Go Back  British Expats > Living & Moving Abroad > Canada
Reload this Page >

Contracted-Out & State Pension

Contracted-Out & State Pension

Old Apr 24th 2018, 12:56 am
  #16  
limey party pooper
 
Joined: Jul 2012
Posts: 9,979
bats has a reputation beyond reputebats has a reputation beyond reputebats has a reputation beyond reputebats has a reputation beyond reputebats has a reputation beyond reputebats has a reputation beyond reputebats has a reputation beyond reputebats has a reputation beyond reputebats has a reputation beyond reputebats has a reputation beyond reputebats has a reputation beyond repute
Default Re: Contracted-Out & State Pension

Originally Posted by CDNReturner
You mean it was reduced by 89 pounds a week? Yikes!

I did eventually manage to log in but it still asks for a UK address. I don't know why they can't say that before you go through the hassle of getting an id and access code.
I don't have a uk address but I used my passport number. I'm going to try and talk to them online tomorrow to see if I buy extra years that they would be used instead of the contracted out years.
bats is offline  
Old Apr 24th 2018, 11:03 am
  #17  
Oscar nominated
 
BristolUK's Avatar
 
Joined: Jan 2008
Location: Moncton, NB, CANADA
Posts: 50,529
BristolUK has a reputation beyond reputeBristolUK has a reputation beyond reputeBristolUK has a reputation beyond reputeBristolUK has a reputation beyond reputeBristolUK has a reputation beyond reputeBristolUK has a reputation beyond reputeBristolUK has a reputation beyond reputeBristolUK has a reputation beyond reputeBristolUK has a reputation beyond reputeBristolUK has a reputation beyond reputeBristolUK has a reputation beyond repute
Default Re: Contracted-Out & State Pension

Originally Posted by spouse of scouse
While we were still in Australia my husband's pension forecast had to be sent snail mail too, from memory it took 6 weeks.
Originally Posted by CDNReturner
Yes, I've always found that too or even worse, but I just noticed the request for voluntary contributions letter was dated April 9 and I got it April 20 so maybe they finally got the message about overseas snail mail.
More likely it was always the intention but just rolled out bit by bit.

Originally Posted by bats
I don't have a uk address but I used my passport number.
Yes, that was how my account was set up...using one of several 'partners' similar to how you can access your CRA account.

It may not be a smooth sign in process though. Between signing up and accessing some time later I had difficulty getting back in. I don't remember exactly but I think I had to set things up again as if doing it for the first time.
BristolUK is offline  
Old Apr 24th 2018, 11:13 am
  #18  
Concierge
 
spouse of scouse's Avatar
 
Joined: Jan 2013
Location: Western Australia
Posts: 21,099
spouse of scouse has a reputation beyond reputespouse of scouse has a reputation beyond reputespouse of scouse has a reputation beyond reputespouse of scouse has a reputation beyond reputespouse of scouse has a reputation beyond reputespouse of scouse has a reputation beyond reputespouse of scouse has a reputation beyond reputespouse of scouse has a reputation beyond reputespouse of scouse has a reputation beyond reputespouse of scouse has a reputation beyond reputespouse of scouse has a reputation beyond repute
Default Re: Contracted-Out & State Pension

Originally Posted by CDNReturner
Yes, I've always found that too or even worse, but I just noticed the request for voluntary contributions letter was dated April 9 and I got it April 20 so maybe they finally got the message about overseas snail mail.
Fingers crossed The poor convicts got to Australia faster than some of my mail.

Your post inspired me to have another look at the contracting out rules, but it didn't help much. The only thing that seemed to make sense was if you already have the required number of qualifying NI years, 35 in your case, but your forecast says you won't receive a full pension as a result of contracting out, then you can't pay additional contributions to make that money up. As you only have 30 years, that *should* mean that you can pay additional contributions. Clear as mud, hey?

My husband emigrated to Australia when he was 40, worked in the UK since he was 15. He did receive a contracting out letter while he was in Oz, but he can't remember who it was from Anyway, he agreed to whatever was being proposed and was sent a cheque for £3,000.

