Brit Pension Sent To Thailand

[mikecwm]

Hello.

I have tried searching but have not found an answer to my question, so here goes.

I am currently living in Canada, but moving to Thailand in 3 1/2 years.

I start receiving my UK state pension in 18 months.

Do you think I would be better to open a bank account in Thailand using my Thai wifes home address there, and have my UK pension sent to the bank in Thailand? I'm presuming that It will not be taxed in Thailand.

If I have it sent to Canada I'm sure it will be added to the income I now receive in canada - and so I will lose approx 50% of it.

I'd be okay if it sat in a low interest bank account for 18months until I get to Thailand permanently.

Of course if someone can come up with a better way of keeping it safe in Thailand - and earning a decent interest I'm be most interested to find out how.

Thanks for any help from those of you have been there - done that.

[endure]

If you have other income in the UK that, together with the pension, takes you over the Personal Allowance it will be taxed in the UK. All income arising in the UK is taxed in the UK.

[nong38]

If you have other income in the UK that, together with the pension, takes you over the Personal Allowance it will be taxed in the UK. All income arising in the UK is taxed in the UK.

Yes thats the way I understand it as well. You can arrange for it to paid into a bank in Thailand but it will be taxed before its sent. The tax allowance foe the year 2011/2012 has gone up to I think7475 which is a lot more of a rise than we used to get, for 2012/2013 it goes up again to over 8000. The current govt has said that by the end of their stint the allowance will be 10,000.

[Tafia]

Another thing you need to be aware of (not sure about Canada) but you will not receive the Index linking (the cost of living annual increases) whilst in Thailand.

As already stated any income from the UK which is over your personal allowance is subject to tax.

There is a facility available to have your UK pension paid directly to a Thai account details can be found on the website http://www.direct.gov.uk/en/index.htm

[Chivas]

This opens the old chestnut of retaining a UK base to allow for index linking to take place.Whilst I absolutely don't condone manipulating the system its clear from nearly 20 years of visiting Thailand that many "real" expats do indeed maintain a UK base via for example their children.

But why transfer your pension to a Thai Bank ? Use an ATM to draw it weekly from a UK bank ? If people are concerned at ATM charges than IMHO you don't have enough to retire here in the first place ??

I personally would be more concerned at retaining full UK residency to allow full use of the NHS as and when.Most people are unaware that leaving the UK for more than 90 days invalidates your NHS cover and you're supposed to re-establish UK "residency" prior to treatment.

In practice this rarely occurs.

[Tafia]

This opens the old chestnut of retaining a UK base to allow for index linking to take place.Whilst I absolutely don't condone manipulating the system its clear from nearly 20 years of visiting Thailand that many "real" expats do indeed maintain a UK base via for example their children.

But why transfer your pension to a Thai Bank ? Use an ATM to draw it weekly from a UK bank ? If people are concerned at ATM charges than IMHO you don't have enough to retire here in the first place ??

I personally would be more concerned at retaining full UK residency to allow full use of the NHS as and when.Most people are unaware that leaving the UK for more than 90 days invalidates your NHS cover and you're supposed to re-establish UK "residency" prior to treatment.

In practice this rarely occurs.

You are correct that there are many who do this and its an individuals choice whether he takes that chance or not, its more than manipulating the system..it's fraud and could prove costly if caught. Just be aware

Some are concerned, with UK banks charges on withdrawals + ATM charges it takse a chunk out of their income. With sterling lower than previous years many expats would prefer not to pay anymore to the banks, every little helps.

As you say once you leave for 90 days and more your 'full UK residency' is lost and has to be re-established by returning for 6 months (I think) or treatment will be charged for.

I know of one individual case where this has happened, despite this person having a home and business in the UK.

It is up to each individual to decide what, how and where to proceed to get the best deal for himself...calculate the risks and make that decision.

Just.. Proceed with Caution, while the UK is trying to sort out its books with cutbacks, big brother will probably be working overtime!!

Edited April 4, 2011 by Tafia

[Chivas]

This opens the old chestnut of retaining a UK base to allow for index linking to take place.Whilst I absolutely don't condone manipulating the system its clear from nearly 20 years of visiting Thailand that many "real" expats do indeed maintain a UK base via for example their children.

