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Thread: Reaching State Pension Age - How Much Do I Lose?

  1. #1
    Senior Member Sky's Avatar
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    Reaching State Pension Age - How Much Do I Lose?

    Although it's still four years away, I'm concerned about losing income once I reach SPA.

    I'm sure this must have been answered before, but I've searched for answers on here and on the net and can't find one, so I'm hoping someone on here may have been through this already or perhaps knows how it works.

    I'm on ESA in the Support Group, I live alone and get the SDP. I also receive PIP Enhanced for both mobility and care. I should also be getting a Personal Budget from the council soon once all the assessments are done.

    I know my PIP shouldn't change and that my ESA will stop. I'm also aware that once this happens I will have to apply for Pension Credit as I'm quite a few years short of my contributions.

    My savings are less than £6,000.00.

    What I want to know is whether I'm going to be worse off financially once I reach the SPA?

  2. #2
    Senior Member nukecad's Avatar
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    I'm six years off, so thinking about it but not really done anything yet. (Apart from checking my NI payments/credits status).

    Everybodys retirement/pension situation is going to be different.

    State Pension, Pension Credit, all the various different forms of private/workplace pensions there have been over the last 50-odd years (some will have more than one of those), add in benefits, etc., etc.

    Then there is the question of what's going to happen to pensions in the next couple of years when all this coronavirus spending/borrowing by the government needs to be paid for?

    The first step would be to get am 'official' State Pension forecast from here: https://www.gov.uk/check-state-pension

    Then maybe one or both of these tools:
    https://www.moneyadviceservice.org.u...ion-calculator
    https://www.moneyadviceservice.org.u...income-options

    And there is always the Pensions Advisory Service:
    https://www.pensionsadvisoryservice.org.uk/
    I don't know everything. - But I'm good at searching for, and finding, stuff.

    Migration from ESA to Universal Credit- Click here for information.

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    Senior Member Sky's Avatar
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    Thanks Nukecad, I very much appreciate your answer.

    I've been through all those (and others), but still can't get a definitive answer. This is I'm sure due to all the variables that you mention.

    The official .Gov forecast tells me I'll get £155.00 a week and this is considerably less than I get in ESA - this is what worries me.

    In January (four months later than expected) I shall be moving into a local Housing Association 'sheltered' flat and the rent/service charge will be paid. Will this still continue once my ESA stops?

    I was hoping there would be someone on here that has been through this already.

    Thanks again.

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    If you don’t have any other income due, then you may be entitled to Pension Credit, which is the benefit of pensioners, how much will depend on your state pension, savings/investments/any other income, and if below the amount set by government, then you would get Pension Credit.

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    Senior Member nukecad's Avatar
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    Quote Originally Posted by Sky View Post
    In January (four months later than expected) I shall be moving into a local Housing Association 'sheltered' flat and the rent/service charge will be paid. Will this still continue once my ESA stops?
    Yes, that should still be covered by Housing Benefit or UC Housing Element.

    It looks as though you already have that in hand if you say the costs will be covered.

    If the move is within your current council area and you are already claiming HB then it's a change of circumstances to your current HB claim.

    If it's a new council (or if you aren't already claiming HB), and also depending on just what is meant by 'sheltered', you may have to claim UC-HE instead of HB for the housing costs.

    Whichever it is it should cover the full rent in social housing, but may be subject to the bedroom tax.

    Service charges may or may not be covered, depending on what they are for and which benefit is paying the housing costs:
    Housing Benefit: https://england.shelter.org.uk/legal...ousing_benefit
    UC Housing Element: https://www.gov.uk/housing-and-unive...ng-association
    Last edited by nukecad; 12-11-20 at 18:21.
    I don't know everything. - But I'm good at searching for, and finding, stuff.

    Migration from ESA to Universal Credit- Click here for information.

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    Senior Member Sky's Avatar
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    Thank you both - I really appreciate you taking the time to answer.

    The Shelter website answered my question thanks Nukecad - the additional charges are for the 'care' element and are a condition of tenancy, so I will be covered.

    Hopefully, the Pension Credit will top up any shortfall there may be.

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    Quote Originally Posted by Sky View Post
    Thank you both - I really appreciate you taking the time to answer.

    The Shelter website answered my question thanks Nukecad - the additional charges are for the 'care' element and are a condition of tenancy, so I will be covered.

    Hopefully, the Pension Credit will top up any shortfall there may be.
    Pension Credit should top you up to £173.75 per week. You should also read the following page under the heading “Extra pension credit for severely disabled people and carers” - https://www.gov.uk/government/public...ople-or-carers.

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    Senior Member gus607's Avatar
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    I received PC a couple of years before retirement but on reaching SPA I lost PC & received SP , much worse off. The years of paying in to a private pension was a waste of time, I would have been better pi$$ing it up the wall instead.

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    Senior Member Sky's Avatar
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    Quote Originally Posted by Saxmoof View Post
    Pension Credit should top you up to £173.75 per week. You should also read the following page under the heading “Extra pension credit for severely disabled people and carers” - https://www.gov.uk/government/public...ople-or-carers.
    Thank you for this, that's very helpful and gives me a little more hope.

  10. #10
    Senior Member Sky's Avatar
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    A quick update for anyone else that may find themselves in this situation:

    I've been told by one of my local Adults Social Services team that when I reach SPA my ESA will stop and the PIP will continue. It should be a smooth transition and any shortfall 'should' be made up in pension credits. I will have to then claim Attendance Allowance to replace the Severe Disability Payment, but again this should be a smooth transition. Knowing the DWP as I do, I doubt this will be as easy as she makes it sound, so I think I'd better be sure to have some savings put by at the time to cover their inevitable cock-ups.

    On a plus note, I signed my new tenancy agreement yesterday and providing Covid doesn't cause any more problems I should be moving in a few days before Christmas.

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