65 And Potless

[juvenal]

My brother knows a guy, just turned 65, who likes the beer, hasn't saved a bean all his life, has paid his NI stamps, is single, and lives in a council house.

The guy claims he's due State Pension plus Pension credit - about £140 a week, plus 95% of his rent and council tax paid.

I'm arguing he won't get the rent and CT component paid.

Am I right, or wrong? Any experts out there?

[council dweller]

My brother knows a guy, just turned 65, who likes the beer, hasn't saved a bean all his life, has paid his NI stamps, is single, and lives in a council house.

The guy claims he's due State Pension plus Pension credit - about £140 a week, plus 95% of his rent and council tax paid.

I'm arguing he won't get the rent and CT component paid.

Am I right, or wrong? Any experts out there?

Sorry, you are wrong.

He should have around 130 left after paying part of the rent/c.t.

Edit...sorry I'm no expert, just a wild guess!

Edited May 23, 2009 by council dweller

[Michael]

yes. he'll get the lot!...........£90 a week state pension plus about £30 a week pension credit and his council tax and rent paid.....but the rent he'd get would be limited by the Local Housing Allowance but i think it would cover a council house rent even for a single person and if not it would be 95% of it or thereabouts..The whole package comes to about £240 a week..............Makes you wonder why low income people bother saving at all because apart from the £90 a week state pension these benfits are means tested and having savings and a private pension would reduce or eliminate them

Edited May 23, 2009 by Michael

[crouch]

yes. he'll get the lot!...........£90 a week state pension plus about £30 a week pension credit and his council tax and rent paid.....but the rent he'd get would be limited by the Local Housing Allowance but i think it would cover a council house rent even for a single person and if not it would be at least 90% of..The whole package comes to about £240 a week..............Makes you wonder why low income people bother saving at all because apart from the £90 a week state pension these benfits are means tested and having savings and a private pension would reduce or eliminate them

You're quite right here; I think for many people on low incomes there's no point in saving at all because of this. However, there are an awful lot of poor sods who are on part time/ minimum wage jobs who do save small amounts and they are completely wasting their time. It's a con and shows how stupid the system is.

[Trampa501]

Full marks to this geezer - at least he's worked out a way to be comfortable. I've tried for years to work, normally avoiding signing on when I thought (sometimes incorrectly) I would find a job relatively quickly (it's only in the last 7 years that things have become so bad). It seems that the better you get, and the more you know, the less likely you are to find work. My last 2 contracts were decently paid, and I worked hard enough to get them extended by a couple of months. However they've been sandwiched in by gaps, which has just meant the debts have increased. Another month without work and I've going to have to default. This will probably mean an end to getting contract work - how do I pay travel and/or accommodation costs without credit? I really don't mind dying now, as I can't see myself working again in this disastrous country - however one thing may encourage me to keep going on - at least I'll be costing the system money, after all the years I wasted money paying taxes, insurance etc. I'm just glad I don't live next door to some bankster or poli, the temptation to knock on the door with an axe would be too great. :angry:

[durhamborn]

My brother knows a guy, just turned 65, who likes the beer, hasn't saved a bean all his life, has paid his NI stamps, is single, and lives in a council house.

The guy claims he's due State Pension plus Pension credit - about £140 a week, plus 95% of his rent and council tax paid.

I'm arguing he won't get the rent and CT component paid.

Am I right, or wrong? Any experts out there?

If hes paid 40 years NI hel get full state pension £95 quid a week.Plus depending on earnings since the 70s if he was PAYE he will get a second state pension based mainly on SERPS and some S2P.If he earned £17k a year he will get around £55 2nd state pension.So £150.This will rule him out of pension credit guarentee,but hel get some due to savings credit.Around £12 on those figures.

So around £162.

He will pay 60% of anything over £130 a week towards his rent,and 15% above £130 towards his council tax,so 75% of £32.£23 a week.So £162-£23+£139 a week.

People forget the 2nd state pension.Its very important for low to mid range earners.Most people who work would be better off saving due to S2P taking them over pension credit levels.

If hed of bought his council house and paid £100 a month into a pension or ISA hed have an income of £240 a week,not far off double.

Housing is the key.If your renting at retirement without a big pension your stuffed.If your house is 100% owned and you have paid stamp on PAYE so getting S2P then saving is very much worth it.

