[rubydazzler]

Originally Posted by Ms Macbeth

Read my posts on that very issue Cressida. All pensions should have been raised to that level, those with extremely good private/occupational pensions would just pay a bit more tax. Those who made sacrifices and now get a small extra pension would at least be marginally better off than if they'd not bothered.

I'm in the same boat and so are many of my friends. We're just above the level to qualify for pension credit, and so don't get any of the benefits that being on pension credit brings.

Consequently, any savings are soon eroded, and people end up poverty stricken and in a worse position than people who have either never bothered to try to provide for themselves or have milked the benefits system for years. It does seem quite unfair really.

[Ms Macbeth]

Originally Posted by rubydazzler

I'm in the same boat and so are many of my friends. We're just above the level to qualify for pension credit, and so don't get any of the benefits that being on pension credit brings.

Consequently, any savings are soon eroded, and people end up poverty stricken and in a worse position than people who have either never bothered to try to provide for themselves or have milked the benefits system for years. It does seem quite unfair really.

So many 'responsible' people have found themselves in this predicament. There are also a lot who don't realise what a disservice they may have done themselves in retirement by being 'responsible'.

[rothschild]

Originally Posted by Sebtine

A lady born in 1950 and before gets state pension at 60. A lady born in 1955 gets it at 66. Longevity in women has not increased by 6 years in that period! The free bus pass, free prescriptions and fuel allowance have been tied to this too. Now who do you think has been had?

You do get free prescriptions at 60.............as I found out when suddenly I became ill for the first time in my life just before my 60th! I took out a 3 month pre-payment thingy on the advice of the chemist but actually lost a months worth because I turned 60 and got my meds for free.

[harvey19]

Originally Posted by Ms Macbeth

So many 'responsible' people have found themselves in this predicament. There are also a lot who don't realise what a disservice they may have done themselves in retirement by being 'responsible'.

Years ago a friend told me the best way to plan for retirement was to save nothing and move into a council house.

[Glennis]

Yes, it makes me wonder why I bothered sometimes, as the University of Sheffield have basically screwed me over, which leaves me at 58, in a much worse position financially. I wouldn't have got a full occupational pension, but would have got a lump sum and a monthly allowance of sorts. I might have been better spending the money and not bothering about my retirement.

Originally Posted by Ms Macbeth

It would only be a bad decision for those who have (or their husband's have) smallish occupational pensions and/or savings. If they only have state pensions, then Pension Credit meant they did make the right decision. As its means tested, if they have no other income or savings they get quite a bit more. For anyone with a large occupational pension, then it doesn't really matter.

There were no credits for looking after children when mine were young in the 70s. When I went back to work, like lots of mums I worked part time/agency and paid the 'married women's stamp' because we were struggling in low paid jobs.

Eventually I did restart the full contributions, and at 60 I got a partial state pension in my own right. But, because I'd also contributed to an occupational pension (not a big one, remember I was at home bringing up our children ) it meant I only got a state pension based on my contributions. If I'd not bothered with the occ. pension - surprise, surprise - we'd be getting Pension Credit! How's that for a disincentive to save for retirement.

If I'd known what we would have got if we'd just 'spent as we went' then perhaps I wouldn't have bothered with an occupational pension or with upping my NI contributions. I've done the calculations, and with (for example) full pension credit, (£11k) council tax benefit,(£1k) and housing benefit (£4k), a couple will be getting around £16k a year, plus other passported benefits like cold weather payments. That is quite a bit more than many pensioners with occupational pensions have to live on.

[Glennis]

Originally Posted by harvey19

Years ago a friend told me the best way to plan for retirement was to save nothing and move into a council house.

Yes, I can see the attraction of this

[Teddybare]

Pension credit makes up your income to 142£ a week. That's if you have less than £10000 in savings. Can't you just draw out enough to take it below 10 grand and invest in some gold sovereigns or gift for the kids/grand kids?

217£ for a couple. It's not a lot but it's better than nothing.

[harvey19]

Originally Posted by Glennis

Yes, I can see the attraction of this

When you look at the situation if one has to go into care it becomes even more attractive.

[harvey19]

Originally Posted by Teddybare

Pension credit makes up your income to 142£ a week. That's if you have less than £10000 in savings. Can't you just draw out enough to take it below 10 grand and invest in some gold sovereigns or gift for the kids/grand kids?

217£ for a couple. It's not a lot but it's better than nothing.

Believe it or not there is a law to encourage you not to do this.
It is illegal to dispose of your funds in order to get state aid.

[Teddybare]

Originally Posted by harvey19

Believe it or not there is a law to encourage you not to do this.
It is illegal to dispose of your funds in order to get state aid.

They cannot stop a person from gifting money to relatives or buying coins. That would be ridiculous. Also, how would anyone know you had a safe full of gold in your cellar?
I know someone who did it with Rolf Harris paintings. Many others avoid the care home costs by putting their homes into trust. There's no way it can be enforceable.
I wouldn't be doing it to gain state benefits, I'd be doing it because I'd like a coin collection that appreciates in value.

[harvey19]

Originally Posted by Teddybare

They cannot stop a person from gifting money to relatives or buying coins. That would be ridiculous. Also, how would anyone know you had a safe full of gold in your cellar?
I know someone who did it with Rolf Harris paintings. Many others avoid the care home costs by putting their homes into trust. There's no way it can be enforceable.
I wouldn't be doing it to gain state benefits, I'd be doing it because I'd like a coin collection that appreciates in value.

I was actually meaning care home costs but I did not make that clear.
We were led to understand that if you gave your savings to your children or signed over your home to them it was possible the council could try to claim this money back for care home costs if it was presumed it had been given away to avoid care costs.

[Teddybare]

Originally Posted by harvey19

I was actually meaning care home costs but I did not make that clear.
We were led to understand that if you gave your savings to your children or signed over your home to them it was possible the council could try to claim this money back for care home costs if it was presumed it had been given away to avoid care costs.

Not sure if they'll be able to in future but there's certainly a lot of people getting round it in this way right now. Putting the house into trust works for the devonshires at Chatsworth and I know my uncle did it for his kids before he died.

[rubydazzler]

Originally Posted by Teddybare

Pension credit makes up your income to 142£ a week. That's if you have less than £10000 in savings. Can't you just draw out enough to take it below 10 grand ...

It's nothing to do with savings, It's all down to the income that you have coming in. Many of us who were lucky/silly enough to work and contribute to a private pension most of our adult lives have an income of maybe a couple of pounds above the cut off point, hence we are unable to get any of the benefits that come wrapped up along with pension credit.

I think we all understand that there has to be a cut-off point somewhere and trying to cheat the system isn't a course of action most people would advocate.