Local Housing Allowance-Pension Credit-Early "Retirement"

[stupot59]

I am in my early 60s and currently employed by a large Building Society, which has branches across the nation. Owing to daily increasing pressure for sales and targets, often at the expense of real customer care and service, the job has lost its appeal and it seems only a matter of time before my services are completely dispensed with, as I regularly fail to reach targets (which inceidentally have just been increased across the network).

 

I am considering taking early retirement and have made some rough calculations. It appears that I may be in more-or-less the same situation, financially if I claim 1) Pension Credits 2) Full Local Housing Allowance 3) 100% relief from Council Tax.

 

My accommodation is a one bedroom flat rented from a private landlord.

 

I have some small private pensions which would supplement my income, but my savings are well below £10k

 

In retirement would have vastly reduced monthly petrol and no parking costs to fund (notwithstanding the rise in VAT coming early next year).

 

Is there anybody out there who could give me some advice ?

 

I will be happy to provide my figures in a private message.

 

I am not trying in any way to avoid hard work (which has been my norm, all my adult life). I am however, aware that for such a little salary as the Building Society provides, plus the rapidly growing stress and difficulties within the organisation itself, I feel my retirement years are long overdue. I am currently ebdeavouring to write a book, based on my earlier life as an expat. I also have some small online businesses which I wish to give more time to.....In addition I am also a Reiki Master and would love to beef-up this activity more while I still have the energy.

 

All comments welcome...

 

Stupot59

[stupot59]

Anybody out there ?..I'm sure there must be a few who claim benefits into mature age....

[maroondevo52]

Hi, stupot.

 

I'll move this thread to the Benefits Forum.

 

Regards.

 

Scott.

[loan_ranger]

Here's a few on-line benefits calculators.

 

HB and LHA rates vary by regions known as "Broad Market Rental Areas" (BMRAs), therefore it is important that you also check on your own council's web-site's benefit calculator.

See "Check your eligibility for housing benefit" below.

Directgov: Check your eligibility for housing benefit

 

DWP and HMRC benefits and credits:

Benefits adviser service : Directgov - Do it online

 

Alternative "benefits search" c/o "Turn to us":

Benefits Search

 

The LHA-Direct website has been developed to enable tenants renting accommodation from a private landlord to calculate the possible amount of Housing Benefit available to them from their Local Authority.

https://lha-direct.voa.gov.uk/Secure/Default.aspx

 

I hope these are of some help to you in deciding, work out your income side first before working out the LHA for your flat, some benefits/credits are ignored for LHA calculations and others involve the "excess of income" taper where 65% of excess income is deducted from your LHA.

 

Best regards,

Paul.

[45002]

Hello Stupot59

 

I hope you don't mind me asking how long have you lived in your flat ? may be able to help you on something

[stupot59]

Thanks to Loan Ranger for some good info...lots of work for me to do there !

 

In reply to 45002...have been renting this flat since 1/1/2007

[stupot59]

Just a quick enquiry for Loan Ranger....If I apply for Pension Credits now (age 61), does this change when I reach 65 to the ordinary State Pension, based upon my overall N.I. contributions ?

 

Can't find anything that is definitive on this...

 

Thanks,

 

stupot59

[loan_ranger]

It's my understanding that Pension Credits are there to make your overall income up to £130 thereabouts (guaranteed minimum income level), when you qualify for the state pension an adjustment will be made to the PCs so that you continue to have the same guaranteed minimum income level.

 

Regards, Paul.

[stupot59]

Thanks Paul,

 

I was wondering this as in my earlier life I spent some time abroad and did not pay a "full stamp" to the NIS. I have often been told that this will reduce my State Pension award at age 65, but this all came about prior to "Pension Credits" and the like were dreamed up...

 

Somebody mentioned to me a short while ago that it is likely that Pension Credits will cease at age 65 when the State Pension kicks in....If I then receive less money, I can apparently apply for another "top-up" benefit which is related to the old "Supplementary Benefit."

 

Any comments ?

 

Thanks again,

 

Stupot

[loan_ranger]

Thanks Paul,

 

I was wondering this as in my earlier life I spent some time abroad and did not pay a "full stamp" to the NIS. I have often been told that this will reduce my State Pension award at age 65, but this all came about prior to "Pension Credits" and the like were dreamed up...

 

Somebody mentioned to me a short while ago that it is likely that Pension Credits will cease at age 65 when the State Pension kicks in....If I then receive less money, I can apparently apply for another "top-up" benefit which is related to the old "Supplementary Benefit."

 

Any comments ?

 

Thanks again,

 

Stupot

Hi Stupot, use this State Pension age calculator: Directgov - Pensions and retirement planning and it will tell you how many years N.I. you should have paid to qualify for the full state pension, however PCs will make this amount up to the £130ish.

 

Pension credits are in fact for those above the pension age, however under JSA rules and equality laws they allow males on JSA to get PCs from the same age as would a woman of the same age - currently 60 but the coalition may in future require corpses to carry on working.

[loan_ranger]

Pension Credit (PC)

 

PC is replacing IS/JSA-I for people aged 60 or over from October 2003. However:

 

• Men on JSA-I aged between 60 and 65 can choose between JSA-I & PC.
  
• If claimant is 60 or over but partner is under 60, they can choose between IS/JSA-I and PC. i.e. the person under 60 could claim IS/JSA-I.
  

Note: When choosing which benefit to claim a person should be aware of the different rules for each benefit to ensure that they will be better off. They should therefore seek advice.

PC does not include an amount for children so CTC should also be claimed if relevant.

Source:

Tax Credits and Pension Credit effects on other benefits

Please note that this page was written in 2003 and updated January 2005 and March 2007.

[45002]

 

In reply to 45002...have been renting this flat since 1/1/2007

 

OK,i was just thinking if you had moved in before 15/01/1989,your tenancy would have come under the 1977 rent act and would have give stronger rights as a tenant and your rent could have been registered under the same act helping you in you twight years

 

Please enjoy your retirement and get the most from it :):)

[tuvalu]

Hi Stupot,

I agree with lone ranger about pc, over 60 they must treat you the same as a woman born the same day as you.

With the lost years of ni when you were overseas remember now for a full state pension its only 30 years men and women. so get a forcast from the pensions office. Also your savings and lump sum from early retirement you will have to declare that, not sure what it is for pc.

If at 65 when you get state pension plus other pensions if above the 130 you will be out of pc, sorry cant advise on LHB.

I have a small occupational pension, will be better off when my state pension comes in.