Pension is more than I earn

[Zaphodsotherhead]

I've just Adulted and done my pension forecast (not eligible for another seven years, but thought I'd check).

I'm entitled to full state pension (phew, was a bit worried, hence checking). And my state pension is going to be more than I earn currently, most months.

The point of this post is really just me going 'wha'?', I mean, I know I'm not paid a great deal and I'm quite often pegged down to basic hours at present and I'm very grateful and all, but....

surely this shouldn't be possible? Add in the pittance I've currently got in private pensions and I'll be better off at 67 than I am at 60. Okay, if work up my hours I can earn more, but that's sporadic and unpredictable. My pension will come in monthly and I don't even have to do anything for it?

I dunno. It feels all kinds of wrong.

[Viviennemary]

A lot of people are in for a big shock if all they have is their old age pension and a house to run on their own and they think thats enough. What if the central heating breaks down. They need roof repairs.

[oldmotherriley]

What if the central heating breaks down. They need roof repairs.

There are various schemes to provide FREE replacement boilers for those of low benefits (easily Googled). My local council runs a scheme to pay for improvements/repairs to keep pensioners in their homes (cheaper than putting them in a care home). I suspect that many councils do likewise.

[Badbadbunny]

@Viviennemary

A lot of people are in for a big shock if all they have is their old age pension and a house to run on their own and they think thats enough. What if the central heating breaks down. They need roof repairs.

That's not their problem for those living in rented accommodation as it's landlord responsibility. For those living in their own homes, they need to evaluate their options, i.e. downsizing to release capital, or equity release or whatever. There are also various schemes for free/discounted works (boilers, insulation, etc) for those on low incomes.

[AnotherSlice]

That's not their problem for those living in rented accommodation as it's landlord responsibility.

No, but paying the rent is a considerable responsibility if you are living on £750 a month or less.

I am happy for the OP that she is going to be OK, as far as she knows.

Less happy about the tone of 'pensioners get too much money for not working' that her posts come with. Because in general, pensioners who do not have an additional private pension live very frugal precarious lives. And women are all too often the ones left without any additional pension because of all the usual reasons - being a SAHM does not come with a pension, being a single parent, financial hardship after divorce when they have childcare responsibilities, etc.

In time this will change because more and more women will reach retirement age after the employers contribution became compulsory. At the moment women are retiring who did not benefit from this. But I bet once more people have a private pension the Gvt will reduce the state pension.

We also need to bear in mind that pension pots are not earning interest or increased investment yields at the rates they used to so even private pension post will be less generous in the future.

[WaxOnFeckOff]

We also need to bear in mind that pension pots are not earning interest or increased investment yields at the rates they used to so even private pension post will be less generous in the future.

this is very true and why folks should start building a pension from as young as they can as the amounts put in might be low initially but they have 40 years at least to grow.

SAHP should also try to contribute something if they possibly can.

Folks on benefits and unable to save are the ones that suffer most.

[Badbadbunny]

No, but paying the rent is a considerable responsibility if you are living on £750 a month or less.

Surely on that level of income, they'd be getting rent relief/allowance?

[shinynewapple2020]

@AnotherSlice

And most people don't inherit enough to buy a house.

Quite goady, OP.

Perhaps not @AnotherSlice but a good proportion of people, by the time they reach the OP's age have paid off their mortgage and therefore own their home that way .

The reason the OP had to wait all her life to get an inheritance to purchase her property is because of her small earnings throughout her life .

Equally by the time people are in their 60s it is quite common to have inherited a property following the death of parents .

Plus which , by the very nature of an inheritance it means that someone has has a relative that has died . Something I doubt they are celebrating really .

So no I don't think the OP is being goady.

[YouKidsIsCrazy]

But my point is more about how can I possibly be paid more benefit wise (ie, pension), than I earn through actual work? NI contributions, I know, it's just...a shock!

It's only because you are an extremely low earner now though,so why so shocked?

[ScribblingPixie]

I understand, OP. My mum was happy as larry living on the state pension plus a tiny personal pension. After a lifetime's frugality she found herself quite comfortable - tiny house that was very solid, warm and cheap to maintain, no car, loved cooking and baking, reading library books, treating herself to bits and bobs on Amazon. Didn't do shopping sprees, travel or eating out but she didn't want to, she just loved where she lived and the countryside around. Good luck to you!

[Viviennemary]

Depends what you call a small private pension. To some it might be £500 a month or more to others it could be £100 a month or even less. And depends how much her state pension is which can vary Quite a lot.

[oldmotherriley]

www.thisismoney.co.uk/money/pensions/article-8627327/Why-does-friend-bigger-state-pension-earned-more.html

'State pension can vary quite a lot'........yes, there are more than 250,00 receiving £250+ pw in State Pension, more than 70,000 receiving £300+ (see link). They may have built up additional pension by contributions to SERPS/SSP or deferment.
But, in total, these are only about 1% of the c13 million State pensioners.