Where does the govt think my money is invested????

[davek_964]

I was speaking to somebody last night who received job seekers allowance. Whilst I don't plan to give up working and claim it - tempting though that is - it made me curious and I just completed one of those online calculator things to see what it would be (which isn't much).

However - the thing that really surprised me is the figure the government assume as income from savings. If you are over pension age, they assume you receive £1 per week for every £500 of capital above £10,000.
If you're under pension age, then they assume £1 per week for every £250 above £6,000!

If anybody can suggest where I can get these kind of returns please let me know. According to those figures I don't actually have to work since I could comfortably live off the interest from my savings.........

[Camelot1971]

I think it's more to do with using your savings to supplement your income than actual returns on your investment. It's not unreasonable to expect people with savings to use that money rather than receive benefits.

[Jockman]

Either I'm reading those figures incorrectly or those returns are easily attainable in, say, a Santander Account.

[55palfers]

Another example of where being prudent is penalised.

Blow the lot on coke and hookers and you can claim.

[Jockman]

Not sure I would choose to live off £73.10 a week.

[NickCQ]

Camelot1971 said:

I think it's more to do with using your savings to supplement your income than actual returns on your investment. It's not unreasonable to expect people with savings to use that money rather than receive benefits.

Yeah, especially as it seems that you are allowed to hold on to the first £6k / £10k depending on age without any effect on the means testing.

[davek_964]

55palfers said:

Another example of where being prudent is penalised.

Blow the lot on coke and hookers and you can claim.

If I'm living it up and blowing my savings, I reckon I wouldn't need to pay for hookers.
Once I'm unemployed and living on ~£73 a week, I might need them but couldn't afford them!

[BoRED S2upid]

Jockman said:

Not sure I would choose to live off £73.10 a week.

I tried it once just out of curiosity it was tough going. Great motivation to get a job.

[uuf361]

I used a similar calculator earlier in the year and it came up with a figure being derived from savings monthly that was higher than my actual real life salary - completely bonkers and if true I'd be retired!

[GT03ROB]

uuf361 said:

I used a similar calculator earlier in the year and it came up with a figure being derived from savings monthly that was higher than my actual real life salary - completely bonkers and if true I'd be retired!

Thought you virtually were!!

[trickywoo]

Jockman said:

Either I'm reading those figures incorrectly or those returns are easily attainable in, say, a Santander Account.

£52 a year on £500. Over 10% no?

[davek_964]

Jockman said:

Either I'm reading those figures incorrectly or those returns are easily attainable in, say, a Santander Account.

Note that the figure is per week....

[Skyedriver]

55palfers said:

Another example of where being prudent is penalised.

Blow the lot on coke and hookers and you can claim.

Been like this for years

recall situation with late mum in law: worked most of her adult life, childrens hospital, put some cash away, (very) small pension = pay full council house rent
lady down street, never worked since 18, spent everything she had, pay about 20% of Council rent.

All wrong

[Jockman]

trickywoo said:

Jockman said:

Either I'm reading those figures incorrectly or those returns are easily attainable in, say, a Santander Account.

£52 a year on £500. Over 10% no?

It's £52 a year on £10,500. The Govt doesn't penalise you for the first £10,000.