Why Are You Even Here? The Surprising Attitudes of Some Expats in Thailand

[JackisBack]

Looking back over the years I never really gave much thought to reaching 65 , and yet some how time has flown at a mysterious and alarming rate , next year I officially become a pensioner

So I'm now wondering what's in store for me and what action do I have to take to reap any rightful benefits .

Ive searched the subject here , and managed to see snippets of information , but I thought I would ask a few questions that hopefully you guy's can kindly offer answers / advice to.

A bit of personal information .

1. I left the Uk over 15 years ago and not been back since .

2. I registered for and received Uk non resident status .

3. I have no Uk property / assets / income

4. I have voluntarily paid all the necessary National Insurance contributions to be able to claim my state pension.

5. I have a HSBC Uk bank account ( account address in Thailand )

6. I have an offshore account with Alliance & Leicester ( Isle of Man ) that pays gross interest .

7. I am married to a Thai national ( she has never resided or been to the Uk )

7. I received a state pension forecast in December 2010 saying the following -

I have read this snippet

They will send you form 'IPCBR1' but I downloaded the other form 'BR1' and sent that one. For me it was a much easier form to complete and was accepted with no problem. With the 'IPCBR1' form they want you to send your birth certificate with the application and they ask you if you have ever lived/worked in the UK and if you have, they want a full history of your employment details and addresses in the UK. I worked for more than 14 employers during my time in the UK so this caused me some headaches in trying to recall these details. The standard 'BR1' form doesn't require you to provide these details neither do they want to see your birth certificate.

so I now know about that part , what I'm wondering about is

1. What tax amount will be deducted from my pension

2. Do you think there's any thing I should do to make my received pension amount better

I have read about deferring / lump sum options , but I don't want to do that , and I know as I reside full time in Thailand , the state pension amount will be frozen .

Any comments or advice for this soon to be pensioner , would be most welcome

[bkkbarnstormer]

Which class of volumtary NI contributions did you make (or what were the approx amounts per month)

[beano2274]

Which class of volumtary NI contributions did you make (or what were the approx amounts per month)

Does that matter any more as all pensions will be the same soon.

[BlackPuddingBertha]

"1. What tax amount will be deducted from my pension"

You will pay UK tax on UK earned income (including your pension) that exceeds your personal allowance. So if you have no other UK income at all, and if you have the standard personal allowance of a 65 year old (£10,500) then you should have no UK tax to pay.

"2. Do you think there's any thing I should do to make my received pension amount better"

You haven't shown the full details but it looks like you are about GBP10 short on the full pension, which presumably means that you are missing some years though you say otherwise. You can top up missing years and the Pension Service will advise you as to whether it is worth your while to do so, and whether or not you can top it up to the full amount.

Without knowing your full history it is impossible to say.

[beano2274]

As I said earlier in this post, soon all UK pensions will be the same, it will not matter how many years you have worked in the UK or your NI Contributions. The topic about this was posted in the middle of last year, and it also states this in the letter scanned by the OP.

a link - http://www.moneywise.co.uk/pensions/managing-your-pension/the-winners-and-losers-the-uk-pension-reforms

Edited January 12, 2013 by beano2274

[JackisBack]

Thanks Guy's

On the pension forecast second page , it shows this

I paid class 3 voluntary NI contributions .

I have no other UK income at all.

So it seems what the pension forecast shows may be the maximum I'm going to receive

Now all I have to do is get to the 9th of May 2014

[Tafia]

The current State pension is 107.45 per week and will rise by 2.5% in April, unless of course you are living here in Thailand and the Tax office is aware.

Dont forget you have to claim your pension, they wont come looking for you.

https://www.gov.uk/claim-state-pension-online

Edited January 12, 2013 by Tafia

[BlackPuddingBertha]

As I said earlier in this post, soon all UK pensions will be the same, it will not matter how many years you have worked in the UK or your NI Contributions.

You will still need a certain number of years of NI contributions to qualify for a full pension, but the number will be a lot smaller than it is now.

[regedit]

You will still need a certain number of years of NI contributions to qualify for a full pension, but the number will be a lot smaller than it is now.

Do we know how many ? May be time to stop paying voluntary NICs ?

[TommoPhysicist]

30 years for a full pension.

That isn't changing.

