But at the point when this dips below realistic investment returns (and the 6.5% it assumes on £16,000 of savings) it becomes a disincentive to having those savings at all - you may as well spend the money the day before your retirement - use it to stock up on food that doesn't go out of date and get all your redecoration out of the way, or even go on a world cruise.
More importantly, the couple in the example are regulated rent tenants. I think there's something fundamentally inequitable about withdrawing people's benefits because they have £15,000 in the bank (and pay rent) when there'd be no such withdrawal if they had £6000 in the bank and owned £150,000 worth of house outright.
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timeasmymeasure
no subject
Date: 2009-01-08 03:46 pm (UTC)More importantly, the couple in the example are regulated rent tenants. I think there's something fundamentally inequitable about withdrawing people's benefits because they have £15,000 in the bank (and pay rent) when there'd be no such withdrawal if they had £6000 in the bank and owned £150,000 worth of house outright.