Buzzy--Bee

hmmmm.... what about those of us that did the contracting out SERPS thingo back in the 80's.....?

BB

lesleys

You get your SERPS and even Graduated Pension (pre-SERPS) with your UK pension. All in the pension forecast.

All of it is frozen at the level when you first claim it. You can defer claiming it and accrue increments and then get an increased pension - frozen when eventually claimed, but at a higher level.

ozzieeagle

This is brand new news to me.

Does this mean, the 33 years I've spent paying taxes in Australia may well count to a full UK pension If I chose to live there ? Especially as I had 10 years in the work force in the UK ? (under the reciprocal arrangement maybe ?)

If it does that puts the UK back on the map for a 6 month plus base in my retirement years.... 7-8 years away. Potentially gives me more cash for travelling etc.

OzTennis

Probably, but don't quote me on it! I only have vague recollection of the facts but when Mrs OzT got a pension forecast they wanted to know details of her time in Oz and she provided tax file number etc. Forecast went up slightly (9 years in Oz) after they had this information. Bear in mind she paid NI contributions for all bar those 9 years though - whether you have to pay NI for a certain minimum number of years or whether this only applies to years paying tax in Oz before a certain date you'd need to check out.

NickyC

The years you paid tax in Australia up to 2001 (when the reciprocal arrangement ended) could be counted as NI contributions. This will only help you if you live in the UK at the time you claim the pension. It won't help if you're claiming it while living in Australia.

There are some notes on the Australian angle on this page:
'For people living in or coming to the UK after the agreement ended, the UK Government has made special arrangements to allow periods of residence in Australia, up to April 2001, to be taken into account in claims for basic State Pension and bereavement benefits.'
http://www.dwp.gov.uk/international/...-of-countries/

ozzieeagle

This is an interesting angle for me. A lot depends on whether the UK pension is means tested like the Aus one in March 2021 when I turn 66. It could actually be financially favourable for us to retire in the UK because of the cash ceiling of the Aus means test, especially if I sell and buy somewhere cheaper.... At first look at least. Going to have to study this one closely. Where it could fall down is that 60pct spouse pension, which is another revelation.

It's more complicated than ever now LOL, Got a few years to go yet and who knows what may happen.

Still I'm glad I found out about it at this stage. Could be quite a few long term migrants in a similar situation that dont know about this.

Thanks guys.

Can someone confirm the following please, you have to reside over 6months of the year in the UK to maintain a full "index linked" UK pension ?


Not sure how the wife will handle this news

Rhubarb65

Yes, under current rules, your UK State Pension would be increased each year, provided you spent 6 months or more per year in the UK:

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

jad n rich

60% spouse pension?

So the spouse get an allowance too?

OZ pension for us will be zippo. Assets, Plus the aussie partner if not a resident wont be able to claim it despite working here 30/40 years.

ozzieeagle

Apparently so Check out the links in Lesleys post on the first page

Plus he can come back to Aus for at least 5 months and 3 weeks each year and still keep it indexed linked..... Apparently !

Thanks Lesley.

I dont reckon this option will be around for much longer as thats quite a loophole for those people here with cash assets provided by mandatory superannuation.

As said above the only downside you have to be in and claim retirement in the UK and probably qualify by residing there for a while beforehand..... Good luck getting your husband to agree to that one.... I'll definitely have to work hard to convince my Wife.... Mission impossible springs to mind LOL.... She does like travelling though, so you never know.

OzTennis

The other thing I would add to keep in mind is that the age at which one can draw a UK old age pension is also going to increase from 66, to 67, to 68, to 69 ............ as time goes by. Increasing it to 67 in 2016 I think was mentioned in this year's Queen's speech (no guarantee 'just call me Dave' will be there to enact it!) Some good resources on retirement here:

http://www.guardian.co.uk/money/retirement-age