Frozen pension policy turns British expat's dream into a nightmare

[Bobydog]

  On 4/26/2024 at 12:39 PM, dinsdale said:

It's an insane policy. Getting an Australian pension overseas is also insane. Apart from this once again this AI article lacks any editing demonstated in the subheading.

It would seem all foreigners no matter what nationality are "beginning to feel a financial strain due to the UK government's pension freeze policy." 

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Australian pension policy is simple in that if you do not own a residence in Australia and don't live in Aus but reside in Thailand,  then your Australian pension will be taxed at 35% as un earned income. That totally killed my aspirations. 

[Bobydog]

  On 4/26/2024 at 12:39 PM, dinsdale said:

It's an insane policy. Getting an Australian pension overseas is also insane. Apart from this once again this AI article lacks any editing demonstated in the subheading.

It would seem all foreigners no matter what nationality are "beginning to feel a financial strain due to the UK government's pension freeze policy." 

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Australian pension policy is simple in that if you do not own a residence in Australia and don't live in Aus but reside in Thailand,  then your Australian pension will be taxed at 35% as un earned income. That totally killed my aspirations. 

[bigt3116]

  On 4/26/2024 at 11:16 AM, snoop1130 said:

John Jones, 77, had enjoyed a lively international lifestyle but now, due to the frozen pension policy, his retirement plans are suffering. Residing in rural Thailand, Jones struggles with a heart condition adding to his financial woes.

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He moved here knowing that his only income would be 75GBP per week for the rest of his life, how is that the government's fault?

[delh]

  On 4/27/2024 at 2:03 AM, csmith said:

UK maximum pension for a single person who paid the full contributions over their working life is 

 

Baht 20,000 a month

 

I know … as that is me!

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Whilst im not drawing mine yet, information from uk government is that mine will be 33000@ 46 baht/ pound

[sandyf]

  On 4/27/2024 at 2:08 AM, delh said:

I'd paid in the full 35 years, now, im 4 years short of full entitlement. 

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There was a time when it was 44 years of contributions. A friend of mine who had been made redundant had made his up with voluntary contributions and when they suddenly dropped it to 30 years he wrote and asked for a refund.

Doesn't take much to guess the reply.

[scorecard]

  On 4/27/2024 at 2:19 AM, Bobydog said:

Australian pension policy is simple in that if you do not own a residence in Australia and don't live in Aus but reside in Thailand,  then your Australian pension will be taxed at 35% as un earned income. That totally killed my aspirations. 

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Really?

[csmith]

[Kinok Farang]

  On 4/27/2024 at 1:50 AM, BerndD said:

As a German, I receive my pension in my Thai bank account, usually 3-4 days earlier than pensioners in Germany. In July 2024, like every other pension recipient, I will receive a pension increase of 4.57%. If I die, my Thai wife can receive a widow's pension from the German state equal to 40% of my pension. Requirement: the widow must be at least 46 years old and the marriage must have lasted, I believe, for 6 years.

 

There are no restrictions on pension receipt for Germans who live abroad permanently.

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Sigh,i wish you had won the war.

[csmith]

[Neeranam]

  On 4/27/2024 at 2:03 AM, csmith said:

UK maximum pension for a single person who paid the full contributions over their working life is 

 

Baht 20,000 a month

 

I know … as that is me!

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Mine is forecast at 29,000.

[Cabradelmar]

  On 4/26/2024 at 11:16 AM, snoop1130 said:

this policy has been in place for over 70 years.

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If you're caught off guard by this then you are not paying attention. No one but yourself to blame. 

[Irons]

  On 4/27/2024 at 12:40 AM, baansgr said:

But when you leave, I believe it goes back to the original time and amount when you left the country 

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I never new that 

[simple1]

  On 4/26/2024 at 11:47 AM, worgeordie said:

it's called  inflation , Brexit did not help , Then Covid  , ,I don't think anyone thought  things

would turn out like this , I am still on 90 quid a week ,good job I don't need it as provided

for myself before retiring at 42 , But I can feel for those relying here on pension only, no

way will we get any relief from the British Government ,too busy looking after immigrants.

 

regards Worgeordie

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Immigrants from outside the EU countries made a net fiscal contribution of about £5.2 billion, thus paying into the system about 3% more than they took out. In contrast, over the same period, natives made an overall negative fiscal contribution of £616.5 billion.

 

https://www.ucl.ac.uk/economics/about-department/fiscal-effects-immigration-uk#:~:text=Immigrants from outside the EU,contribution of £616.5 billion.

[Pouatchee]

  On 4/26/2024 at 10:52 PM, jfeigel said:

 

...I don't know if that is the case with Canada...

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sadly, yes.check out lverpool lou's link. Kanada sucks

[Ralf001]

  On 4/27/2024 at 2:17 AM, Kinok Farang said:

Don't you mean "i'm alright Jack"?

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I dont know what that means.

[terryofcrete]

  On 4/26/2024 at 12:57 PM, Burma Bill said:

For reference - not only Thailand where UK State Pension is frozen but also Burma, Cambodia, Laos, Malaysia, Singapore and Vietnam in this part of the World.