He hit State pension age in 2015 so is under the old rules, he's deemed as having 25/30 qualifying years, and he receives £111 per week. It's still a mystery to me!

Last edited by spouse of scouse; Apr 24th 2018 at 11:15 am.
spouse of scouse is offline  
Old Apr 24th 2018, 11:33 am
  #19  
Oscar nominated
 
BristolUK's Avatar
 
Joined: Jan 2008
Location: Moncton, NB, CANADA
Posts: 50,529
BristolUK has a reputation beyond reputeBristolUK has a reputation beyond reputeBristolUK has a reputation beyond reputeBristolUK has a reputation beyond reputeBristolUK has a reputation beyond reputeBristolUK has a reputation beyond reputeBristolUK has a reputation beyond reputeBristolUK has a reputation beyond reputeBristolUK has a reputation beyond reputeBristolUK has a reputation beyond reputeBristolUK has a reputation beyond repute
Default Re: Contracted-Out & State Pension

Originally Posted by spouse of scouse
...The poor convicts got to Australia faster than some of my mail

My husband emigrated to Australia when he was 40
I was going to jokingly ask if there was a connection but I didn't want anyone to think I was only doing it because of some stereotypical Liverpool connection, so I won't say it now.

He hit State pension age in 2015 so is under the old rules, he's deemed as having 25/30 qualifying years, and he receives £111 per week. It's still a mystery to me!
That sounds about right.

When I left the UK I had got 32 years in and 40 years were needed. A few years later the years needed dropped to 30 and I went from 32/40 (80%) to a full pension without having to do anything. Too good to be true.

Then, of course, it got changed to 35, but 32/35 (91%) is still better than I expected at the time I left. Qualifying age put back a year too, though.
BristolUK is offline  
Old Apr 24th 2018, 1:27 pm
  #20  
limey party pooper
 
Joined: Jul 2012
Posts: 9,979
bats has a reputation beyond reputebats has a reputation beyond reputebats has a reputation beyond reputebats has a reputation beyond reputebats has a reputation beyond reputebats has a reputation beyond reputebats has a reputation beyond reputebats has a reputation beyond reputebats has a reputation beyond reputebats has a reputation beyond reputebats has a reputation beyond repute
Default Re: Contracted-Out & State Pension

well ive chatted to them on line and followed up with an email

Even though i have 35 years contributions only 30 of those would count as they 35 were before 2016 when the rules changed! So now we have to buy 5 years each. he said it would be Class 3 but ive emailed another section that deals with people who live abroad to see if if can be Class 2

Daylight robbery. Combine that with the changes to the dates for women's pensions and I'm well and truly stuffed.
bats is offline  
Old Apr 24th 2018, 1:48 pm
  #21  
BE Enthusiast
Thread Starter
 
Joined: Mar 2004
Location: Hamilton, Ontario ex Loughton, Essex
Posts: 412
CDNReturner has a reputation beyond reputeCDNReturner has a reputation beyond reputeCDNReturner has a reputation beyond reputeCDNReturner has a reputation beyond reputeCDNReturner has a reputation beyond reputeCDNReturner has a reputation beyond reputeCDNReturner has a reputation beyond reputeCDNReturner has a reputation beyond reputeCDNReturner has a reputation beyond reputeCDNReturner has a reputation beyond reputeCDNReturner has a reputation beyond repute
Default Re: Contracted-Out & State Pension

Thanks for that feedback Bats. Yes, I've fallen into the age for women changes, as well, although I do kind of agree there shouldn't be a difference in the ages. But, every time you think you understand it, it changes again and, of course, they don't keep us informed out of country. I think the website explaining it all is pretty good but there is always that one line of contradiction that throws us off. And not giving us a definitive answer on how contracting out affects our pension is not acceptable. I well remember the b* that sold me the contracting out pension. He also sold us one of those mortgages that went up all the time back in 1988 (house prices never fall, he said). I didn't fall for that line but unfortunately my ex-husband did.
CDNReturner is offline  
Old Apr 24th 2018, 3:35 pm
  #22  
limey party pooper
 
