spouse of scouse

Scouse is 65 next month. A couple of months ago, he received documents from DWP, along with forms to fill in for his basic State pension. The covering letter stated that as he was 65 on 09/2014, he is now eligible to apply. He got a forecast last year and it's about 100 pounds a week, based on his working history in the UK.

He wanted to defer claiming for a year (ie, until September 2015), so he filled out the relevant bits, added a covering letter explaining that he wanted to defer for 12 months, and sent it all off. And that's when the trouble started.

Received his docs back today, with a letter saying that his pension claim had been rejected because he is not eligible until September 2015. He rang DWP in the UK, got a lovely but unfortunately clueless lady who insisted that the letter was correct, and started quoting the new regs, sliding scale etc etc. I was pretty sure I knew what the problem was so took the phone off Scouse (I'm bossy that way, poor love).

She tried giving me the same story, until I suggested that perhaps DWP had made an error, in that by Scouse saying he'd defer until 2015, they had decided that he was only eligible from 2015. Took a while, but she eventually conceded that yes, that might be the case.

Anyway. I hope when Scouse applies next year, that he can get back paid, either as a lump sum or as a slightly higher weekly rate. I hope we haven't stuffed it up? What do you think?

OzTennis

If you don't mind me asking, I'm just wondering why he deferred as all things being equal, the day you qualify for the UK State Pension you draw it. I know it's water under the bridge now - hope it all works out in due course. It can now all be done online (UK only?) but a forecast is not available until you are no more than 30 days off 'retirement age'.

https://www.gov.uk/state-pension-statement

spouse of scouse

I don't mind you asking We won't be moving to the UK for a while, we have a flat in a development under construction and it'll be at least 12 months till it's finished. We thought a lump sum in his bank over there would be handy to help with set-up costs (eg furniture).

He will probably be eligible for a part Oz pension (forms are in), it doesn't matter to Centrelink whether you defer or not, for the purposes of any Australian pension he will be deemed to be receiving the UK one. We still told them he's deferring though, just to make sure that everyone knows what's happening.

louie

Someone who is deferring now gets an extra 10.4% for each year they put off claiming. If you are in good health, that's a stonking deal. I'd do it if I didn't desperately need the money.

I suspect your theory is right. His pension age is definitely 65 so I wouldn't be at all concerned if I were you.

spouse of scouse

Ta Louie. The extra per week for deferring would be nice but I think he'll take a lump sum, I view it as a sort of forced saving plan.

He might need to change his mind and claim it sooner. My own finances are in a woeful pickle - had a great job and then had a car accident 3 years ago which led to two spine surgeries. After I used up my almost 12 months work of sick leave and still couldn't get medical clearance to work, I got the bullet (the sack, they didn't shoot me)

Then a diagnosis of rheumatoid arthritis 2 years ago, I must have been a terrible person in a past life

I'm still waiting for the insurance company to settle my MVA claim, they've admitted that the other driver was 100% negligent but oh my goodness, they like to put you through the wringer. In the meantime we're living off our rapidly diminishing savings. Not to worry, it'll all work out in the end. Best of luck to you, Louie

lesleys

Deferring taking the pension whilst in Australia means that you defer getting the frozen pension. So if you could get £100 per week now and defer until next year you will get the index-linked increase for this year (eg 2.5%) plus the 10.4% accumulated from the deferrment. Or you get the lump sum plus a pension of £102.50.

I've deferred claiming mine for over 5 years, so I've accumulated 5 years of index linking plus ove 50% extra per week. So long as I last another 10 years I'm in profit.

lesleys

Scouse could have saved himself some trouble by just not filling in the form. You only need to fill in the form when you actually claim the pension - the deferrment happens automatically until you do claim.

ozzieeagle

I thought the Aus government made you claim your UK entitlement ? As they reduce your Aus component by the amount your entitled to from the UK ?

lesleys

I'm not entitled to any Aus pension so can't confirm or deny this

ozzieeagle

Thats surprised me, does that mean you've never worked in Aus ?

Apologys if thats too personal a question.

lesleys

Not for money

We're here on 410 retirement visas, having retired early/taken redundancy in the UK when the oil price dropped to $10 a barrel and nobody wanted us to look for it any more.

spouse of scouse

The Oz govt can't and doesn't make you claim your UK pension - but as explained earlier, you need to let them know that you're eligible to claim, and what amount you'd be getting - you're then 'deemed' to be receiving that amount. It does depend on the amount of UK pension you are getting (or would get, had you not deferred), the value of your assets and investments, and any other income you receive, but the usual consequence of either receiving or being able to receive a UK pension is that this will reduce any amount of Oz pension that would otherwise have been payable.

I don't think that Scouse will be eligible for any Oz pension once I commence an allocated pension from my super, but in the interim he may be eligible for a partial one.

Lesleys - you're dead right about it would have been simpler not to send any docs at all, I did sort of suggest that to him but I think he was worried that he'd get lost in the system if he didn't let them know what he was planning It's a good lesson for anyone in a similar situation though - if you want to defer claiming your UK pension, do nothing until you're actually ready to start receiving it.

ozzieeagle

Didn't realise that, I thought you'd been here longer than me, or at least for quite a while.

Grayling

You also have to have been resident for 10 years to be eligible.

spouse of scouse

I meant to say - Scouse received a call from DWP the next day (I was pretty impressed by that, great follow up and service!). They confirmed what Lesleys has said above - he shouldn't have sent anything at all to them until he was ready to claim. There was also a little bit of misinformation, in that she advised that as he'd said he wasn't going to claim until Sept 2015, he's now not eligible to claim until that date, even if he changes his mind.

The last bit is not the case, he can claim his pension any time after his 65th birthday in Sept 2014, but it wasn't worth arguing about. Our minds are at ease now, many cheers for the reassurance everyone