But why transfer your pension to a Thai Bank ? Use an ATM to draw it weekly from a UK bank ? If people are concerned at ATM charges than IMHO you don't have enough to retire here in the first place ??

I personally would be more concerned at retaining full UK residency to allow full use of the NHS as and when.Most people are unaware that leaving the UK for more than 90 days invalidates your NHS cover and you're supposed to re-establish UK "residency" prior to treatment.

In practice this rarely occurs.

You are correct that there are many who do this and its an individuals choice whether he takes that chance or not, its more than manipulating the system..it's fraud and could prove costly if caught. Just be aware

Some are concerned, with UK banks charges on withdrawals + ATM charges it takse a chunk out of their income. With sterling lower than previous years many expats would prefer not to pay anymore to the banks, every little helps.

As you say once you leave for 90 days and more your 'full UK residency' is lost and has to be re-established by returning for 6 months (I think) or treatment will be charged for.

I know of one individual case where this has happened, despite this person having a home and business in the UK.

It is up to each individual to decide what, how and where to proceed to get the best deal for himself...calculate the risks and make that decision.

Just.. Proceed with Caution, while the UK is trying to sort out its books with cutbacks, big brother will probably be working overtime!!

Oh very very true-whilst I am not going to enter dialogue as to how I know, you would be astonished to know how much big brother knows about us in particular reference to Thailand.

All I will say is that further to a Big Brother investigation into myself they were able to tell me what private clinic I was born in in West Germany 50 years ago, when I didn't even know MYSELF !!

Edited April 4, 2011 by Chivas

[Tafia]

Oh very very true-whilst I am not going to enter dialogue as to how I know, you would be astonished to know how much big brother knows about us in particular reference to Thailand.

All I will say is that further to a Big Brother investigation into myself they were able to tell me what private clinic I was born in in West Germany 50 years ago, when I didn't even know MYSELF !!

A casing point, and I wish anyone who does take the chance every luck in the world, god knows they owe us enough, Im fortunate to have a reasonable work pension so when the state kicks in it will be a sort of top up.

I agree though that one should be aware with at least the knowledge that big brother is real and active.

A worrying thought whatever you think.

[billd766]

This opens the old chestnut of retaining a UK base to allow for index linking to take place.Whilst I absolutely don't condone manipulating the system its clear from nearly 20 years of visiting Thailand that many "real" expats do indeed maintain a UK base via for example their children.

But why transfer your pension to a Thai Bank ? Use an ATM to draw it weekly from a UK bank ? If people are concerned at ATM charges than IMHO you don't have enough to retire here in the first place ??

I personally would be more concerned at retaining full UK residency to allow full use of the NHS as and when.Most people are unaware that leaving the UK for more than 90 days invalidates your NHS cover and you're supposed to re-establish UK "residency" prior to treatment.

In practice this rarely occurs.

I am getting my pensions transferred to Thailand.

At the moment for every 10,000 baht I transfer costs me about GBP 3.25 plus 150 baht which comes to about the same again so 3 transfers cost about 19.50 depending on the exchange rate. The pension company charge me 3.50 flat rate and I take my chance by transferring sterling (I hope) instead of GBP.

That to me works out at a saving of nearly GBP 200 per year.

In addition to all that when I die and my pension is reduced it will still be paid into a joint account here in Thailand so that my wife and son will have no problems in getting access to it.

If it is still in my UK account and when I die the account is frozen then how will my family get it when THEY need it.

As for YHO that people who worry about ATM charges shouldn't be here in the first place, may I ask, politely of course, who set you up to rule whether anyone has enough money to stay here or not? If it was your own opinion then please keep it to yourself.

[Chivas]

This opens the old chestnut of retaining a UK base to allow for index linking to take place.Whilst I absolutely don't condone manipulating the system its clear from nearly 20 years of visiting Thailand that many "real" expats do indeed maintain a UK base via for example their children.

But why transfer your pension to a Thai Bank ? Use an ATM to draw it weekly from a UK bank ? If people are concerned at ATM charges than IMHO you don't have enough to retire here in the first place ??

