Brynsam
    • #4
    • 17th May 18, 8:57 PM
    • #4
    • 17th May 18, 8:57 PM
    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
    • By Thrugelmir 17th May 18, 9:12 PM
    • 59,269 Posts
    • 52,633 Thanks
    Thrugelmir
    • #5
    • 17th May 18, 9:12 PM
    • #5
    • 17th May 18, 9:12 PM
    I mean if it is just naturally depleted as a result of taking a reasonable annual income..
    Originally posted by C_Mababejive
    Reasonable being subjective. Naturally should last 30 years by simply constantly adjusting.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • zagfles
    • By zagfles 17th May 18, 9:34 PM
    • 13,253 Posts
    • 11,255 Thanks
    zagfles
    • #6
    • 17th May 18, 9:34 PM
    • #6
    • 17th May 18, 9:34 PM
    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.
    Originally posted by Brynsam
    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
    • By Teaandscones 17th May 18, 11:11 PM
    • 129 Posts
    • 110 Thanks
    Teaandscones
    • #7
    • 17th May 18, 11:11 PM
    • #7
    • 17th May 18, 11:11 PM
    Reasonable being subjective. Naturally should last 30 years by simply constantly adjusting.
    Originally posted by Thrugelmir
    Perfectly reasonable to expect at 65, maybe not at 95 though.
    • Brynsam
    • By Brynsam 17th May 18, 11:36 PM
    • 1,297 Posts
    • 890 Thanks
    Brynsam
    • #8
    • 17th May 18, 11:36 PM
    • #8
    • 17th May 18, 11:36 PM
    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
    Originally posted by zagfles
    ...won't stay that way - simple arithmetic points out the impossibility.
    • zagfles
    • By zagfles 18th May 18, 7:58 AM
    • 13,253 Posts
    • 11,255 Thanks
    zagfles
    • #9
    • 18th May 18, 7:58 AM
    • #9
    • 18th May 18, 7:58 AM
    ...won't stay that way - simple arithmetic points out the impossibility.
    Originally posted by Brynsam
    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
    • By ffacoffipawb 18th May 18, 8:15 AM
    • 2,482 Posts
    • 1,636 Thanks
    ffacoffipawb
    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.
    Originally posted by zagfles
    Anything possible under a Corbyn regime.
    • AnotherJoe
    • By AnotherJoe 18th May 18, 8:28 AM
    • 9,882 Posts
    • 11,038 Thanks
    AnotherJoe
    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..?
    Originally posted by C_Mababejive
    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.
    • lisyloo
    • By lisyloo 18th May 18, 9:29 AM
    • 22,028 Posts
    • 10,703 Thanks
    lisyloo
    it will be subsistence level benefits only
    This isn't necessarily true and I'm speaking from real experience, alhthough it's probably more likely than not.

    For example if you are a couple both claiming higher rate attendance allowance (85.60) each, plus carers allowance, plus free council tax, then you can actually have quite a lot coming in (our parents had about 600 per week coming in). You also qualify for higher amounts of pension credit and council tax benefit if disabled.

    Yes there are costs - like 20 per week for someone else to do the laundry but nowhere near the joint 170 per week.

    The benefits system needs reform.

    Most people will have not enough but there are cases where people get TOO much. Of course I did my best for them and claimed what they were entitled to even though I thought it was too much as I feel it's my moral duty to do the best for my family.
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

288Posts Today

4,107Users online

Martin's Twitter