not2old

In the links below

Free bus pass and other transport concessions | Age UK

https://www.gov.uk/apply-for-elderly-person-bus-pass

not2old

on equity release, it doesn't have to be a lump sum, just enough each year that the couple can continue to get guaranteed credit as well as savings credit.

On that amount, lets say £10,000 drawn down each and every year, sticking it into a zero interest account, folks can continue to get 'pension credit'

https://www.gov.uk/pension-credit/eligibility

So, on full pension credit top up £12,004/yr for a couple, they'd have an extra £10,000, plus pension savings credit

Who can claim Pension Credit | Age UK

6 Pension Credit myths | Age UK

Editha

Yes, that would work.

not2old

On 'shelter UK & citizens advice' websites information related to 'support for mortgage interest' (SMI) is available for those on benefits, pension credit & the over 65's on pension credit that still have a mortgage, whereby the government helps pay the mortgage in a form of paying the interest up to a mortgage value of up to £100,000.

https://www.gov.uk/support-for-mortg...erest/overview

Just another benefit for the seniors & others that live in the UK, which gets me back to my previous point posted earlier of 'why, living in the UK is there a need to save for old age or to have a pot of money'?

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formula

SMI is changing from a welfare payment to a state loan.

http://www.mortgagefinancegazette.co...not-a-benefit/

Changes to Support for Mortgage Interest mark fundamental shift in welfare provision | Shelter blog

https://www.benefitsandwork.co.uk/ne...rent-claimants

http://www.moneysavingexpert.com/mor...e-arrears-help

Any additional charge against your house may reduce your chance of changing to a better mortgage rate if the LTV is high. Lenders no longer want to give interest only mortgages without a repayemnt vehicle. The SMI payment is at a fixed rate of interest, regardless of what interest rate the claimant pays and any repayment part or any interest part not covered by SMI, is up to the mortgage borrower to pay.

http://debtcamel.co.uk/help-mortgage-interest/


Do you think there is a need for Pension Credit to continue now that the new UK state pension that starts from April will mean most will have too much income for PC? Especially with the new annual welfare cap that will call for some tough cuts to keep to that cap.

Aren't there are already planned changes for PC coming in? ie a change in savings: both of of a couple needing to be at least their UK retirement age.

Benefits are always open to changes and relying on benefits in old age is not something I plan to do. That "pot of money" will be the difference between a good life in old age or living on the poverty line, where you choose food or heating.

not2old

For the folks that are already collecting state pension as well as some form of guaranteed or savings credit pension credit, all prior to the 'new state pension changes' taking effect, I see those folks have several options to increase their income ranging from - guaranteed credit, savings credit, equity release, council tax paid for etc & agree, not so much for those that are about to get the new state pension rate.

Its the money management part for any returning expat who may have money from the sale of overseas property, income in the form of private & works pensions, foreign government old age security pensions, which when added to any UK state pension they may get from topping up with class 2 or 3's, they likely will fall outside the 'pension credit' capture window or the 'universal' thingy.

Its a fine balance, to the point of 'as a retired senior couple moving back to the UK' - is having too much likley going to cost you loss of top-up's that equates to an overall cost to live in the UK?

Editha

I can think of a few reasons:

I've already stated the first one, which is that your lifestyle on £12,000 p.a. for a couple is going to be very basic. Your equity release idea is feasible, but really should be reserved for capital expenditure, such as house repairs etc. Your list of expenditure that you gave in an earlier post was unrealistic in a number of areas. For example you listed council tax as nil, when in fact even low income pensioners have to pay a percentage of their council tax.

The second is dental work. Of course, some people reach 90 with all their own teeth, but if you are like me, with ageing bridgework and crowns, you need a reserve of maybe £20,000 for implants and other work over the course of your retirement. Although, theoretically, you can get crowns done on the NHS, your chances of finding a dentist offering NHS treatment for this level of work is roughly on a par with the chances of winning the lottery.

Secondly, you need an income above £12,000 to run a car, and unless you live in a city or sizeable town, not having a car is going to be really inconvenient. The running costs of our Fiat 500 in 2015 were £1,500.

Thirdly, if you want to keep pets: Our two cats' food and vet's fees in 2015 came to £1,700. Dogs cost more.

Fourthly, if you want to pursue hobbies, or travel.