I personally would be more concerned at retaining full UK residency to allow full use of the NHS as and when.Most people are unaware that leaving the UK for more than 90 days invalidates your NHS cover and you're supposed to re-establish UK "residency" prior to treatment.

In practice this rarely occurs.

I am getting my pensions transferred to Thailand.

At the moment for every 10,000 baht I transfer costs me about GBP 3.25 plus 150 baht which comes to about the same again so 3 transfers cost about 19.50 depending on the exchange rate. The pension company charge me 3.50 flat rate and I take my chance by transferring sterling (I hope) instead of GBP.

That to me works out at a saving of nearly GBP 200 per year.

In addition to all that when I die and my pension is reduced it will still be paid into a joint account here in Thailand so that my wife and son will have no problems in getting access to it.

If it is still in my UK account and when I die the account is frozen then how will my family get it when THEY need it.

As for YHO that people who worry about ATM charges shouldn't be here in the first place, may I ask, politely of course, who set you up to rule whether anyone has enough money to stay here or not? If it was your own opinion then please keep it to yourself.

Of course naturally I can keep my opinions to myself however you may well find that the forum would cease to exist if everyone followed likewise

[nong38]

This opens the old chestnut of retaining a UK base to allow for index linking to take place.Whilst I absolutely don't condone manipulating the system its clear from nearly 20 years of visiting Thailand that many "real" expats do indeed maintain a UK base via for example their children.

But why transfer your pension to a Thai Bank ? Use an ATM to draw it weekly from a UK bank ? If people are concerned at ATM charges than IMHO you don't have enough to retire here in the first place ??

I personally would be more concerned at retaining full UK residency to allow full use of the NHS as and when.Most people are unaware that leaving the UK for more than 90 days invalidates your NHS cover and you're supposed to re-establish UK "residency" prior to treatment.

In practice this rarely occurs.

When I go back to the UK my pension claim form will be waiting for me, one of the questions on the form asks if I have spent more than 3 months in the last 12 out of the UK. It seems that at that point they will check your passport for movements, so iw will be difficult in the future circumvent the system. It may be possible to get away with it for a year by saying " I am a UK resident temporarily living abroad." Followed by I am exploring the possibilty of living abroad." So at best might get a couple of years before you asked to make your mind up.

It is galling, when you see the rif raf they have let in giving them all the bebefits and then begrudge true brits a pension increase annually and dont mrntion the overseas development budget or should I say prop up a load of dictators.

Edited April 4, 2011 by nong38

[PattayaParent]

This opens the old chestnut of retaining a UK base to allow for index linking to take place.Whilst I absolutely don't condone manipulating the system its clear from nearly 20 years of visiting Thailand that many "real" expats do indeed maintain a UK base via for example their children.

But why transfer your pension to a Thai Bank ? Use an ATM to draw it weekly from a UK bank ? If people are concerned at ATM charges than IMHO you don't have enough to retire here in the first place ??

I personally would be more concerned at retaining full UK residency to allow full use of the NHS as and when.Most people are unaware that leaving the UK for more than 90 days invalidates your NHS cover and you're supposed to re-establish UK "residency" prior to treatment.

In practice this rarely occurs.

I'm more concerned with not being associated in any way with UK residency or domicile in order to not be subject to inheritence tax.

[Chivas]

This opens the old chestnut of retaining a UK base to allow for index linking to take place.Whilst I absolutely don't condone manipulating the system its clear from nearly 20 years of visiting Thailand that many "real" expats do indeed maintain a UK base via for example their children.

But why transfer your pension to a Thai Bank ? Use an ATM to draw it weekly from a UK bank ? If people are concerned at ATM charges than IMHO you don't have enough to retire here in the first place ??

I personally would be more concerned at retaining full UK residency to allow full use of the NHS as and when.Most people are unaware that leaving the UK for more than 90 days invalidates your NHS cover and you're supposed to re-establish UK "residency" prior to treatment.

In practice this rarely occurs.

