Renting into retirement - WIBU to spend my pension pot before age 67?

So tax payers have to foot the bill for your housing benefit and council tax because you couldn’t plan properly.

So you're basically trying to work out the best way to deliberately deprive yourself of assets in order to sponge off the tax payer? Fucking hell. Really hope this is just a benefits bashing thread rather than real.

I'm fully in favour of benefits for people who need them but that sort of expenditure is taking the piss.

I really can’t comment on the more general aspect of your financial position, but I wanted to reassure you that renting in later life has a lot going for it. I’ve been renting for 18 years now, first while I was working because I had a house tied to my job, and am now in a furnished flat share in my retirement. The best thing is that maintenance isn’t my problem - I just contact the landlord’s agent and they sort stuff out. I know exactly what my monthly outgoings are, and there are no unexpected big bills. Everything that is left over after the rent is paid is mine to spend as I wish. I have only the stuff I need day to day, so life is very uncomplicated. My flatmates and I split the chores and we have a kitty for cleaning products, loo rolls etc.

I wouldn’t ever want to own property again, and I like sharing. It’s not everyone’s choice, but it’s a perfectly reasonable way to live on a modest pension.

It's my pension. I've saved it up during the course of my working life. So it's also my life savings.

I think you've confused many of us here. Yiu keep saying pension when I think you mean straightforward savings (that yes you have saved for your retirement). Savings in a savings account. Not savings in a pension fund.

It is isn't it. I would say though in my line of work I get insight into a lot of older people's finances and there are huge numbers doing exactly what op is planning and leaving themselves with next to nothing to fall back on and then looking to claim everything they can in retirement. I guess that's why our benefits advice line for older people is constantly busy !

Such an interesting thread 🤔

OP, the benefits system is in need of really drastic reform. There is absolutely no way it can carry on like this for the next 15 years. Surely, as no one knows what is around the corner, your best bet would be to carry on working to at least retirement age and you pension will have grown.

"Gold sovereigns I have thought of and it's certainly a possibility. You don't pay capital gains on them plus don't have to declare when buying under a certain amount in one transaction. The ISAs are a no go I think as too traceable."

I get that you're in a tricky position OP. Home ownership really comes into its own come retirement but you yourself still have rent to pay. So I do sympathise - to an extent. But by referring to accounts as traceable and deliberately avoiding them for that reason you are encroaching on benefit fraud territory. And who pays the cost of benefit fraud? That's right, us lot.

Do whatever works for you to maximise every penny you have, to get the best you can for yourself in retirement and sod everyone else !!!
Let the privileged virtue signal all they like
as they do exactly the same on the sky I promise you !

Yeah I can take 25% as a lump sum at retirement so no chance of doing what OP is considering. I’m too honest to do it anyway, even if it makes me the idiot! If we all did it what financial state would the country be in? It would certainly quicken the demise of the state pension!

You could think of it a different way like what if you met a partner and joined finances with them? You would then likely still not qualify for any means tested benefits because of 2 x state pensions but have pissed all your pension away and may not have money left to enjoy nice holidays etc in your retirement. I guess no-one knows what the future holds.

Your employer has likely contributed a similar amount to what you have though?

OP, have you taken advice on this? A pension pot - assuming you're talking about a defined contribution pension, is not the same as savings.

You can get a free consultation with PensionWise to talk through your options.

https://www.moneyhelper.org.uk/en/pensions-and-retirement/pension-wise

Yes an NHS pension will always pay out a monthly amount so no option to take it all out in one go like op can and spend it all, although i guess you will get some of it as a lump sum but unless a very small pension the amount you will get each month will likely rule you out of any means tested benefits.

People like the op make me feel like a right mug!
Hate the game not the player.

I really don't want my life savings (which is what my pension is)

So, to clear, your £86k is savings not a "pension pot" then.

I am kind of in a similar position except my main pension is an NHS pension I can’t access till 67 (unless I have to retire early due to ill health). Never even occurred to me that spending it all and claiming benefits was a possibility. Instead I pay in extra & save as much as I can every month. And accept that I have to pay rent forever.
People like the op make me feel like a right mug! There is really no incentive for ordinary working class people to work hard & save while their neighbours save nothing & get a free ride!

I have done that but it sort of happened by accident :-). Long story wtth which I will not bore you.

I manage.