mikemike

For those who have treated their state pension as a useful top up to other arrangements this may not have such an impact.

For those who relied a little more on such benefit, especially if they have a family that is still dependent when they are of retirement age, then this may be more poignant.

My occupational scheme is drastically reduced in the event of my death.

My NI benefits transferred to my spouse in event of my demise and for the benefit of our UK passport holding youngsters will be a huge loss if this proposal is pushed through.

http://www.telegraph...UK-pension.html

Bocat

I can't get the link to work MikeMike.

Is this the same one?

http://www.telegraph.co.uk/finance/p...K-pension.html

(Assuming this link works!)

bakedbean

I read the news via another site and someone put in this link to the BBC (see below). I think it explains fairly well.

Basically, they seem to be abolishing the "Married" allowance on state pensions for overseas residents from April 2016 and going on to a new flat-rate single state pension of GBP 144 per week (at current rates).

That is going to be a real bummer for a lot of people.

http://www.bbc.co.uk/news/uk-22423878

mikemike

Yes, it appears that the proposal has not been thought through and may well end up watered down.

EEC pensions are designed to be fully portable as are their benefits between member countries, so it will not fly in the EEC.

Additionally it will see tough sailing when measured against countries that allow a Brit dependent to benefit from their foreign partners pension in event of death, too many reciprocity issues. For some its going to be a huge bummer especially where dependent children are involved.

I wonder how much they would save if any affected families decided to return to UK and put their hands out for full state benefits!!

bakedbean

Haha.... yes... good one

mikelincs

What they are doing AFAIK, is to stop paying the married persons pension to people who have never set foot in the UK or worked in the UK, there is an anomaly that allows the spouse of a UK citixen who has a pension to get the married persons allowance even though they have no UK pension rights themselves..

mikemike

This is the line taken by those who proposed this without any regard for reciprocal arrangements made that favour a UK spouse whose foreign husband dies. US spouse married to a UK person will in event of death of US spouse have their social security paid to surviving spouse and those payments are far more generous than a small Uk widows benefit, so much so a widow receiving the foreign payments would not qualify for UK financial support.

As Usual government arguments soon unravel when faced with non partisan realities. Looks like my two kids both under age 5, in event of my death, will have to go back to UK. They are UK citizens and will then be without their mother. The costs of this to be paid by UK state funding and will be far in excess of 3500 pa. I think once the politicians get over themselves and realise that propaganda by bashing foreigners is somewhat passe in the 21st century. They would find it far cheaper to pay my nasty horrible foreigner wife MY Ni payments pension than to stump up the cost of the UK raising the two children.

If Uk pulls out the EEC then there will be a huge reciprocal withdrawl of cross border pension portability. In meantime any attempt by UK to follow through on this will for Europe end up defeated at Brussels.
And if the Scots get their independence what price any form of state safety net EARNED by those who paid for it

This policy should have been about arithmatic and not pandering to UKIP success at the polls with foreigner bashing. Amazing that government can just decide on a whim without regard to consequence, especially when the policy they invoke is not passed by the 'bean counters' before going for pubic utterances. Oh well politics is a desperate business for the desperate in order to ensure others are even more desperate.

Some of those foreigners we marry, did by the way make the ultimate sacrifice for the Uk without stepping inside that ever so precious country. Just as well they did not die there as they probably told that their graves are not welcome either.

Bipat

This ruling applies also to British wives in UK who have never worked, not just foreign wives. They are just making publicity about the foreign wives.
I wonder what will happen to those wives who are handicapped/ became ill etc and who were unable to work. I suppose in UK there will be other benefits.

tropicofcancer

Yes my wife has only five qualifying years in the UK, and even though I paid in for forty years, she will be a loser.
I will not get the flat rate pension, as I made retirement age this year. I do not get an enhanced pension for being married. That went out a couple of years ago.
Think of the money the government saves with us ex-pats. No child benefit. No education costs. No medical costs, no free medicines, no winter fuel allowance, no bus pass. Our spouses are certainly being treated shabily. Maybe it is because they are married to British Citizens who worked and paid in all their lives.

ex reg

There're people now saying it will cost as much to implement as what it will save.

mikemike

why am I not surprised

robbo462003

However living in the Philippines as a UK ex-pat I believe you do not pay Any income tax on your UK pension.Unlike those pensioners who have remained in UK or chosen to live in a country with no reciprocal tax agreement with the UK

tropicofcancer

I have paid my taxes in the UK all my life, but that is about to change. HMRC have owed my wife and myself a lot of money for several years. They will not pay and ignore all letters sent to them. So this year is the year that I rectify the situation.

mikemike

Then there must have been a very secret change!! As an expat you pay income taxes on all incomes arising in the UK over the personal allowance in exactly the same was as if you are at home. What does not happen is that any income arising outside of the UK is not taxed in the UK but in the country where the income is sourced. I pay Uk income tax on my occupational pension scheme my state pension scheme is paid gross. Both pensions are added to together to arrive at a gross total income from which my personal allowances are deducted. The balance is then taxed at 20%. What does happen and it is posted on the UK gov org website is that about 17 countries have a reciprocal indexation policy with the UK for state pensions etc, USA and Philippines are two of those. I believe non of the Commonwealth countries maybe on the list but I could be wrong.

We arrive in KK tonight cannot wait

bakedbean

Re pensions (at least private ones) that's not true in Malaysia. If you are living in Malaysia under MM2H visa and get confirmation from Malaysian tax authorities that you are tax resident here, that can be sent to UK HMRC and they accept that (reciprocal agreement) and will pay your pension gross (can be in a UK account). Then, in turn, you can bring in those proceeds to Malaysia legit tax-free, as Malaysia does not tax offshore income.

I believe it's not so straightforward with UK state pension and any gov pensions though.

Anyway... just for interest.