Savings transfer

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Oct 8th 2018, 3:30 pm

#16

BristolUK

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Re: Savings transfer

Quote:

Originally Posted by nofrills

so, since I would be getting my pension increased by inflation at least when I reached my retirement age, then there is no advantage keeping contributing to the UK old age pension, unless I wanted to have a higher old age pension paid to me by the UK government.

The advantage can be quite a big one though.
It's not the same for everyone but in my case each year I could voluntarily pay for was worth £10 a week extra. I was three years short of the maximum.
I was able to pay about £150 for each year, lucky enough to qualify to pay the lower of two rates. Unless you think you're not going to live long why would you not pay £150 once to get £520 more each year?

Even if you have to pay the higher rate, £500 or so, that can be recovered in one year of the new amount and a gain each year after that.

This is why people do it. The pension forecast will identify how it would look for you.

Quote:

I don't understand why there are so many posts on this forum complaining why Canada hasn't got some type of agreement signed with the uk making their pension indexed when they reach retirement age.

glendem4 covers that, but it's also the inconsistency. Move to the USA and you do get the annual rises, but not Canada.

,

Quote:

when as you said it doesn't really matter as everyone who emigrated to Canada from the UK will have his/ her pension indexed for inflation no matter what.

But only to the point of the award then it stops being index linked.

Quote:

those that decide to cintribute to their uk old age pension when they decide to emigrate tl Canada live there untill their retirement age, will be able to receive old age pension from both countries,

Providing they can reach the ten years. But it's possible that the additional UK pension from paying missing years is worth more.

Oct 14th 2018, 6:52 am

#17

nofrills

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Re: Savings transfer

Thank you gents for your replies.
I'm sorry I couldn't reply earlier, as was so busy this last week.
Now all is clear to me

Yes, even if I I need to pay the higher monthly rate of contribution, it is still worth doing.

Thank you all for clarifying it all to me