Soldato
Only if, like some people on here believe, the state pension should not rise with inflation.
This is why I am supportive of inflation linked pensions.
HMRC - Check your State Pension forecast not working?
Only if, like some people on here believe, the state pension should not rise with inflation.
This is why I am supportive of inflation linked pensions.
Soldato
AFAIK, you still receive your UK pension if you retire abroad in some circumstances
Soldato
In virtually all circumstances
However for many countries, might be most now as well, its frozen* from the point you start claiming and does not increased annually with any rise in the UK.
*The argument being that UK rises are "inflation" based and that may not apply to other countries, so the government would melt down if someone was to receive a 3% pension increase and be living somewhere it was only 1% at the time.
Soldato
I'm guessing as that pension is not being put back into the UK economy more than the actual example of differing inflation rates you gave.
Under current law, yes. I'm planning for the UK state and US Social Security pensions to not exist for me, as it's extremely likely that they'll be a means-tested benefit that I simply won't qualify for. I am fully loading up on my private retirement investments to be my sole source of income for when I retire in ~30 years (or less).
For example, the current US Social Security program will run out of money in 2032 unless there is a big cut to benefits. In the following 20 years after that, I'm wholly convinced that means-testing will come into play in some form or fashion.
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Soldato
Considering your stated location in your profile, and the fact said country doesn't give two ***** about the social care of people in general, I'd be doing the same as you.
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Soldato
No, thats the official position. Its UK index linked (kind of) and they dont feel they should potentially pay more when people do not see the same cost of living either potentially at the start or over time.
Whilst we were in the Eu they were protected, a UK pensioner there had to be treated the same as a UK pensioner in the UK.
Soldato
So what if local (foreign) inflation is 10%, yet the only raise the UK pension by 3%?
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Soldato
Its irrelevant. Emigrating with a UK pension you would hopefully research before you went which countries you would see the increase and which (could be all now) see your pension frozen at the point you leave.
Canada for example its frozen.
I have no idea what happens should you return, do you get made back up to current levels or not. Assume you would.
You can sort of see the logic, but its a bit daft really. Just a way to try to shave a few £ off the bills IMO. I know it goes back some time but quite how far back I have no idea.
Soldato
Oh, I don't disagree that it happens but I'm not 100% convinced it should happen.... I'm on the fence with it as there hasn't been any decent argument either way.
The argument put forward that the economy would melt down has merit but only due to the pension then not being spent back in the UK economy. The difference in inflation rates between countries doesn't stack up as, if the recipient resided in the UK, they would get that increase so the overall cost to the pension "fund" would be the same... It's the drop in the amount going back into the economy that would be affected (semantics, perhaps, but it's true)
Soldato
Its basically pennies in effect, its political and not really based on any reality.
I mean many pensioners who could afford to retire abroad also did so because it was cheap. Spain used to be very cheap if you lived like a local diet wise.
But anyway its a thing. You are still entitles to your pension but its quite likely to be fixed when you emigrate.
One retirement strategy that I've read about (under existing tax law) is to move back to the UK after retirement with significant assets in post-tax retirement accounts in the USA, which results in a double advantage; you don't have to pay mandatory annual Medicare health insurance premiums to the USA, and the dual tax treaty means that the UK cannot tax you on any of your (US) retirement drawdowns as the money was already taxed in the USA. Win win.
Soldato
found out why mine only says 30 years to full, was a carer for a few years, apparently this bring down the years needed for full pension