Re: Social Security Prep before Leaving
 

If I can't make NI contributions after my state pension age which is 62, then does that mean no NI is taken out of my salary if I continue to work full-time until age 65/66?

Re: Social Security Prep before Leaving
 

Yeah exactly. Bearing in mind that every month you delay in taking SS, you increase your payment for life, why not wait to apply till you are settled down in UK? Especially since the application is done through an office in London AND you'll have a British bank account set up to accept the funds.

Re: Social Security Prep before Leaving
 

I believe that is the case. I read that on the NI website recently. You'd need to check, because I don't have chapter and verse at hand and I could have misinterpreted or read out of context.

Re: Social Security Prep before Leaving
 

Re: Social Security Prep before Leaving
 

I need to give this lots of thought. It is very good advice. What I would get at 65/66 rises remarkably over what I would get now - which is still pretty good.

Re: Social Security Prep before Leaving
 

This two UK websites appear to give helpful advice about 'Pension Credit', which is different to the 'State Pension' - https://www.moneyadviceservice.org.u...pension-credit and https://www.gov.uk/pension-credit/overview .

Re: Social Security Prep before Leaving
 

I was reading through the SS link that someone posted and found this:

"Let us know if anyone who gets
benefits gets married. In some cases,
Social Security payments stop after
marriage. In other cases, the payment
amount changes. This depends on
the type of benefits you get and,
sometimes, on whether your new
spouse gets payments"

Does this mean that in the remote chance I was to marry in the UK, my social security could be stopped??? Not just me, but anyone who might marry.

Also, will my SS be reduced because I would also be collecting a company pension from the US?

Re: Social Security Prep before Leaving
 

Thanks for the link. It looks as if I wouldn't qualify because my income from SS and my company pension would put me above the limit. I suppose that's good news in a way.

Re: Social Security Prep before Leaving
 

Windfall Elimination Provision can reduce your SS in certain circumstances.

I assume your US company pension was earned with social security employment, i.e. employment for which you paid in FICA, social security tax. If that was the case, no, your SS will not be reduced.

WEP can reduce SS payments if the pension received is for non-SS employment. Examples would be working abroad, or as a teacher or other state employee in Massachusetts, as MA state employees don't participate in SS. (These are just two examples.)

Re: Social Security Prep before Leaving
 

Back to post #52 - if your SS benefit is based on YOUR work record, getting married (or divorced, or whatever) has no effect whatsoever on your benefit. It's only if your benefit is based on a spouse's work record.

For example - DH arrived in the US with a green card at age 60. He worked 38 quarters, 2 short of the number to qualify for SS. His UK work record was also considered and qualified him for US Social Security because of the totalization agreement. His benefit was fairly small, but was increased based on MY work record.

Fast forward - if something happens to me, DH continues to get the increased benefit. BUT...if he remarries, that goes away, and his benefit reverts to his work record.

Re: Social Security Prep before Leaving
 

Yes, that's correct.

This is looking more positive now. If I were to collect SS at 62 and only earn the UK equivalent of $15,000 a year, the amount allowed by the SS before SS is reduced by earnings over that amount, then it also falls below the personal allowance of the UK in which case I would pay no UK tax - I think. I still have to confirm all this, hopefully tomorrow. The crunch comes when one stops working all together. Still have to look at whether to defer SS to 66.

Re: Social Security Prep before Leaving
 

Very simplistically - If you earn $15K, that's about £8825 at current exchange rates. If 90% of your SS benefit is an additional £8000, then your income is £16825, without regard to any interest, dividends, the work pension etc. or other income, all of which will be taxable (assuming you are taxed on the arising basis, which is likely in your case).

Deduct the personal allowance from that (£10K for the 2014/2015 tax year) and you will pay 20% tax on the difference (£6825) or £1365 in tax.

If you defer your SS for another 4 years, to a time when you will likely no longer be earning, and not only will your SS benefit be significantly higher, but over time your total UK tax liability will likely be less.