Joined: Jul 2012
Posts: 9,979
bats has a reputation beyond reputebats has a reputation beyond reputebats has a reputation beyond reputebats has a reputation beyond reputebats has a reputation beyond reputebats has a reputation beyond reputebats has a reputation beyond reputebats has a reputation beyond reputebats has a reputation beyond reputebats has a reputation beyond reputebats has a reputation beyond repute
Default Re: Contracted-Out & State Pension

Originally Posted by CDNReturner
Thanks for that feedback Bats. Yes, I've fallen into the age for women changes, as well, although I do kind of agree there shouldn't be a difference in the ages. But, every time you think you understand it, it changes again and, of course, they don't keep us informed out of country. I think the website explaining it all is pretty good but there is always that one line of contradiction that throws us off. And not giving us a definitive answer on how contracting out affects our pension is not acceptable. I well remember the b* that sold me the contracting out pension. He also sold us one of those mortgages that went up all the time back in 1988 (house prices never fall, he said). I didn't fall for that line but unfortunately my ex-husband did.
Like you i don't have a problem with the pension ages matching but the way they have done it is awful. I was told 62 and planned for that then they changed it to 66 and gave no notice. I only found out when i asked for a pension forecast. Too late to make other arrangements plus the way they have staggered the dates is unfair. An old schoolfriend who is 9 months younger than me is already collecting her pension when i have another 2 years to wait.

Im going to try online chat again to see if I get a different response
bats is offline  
Old Apr 24th 2018, 4:08 pm
  #23  
limey party pooper
 
Joined: Jul 2012
Posts: 9,979
bats has a reputation beyond reputebats has a reputation beyond reputebats has a reputation beyond reputebats has a reputation beyond reputebats has a reputation beyond reputebats has a reputation beyond reputebats has a reputation beyond reputebats has a reputation beyond reputebats has a reputation beyond reputebats has a reputation beyond reputebats has a reputation beyond repute
Default Re: Contracted-Out & State Pension

He didnt know the answer but seemed to think it did count. gave me a link to this

https://www.ageuk.org.uk/globalasset...ension_fcs.pdf


I've gone back into the pensions and NI payments pages and its very worth noting that the forecast is not the same as the estimate of what you will get. My estimate is less than the forecast, which presumes further payments. Plus it doesn't seem to take account of the opting out phase. Im going to roll over and surrender. I feel stupid when i comes to stuff like this.

edit
clicking on the link to opted out pensions takes you to a page that gives you the amount affected by opting out. This is a terribly misleading set up.

My pension is now going to be GBP4662 less than i thought it was going to be.

Last edited by bats; Apr 24th 2018 at 5:56 pm.
bats is offline  
Old Apr 24th 2018, 6:34 pm
  #24  
BE Enthusiast
Thread Starter
 
Joined: Mar 2004
Location: Hamilton, Ontario ex Loughton, Essex
Posts: 412
CDNReturner has a reputation beyond reputeCDNReturner has a reputation beyond reputeCDNReturner has a reputation beyond reputeCDNReturner has a reputation beyond reputeCDNReturner has a reputation beyond reputeCDNReturner has a reputation beyond reputeCDNReturner has a reputation beyond reputeCDNReturner has a reputation beyond reputeCDNReturner has a reputation beyond reputeCDNReturner has a reputation beyond reputeCDNReturner has a reputation beyond repute
Default Re: Contracted-Out & State Pension

Bats,
where is the link to opted-out pensions? Is that only if you can see your forecast online? I did a search on gov.uk but it didn't come up with anything that I hadn't already read.

This is confusing enough but I just picked up my tax accounts from my accountant and he's neglected to enter a $11,000 deduction so my head is spinning trying to get that sorted out as well.