(OK rumour, 2017 flat rate 147ukp/week with min 10 years contributions)

Edited January 12, 2013 by TommoPhysicist

[JackisBack]

30 years for a full pension.

That isn't changing.

(OK rumour, 2017 flat rate 147ukp/week with min 10 years contributions)

Does that mean as Ive paid for 38 years , I can get a refund of 8 years NI paymnet

[TommoPhysicist]

You've already paid 8 years more then currently required, the UK says thanks for your contribution, no refunds.

If you were female, they would have given you 18 years free contributions for having a baby.

Life in the UK is just not fair.

[BlackPuddingBertha]

30 years for a full pension.

That isn't changing.

It is changing. That's what it will be, not what it is.

[TommoPhysicist]

30 years for a full pension.

That isn't changing.

It is changing. That's what it will be, not what it is.

It's been at 30 years for about the last ten years, I gave up part-time work when I had done my 30.

That was over five years ago, and my full entitlement was confirmed then.

[BlackPuddingBertha]

It's been at 30 years for about the last ten years,....

Nope.

From the HMRC website:

Qualifying years needed for entitlement to the full basic State Pension (men)

If you reach State Pension age on or after 6 April 2010: 30

If you reached State Pension age before 6 April 2010: normally 44

I thought that the changes hadn't come in yet (which is why I said "will be") but in fact they have been applied. But not 10 years ago.

[steve187]

I think that there is no need to always pay voluntry class 3, when under certain circumstances class 2, self employed stamp can be paid, which is a lot cheaper.

A maximum of 30 years is now required, stop paying any contributions after this if at all possible

Edited January 12, 2013 by steve187

[Soutpeel]

The one thing I did notice in your list of things...you have mentioned any medical insurance for Thailand, one hopes you have that apsect sorted out with your impending retirement...

[TommoPhysicist]

It's been at 30 years for about the last ten years,....

Nope.

From the HMRC website:

Qualifying years needed for entitlement to the full basic State Pension (men)

If you reach State Pension age on or after 6 April 2010: 30

If you reached State Pension age before 6 April 2010: normally 44

I thought that the changes hadn't come in yet (which is why I said "will be") but in fact they have been applied. But not 10 years ago.

It's after 2010 now, so anyone not yet taking their state pension only needs 30 years of payments.

You are right, I gave up paying in after 30 years because they announced the change over 5 years ago, and my pension started after 2010.

[JackisBack]

From The BBC - 13 January 2013

Flat-rate state pension 'expected to start in 2017'

Details of a flat-rate state pension probably starting in April 2017 and thought to be around the equivalent of £144 will be announced on Monday.

The final figure will be higher than £144, as it will rise in line with inflation between now and then.

The current full state pension is £107.45 a week, but can be topped up to £142.70 with pension credit.

Plans to introduce legislation were included in the Queen's Speech, but detailed proposals are now ready.

These have been expected for some time, with the aim of simplifying the system by replacing the means-tested pension credit element.

Overhaul

The flat-rate pension will be paid only to new pensioners reaching state pension age from a date expected to be 6 April, 2017, the government is expected to announce. Millions of existing pensioners, and those who qualify before then, will get their entitlement under the current system.

Under established plans, the state pension age is rising in any case to 66 for both men and women by 2020, with further plans for this to increase to 67 between 2026 and 2028.

A universal flat-rate payment in England, Wales and Scotland would be the biggest overhaul of the system for decades.

More than one-and-a-half million pensioners do not claim the pension credit that they are entitled to, and the government believes that this would not occur under a simpler flat-rate system.

The self-employed are also likely to benefit, as they tend to get a lower state pension.

However, there is likely to be a debate about the fairness of a flat rate that makes no distinction between poor and wealthy pensioners.

The state pension will still rise, as now, in line with earnings, prices, or 2.5%, whichever is higher.

Final-salary pension savers

The government is also expected to announce that anyone who has not paid National Insurance for at least 10 years will not qualify for a state pension. Those who have paid for less than 35 years will see their pension reduced in a change from the 30-year threshold introduced a few years ago.

The government is expected to outline exactly how it would phase out the state second pension which acts as a top-up to the basic state pension.

At the moment, some prospective state pensioners will accrue a higher level of state pension than £144 a week via a combination of their basic and state second pensions.

