Pension Credit

I think there's a lot of this going onKatey it does niggle I agree.

How do people hide income? Surely its calculated on your monthly income when retired so how can you hide pensions/income going into your bank account? Am I terribly naive?

I don't understand that either tanith. Pension credit is based on income, not what property or actual savings you've got (can't imagine they'd have been getting much interest on the savings they've spent anyway...)

They have very limited income, hence able to claim Pension Credit, but they are asset rich now. I am supposing they made their purchases before claiming.

Can't they be treated as still having it if they deliberately deprived themselves of capital to get benefit?

Kateykrunch it does unfair but as Ana says its their income that counts not assets or savings , they may have lots of 'stuff' but once their money is gone as you say they have a very low income to live on they may well struggle to juggle everything.

It's a very common approach. Spend whilst you can and enjoy.

Then let the state pick up the shortfall and wonder why everyone's complaining about austerity cuts..?

(sorry, that wasn't getting at anyone on this thread, just society in general! )

Are people really sure that the value of a second home isn't taken into account when claiming pension credit - it just doesn't make sense

You'd certainly have to declare it. Perhaps it depends upon whether you let it out at all - can't tell from the gov uk site.

You may be right Rigby64 I didn't go into it in any depth if I'm honest just the basic fact that it was income based, sorry if I've misled anyone.

I looked at how much savings you could have and still be allowed some credits - was trying to get a cousin to claim - and there was a question asking if you had a second property - that might have been for council tax reduction though as I looked at a couple of sites.

As part of society in general the state picks up my shortfall. I worked part time when a single mother , when my daughters were of an age I felt comfortable not being at home in the school holidays etc. Worked full time but then became carer for my parents, never received any allowance for this so save the state the Costs of outside help. When I reached pension age I was not eligible for full retirement pension so receive pension credit to top it up.

I Certsintly didn't spend and enjoy, with the thought of claiming benefits, didn't know of pension credit ,just accepted I would always have a low income , it was my choice, I could have left a five and seven year old on their own and worked full time, I could have told my parents sorry you will have to apply for help I didn't .

It's people like you that the safety-net's for, Annie, no one's saying otherwise. Some others seem to be taking the mick though.

True Ana. Just explaining why some have to have pension credit

What seems to be the case is that any capital over £10000 is taken into account. It wouldn't matter if it were a second home or in shares or in a savings account so you can't buy a second home to reduce your savings. Then when the income calculation is done, for every £500 you have over £10000, a £1 per week is assumed as income and added to,your other sources of income such as state pension. I think I've read this right?

I don't receive the full state pension as I also stayed at home until my children were older, then went back to work full time. As I also receive a private pension from one of the companies I worked for I have never claimed pension credit as I assumed it was only for people who only received state pension. Am i right? It's all very confusing.

Of course people can lie about their savings or put them In someone else's name - both are fraudulent. What bothers me when false or dare I say fake information goes round, people start to criticise the benefits system when in fact it's the cheats and liars that should be criticised - or the people that put the false information about.

I think, in many instances, the holiday home or other spending is in the adult children's names, money and possessions are gifted away.

Angib - no you're not right. It's worked out on your income like pensions and then the £1 a week assumed income on savings over £10000

Not falsely gifted, just gifted away. I think gifting works well for people who are not worried about 7 years for inheritance purposes, younger healthy pensioners.

If these people own three cars and a holiday home and spend,spend,spend, they must hsve hsd well paid jobs so would be entitled to full pension

The government site for Pension Credit states quite clearly that they take into account all savings and investments in excess of £10,000 and it quite specifically refers to second homes. www.gov.uk/pension-credit-calculator.

If the couple referred to by Kateykrunch bought a second home to qualify for PC then they were wasting their time. I find it difficult to see how anyone can live at the rate mentioned and qualify for pension credit unless fraud is involved. They could have placed their savings in other people's names (children?), similarly if they are not registered as owners of the home.

However you need to feel very confident that whoever has the savings/houses in their name will act honestly. If you are not acting honestly in putting assets in their name, what confidence can you have that your nominees will not be equally dishonest and just appropriate your assets for themselves?