[durhamborn]

yes. he'll get the lot!...........£90 a week state pension plus about £30 a week pension credit and his council tax and rent paid.....but the rent he'd get would be limited by the Local Housing Allowance but i think it would cover a council house rent even for a single person and if not it would be 95% of it or thereabouts..The whole package comes to about £240 a week..............Makes you wonder why low income people bother saving at all because apart from the £90 a week state pension these benfits are means tested and having savings and a private pension would reduce or eliminate them

Social housing doesnt come under LHA its housing benefit and will all be covered.Its 100% covered not 95%.The £6 that has to be paid isnt rent,its for water rates though social tenenats tend to call it rent.Social landlords pay the water bills and get it back from tenants.This isnt covered by housing benefit hence even people on full housing allowance paying £5-£7 a week.

[Abstra]

yes. he'll get the lot!...........£90 a week state pension plus about £30 a week pension credit and his council tax and rent paid.....but the rent he'd get would be limited by the Local Housing Allowance but i think it would cover a council house rent even for a single person and if not it would be 95% of it or thereabouts..The whole package comes to about £240 a week..............Makes you wonder why low income people bother saving at all because apart from the £90 a week state pension these benfits are means tested and having savings and a private pension would reduce or eliminate them

A private pension would be worthless to him unless he had about a quarter of a million in it.

[Game_Over]

Full marks to this geezer - at least he's worked out a way to be comfortable. I've tried for years to work, normally avoiding signing on when I thought (sometimes incorrectly) I would find a job relatively quickly (it's only in the last 7 years that things have become so bad). It seems that the better you get, and the more you know, the less likely you are to find work. My last 2 contracts were decently paid, and I worked hard enough to get them extended by a couple of months. However they've been sandwiched in by gaps, which has just meant the debts have increased. Another month without work and I've going to have to default. This will probably mean an end to getting contract work - how do I pay travel and/or accommodation costs without credit? I really don't mind dying now, as I can't see myself working again in this disastrous country - however one thing may encourage me to keep going on - at least I'll be costing the system money, after all the years I wasted money paying taxes, insurance etc. I'm just glad I don't live next door to some bankster or poli, the temptation to knock on the door with an axe would be too great. :angry:

Don't blame the bankers, they are just the fall guys

They were just doing what the politicians wanted them to do

Create an illusion of wealth while the politicians screwed us over

Don't get mad, get even

Big changes are coming IMO and you can be part of that change

First step is to use your vote on 4th June

Use it wisely

[cockrobin]

I know someone that gets incapacity benefit because he has RSI in his left arm. He works as a roofer cash in hand.

[durhamborn]

A private pension would be worthless to him unless he had about a quarter of a million in it.

Wrong if his rent and council tax were £90 a week due to S2P hed be better of with any private pension over around 40k.

250k would get him £15000 a year+£4800 state pension plus £2500 S2P - £4500 rent/council tax = £18,000.(not forgetting the £70k cash lump sum would probably buy his council house under RTB.)

Without £4800 state pension £2500 S2P,£700 PC,£3000 Housing benefit,CT benefit =£11,000.

[porca misèria]

My brother knows a guy, just turned 65, who likes the beer, hasn't saved a bean all his life, has paid his NI stamps, is single, and lives in a council house.

The guy claims he's due State Pension plus Pension credit - about £140 a week, plus 95% of his rent and council tax paid.

I'm arguing he won't get the rent and CT component paid.

Am I right, or wrong? Any experts out there?

He'll get more than that: free bus pass, railcard, NHS if required, "winter fuel", TV license, miscellaneous reductions. If he uses much of the benefits he could easily be better-off than a single working person on £25k (gross) earnings with no assets or debts.

[Jack Sparrow]

My brother knows a guy, just turned 65, who likes the beer, hasn't saved a bean all his life, has paid his NI stamps, is single, and lives in a council house.

The guy claims he's due State Pension plus Pension credit - about £140 a week, plus 95% of his rent and council tax paid.

I'm arguing he won't get the rent and CT component paid.

Am I right, or wrong? Any experts out there?

If he has savings of less than £8000 he will be entitled to help for his rent and council tax, he will get free prescriptions, dental and eye care plus assistance with the purchase of worn out and necessary household goods,. He can aslo claim for assistance with things like Tv license, the cost of keeping a pet. as its a council property he has few obligations for maintenance and repair, it will be decorated at regular intervals by the council, double glazed and insulated to the latest standards, he will be entitled to heating allowance, cold weather payments, a carers allowance if he can prove he is looking after a sick relative etc etc, l

[Jack Sparrow]

yes. he'll get the lot!...........£90 a week state pension plus about £30 a week pension credit and his council tax and rent paid.....but the rent he'd get would be limited by the Local Housing Allowance but i think it would cover a council house rent even for a single person and if not it would be 95% of it or thereabouts..The whole package comes to about £240 a week..............Makes you wonder why low income people bother saving at all because apart from the £90 a week state pension these benfits are means tested and having savings and a private pension would reduce or eliminate them

a person earning the national average wage of £18000 per year at aged 25 would have to put away at least 40% of their income for 40 years to build up a pot that would buy them an annuity at age 65 to have any hope of a reasonable pension of two thirds their salary.

forget pensions, Brown buggered the system 10 years ago when he removed the tax relief on dividends for pension funds, the stupid crunt destroyed what was the finest pension system in europe and in the process paved the way for the current economic mess through this thinking of employing "dead" money, it typifies the lunacy of the left.