When I go back to the UK my pension claim form will be waiting for me, one of the questions on the form asks if I have spent more than 3 months in the last 12 out of the UK. It seems that at that point they will check your passport for movements, so iw will be difficult in the future circumvent the system. It may be possible to get away with it for a year by saying " I am a UK resident temporarily living abroad." Followed by I am exploring the possibilty of living abroad." So at best might get a couple of years before you asked to make your mind up.

It is galling, when you see the rif raf they have let in giving them all the bebefits and then begrudge true brits a pension increase annually and dont mrntion the overseas development budget or should I say prop up a load of dictators.

Again without going into too much dialogue I wouldnt worry too much about the possibility of anyone checking your passport because the Entry/Exit dates are all on file accessable by the Home Office any time they wish.

And before someone shouts Data Protection it doesn't apply-period.

Edited April 4, 2011 by Chivas

[bangkokeddie]

I'm more concerned with not being associated in any way with UK residency or domicile in order to not be subject to inheritence tax.

Can you please explain what you mean, PP?

Are you suggesting that non doms (ex UK) are not subject to UK inheritance tax in the event of someone in the UK dying and bequeathing something to them?

Thanks!

Edited April 4, 2011 by bangkokeddie

[PattayaParent]

I'm more concerned with not being associated in any way with UK residency or domicile in order to not be subject to inheritence tax.

Can you please explain what you mean, PP?

Are you suggesting that non doms (ex UK) are not subject to UK inheritance tax in the event of someone in the UK dying and bequeathing something to them?

Thanks!

Not sure about that scenario, I'm more worried about them taking 40% off what I bequeath when I croak but from what I've read in that regard I'd say the IHT is applied to the estate of the person who died, so any bequests would be paid out after tax has been deducted.

[bangkokeddie]

I'm more concerned with not being associated in any way with UK residency or domicile in order to not be subject to inheritence tax.

Can you please explain what you mean, PP?

Are you suggesting that non doms (ex UK) are not subject to UK inheritance tax in the event of someone in the UK dying and bequeathing something to them?

Thanks!

Not sure about that scenario, I'm more worried about them taking 40% off what I bequeath when I croak but from what I've read in that regard I'd say the IHT is applied to the estate of the person who died, so any bequests would be paid out after tax has been deducted.

OK, thanks for the clarification!

The only way I know to 'avoid' (not 'evade') IHT, certainly with regard to property in the UK, is to gift one's estate before one's death, and then survive the gift by 7 years. Otherwise, I believe HMG UK will be looking for their 40% irrespective of where you live, no?

e

[nong38]

This opens the old chestnut of retaining a UK base to allow for index linking to take place.Whilst I absolutely don't condone manipulating the system its clear from nearly 20 years of visiting Thailand that many "real" expats do indeed maintain a UK base via for example their children.

But why transfer your pension to a Thai Bank ? Use an ATM to draw it weekly from a UK bank ? If people are concerned at ATM charges than IMHO you don't have enough to retire here in the first place ??

I personally would be more concerned at retaining full UK residency to allow full use of the NHS as and when.Most people are unaware that leaving the UK for more than 90 days invalidates your NHS cover and you're supposed to re-establish UK "residency" prior to treatment.

In practice this rarely occurs.

You are correct that there are many who do this and its an individuals choice whether he takes that chance or not, its more than manipulating the system..it's fraud and could prove costly if caught. Just be aware

Some are concerned, with UK banks charges on withdrawals + ATM charges it takse a chunk out of their income. With sterling lower than previous years many expats would prefer not to pay anymore to the banks, every little helps.

As you say once you leave for 90 days and more your 'full UK residency' is lost and has to be re-established by returning for 6 months (I think) or treatment will be charged for.

I know of one individual case where this has happened, despite this person having a home and business in the UK.

It is up to each individual to decide what, how and where to proceed to get the best deal for himself...calculate the risks and make that decision.

Just.. Proceed with Caution, while the UK is trying to sort out its books with cutbacks, big brother will probably be working overtime!!

Once you are 65 the loss of NHS status is re instated, so the NHS in Whitehall told me last year, so the issue is age.