Fifth, for your care needs in old age. Your previous post referred to Attendance Allowance, but you'll only be given that if you have needs due to disability, and the fact is that the allowance probably won't cover all the help you need at that stage. My mother, aged 90, gets the attendance allowance of £4276, but her gardener, cleaner and carer cost us more than £6,000.

not2old

Editha @post #82, all good information

The numbers that I presented in my post # 52 was based on 'a couple on guaranteed gredit', living a basic lifestyle, no car, no cable TV, no pets but with some money for other items.

Based on those numbers, the £12,000 is doable, as would any small equity release funds, to keep one being able to continue to get the guaranteed & savings pension credit.

On my recent visit to the UK at the end of November past, my 80 year old widowed sister lives on her own, in her mortgage free house. Her recent assessment (dated September 2015) statement from the local council, all in accounting spreadsheet format, laid out what she will get & is entitled to.

Her total income per week is £303, consisting of, state pension, private pension £29/wk, guaranteed pension credit of £15.29, savings credit of £5.05, maximum attendance allowance. The statement showed she had £11,000 in savings.

The council statement explained she is exempt from paying council tax, so that's another saving for her to the tune of approx £100/mth as well as no TV licence.

With no vehicle, no pets, a bus pass, her utility bill (gas, electric & on a water meter) is just on £100/mth. She has freeview TV, no internet, the home phone discount from BT basic

BT Basic: pay less for home phone if you're on benefits

With spare money at the end of each week, she doesn't need to do equity release because she wants to leave the house to her very supportive children

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nun

Income planning (for those lucky enough to have ample resources) is an important part of retirement. It often includes minimizing taxes and maximizing benefits. If you don't have to pay a mortgage or service any other debt your need for income can be vastly reduced.

If you have assets outside of retirement funds they can be spent without any income tax and there are substantial tax free allowances for capital gains and dividends in the UK. Also a gradual drawdown of retirement assets often allows annual income taxes to be minimized.

Part of my retirement strategy is to keep my taxable income in the lowest tax bracket. I'm still in the US and retired a couple of years ago at age 52. Last year my taxable income after deductions was $1000 so all my dividends and capital gains are tax free. My low income also qualifies me for health care and fuel subsidies.

nun

Day to day living does not need to be expensive, but you need a contingency fund. A home can be a significant expense and your sister's 11k GBP could easily be gobbled up by major repairs.

For example, as a retired single guy in the US I spend around $24k/year as I don't have a mortgage or car payments. However, 4 months ago I discovered that I had to replace the heating systems in my two family home at a cost of $12k. Owning a home might give some security, but it has capital costs not associated with renting.

scot47

Concessionary Travel Scheme in Scotland is for all residents aged over 60. No need to be a pensioner or a citizen - just resident. Perk is free bus travel throughout Scotland. There is a similar scheme in London which I think includes the Tube and (maybe ?) trains.

not2old

nun @ post #84 & #85, good points, although in my sisters case when she converted from the old gas fireplace to central heating it was done for free, courtesy of the government.

Right now I believe the system is 15+ years old & she was contacted once again for a free system replacement

Who Qualifies for the Free Boiler and Heating Grant Scheme

Over the past 10 years she has had to replace the single pane windows with double glazing, again because she is a pensioner & on attendance allowance (this was prior to her getting guaranteed pension credit) her windows were also replaced for free

So many perks for the old folks

The energy efficiency measures you can get FOR FREE - and how to get hold of them | This is Money

https://www.gov.uk/the-warm-home-dis...what-youll-get

not2old

key points, very good....

On a similar scale in the UK to what is being discussed in this thread

Here where we are at our gross joint income is over $50k/yr, we pay zero income tax, so our net income is the $50k +. Our monthly expenses all in is less than $24k/yr. If we could get rid of the property taxes, lower the utility bills & cut the gasoline bill in half, we'd be rich.

Having excess money is only good if you can spend it, or give it away.

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Editha

A lot of the energy saving measures have been withdrawn. It wouldn't be so easy to get a free boiler, double glazing, etc. now. The article you linked to in This is Money is two years old and out of date.

formula

I thought I read that if they are on PC then they are exempt from paying CT? A perk that will be lost under the new state pension amount. While the other pensioners pay in full, unless they claim some Housing benefit?

The having to pay a percentage of their Council Tax, is for those on income based benefits who are below UK state pension age .i.e someone on £72(?) a week JSA will still have to pay a % or their council tax from their JSA. That % paid is set by each council.

It's interesting to see that the free TV licences will no longer be paid for by the state and instead will come out of the money the BBC take from licence payers.