To worry about rent increase

[pussinboots61]

Hi I am a born worrier and have anxiety.

I live in a one bedroomed Council flat which I love. Every April I have the same worry about the rent increasing. In April it will be £499 per month. This is for a small one bedroomed flat.

I know that its cheaper that private renting but I worry mainly about affording it when I retire in three years time, though I will get a good private pension plus a state pension but with this Government making cuts all the time I dread to think what might happen.

I moved into this flat six years ago from a flat which was not in such a good area but the rent was cheaper. I moved to where I am now because I lived here years ago and moved in haste when my Mum died as she lived near me. When I got this flat I couldn't believe that I had got back here again but I've worried about the rent ever since.

If it ever did come to where I couldn't afford it, it would be impossible to move because now there is a housing shortage where I live and people are bidding for properites and getting nowhere.

I feel I am driivng myself and everyone else who cares to listen around the twist with worrying about this.

OP, have you tried a benefit calculator? You may be entitled to something when you retire.

Are you saving some of your ‘good wage’ for when you retire? Will you get a good company pension from your good wage? Will you get a full state pension?

What will your income be when you retire?
If you will not get any benefits help due to amount of income then it is assumed you are left with a reasonable amount.
Otherwise consider ways to continue to earn money.

If you are really worried, could you delay your retirement by a couple of years and focus on building your savings?

How much has the rent risen in the last few years? Work out the percentage rise and apply that forwards, compounding each year. This way you’ll know what to expect in the future.

I strongly suspect it’s the unknown that’s worrying as your state pension will cover your rent and probably most if not all your bills as well. Then your work pension will be running a car, holidays and extra unexpected expenses.
work out your predicted works pension alongside your state pension. It will put your mind at rest. And remember retirement isn’t final. You might find you can do a few hours paid work as you need to boost things.

I could but then I have been advised that if I carry on working after I retire in the same job I will get hammered with tax.

Last year the rent went up by 7,5%, this year its going up by £2.7% so it is lower this year. When I've worked it out it seems to have gone up more than I had calculated but I rang the Council today and it seems their calculations are right, they base in on the actual rent and not the extras added on like the water rates and meter for the heating that are a standard charge.

My wage is now £2,000 per month and I've been advised that my work and state pension together will be around the same.

My work pension should be good. I will get the full state pension. I will also get a lump sum but if I pay my rent out of that every month it would soon go down. I do save every month.

You are in a very fortunate position- I am 57 and hardly any private pension! I won’t be retiring for another 20 years!

That’s a third my rent…(we need more affordable housing!!)

Not very large outgoings. My heating is district heating and my flat is quite cheap to heat as its upstairs so retains the heat. I have other bills and food costs, I don't run a car. I manage fine on my wage.

I haven't tried that but I don't think I will be entitled to anything with having a work and state pension.

I want reassuance really and it is helping knowing people have rent is more than I am paying.

You can still pay into your work pension when you are working and claiming state pension. The pension contributions comeout before tax.

https://www.justanswer.co.uk/employment-law/o0ife-i-m-receiving-state-pension-working-pay.html

Speak to Pension Wise, as they can advise.

https://www.moneyhelper.org.uk/en/pensions-and-retirement/pensions-basics/pension-calculator?utm_source=google&utm_medium=cpc&utm_campaign=pensiontools_paid_search&utm_term=generic_pensions_advice_PM&gclsrc=aw.ds&gad_source=1&gclid=EAIaIQobChMIt8Drt9itjAMV45ZQBh1MMweNEAAYAiAAEgIFufD_BwE

You will manage if you get a state pension and work pension. As the housing costs are reasonable, and you will be better off than most people in rental accommodation.

Make sure you are getting the 25% discount on council tax. And the best deals for your utilities/broadband etc. Think about your budget now, and plan in advance for what you will need.

Yes, there will be less money. But you will adjust to that, and make decisions about what you prioritise.

I bet if you are on a good wage now, there are plenty of ways you can cut your expenses and save more for the future. Think about what you want to be able to do when you are retired and save more now.

What are your hobbies/interests? Look at how you will be able to do those things when retired on a budget. Its about how you see life, and get enjoyment. If you want a super lavish retirement then no, you prob won't be happy. If you want to spend time with people, and have good experiences then you can do that on a budget.

If your income will not change when you retire and you can afford to live now, why are you concerned?

You can invest the lump sum not just take money out. Find out how much the lump would give in an annuity. State pension will go up by inflation. It sounds like you are worrying too much. If you manage now on your income you will be fine

Exactly this - kindly OP you need to give your head a wobble. If your telling people this in real life then people are quickly going to get sick of hearing it.

Thanks for all your messages which are putting my mind at rest. I'm not looking for sympathy nor am I pleading poverty.

I have a good lifestyle. I don't squander money but I do enjoy myself and spend on quality rather than quantity. I don't have many holidays, mainly because going away doesn't really bother me but I do like to go out and meet friends, have meals and coffees out. I like to have my hair done and buy nice make up. I always have money left at the end of the month that I can save. I don't have a car as I don't drive so that's an expense I don't have.

When I retire I would like to still do the things that I do now which is hardly extravagent.

But, as someone has pointed out here, it seems to be more a case of dealing with the worry. I guess I worry about my rent more now because this flat is more money than my previous one. When I lived in my old flat I never gave the rent a second thought and I didn't worry every year with the rent increase because it was cheaper anyway. But I like this flat and where it is more and I wouldn't want to move.

I feel sorry for people who pay a lot more rent than me but hearing this makes me realise I have nothing to worry about. But I am a worrier and trying not to worry isn't an easy task.

Thanks for the reassurance.

Please complete a benefit calculator now as if you had retired. You’d be surprised, lots of single people renting with private pension can still receive some housing benefit, council tax will likely reduce too

Rent increases have been capped at the rate of inflation- so if inflation is 2.8% then it can’t go up by 8%

There is absolutely no way on £24k a year you’ll qualify for housing benefit if council tax relief

Look here and speak to your GP there us help out there

https://www.nhs.uk/every-mind-matters/mental-wellbeing-tips/self-help-cbt-techniques/

I don't think you've much to worry about OP.

The ones that will really struggle are the private renters whose pension income is just above the threshold for any benefits.

My income from State Pension and occupational pension is around 24k and I am not entitled to any benefits whatsoever.