[Gambles]

I'm more concerned with not being associated in any way with UK residency or domicile in order to not be subject to inheritence tax.

Can you please explain what you mean, PP?

Are you suggesting that non doms (ex UK) are not subject to UK inheritance tax in the event of someone in the UK dying and bequeathing something to them?

Thanks!

Not sure about that scenario, I'm more worried about them taking 40% off what I bequeath when I croak but from what I've read in that regard I'd say the IHT is applied to the estate of the person who died, so any bequests would be paid out after tax has been deducted.

OK, thanks for the clarification!

The only way I know to 'avoid' (not 'evade') IHT, certainly with regard to property in the UK, is to gift one's estate before one's death, and then survive the gift by 7 years. Otherwise, I believe HMG UK will be looking for their 40% irrespective of where you live, no?

e

In general, IHT is charged on the entire worldwide estate of anyone UK domiciled

IHT is charged on UK assets irrespective of domicile

Obviously it's charged on surplus above nil rate band plus any non-dom spouse allowance

Transfers between UK dom spouses are exempted

Anyone born to a UK father has UK domicile of origin - to lose that generally means establishing a bullet proof domicile of choice

Any UK connection is generally regarded as potential evidence of maintaining a UK link and therefore retaining UK domicile

Any change in domicile of choice automatically reverts to domicile of origin

UK company pensions are now regarded as portable assets and therefore part of any plan to adopt a new domicile of choice would normally need to consider transferring the UK pension offshore (potentially reducing/avoiding income tax into the bargain)

UK state pensions aren't regarded as portable so shouldn't really be used as any kind of evidence in a dom of choice assessment

Discounted gift trusts, gift & loans, QNUPS and Excluded property trusts should also be considered in addition to gifts/potentially exempt transfers

Edited April 4, 2011 by Gambles

[MAJIC]

This opens the old chestnut of retaining a UK base to allow for index linking to take place.Whilst I absolutely don't condone manipulating the system its clear from nearly 20 years of visiting Thailand that many "real" expats do indeed maintain a UK base via for example their children.

But why transfer your pension to a Thai Bank ? Use an ATM to draw it weekly from a UK bank ? If people are concerned at ATM charges than IMHO you don't have enough to retire here in the first place ??

I personally would be more concerned at retaining full UK residency to allow full use of the NHS as and when.Most people are unaware that leaving the UK for more than 90 days invalidates your NHS cover and you're supposed to re-establish UK "residency" prior to treatment.

In practice this rarely occurs.

When I go back to the UK my pension claim form will be waiting for me, one of the questions on the form asks if I have spent more than 3 months in the last 12 out of the UK. It seems that at that point they will check your passport for movements, so iw will be difficult in the future circumvent the system. It may be possible to get away with it for a year by saying " I am a UK resident temporarily living abroad." Followed by I am exploring the possibilty of living abroad." So at best might get a couple of years before you asked to make your mind up.

It is galling, when you see the rif raf they have let in giving them all the bebefits and then begrudge true brits a pension increase annually and dont mrntion the overseas development budget or should I say prop up a load of dictators.

Again without going into too much dialogue I wouldnt worry too much about the possibility of anyone checking your passport because the Entry/Exit dates are all on file accessable by the Home Office any time they wish.

And before someone shouts Data Protection it doesn't apply-period.

My understanding of theUK 1988 Data Protection Act,applies to all British CitIzens,and they can apply to any Government Department , or Private Company and request a full disclosure of anything and everything that is held on their Computers concerning an individual without exception,or refusal to send computerised Documents.There is also a time limit,to produce the evidence.

Is this still true, or not? or have things changed yet again???

Edited April 4, 2011 by MAJIC

[PattayaParent]

OK, thanks for the clarification!

The only way I know to 'avoid' (not 'evade') IHT, certainly with regard to property in the UK, is to gift one's estate before one's death, and then survive the gift by 7 years. Otherwise, I believe HMG UK will be looking for their 40% irrespective of where you live, no?

e

If you can establish non-dom status you won't be liable for IHT.

You can do that for example by getting another nationality, or permanent residence in another country, or even by just being out of UK and resident in your domicile of choice for 3 years, but that is much harder to establish.

