Hi. My wife and I have lived in Norway since 2007. However we expect to return later this year for economic and health reasons. With the recession biting here, I lost my job. I am 63 and my wife 61.
Norway is probably the most expensive country to live in with beer at £8 a pint, and bread at £3.20 a loaf. Fine for the affluent Norwegians, but no good for us as an English pension will not go far here, especially with the sinking pound.
We shall return with about £130,000 capital. However as we will have no income, unless I can find work; and will not receive my state pension untill 2012, we are wondering whether we would be better of renting rather than spending our capital on buying a property, such as a flat .
We intend to return to the midlands around Bromsgrove.
What do you think?

hard decision to make,in the UK you would probably be able to just about afford a flat outright but I'm not sure what your entitlements would be regarding benefits.On the other hand it seems unfair but if you rent and move back with capital you would not be entitled to any state help.My inlaws sold their house unable to continue with mortgage payments due to ill heath and only when all their capital had been spent did they receive any state help as they were deemed to have to much in savings. Do you know if you moved back and bought a small flat if you would be able to claim benefits until your pension is due?

Probably would not get any benefits. So guess renting might be our best option.

I would say that your return to Bromsgrove is dependent on family probably.
If you have capitol and bring it into the UK and use it as income I think you will have tax implications. Why not buy a place Newcastle or 50 miles around. Property is not so expensive as the South and when I returned from Norway I got a place in County Durham, 3 beds etc. for 130K and I can get anywhere on the motorway in a few hours. If you buy somewhere you will get a return later and you will get some smaller benefits as savings will be shown to be minimal after the purchase. Go on the .gov websites for benefits and use the system as all the others do.

Thanks for the suggestions. I will have a look at the .gov websites.
There is a lot to consider.My daughter who is married to a Norwegian,and has two young boys, loves it in Norway.
But they are young, both have good jobs, so will reap the benefits of good norsk pensions later on in life. Bit late for us and our UK pensions will not vgo far here, so a return is definite

So sorry you sound so sad about moving, is there no chance for another job out there?
If not good luck on the move, I hope it goes smoothly.

Thanks Mummy. But it is not so easy for Norwegians in the job market just now. So at my age of 63, and only basic norsk language skills, the chances of getting permanent work are slim indeed. .

To Ravenmaven. When you moved back, where did you stay why you were looking for that property that you bought?

Hi

if you invested your capital in property you would be entitled to claim pension
credit ( up to £198:45 weekly plus no rates,free courses & dental treatment) as
your wife is over 60.Look at UK.Gov website where there a calculator.

regards merlino

Thanks indeed Merlino. I didn't know that!
Would i be allowed to use my capital buying a house and car, and then claim this pension credit?
I will have about £170,000 disposable income, which I could use to buy a modest property, and car, leaving just small amount savings.Is that allowed?
This is very interesting indeed, and may be the best way to go!

Hi there

I took early retirement when I was 58 with a lump sum of £50,000 ,cleared my mortgage of £45,000 and did not want to claim my company pension before 60 as they reduce the amount paid.As my wife was over 60 I was able to claim pension credit where they top up her standard pension to £198:45 plus as I mentioned no rates to pay,free dental care & college courses.
The application forms do take a while to complete and they will probably send someone round to check all your details and receipts.As long as your funds are invested in property and have savings of £6,000 or less ( any amount over this is reduced by £1 per thousand weekly) you will be able to claim.
You may have to pass the Habitual Residence Test which basically means you need to demonstrate that you intend to make the place where you live your home (by purchasing a property etc )
They will also know about all funds that you have in bank accounts anywhere.

regards merlino

Also, I don't think buying a car would be a problem as property and transport are essential items and you will have all the paperwork to prove it.

merlino

Very useful info.Will definitely look into it; I have looked at the directgov website.
Hows things in Spain? How is the weak pound affecting you?

I would rent and out the money to better use personally. It is not a problem to find work in the UK generally it just depends how picky you are and how much you wish to earn.