What To Do.

[WILLWONKER]

This is a genuine question. Joke answers will be entertaining but not helpful
I am 64 this year, in 6/12 months time I will be homeless, have no job or income apart from £80.00 per month from a private pension. On the upside late next year I will be able to claim my state pension, plus as of now I have £60.000. buying a house is out of the question, the upside again, I'm fit and healthy. What would you do in my position?

[black_cat51]

yes, i see that, however, when WW is made homeless in 6-12 months time, he will not be of pension age

[kvalidir]

EDDIE you are right- at the moment. However next year when WW gets his state pension and his £80 pcm private pension and has 60k in the bank he doesn't qualify for pension credit. I too did the calculator but based on that scenario not on his circumstances now as I believed the question to be about what he ought to do to secure his future. Re-do the calculator on that basis and you will see what I mean. Once he claims state pension with his private pension and his savings allowance he won't get Pension Credit so he won't be entitled to LHA or council tax benefit- and his savings will dwindle pretty darned quick if he's paying rent and council tax every month. I still stand by its far better to own your own home in his case.

[ladybirder]

Thanks EDDIE for your explanatory post. I wasn't saying you were wrong, I was just saying I was amazed you could have that much money in the bank and still get help from the taxpayer. Oh and can you tell me where I can get 5% on my savings please:-) Anyway, back to the question. If it was me I would want to be independent and secure and would go for buying my own property especially at WW's age. Just make sure it's in the best area you can afford. As you are fit and healthy, a little part time job in a garden centre or some such would keep you that way and bring in additional income. Not a bad position to be in actually. Good luck whatever you decide.

[WILLWONKER]

Thanks again so far. Would I be correct in thinking that from 2015, there will be one flat rate for all pension ages regardless. I am sure that either last years, or this years budget increased the pension from around £113 to around £142 per week, to start from 2015, this would in turn abolish the means testing for the extra credit? therefor in a sense it will no longer exist.
I have also got my full quote of NI contributions, I have only had two bouts of being out of work all my life, and that was way back in my teens, and only then for 2/3 months each time. I am in no way trying to milk the system, only to have what I should have, that is why it is important for me to plan now and make the most of the funds I have. There is no way I can see investing up to £60.000 in a property being a good idea and leaving me without any funds to fall back on, and most of these cheap properties wherever, are mainly in a very bad state of repair, and has been said in very bad and run down areas, that's fine if you are a young property developer.

[black_cat51]

are you out of work now, or are you in some sort of tied accom?

[EDDIE51]

Kvalidar when WW gets his state pension if it is less than he gets on Pension credit then Pension credit will continue to 'top up' the difference. (that is why it is called 'Pension Credit')
As to housing and council tax benefit that is still automatic for BOTH pension credit and state pension. ONLY pensioners who have such a high additional private pension that they pay income tax do not get full housing / council tax benefits, that will not apply to WW even with his £60,000.
The 'Bedroom tax' does not apply to pensioners either, so a lone pensioner with a 4 bedroom council house will get it free for rest of his/her life.
Ladybirder , No you can't actually get 5% at present but that is still the rate used to calculate estimated income.
WILLWONKER the new pension rates are for people who reach state pension age on or after April 2015 ( I think) I reach state pension age on 23rd January 2015 so I am 6 weeks too young to get it, I think that will apply to you as well. But as I said if your state pension is less than you would get on Pension credit then pension credit still 'tops up' your pension to pension credit level.
I know this is all very complicated I am still trying to find out for sure what will happen in my case, there are government pension help lines that can give you an estimate of your state pension. I would suggest you go on one of them.

[WILLWONKER]

Eddie. I will be 65 in November 2015, so it seems I will get the new rate. And thanks very much for your help so far. black cat, the house I'm in is being sold, and at the moment I am of self employment, but that is soon to end.

[black_cat51]

in which case, doesn't PC depend on the type of NI you've paid?

[sherrardk]

If you are fit and healthy why can't you continue to be self-employed?

[kvalidir]

EDDIE, you can't get LHA at all if you have savings of over £16k unless you qualify for pension credit guarantee, which we are not at all sure WW will.

This from the .gov website:-

//Who isn’t eligible
Usually you won’t get Housing Benefit if:

your savings are over £16,000 - unless you get Guarantee credit of Pension Credit//

If he gets Guarantee credit fine but if he doesn't he's stuffed and that's when his savings will be important because then he won't be eligible for LHA.

Anyway good luck to you WW, whatever you decide to do:)

[ubasses]

The new single tier state pension starts in April 2016

https://www.gov.uk/government/policies/making-the-state-pension-simpler-and-fairer/supporting-pages/introducing-a-simple-single-tier-state-pension

[EDDIE51]

^^ Yes I was year out I reach state pension age January 2016 so I still miss out.
Kvalidir Pension Guarantee Credit is what we worked out on the calculator WW does qualify and will continue to do so when he reaches state pension age if his pension is lower than the 'guarantee credit' .
LHA (Local housing allowance) applies to private rented accommodation ONLY, NOT to social housing from the council or housing association.
As I have already said WW will qualify for social housing as soon as he gets either state pension or Pension credit and is still under threat of homelessness.

[sherrardk]

He might be eligible for social housing but it doesn't mean any will be available.

[kvalidir]

Have it your own way Eddie, I'm too tired to argue the point but essentially there isn't much social housing and he's unlikely to be a priority and there is nothing to suggest that he will qualify for guarantee when he reaches state pension age so he may well find himself in private rented accommodation without LHA.

[EDDIE51]

The point is that as a ' homeless vulnerable person' the local council HAS BY LAW to offer him social housing no matter how long the waiting list or how little is available. It could be a hostel or hotel at first but they are compelled to provide it.
Also their is a lot of confusion on AB between 'working life benefits' such as JAS or ESA which have a limit of £16,000 savings to qualify and Pension / Pension Credit . Pensions are NOT classified as a 'Benefit' as you have to have paid in a lifetime of NI contributions to get them
(34 years full rate NI contributions are needed for pension credit / state pension) so you are just getting back what you paid in. The savings limits for Pensions are much higher as we have seen with WW who can still get Pension credit even with his £60,000 savings.

[sherrardk]

Why would anytime sitting on 60k want to be housed in a homeless shelter?

[ladybirder]

Eddie the State Pension IS classed as a benefit. It shouldn't be IMO but it is or so I was informed by a lady at the DWP office when I was asked if I got any benefits and I said No. So she asked me if I got the SP and I said I did and she said well that is a benefit. I argued the point but she insisted it was now classed as a benefit.

[ladybirder]

Quite sherrard. With £60k one could and should provide one's own roof.

[WILLWONKER]

My post didn't say I was not prepared to provide a roof over my head with the funds I have, it stated that buying a house was out of the question, it did not state that I would not get a job to keep myself, it did not state that I would try and claim as many benefits as I could beyond what I am rightfully entitled to. I was simply looking ahead to make plans to support myself and make the most of what I've got, and what I may or may not have coming in as regards to income. £60.000 is quite a sum, but if you are not careful what you do with it ,it can be gone with the blink of the eye. I think maybe it would now be a good time to end this post. Thank you all very much for your inputs.!!

[EDDIE51]

WW, just to say you are fully entitled to claim pension credit with your record of NI contributions, here is the phone number of the help line, call it they are very helpful.
https://www.gov.uk/pension-credit/how-to-claim
As you say the £60,000 will soon be gone once you have to use it to live on, remember as you use up the cash your Pension Credit will increase in proportion.