Is anyone going to be living just on state pension when they retire?

[Shinyseas]

It looks like I will be. Never really earned enough to put money aside for a pension, married someone who was terrible with money and at the age of 51, have youngish DC so even though I’m earning better money now, I’ve got to get them through teenage years, then off to Uni. All feels too late to save anything decent. I’ll be early 60s before my youngest leaves home.

When I checked this week, my private pension is set to give me 1.5k a year 🙁

People do survive on the state pension I know - but it must be very very tight.

I don't understand why they are free in the first place? Many over 60's will still be working and those that aren't would get them free anyway if on means tested benefits or a low income ? Maybe an age in line with state retirement age would have been more realistic ?

@Robinni unless you rent
My parents have private pensions but rent is about £550pm. Now my dad is losing mums pensions as she is going into care. Rent is the same, utilities the same, water similar. He doesn't gain anything from her not being there except 25% off c tax but loses a load of money

I can’t see free prescriptions going - you can write the headlines now Taxing pensioners on illness. It wouldn’t play well. I can see bus passes going, although they might just stay on environmental grounds. I think the proposed social care reforms will go out of the window and people will - quite rightly - have to go on selling their houses.

Sixty year olds are not pensioners though ?

@Babyroobs I'm happy for it to go. I'm working in my 60s and think I should pay for my asthma inhalers. I was just making the general point that pension benefits are going to be tightened up in the future, not made more generous.

@MrOllivander Presuming you have used the turn2us calculator or sought advice from CA?

I don’t know enough about the position when renting and don’t have your Dads details obviously. Possibly time to consider your Dad moving in with other family if the private pension is preventing him getting adequate support. I’d say he’s probably contributing towards your Mum’s care costs too. Really isn’t fair, so sorry you are going through this.

Sixty year olds are not pensioners though ?

Since when has accuracy troubled headline writers? Some people are living on pensions at 60. It would be better to bring them in line with state pension age.

If youre on max state pension. you wont get pension credit I dont think. correct me if I,m wrong. but recently applying for my mum and she gets 167 pension and 20 private pension per week and she is over the threshold. pension credit only tops you up to the full pension if you are below it.

Regarding prescriptions, the chances of being on some form of regular medication by your 60s is far higher.
Being in Scotland I already have those though might not be for ever I suppose!

There is no other family. Not sure yet on the care costs as it's very new but he will lose mums state pension, half her private NHS pension and probably half the joint pension too
Yet if he had savings, he could keep them which seems.. wrong

I've told him to use entitled to once he knows the full extent of what they will take, he said it seems backwards to take her pension and then maybe he will be entitled to benefits

The retrial age for women was 60 for a long time, I certainly expected when I began working that that is when I would stop.

Yes correct.
Some people who rent may still get housing benefit and council tax reduction depending on their overall financial situation even if they don't qualify for pension credit.

Is your mum getting any disability benefit she is eligible for such as Attendance allowance as that can go towards care home fees if self funding.

@MrOllivander yes it is very round about and your father may indeed be entitled to more help once things are rearranged based on your Mum moving out. The point is the pensions are being taken for her care.

You may need to get involved to sort this out.

@Babyroobs @reesewithoutaspoon was looking on turn2us calculator (please check for yourselves). To be completely transparent about where I pulled figures from:-

person 60-74, owner of home no mortgage, no kids, no caring, no disability, rates £1400pa, no savings etc

Outcome
State retirement pension: £185.15 pw
Housing benefit and rate relief: £26.85pw
Savings pension credit: £13.46pw

If on AA (£61.85 low rate) there is an additional payment due
Guarantee pension credit: £66.85pw

Obviously if someone is in receipt of AA this is not taken into account for tax purposes. It is needs based and they can still work while receiving the support, many do still continue full or part time with work adjustments and/or carer support.

Please anyone reading do your own calculations for your personal circumstances and seek advice from citizens advice so you get the support you are entitled to.

@Babyroobs I think so (dementia) but they will take that AND her pensions so therefore leaving him even worse off
Mum doesn't pay for anything, dad pays the lot and has always done the finances

Yes! Get your Mum AA which will help to cover the costs for the home. It’s very lengthy and you should read guides online re. how to fill in AA/PIP forms and see someone from CA too. Order the form now and it is back datable for 6wks. Write a draft before filling in the hard copy. Scan or photocopy the form before sending it and any medical reports - this makes it easier if you need to fill it in again if/when review is due in future.

So much empathy for you @MrOllivander your Mum and Dad will get sorted in the end. It just takes a lot of perseverance to get the finances sorted. I hope your Mum settles well and your Dad adjusts in time.

@Robinni just checked

If you’re in a care home
You cannot usually get Attendance Allowance if you live in a care home and your care is paid for by your local authority. You can still claim Attendance Allowance if you pay for all your care home costs yourself.

LA is covering some of the care

@MrOllivander yes that’s right to go back to my example.

person A with big civil service pension, was completely self funded due to their income. They retained their AA, but as I said total income circa £2600 and fees were £3500-4000 per month over the 2yrs. So savings of well over £50k were completely wiped as they had basic living costs on top of the fees. They died at the point where house was going to have to be sold to pay for their care.

Person B also in a home for 2yrs, had no savings, house already signed over to children. Put into home as a temporary resident (ie not sure if they’d come home again) and this meant the state paid. They were to be reassessed as permanent resident, but died before this could happen. Their care would then have been state funded and they’d have lost the AA.

@Robinni yeah - if he isn't claiming it there isn't any point IYSWIM because he doesn't gain neither does mum
He also has no POA to make things more complex. Parents!!!

Person B was lucky that the LA didn't investigate for deprivation of assets.

@Mia85 for the first year genuinely weren’t sure if they would go back home or not (dementia), they were adamant they wanted to work towards going home.

The last year was a total faff, the person meant to assess cancelled three times due to personal reasons. Then did the assessment but lost it! Total mess. Assets not substantial at all, I think the only difference would have been the AA really.

I will, I do pay into my work pension but that only £15 a month and I’ve only done that for a few years. I’ve always worked part time.

@MrOllivander it’s so stressful isn’t it. Yes no POA makes it more complex. I would chat to the support worker/social services if they’re involved. And again speak to citizens advice about the whole thing. Could be something silly like you need to have the form done to have the additional add on but given your Mum is permanently in the home now that may not be required. Honestly wish you and your Dad the best of luck.

Look up lifetime Isas / LISAs. Government tops them up.

Yes exactly ! How is it possible to just sign a house over to your kids when others have to pay ?