Benefits for Pensioners

Far too often I hear the left wing of politics complain about benefits - or the lack of them.

Certainly there are flaws in the investigation system handled by ATOS and I appreciate that we should support people who are unable to work, owing to some form of disability, but what about the whingers who moan about the pension those of us who are retired receive from the Treasury?

The first part of my answer is rhetorical.  Don't they understand that the Treasury is stocked by the taxes of working people?

Shortly I will be 67 and have received the state pension since I became 60.  As I paid the 'full stamp' throughout my long working life, I receive a little more than the basic state pension.  However, the 'little more' is just that and certainly has no relation, in percentage rates, to the pension women who paid the 'married woman's stamp' receive. My attitude is it's a case of 'you win some and lose some' in this instance.

But let's not forget about Gordon Brown's pensions grab. When I was saving towards my retirement I thought I would be financially secure enough to pay my bills and have the proverbial sunshine holiday once a year.  Sadly, Gordon Brown's theft destroyed my careful plans and there was nothing I could do about it. 

What other benefits do pensioners receive?  Much is said about the free TV licence for the over 75s, but that cost is a drop in the ocean. I've told, reliably, that it's not worth the effort applying for it because the paperwork is excessive.

Next come free prescriptions - indeed, as we grow older many of us require more medical care and as a result often prescribed medication.  The route the English NHS is on may result in all of us having to pay a basic fee to see a GP and also prescriptions.  Personally I don't think that's a bad idea, but the healthcare system is in such a mess that small changes will be insignificant in the great scheme of things.  The UK should have introduced a system like Germany or Switzerland many years ago.  These insurance systems ensure everyone has access to healthcare but, as with BUPA and the like, the more expensive the policy, the more 'enhanced' the treatment.  In my years within these systems I never felt, because I paid a basic rate, that my treatment was inferior to someone with a more 'exclusive' insurance. 

Then there is the 'Christmas bonus' - the Labour party's attempt to buy the grey vote. This money is quite unnecessary, although welcome and helps with the ever increasing winter fuel bills.  It's unnecessary because, for pensioners who struggle to pay for heat and food in our cold winters, there are supposedly safety nets. Of course few work and once again, older people find applying for 'charity' humiliating.

Bus passes.  What can I say?  I don't possess one but should I be unable to drive one day, I could well find one very useful. A big part of being older is managing to keep a social life and for many a bus pass is invaluable but it could be means tested.  

Governments say that means testing is expensive, but these days they hold so much information on each and every one of us, that it shouldn't be difficult to assess entitlement.

The general opinion from younger generations is that pensioners have a comfortable life. Many do and many aren't so fortunate, but what should be remembered is that far more of today's over 60s/65s contributed taxes throughout their long working lives.  Most started work at 15 or 16 because universities were outwith families' income and further education was gained in evenings and often at the student's expense.  We tried to expand/improve our skills because there was a possibility that we could earn more money. 

Out of all the 'benefits' pensioners receive perhaps only the 'Christmas bonus' should be revised, but I doubt if any politician would be brave enough.  Otherwise, leave our 'benefits' alone. A large section of older people quietly continue to contribute to society either through volunteering or caring for family or others. 

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Guess Work?

Planning for retirement can be a nightmare and many opt for the first option offered because they believe financial 'experts' should know the most suitable products available.

Like many women in my age group, I gave little thought to the day when I reached the official age for retirement from full-time work and concerned myself with supporting my family. What little spare cash I had available was consumed by childcare costs, so I was older when I finally realised a private pension, no matter how small, was a sensible idea. I was wrong. Gordon Brown robbed me of my 'rainy-day' pension and it hardly pays for a hair cut once every six weeks.

There are 1.8 million people in later life living in poverty. Michelle Mitchell, charity director general of Age UK says: "Claiming pension credit can make a huge difference to someone's income and quality of life. The government needs to start an awareness programme and move more towards a system where the DWP pays entitlements rather than an individual having to work their way through the benefits maze."

An awareness programme wouldn't encourage today's pensioners to claim what many see as 'charity' and should they be persuaded to make a claim, thousands give up when faced with the paperwork involved because they consider the means test system an invasion of privacy.