[FreeTrader]

One word:

California

[@contradevian]

Problem is I wouldn't rely on this strategy if retiring 10 or years hence, as the state might no longer be able to afford it as there will be so many people retiring. Thats the big worry.

Oh and a forget the council house (unless you are Somali or something). Not a rascist comment, just based on my observations in London.

Edited May 23, 2009 by rover2000

[50%deposit]

as someone that spent years on income support this makes me laugh. in reality, there is no pension, you leave school, sign on and die. its all the same, only after 65 they stop hassling you to attend GET BACK TO WORK YOU LAZY CUUNT programs.

lol

i remember those programs, bunch of loosers sat around a table and some bus driver giving it yack yack yack making everyone wish they hadn't bothered getting out of bed.

[council dweller]

Problem is I wouldn't rely on this strategy if retiring 10 or years hence, as the state might no longer be able to afford it as there will be so many people retiring. Thats the big worry.

Yes that's right, there are no guarantees, certainly not 100% ones.

....wouldn't call it a big worry though unless you expect to live the Sagalout lifestyle.....I've never been keen on wearing white and beige meself though.

[Guest eight]

One word:

California

At least it's warm there.

I think that's been historically both a strength and weakness of Britain. Too cold to have a proper peasant culture.

eight

[olliegog]

He will pay 60% of anything over £130 a week towards his rent,and 15% above £130 towards his council tax,so 75% of £32.£23 a week.So £162-£23+£139 a week.

not sure that that is correct. If you are not in receipt of pension credit because your income (say basic pension plus SERPs etc) is over the limit you do not get a bean toward council tax or rent/mortgage. But I may be wrong - has been known. And if you are not in receipt of pension credit there are lots of other freebies you do not get - insulation for your home, cold weather payments, etc. In addition if the income that takes you from the basic pension to a figure just over the pension credit level is from savings interest or a personal pension this is taxable. Pension credit is not.

[Bloo Loo]

Unless of course his name was on the board of a recently busted bank and he's on 6000 per month, although he will have to shave his head.

[Panda]

I have a question then,

You are now beween the age of 30 to 40, you are single, never married, no kids, you working life between 16 to 65 makes up 49 years. In sometime between today and 25 to 35 years, you will retire, you will not have a penny to your name, no house, no private pension, nothing at all. On your 65th birthday, you become homeless and pennyless.

The those 49 years, you only pay first class stamp, lets say 10 years, the rest of the time you spend, mucking about, abroad, out of work, time as a student, out on the sick, in prison, supported by a partner/family member, temporarily disabled, won some money, inheritence, scived, basically hated working etc etc.

On todays benefits system, how would you fair in coomparison to someone who worked all their lives, paid stamp, earnt at todays money say 24k a year, house paid for, private pension.

Any thoughts how many may look at this and think, umm?

[Minos]

Unless of course his name was on the board of a recently busted bank and he's on 6000 per month, although he will have to shave his head.

That can't be right. Herr Harman said on the telly box that her lawyers were looking into it and Gordon's boss definitely wouldn't be getting the pension money.

[Minos]

I have a question then,

You are now beween the age of 30 to 40, you are single, never married, no kids, you working life between 16 to 65 makes up 49 years. In sometime between today and 25 to 35 years, you will retire, you will not have a penny to your name, no house, no private pension, nothing at all. On your 65th birthday, you become homeless and pennyless.

The those 49 years, you only pay first class stamp, lets say 10 years, the rest of the time you spend, mucking about, abroad, out of work, time as a student, out on the sick, in prison, supported by a partner/family member, temporarily disabled, won some money, inheritence, scived, basically hated working etc etc.

On todays benefits system, how would you fair in coomparison to someone who worked all their lives, paid stamp, earnt at todays money say 24k a year, house paid for, private pension.

Any thoughts how many may look at this and think, umm?

Don't do it son. Just think of all those 65 year olds (probably 72 by then) looking smug at the extra few quid a week they will get as a result of all that working. Whereas you will only have some awesome memories to look back on.

[Panda]

Don't do it son. Just think of all those 65 year olds (probably 72 by then) looking smug at the extra few quid a week they will get as a result of all that working. Whereas you will only have some awesome memories to look back on.

F@ok me, too late now!