If I remember right Gambles is a financial adviser so he should know what he's talking about.

[nong38]

It is amazing how HM pension service can state if you go out the country for 90 days that a question then appears about your residency and we have to give up our annual increase of state pension. They could argue that as I spend 9/10 months in Thailand that this now my preferred residence as a reason for doing so ( have yet to hear why they freeze it).Meanwhile over at HMCR they tax me as if I lived in the UK 9/10 months of the year. Should really talk to each other and sort out a fair system the reflects the 2 positions. It seems like heads they win, tails I lose. Dick Turpin without a mask!

You can avoid the ATM charges by going inside the bank with debit card and passport and making withdrawls, I am not charged for this.

Edited April 5, 2011 by nong38

[PattayaParent]

Well the good news is that there'll be a £2,000 rise in the basic state pension.

(At least that's what the headline said, the article is somewhat different)

http://uk.finance.yahoo.com/news/Millions-workers-pay-higher-tele-570504215.html?x=0

[billd766]

It is amazing how HM pension service can state if you go out the country for 90 days that a question then appears about your residency and we have to give up our annual increase of state pension. They could argue that as I spend 9/10 months in Thailand that this now my preferred residence as a reason for doing so ( have yet to hear why they freeze it).Meanwhile over at HMCR they tax me as if I lived in the UK 9/10 months of the year. Should really talk to each other and sort out a fair system the reflects the 2 positions. It seems like heads they win, tails I lose. Dick Turpin without a mask!

You can avoid the ATM charges by going inside the bank with debit card and passport and making withdrawals, I am not charged for this.

You may avoid the 150 baht charged by Thai banks but you will still pay the charge at your bank end so on 10,000 you would save about half the fees.

[chiang mai]

Well the good news is that there'll be a £2,000 rise in the basic state pension.

(At least that's what the headline said, the article is somewhat different)

http://uk.finance.yahoo.com/news/Millions-workers-pay-higher-tele-570504215.html?x=0

I sense a huge con in the making here, the state pension is currently GBP 97 a week and it's now index linked so that every year it will increase by CPI or 2.5%, whichever is greater. Calculate those increases out over the next five years and the pension will be worth GBP 110 a week anyway, even if no changes are made to the system of payments. The amount of increase to the state pension is therefore not as great as it first appears to be, especially since SP2 will be eliminated at the same time.

But the other event that is likely to take place around 2015 is that tax and NI will be rolled up and called tax hence the pension of GBP 110 (or GBP 140) will be taxed at 32%. Ah but pensioners will be exempt from that roll up rate I hear someone shout, perhaps, but let's also remember that by 2015 the retirement age for taxation purposes will not be age 65!

[bangkokeddie]

OK, thanks for the clarification!

The only way I know to 'avoid' (not 'evade') IHT, certainly with regard to property in the UK, is to gift one's estate before one's death, and then survive the gift by 7 years. Otherwise, I believe HMG UK will be looking for their 40% irrespective of where you live, no?

e

If you can establish non-dom status you won't be liable for IHT.

You can do that for example by getting another nationality, or permanent residence in another country, or even by just being out of UK and resident in your domicile of choice for 3 years, but that is much harder to establish.

If I remember right Gambles is a financial adviser so he should know what he's talking about.

Interesting, PP, thanks! I've been "non dom" for nearly 10 years so it sounds as if UK IHT doesn't apply to me...

[PattayaParent]

If you can establish non-dom status you won't be liable for IHT.

You can do that for example by getting another nationality, or permanent residence in another country, or even by just being out of UK and resident in your domicile of choice for 3 years, but that is much harder to establish.

If I remember right Gambles is a financial adviser so he should know what he's talking about.

Interesting, PP, thanks! I've been "non dom" for nearly 10 years so it sounds as if UK IHT doesn't apply to me...

Me too, I hope. It's difficult to establish though and as I'll be dead I'll not find out how successful it is.

There is one other extreme way to elimiinate / reduce the IHT.

Go home and set about getting your spouse UK domiciled, then you're tax free allowance is doubled to about GBP 650,000 so you only pay tax on any amount above that.

