UK International State Pension calculation.

[phetphet]

Due to one thing or another, I haven't yet claimed my UK State pension as a retiree living in Thailand.  I am completing the application forms now.

 

I realise that if I backdate to my 66th birthday in 2024, it will be calculated from then, and I would likely get a lump sum back payment minus any tax based on 2024 pension rates, and will never increase while living in Thailand.

I realise that I can also apply for it to kick in from a later date that would increase my payment. Minimum period of nine weeks and multiples of said nine weeks.  I read somewhere that gives about 4%/ nine weeks/year.

 

If I apply for my pension  to start after end of tax year April 2025 would I be eligible for any proposed pension increase in April? Just trying to figure out most advantageous route.

 

On another note. Are there any advantages/disadvantages for either having pension paid into UK bank account vs Thai bank account?

 

TIA

[topt]

4 hours ago, phetphet said:

and I would likely get a lump sum back payment

Nope - not unless originally due 2016 or before

https://www.gov.uk/deferring-state-pension/what-you-get

 

That link also tells you exactly the amounts you would get currently. (based on full entitlement)

 

[safarimike11]

4 hours ago, phetphet said:

Due to one thing or another, I haven't yet claimed my UK State pension as a retiree living in Thailand.  I am completing the application forms now.

 

I realise that if I backdate to my 66th birthday in 2024, it will be calculated from then, and I would likely get a lump sum back payment minus any tax based on 2024 pension rates, and will never increase while living in Thailand.

I realise that I can also apply for it to kick in from a later date that would increase my payment. Minimum period of nine weeks and multiples of said nine weeks.  I read somewhere that gives about 4%/ nine weeks/year.

 

If I apply for my pension  to start after end of tax year April 2025 would I be eligible for any proposed pension increase in April? Just trying to figure out most advantageous route.

 

On another note. Are there any advantages/disadvantages for either having pension paid into UK bank account vs Thai bank account?

 

TIA

I would think that you will get the pension rate from the date of your 66th birthday and not depending on when you apply for your pension. Whether you opt for a lump sum or defer the date to take advantage of the associated increased pension rate is obviously your choice. I applied from here a few years ago - when the pension age was also 66; I was thinking about this deferring the date, but decided against it because of the backlog of initial pension payouts at the time; I got mine exactly 4 months late.

[topt]

1 hour ago, safarimike11 said:

Whether you opt for a lump sum

As already mentioned that is not an option.

[MartinL]

The pension rate for deferral is 1%/9 weeks, NOT 4%.

https://www.gov.uk/deferring-state-pension/what-you-get

 

I did this calc. for my brother who works in China and he was considering deferral until 70 which would result in a 23% increase in his SP. In his case, taking his pension ASAP would have been financially more advantageous than deferring. Screenshot of calc. attached although yours would be different, of course, but deferral would result in  a lower cumulative pension over the years. Although not shown in the screenshot, the crossover point, at which cumulative deferred pension becomes greater than cumulative pension taken at 66, would be 87 y.o. He's decided to take at 66, later this year. Whether he'll then live in a 'frozen' country he's not yet decided but he won't stay in China.

 

 

 

 

[OJAS]

23 hours ago, phetphet said:

If I apply for my pension  to start after end of tax year April 2025 would I be eligible for any proposed pension increase in April?

 

Based on my experience 10 years ago, you should be. I became eligible for the State Pension in August 2014 but delayed claiming it until April 2015, as a result of which I was able to obtain at least 1 annual triple-lock increase!