I badly want to move out of Guelph and I'm trying to figure out what I can afford so all these figures are important especially as I have my eye on a house I'm really keen on.
CDNReturner is offline  
Old Apr 24th 2018, 9:34 pm
  #25  
limey party pooper
 
Joined: Jul 2012
Posts: 9,979
bats has a reputation beyond reputebats has a reputation beyond reputebats has a reputation beyond reputebats has a reputation beyond reputebats has a reputation beyond reputebats has a reputation beyond reputebats has a reputation beyond reputebats has a reputation beyond reputebats has a reputation beyond reputebats has a reputation beyond reputebats has a reputation beyond repute
Default Re: Contracted-Out & State Pension

Originally Posted by CDNReturner
Bats,
where is the link to opted-out pensions? Is that only if you can see your forecast online? I did a search on gov.uk but it didn't come up with anything that I hadn't already read.

This is confusing enough but I just picked up my tax accounts from my accountant and he's neglected to enter a $11,000 deduction so my head is spinning trying to get that sorted out as well.

I badly want to move out of Guelph and I'm trying to figure out what I can afford so all these figures are important especially as I have my eye on a house I'm really keen on.
You go online to where you can see your NI contributions and pension forecast.
On the pension forecast page scroll down and underneath the forecast and estimate there's some text about the pension. Within this blurb there a highlighted sentence about opting out - thus us a link so click on there and you'll see how much the amount is.
bats is offline  
Old Apr 24th 2018, 11:17 pm
  #26  
Grumpy Know-it-all
 
Steve_'s Avatar
 
Joined: Jul 2010
Location: Calgary, Alberta
Posts: 8,928
Steve_ has a reputation beyond reputeSteve_ has a reputation beyond reputeSteve_ has a reputation beyond reputeSteve_ has a reputation beyond reputeSteve_ has a reputation beyond reputeSteve_ has a reputation beyond reputeSteve_ has a reputation beyond reputeSteve_ has a reputation beyond reputeSteve_ has a reputation beyond reputeSteve_ has a reputation beyond reputeSteve_ has a reputation beyond repute
Default Re: Contracted-Out & State Pension

Originally Posted by bats
Daylight robbery. Combine that with the changes to the dates for women's pensions and I'm well and truly stuffed.
The robbery bit if you've got a pension from the UK (other than the State pension) is the change to the lifetime allowance, which they've dropped several times now. It was £1.8 million but now it's only £1 million. You can apply for "protection" but it has to be done proactively and I'm pretty sure most people haven't. Anything over the limit is taxed at 25%.

So say you have a SIPP and it has £1.5 million in it, and you applied for the 2016 protection (which you can still get) then the limit is £1.25 million. So the remaining £250,000 is taxed at 25%. That's before any income tax on a drawdown.

That's robbery imo. No-one would have expected the lifetime allowance to be dropped by such a large amount.

Fortunately I never bothered with a UK pension.
Steve_ is offline  
Old Jul 10th 2018, 12:42 am
  #27  
BE Enthusiast
Thread Starter
 
Joined: Mar 2004
Location: Hamilton, Ontario ex Loughton, Essex
Posts: 412
CDNReturner has a reputation beyond reputeCDNReturner has a reputation beyond reputeCDNReturner has a reputation beyond reputeCDNReturner has a reputation beyond reputeCDNReturner has a reputation beyond reputeCDNReturner has a reputation beyond reputeCDNReturner has a reputation beyond reputeCDNReturner has a reputation beyond reputeCDNReturner has a reputation beyond reputeCDNReturner has a reputation beyond reputeCDNReturner has a reputation beyond repute
Default Re: Contracted-Out & State Pension

Well here it is July 9th and I never did get my pensions forecast. I give up. I'm moving this week and brought over the little funds I had left in the UK (which I was going to use to on the pension) to help pay for the new house. I'll just have to take what I get when the time comes which I'm beginning to think will be about 1/3 of what I thought I was entitled to.

Just a reminder that due to the fact I have a Canadian passport I can not view my details online.
CDNReturner is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service -

Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.