Bonus For British Retirees

[pautai]

£32,000 to put off your pension

Michael Clarke, This is Money,

2 February 2005

THE Government is offering a £32,000 sweetener for people who are prepared to delay receiving their State pension for five years.

[bartender100]

How many people live till 70 in Thailand?Any one want a Honda Wave?

[astral]

I thought they had to pay the benefits at 60 now, for men,

to bring them in line with women who can retire at 60?

Following an appeal to the European court.

If so a delay to 65 is not a bad deal.

[chico]

does this mean, the next five years you lose your retirement pay, but get 32.000, or appr. 533 a month?

or 32.000 now, and after those 5 years the next 5 years double to catch up?

[Thetyim]

The big question that is not answered in that article is WHEN do they pay you the 32k.

If paid when you are 65 then it is a very good deal even when the proposed increases are factored in.

If paid when you are 70 then you would be stupid to sign up.

My guess is the latter

Here is a link

http://www.thisismoney.co.uk/retirement/ar...81&in_page_id=6

Edited February 3, 2005 by Thetyim

[the scouser]

I thought they had to pay the benefits at 60 now, for men,

to bring them in line with women who can retire at 60?

Following an appeal to the European court.

<{POST_SNAPBACK}>

You're correct about the European Court judgement which ruled that the government can't discriminate between the sexes in terms of payment of state pension. The upshot? Women are now to be paid theirs at 65 (phased in).

Scouse.

[Thetyim]

or 32.000 now, and after those 5 years the next 5 years double to catch up?

I think you are being a bit optomistic there, Chico.

Remember this is the British Government, they are trying to save money not give it away.

[apetley]

Not too far in the future any Brits living abroad, outside of Europe, won't be getting a UK State pension.

All Political Parties are talking of introducing a 'Citizens' Pension. That is for anyone living in the UK!

If your young and thinking of retiring and living in Thailand make sure you have the means to support yourself in old age because one thing you can be sure of and that is you won't be getting UK Government support.

[Wanraya]

I am male, now 60, English and living in Greece. I am not sure if/when I can transfer what pension I have in the UK to Greece, or visa versa. I have 17 years employment in UK and 10 years in Greece, so would not get a full pension in either country.

Can I take 'early retirement' on 'medical grounds'? Have a heart and a lung condition?

Any ideas Scouser??

<{POST_SNAPBACK}>

You will get a proprtional pension from both Greece and the UK.

The UK government will request your work record from Greece and will then work out how much pension you would have got had all 27 years been in the UK(which would equate to 62% of the standard rate). Your will then get 17/27ths of that amount.

Similarly the Greek government will request your UK record and and calculate the amount had all 27 years been paid into the Greek system and then pay you 10/27ths of that amount.

You can also pay voluntary National Insurance contributions up tto six years in arrears to help increase your pension entitlement. So at the moment it is still possible to pay contributions for the 1999/2000 tax year onwards.

[ThaiPauly]

I worked and payed tax in the UK from the age of 16-50.

Will I still be entilyled to a full pension when I am 65?

Anybody know.?

Thanks in advance

TP

[khunlungphudhu]

The UK Pension Service can be found on line and a downloadable form is available that will enable anyone to get a forcast. Sorry I do not have the address to hand right now.

[apetley]

I worked and payed tax in the UK from the age of 16-50.

Will I still be entilyled to a full pension when I am 65?

Anybody know.?

Thanks in advance

Hi, you may want to check this Govt site out, it will give you a pension forecast based on age and contributions.

http://www.thepensionservice.gov.uk/atoz/a.../rpforecast.asp

I doubt very much if you will get a full pension, I think you need 44 years of National Insurance contributions for that.

[ThaiPauly]

I visited the site thanks, but it would appear that they will not bive you a pension forecast if you live overseas

[Thetyim]

The present system gives you a pension based on how many years of

contributions you have made.

The proposed new system is based upon the years of residency.

I think we are all in for a stitch up.

[Wanraya]

I worked and payed tax in the UK from the age of 16-50.

Will I still be entilyled to a full pension when I am 65?

Anybody know.?

Thanks in advance

TP

<{POST_SNAPBACK}>

You will not be entitled to a full pension. To get a full pension you need to pay contributions to a qualifying level for 44 tax years (requisite years).

If you fall short of this number your entitlement will be calculated as follows:-

Qualifying years/ Requisite years multiplied by 100 rounded up to the nearest percentage point so your record will give you 35/44 * 100 = 80% of the standard rate.

You can obtain the full rate by paying contributions voluntarily for 9 years between now and the time you reach 65. It is possible to pay contributions up to 6 years in arrears so it is currently possible to pay voluntary contributions for the 1998/1999 tax tear onwards.

If you are employed overseas (or indeed even if you only say you are - they don't check - I used to work there) you are permitted to pay conts at the class 2 rate which works out at just over 100 quid a year.

[ThaiPauly]

Thanks Wanraya, thats very useful information, which department would I contact if I wish to pay the contributions, my local tax office?

Thanks in advance, you have been most helpful

TP

[Steve2UK]

I visited the site thanks, but it would appear that they will not bive you a pension forecast if you live overseas

<{POST_SNAPBACK}>

I'm looking at the same issue (although I'm currently still in UK) and I found the following link from the Pensions site that should be useful (specifically relating to UK citizens living overseas) :

http://www.inlandrevenue.gov.uk/cnr/osc.htm

And there's some more detail about paying additional (voluntary) NI contributions in this booklet:

http://www.inlandrevenue.gov.uk/leaflets/ca08.pdf

Fun, eh?

Edited February 7, 2005 by Steve2UK

[boogie]

Hi Guys,

I have been paying my contributions back for a few years now. You can get a forecast. Try this link :-

http://www.inlandrevenue.gov.uk/cnr/osc.htm#5

It shows you which form you need to download and complete (CA3638)

The address to send it to and any correspondence is :-

Inland Revenue

Centre for Non-Residents (Newcastle)

Longbenton

Newcastle Upon Tyne

NE98 1ZZ

United Kingdom.

Also you can now pay Class 2 instead of class 3 contributions, currently £106.60 a year instead of £350 odd for class 3. Quite a difference.

Hope this may help

Edited February 7, 2005 by boogie

[Wanraya]

Also you can now pay Class 2 instead of class 3 contributions, currently £106.60 a year instead of £350 odd for class 3. Quite a difference.

Hope this may help

<{POST_SNAPBACK}>

You can pay class 2 conts only if you are either employed or self-employed whilst overseas. If you are not employed you must pay them at the class 3 rate.

To ensure you are able to pay them at the class 2 rate do not tick the not employed box on the application form.

They do not check, I used to work there, so even if your aren't employed just tell them that you are.

Edited February 8, 2005 by Wanraya