A good friend of mine tried the process a few years ago. Firstly she completed the DWP's online pension credit assessment which said she may be entitled to some help, so duly encouraged she sent for the paperwork and returned it completed. After four months she telephone to ask why she hadn't had any response only to be told she wasn't entitled to anything because her income was £1.12p a week over the qualifying amount. When she asked if she could receive the adjudication and reasons in writing she was told, in a less than pleasant manner, that 'it didn't work like that' and she could re-apply in 12 months.  She hasn't. The thought of going through the process again is too daunting. Instead she sold her car and used the profit to help with every day bills.

Last autumn she was dreading the onset of winter and the prospect of ever-higher utility bills, but fortunately the winter here this year has been unusually mild, so she will manage to keep her head above water.

Heating bills are a pensioner's greatest worry and nobody should have to go without warmth in a country which professes to be caring.

I've no suggestions as to how government can make benefit entitlements less humiliating, but there is a new website which I'm told is 'user friendly', so if you know of anyone who may qualify for financial help point them towards it. Even better, if it's at all possible, give them help if necessary and don't forget - this website is not a replacement for the official paperwork. They may well need help with that too.

It's reported billions of pounds of benefits go unclaimed each year, according to figures from the DWP. Pensioners are one of the largest groups failing to claim. If the DWP knows that surely they must know who is entitled to them or are the figures purely guess work?

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Britain's 'Privileged' Society

I'm surprised little said in the blogosphere last week about the £billions pensioners lost during the 12 years of Labour government when they fiddled the figures in order to rob us of over £80billion and I wonder if that's because few so bloggers are of pensionable age.  This week the MSM are reporting pensioners are 'privileged'.  Next week we may be proclaimed wealthy because the basic pension is a maximum of £97.65 a week.

Last week the Bank of England's February inflation report showed the Consumer Prices Index between 1997 and 2009 was 0.3% a year higher than official figures had previously stated.  Experts say this miscalculation by the Office for National Statistics cost the average final salary pension holder hundreds of pounds a year.

According to John Broome Saunders, actuarial director of BDO Investment Management: "Had the inflation calculation been done correctly many final salary scheme members would now find themselves entitled to a pension around four per cent higher".

The CPI error stemmed from the misreporting of clothing prices.  The inflation report said: 'Previous collection methods may have biased down estimates of CPI clothing prices'.

Not only did Gordon Brown steal a large chunk of our pensions when he was Chancellor, he was in residence at No 11 when these incorrect projections were published.  A typical 65 year old, after working all their adult life, is now entering retirement with a private pension of just £7,666 a year.  For women it is much less because they were unable to transfer superannuation until the 80s and many cashed in when they moved employers.  Short-sighted?  Yes of course, but it was a valuable and welcome sum to the family finances.  In my own case, I cashed in a few pensions and these days I feel far less guilty than I did prior to my retirement.  At least my young family had the benefit of the cash rather than the government of recent years.

This week pensioners have been called 'privileged' because the Institute of Economic Affairs (IEA) has suggested that we should lose a series of benefits, including free TV licences for the over 75s and the winter fuel allowance.  The idea is to ease the financial squeeze on younger people.

Whilst I understand the need for balancing the books, the IEA needs to look back 50 years and see who were the people responsible for rebuilding Britain after WW11.  These are the pensioners of today who paid willingly for the education of children and care of the elderly throughout their own working lives.

Throughout my lifetime it was understood part of the UK's need for taxation was to provide a basic income for those too old to work.  In recent years pensioners have received additional benefits irrespective of income and the fact that these have not been means-tested has caused the IEA to say some more financially comfortable pensioners are privileged.

I agree with free television licences for over 75s but free bus passes should be means-tested.  I know many reasonably well off pensioners who holiday in Scotland, regularly using their bus passes, but I also know others who would become more or less housebound because they couldn't afford public transport costs with one. Asking younger pensioners to contribute towards the cost of their pass may be worth investigating.

The winter fuel allowance has been a boon to many in the past two years when our winters were severe.  For most on an average to low income it has given them the confidence to know they will be able to pay for keeping the heating on overnight when the temperature was well below zero for many weeks.  Much more discussion is required as to how we can keep our older people warm and to give additional help to those who need it most.

The IEA's report appears to be pitting one generation against the other and that's not the answer.  The generations should be working together to resolve the issue and once the younger generations realise just how much many of today's pensioners have been robbed, as mentioned at the start of this post, they may be more sympathetic to their anxieties.

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