[SweatiePie]

Not correct, PP. It all depends on where the first to die is domiciled.

In summary:

First to die UK domiciled, spouse UK domiciled: full spousal exemption (no Inheritance Tax)

First to die UK domiciled, spouse non-UK domiciled: personal allowance + limited spousal exemption (£325,000 + £55,000 = £380,000)

First to die non-UK domiciled, spouse UK or non-UK domiciled: full spousal exemption (no Inheritance Tax)

If your wife is non-UK domiciled her estate outside the UK is not liable for Inheritance tax on her death; if she becomes UK domiciled, however, then her estate world-wide is liable for UK Inheritance Tax. Not necessarily a good move.

Edited April 6, 2011 by SweatiePie

[phutoie2]

Well the good news is that there'll be a £2,000 rise in the basic state pension.

(At least that's what the headline said, the article is somewhat different)

http://uk.finance.ya...504215.html?x=0

I sense a huge con in the making here, the state pension is currently GBP 97 a week and it's now index linked so that every year it will increase by CPI or 2.5%, whichever is greater. Calculate those increases out over the next five years and the pension will be worth GBP 110 a week anyway, even if no changes are made to the system of payments. The amount of increase to the state pension is therefore not as great as it first appears to be, especially since SP2 will be eliminated at the same time.

But the other event that is likely to take place around 2015 is that tax and NI will be rolled up and called tax hence the pension of GBP 110 (or GBP 140) will be taxed at 32%. Ah but pensioners will be exempt from that roll up rate I hear someone shout, perhaps, but let's also remember that by 2015 the retirement age for taxation purposes will not be age 65!

I was reading that the pension age rise comes in 2020, I will have to wait an extra year (66).

The new pension proposal rate (140 or 155 GBP what ever it is likely to be) will be for new pensioners only, when it comes in, which the UK newspapers have now started to make a little noise on.

Personally I think it a bit risky using a UK address for state pension. A Brit at our golf club has just had his stopped due to not living at the given UK address.

He has been sent a load of forms to fill in and no doubt he may have to pay money back and perhaps a case of fraud to answer.

Edited April 6, 2011 by phutoie2

[chiang mai]

Well the good news is that there'll be a £2,000 rise in the basic state pension.

(At least that's what the headline said, the article is somewhat different)

http://uk.finance.ya...504215.html?x=0

I sense a huge con in the making here, the state pension is currently GBP 97 a week and it's now index linked so that every year it will increase by CPI or 2.5%, whichever is greater. Calculate those increases out over the next five years and the pension will be worth GBP 110 a week anyway, even if no changes are made to the system of payments. The amount of increase to the state pension is therefore not as great as it first appears to be, especially since SP2 will be eliminated at the same time.

But the other event that is likely to take place around 2015 is that tax and NI will be rolled up and called tax hence the pension of GBP 110 (or GBP 140) will be taxed at 32%. Ah but pensioners will be exempt from that roll up rate I hear someone shout, perhaps, but let's also remember that by 2015 the retirement age for taxation purposes will not be age 65!

I was reading that the pension age rise comes in 2020, I will have to wait an extra year (66).

The new pension proposal rate (140 or 155 GBP what ever it is likely to be) will be for new pensioners only, when it comes in, which the UK newspapers have now started to make a little noise on.

Personally I think it a bit risky using a UK address for state pension. A Brit at our golf club has just had his stopped due to not living at the given UK address.

He has been sent a load of forms to fill in and no doubt he may have to pay money back and perhaps a case of fraud to answer.

Yes it is very risky, increasingly so. The point I was trying to make though is that the increase is really not that great and it looks like the increased tax rate (Tax and NI combined) will likely erase any gain. You can see the spin that's being deployed on this subject, the government green paper (the first stage of a very lengthy process where the contents will change) calls for a pension of 140 Pounds in 2015 which is now being termed as 155 Pounds due to inflationary increases - BTW, I think the increased pension age will come into effect before 2020.

[phutoie2]

This link is a good scource for UK Pension info..

The pension age calculator is useful too, but based on current regulations.

UK DWP