Tribleedinumph

Hi all,

Trying to wade through pages of 'gumph' on google and not really getting anywhere, can anyone help? How does it work and what do we need to do before we leave the UK...

My basic understanding from the 'directgov' website is that if you are working in a country outside of the UK and EEA you have to claim state pension there...does that mean all that we have paid in for the last 34 years (in my OH case) is not claimable. And if so, in Canada would we get a pro-rata proportion of their state pension depending on how long we have paid contributions?


Thanks in advance
Yve

Novocastrian

You will be entitled to a state pension from both countries pro rated in each case by the years of contributions. Due to a much discussed quirk in UK regulations, the UK part will not be index linked once its received if this happens when resident in Canada.

Tribleedinumph

Thanks for you help...this is all a bit of a unknown quantity and apologies if these issues have been discussed before!

Do you know if it is possible to carry on paying into the UK funds whilst being overseas...or even worth it?

Novocastrian

It's possible but whether its worth it depends on your detailed situation.

JonboyE

You only need 30 years of contributions to qualify for a full state pension in the UK under current rules. There will be no point in your OH paying any voluntary contributions.

Of course, rules can change.

jimf

Periodically you will receive letters from DWP saying - If you want you can pay XX for class YY contributions for the year ZZ.

Novocastrian

The letters might possibly be a little more specific.

jimf

That is a possibility but, bearing in mind we are talking about the DWP, somewhat remote.

uk.expat.pensioner

The UK state pension is payable anywhere in the world but, as stated by others, is not indexed in most countries. Exceptions are the EU, the USA, Turkey, Israel, Jamaica, Bermuda and a few other countries, where it is indexed just as in the UK.

Since 6th April 2010 only 30 years' contributions are required for a full pension, currently £107.45 per week, and pro rata for fewer years. Voluntary contributions can be made from abroad to top up the contributions made while working in the UK. And currently a spouse gets a pension of approximately 60% of the primary (Category A) pensioner even if he/she has never been to the UK!

Changes are expected in April 2016 when a proposed flat-rate pension is to be introduced. This will see the spousal pension eliminated, but the basic pension will be increased to £140 per week for 30 years' contributions. The £140 per week is based on 2010 rates, and will probably translate to £160 per week by 2016.

There are pensioner groups in Australia and Canada campaigning for indexation of the pension for all expats (not just half of them at present), and can provide members with detailed information on all aspects of the pension.

Novocastrian

Oh, really?

prairiechicken

I've just been researching this today and had got a bit confused with it all. Thanks, this post is really helpful

Yandros

Some very useful info here, so thanks to all the contributors so far, and a question.

If both husband and wife have worked sufficiently to acculumate 30 years contributions do both get the full pension (ie currently approx 107 per week), making a household income of 214 per week. Or is there some mechanism to prevent his happening?

Thanks

uk.expat.pensioner

Under current rules you should both get a full pension, currently £107.45 per week, if you both have 30 years' contributions. Also 30 years are required for the full flat rate pension, expected to start on 6th April 2016 for people reaching pension age on or after that date. Details of this new pension are expected in a white paper to be published later this year - originally promised in spring!

And under current rules a spouse can get 60% of the husband's/wife's pension even if he/she has made no contributions. This spousal pension will cease under the new rules.

Which rules you come under depends on when you reach pension age, which is changing for men and women. See the pension age calculator here: http://pensions-service.direct.gov.u...lator/home.asp

It's not clear how the new pension will be phased in - perhaps all will be revealed in the white paper - but don't hold your breath. Will it be a cliff edge, with those with reaching pension age after 5th April 2016 getting the full £160 per week (estimated) and those reaching pension age before 6th April getting the present rate, plus 60% for a spouse? I can see that being popular!!

Yandros

Thanks for this. Although it doesn't effect me I'd be interested to know what happens regarding non working spouses once the new rules take effect. Do they get any sort of pension at all?

uk.expat.pensioner

Under the proposed changes, people would qualify as individuals, and would require a minimum of 7 years' N.I. contributions to get any basic state pension at all. So non-working spouses wouldn't get a basic state pension under the new rules, but may get a pension if time spent under the old rules is credited in some way.

All this is to simplify the pensions system!

The 7 year minimum would correspond to a pension of 23% of the maximum, very close to the 25% minimum that applied until it was canned in April 2010.