My UK State Pension is frozen at 102 GBP per week, the same as 15 years ago! Fortunately I get two indexed linked police pensions in addition.

 

Full list:

https://www.britishpensions.org.au/archive/frozenindexed.htm

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Wow... that's not a lot ...In Ireland  get €299 a week .. includes living alone allowance... 

[simple1]

  On 4/27/2024 at 2:19 AM, Bobydog said:

Australian pension policy is simple in that if you do not own a residence in Australia and don't live in Aus but reside in Thailand,  then your Australian pension will be taxed at 35% as un earned income. That totally killed my aspirations. 

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I believe you're misinformed. Oz Age Pension is payable in full, according to compliance criteria, whilst living in Thailand.

[Chongalulu]

  On 4/27/2024 at 12:27 AM, fasteddie said:

Oh William Hague said so did he? Did he mention that many people die before ever receiving their pension, the pension that they and their employers paid for all their working lives? Where do those pension contributions go then? William Hague indeed 😂

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Another post based on ignorance. Your occupational pension fund should you die before claiming it will be paid in full to your nominated beneficiary (usually wife) and tax free. Even if you die while receiving it  often 50% of your normal payments will go to your spouse until her demise under most schemes. The state pension which is entirely separate if you die before retirement age will simply not be paid under current rules. There may separately be widows benefits but your pension is exclusive to you.

The real issue is that many more people are living considerably longer than when the actuarial tables were drawn up ,hence the increase in retirement ages. But generally not enough was paid in NI to cover the real costs.

[Stanton681]

  On 4/27/2024 at 1:12 AM, Wobblybob said:

I don't, it is hearsay!

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It’s not.
 

I know 2 Brits here in Isaan who were caught and are having to repay overpayment. Worse is that they’ve had their pensions revert to the amount they received when they moved to Thailand.

[sometime]

  On 4/27/2024 at 2:32 AM, Cabradelmar said:

If you're caught off guard by this then you are not paying attention. No one but yourself to blame. 

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When we moved from the UK to Thailand in 2005 we had no idea of the frozen pension,it wasn't forecast far and wide
 Its only because of the Thaivisa forum that most people are now aware of the situation.

We are lucky we have other means.

[simon43]

The policy of freezing pensions has nothing to do with racism or discrimination.  It's available to UK pensioners in those countries which have signed a double tax agreement with the UK, such as the Philippines.  

 

For whatever reason, Thailand (and Laos and ...) have not signed such an agreement, probably never even requested such an agreement with the UK.

 

Therefore, if you want to moan at someone, moan at the Thai government for failing to request a double tax agreement with the UK!

[Wobblybob]

  On 4/27/2024 at 2:52 AM, Stanton681 said:

It’s not.
 

I know 2 Brits here in Isaan who were caught and are having to repay overpayment. Worse is that they’ve had their pensions revert to the amount they received when they moved to Thailand.

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Getting information from a third party is hearsay.

[Nemises]

  On 4/26/2024 at 12:39 PM, dinsdale said:

Getting an Australian pension overseas is also insane

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Why? AU pensioners in TH get CPI increases. 

[Stanton681]

  On 4/27/2024 at 3:00 AM, Wobblybob said:

Getting information from a third party is hearsay.

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This isn’t 3rd party info, these 2 situations are genuine.

[maechanman]

  On 4/27/2024 at 12:58 AM, delh said:

How, exactly, didn't Brexit help?

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It certainly didn't help the currency exchange rate, £ dropped like a stone after the vote to leave, it has never recovered to pre Brexit levels.

[herfiehandbag]

  On 4/27/2024 at 1:50 AM, Neeranam said:

Oh dear, if you hang around prostitutes, you'll know a soapy massage  costs around £50.

How much would you pay in the UK? 

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We learn so much, as members of Asia Now don't we!

[BritManToo]

  On 4/27/2024 at 3:04 AM, Stanton681 said:

This isn’t 3rd party info, these 2 situations are genuine.

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Let's see the court decision letter!

But we all know there wasn't one.

[Wobblybob]

  On 4/27/2024 at 3:04 AM, Stanton681 said:

This isn’t 3rd party info, these 2 situations are genuine.

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Look Stanton I know you mean well and are trying to help but what your friends tell you is not classed as factual evidence, it is classed as hearsay. 

[NanLaew]

  On 4/26/2024 at 11:48 AM, Ralf001 said:

 

Wow ok 24yrs ago.

 

Sounds like piss poor planning from those whinging about it now !

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Agreeed.

 

Since it was promulgated by a Labour (Blair) government, I doubt there's much chance of a Labour (Starmer) government repealing it.

 

So, I am looking forward to having my stab at the "frozen pension whinge" in about ten tears time.

[Will27]

  On 4/27/2024 at 2:44 AM, simple1 said:

 

I believe you're misinformed. Oz Age Pension is payable in full, according to compliance criteria, whilst living in Thailand.

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I assume he's talking about getting taxed as a non-resident.