As the government has promised that all accrued pension rights will be recognised, the new system may have to involve some future pensioners being paid a top-up to the new flat-rate pension. This would recognise the contributions that they have already made for their state second pension.

Several million employees in the private and public sectors are opted out of the state second pension because their final-salary schemes pay an equivalent benefit.

The government will have to decide if these individuals should receive a reduced version of the flat-rate pension to acknowledge the fact that they have not been contributing to the state second pension in the preceding years.

A further complication is that members of those pension schemes which are opted out of the state second pension, receive a rebate on their National Insurance contributions. The government must decide if they should start paying higher National Insurance contributions if they are to become eligible for the new flat-rate pension.

Women workers

At the weekend The Daily Telegraph reported that more than six million workers would pay higher NI contributions under the shake-up.

Those affected are expected to include around 1.4 million private sector staff enrolled in final salary schemes and contracted out, said the Telegraph.

The plan would bring "contracting out" arrangements to an end - where some people pay lower National Insurance contributions because their second state pension is contracted out to their company final-salary pension scheme.

As a result, these people's NI bill would rise, but their state pension would also be greater.

The Telegraph reported another five million public sector workers in similar schemes would also pay higher NI.

The BBC's Simon Gompertz said someone on an average wage who is affected in this way might have to pay an additional £270 a year.

However, there are also beneficiaries under the scheme.

Some groups, including women who have been in and out of the workforce due to motherhood, part-time workers and carers, will gain.

Many women, and the self-employed, are currently penalised for not making full national insurance contributions.

BBC - Link - http://www.bbc.co.uk...siness-20989050

[humblefalang]

i worked in the uk for 12 years straight (not english but from EU)

left for good two years ago

can i claim anything?

[mccw]

No

You need 30years

[mccw]

By the time I get there I expect the retirement age will of had to risen over the average life expectancy !

[BlackPuddingBertha]

No

You need 30years

Actually under the new scheme as announced yesterday you will need 35 years.

[RHCP]

Seems like the Government has moved the goal posts again. Having stopped my voluntary contributions after completing 30 years it now looks likely that this will be increased to 35 years so those of you in my position will need to start contributions again to get the full (frozen) pension.

With the disorganised state of Government departments I am not sure how smoothly this process of starting contributions will be and have no idea at this stage what category of contribution will be required.

[partington]

I'm in the same position: made 30 years contributions, a lot of those were voluntary, as I was working abroad, but they stopped accepting them two years ago when I reached the magic number of 30.

Now, of course, we have just been told that we need to make up 5 more years of contributions to get the full basic pension, with no hints yet in the news reports of how or when to start this process.

I've emailed the National Insurance office (along with millions of others probably) to ask them how and when to restart contributions.

If I ever get an answer I'll post it.

[prodriver]

No

You need 30years

Actually under the new scheme as announced yesterday you will need 35 years.

I don't think that's right. You are talking about getting a full UK state pension. I believe that "humblefalang" would be entitled to a reduced pension having paid into the system for 12 years.

[transam]

No

You need 30years

Actually under the new scheme as announced yesterday you will need 35 years.

I don't think that's right. You are talking about getting a full UK state pension. I believe that "humblefalang" would be entitled to a reduced pension having paid into the system for 12 years.

Yes, my USA uncle worked in UK for similar years and paid NI, he gets a % pension AND the increases that he didn't know he would get. He laughed and said thanks very much, with his feet up in his homeland.

[Lite Beer]

i worked in the uk for 12 years straight (not english but from EU)

left for good two years ago

can i claim anything?

Yes as you have more than 10 years N.I payments.

But it will be quite small.

It will be on a pro rata basis as far as I know.

The ten year rule is under the new proposals expected to come into force in 2017.

Before 2017 there is no minimum time.

[prodriver]

Further to my previous post, I have checked on the relevant website and according to the "pension calculator" with 12 year's worth of NI payments made he should get £42.98 per week when he reaches pensionable age. This is based on him becoming 65 this year.

Edited January 15, 2013 by prodriver

[evanson]

No

You need 30years

Not so. A friend of mine recently applied for and now receives around 65 GBP per week. He only had around 10 years, not much more, paid contributions. So yes. You will get something.