Vadio

If windsong is 63 now, then she hasn't reached full retirement age for US Social Security and won't for another 3 years (age 66). While you can draw a reduced SS benefit at age 62, the full retirement age for those born between 1943-1954 is 66. And as others have said, the reduced benefit ratio remains in place for the rest of the claimant's life.

I'm not sure how the option to draw a reduced benefit might affect the eligibility for pension credit. I suspect it might, but it's worth checking.

Giantaxe

Strictly speaking, she's not US state pension age. That will be something between 65 and 66 for her. She is, however, at an age where she can take a reduced social security amount in advance of her full social security age. This is presumably moot in terms of the point you are making (and probably should be, imo) but it does make the OP's conundrum tricky in that those reduced payments would be for life.

formula

Ah, right. Once Pension Credit have those facts, they will say what they will or won't include in the weekly total.
From the government site about what counts as income.
https://www.gov.uk/pension-credit/eligibility

OP just needs to keep it all in writing, keep a copy of everything and if given PC, check that the award letter has all the information on it. They claim the benefits back if they missed anything off that award letter and the claimant didn't tell them.

EDIT and the changes to Pension Credit from April 2016
https://www.gov.uk/government/upload...201pc-0915.pdf

windsong

Good grief. I never even considered the UK could make me take early SS from the US. The question they asked was basically from which country are you receiving benefits. I interpreted that to mean they are interested in what I am actually receiving rather than what I could be receiving, although I never even thought about my U.S. SS. Also, there was a question which asked if I was receiving a foreign pension and for that one I declared my company pension because I am indeed receiving it.

Are you saying I should explain in my letter that, although I am not at full pension age in the U.S., I could receive a reduced amount now?

Giantaxe

They're not making you do anything. The question is whether the amount you could claim now in US SS is counted as imputed income for the purposes of calculating any pension credit you might be entitled to. From the link earlier in this thread, that's clearly true of (UK) State pension, but predictably they're silent about foreign equivalents:

"When working out if you can get Pension Credit, the income you’d get from your State Pension is included whether you’re claiming it or not."

Anyway, I agree with the advice that formula has given you.

nun

This is an interesting situation and will probably require the attention I'd someone of hight pay grade at DWP to resolve.

The OP is not of US SS retirement age, but she does qualify to take a reduced US SS early. Whether the possible amount of an early payment from a foreign SS scheme is factored into PC I don't know, and I bet few at DWP know either.

I think the OP should take a step back and do some budgeting and thinking. If it is possible to retire now why not just do it. After 30 years in the US the SS payment will be probably be considerably higher than the UK state pension and if there are also 401k or 403b type accounts why keep working?

Pulaski

Because she could easily face 30+ years of twiddling her thumbs in retirement, and still wants to be a productive member of society.

scot47

Bear in mind that once you claim your UK State Pension you cannot "unclaim" it. One moral from this thread is that some knowledge and some forward planning is a good idea.

In the UK I found the best source of information on National Insurance and related benefits was my trade union.

windsong

Exactly, Pulaski. I have a great background and education and have a lot to offer - and nowhere near ready to retire. Like others who have returned home, though, it is taking a while to get a job but I am also impatient. I've only been back two months and have really only been actively job hunting for a month.

My income level should be pretty good when I do get a job so I really don't want to retire until I am at least 65. I just have to weather the storm until I get one. I just need a little help until the job comes along.

I really sincerely hope I will not be denied or have pension credits reduced because I am eligible to take US SS yet have not yet reached full US retirement age. If I wait until I am 65 I would receive an additional 500 dollars a month. Thats a big difference. I also don't want to give up my prospective income level that I could earn for the next two years - or longer.

I've also learned that here in the UK you can work and receive pension at the same time but when claiming US SS you can not.

At this point I don't know what to do. I am sure my situation is temporary so I really hate to take US SS but I might be forced into it if denied pension credit simply because I could take it early if I wanted to. Such a heavy price to pay for a temporary situation!

As regards the DWP and, as Nun said, it might be tough to find someone at the DWP who would know the correct answer to this situation so I am not sure what to do at this point nor who to speak to next.

windsong

Actually, today I asked this very question - if I were to claim UK state pension now could I stop taking it when I get a job and the response was yes I can. I can also still make up voluntary contributions after I "unclaim" it.

I can't quite remember who told me but it was either DWP or the NI people. Your comment tells me I need to check again, though.

Giantaxe

That's not really accurate. What is true is that if you are receiving US SS and work as well, your SS will be reduced if you earn more than $15,720 per annum. And that reduction only applies until you reach your full retirement age (which, as Vadio mentioned, is 66 for you):

https://socialsecurity.gov/planners/...leworking.html

windsong

Yes, you are absolutely right. What I should have said is that the U.S. penalises you.

Giantaxe

.. until you reach full retirement age.

So really the only difference in this regard between the two systems is that the US (unlike the UK) lets you take a reduced amount prior to your retirement age, with that amount potentially being reduced if you work.

formula

Pension Credit has a cut off. Either you get it or you don't. And it's more than a little help as it is a passported benefit. Meaning that even a 1p award of Pension Credit can passport you to having your rent and council tax paid.

That could mean the benefits you receive could add up quickly. If they then find out later during data matching when you start to receive your US state pension, that you didn't declare this on your claim form a few years earlier AND they decide that this missing information would not have given you Pension Credit and any passported benefits, they will instigate an investigation against you. Missing something off a form that affects your claim is classed as deception and if the benefits received by this totals a certain amount then they not only ask for it all back but they take the applicant to court for benefit fraud.

That's why I said to make sure you include all the details of your US state pension, make sure they know that SS is a US state pension, tell them how it works, keep copies of this form with all this information and let them decide. If you have already sent the form then send them a signed for letter about your error. They want to know about all your pensions and savings as you are asking for income based benefits.

If you get Pension Credit, check your award letter and if the SS isn't mentioned on there then write again (keep copies again) and let them tell you that your US state pension won't be calculated in your claim until x and keep a copy of their letter too. That way you are covered even if they give you PC in error.

Bud the Wiser

Not wishing to start another pension thread and I can't find the relevant one, but does anyone know when/if one can make up the pension contributions to the new 35 year rule. ( Class 2 ) I have 30 years of contributions.