Pension advice

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Old Oct 6th 2017, 7:32 am
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Default Pension advice

I am 8years autonoma in spain paying the min quota 275,00 mthly, I am 46. I have 15 years of contributions in the uk as an employee. As I am resident in spain what is my best bet for the future? Private pension or pay more into my autonoma quota each month. I also have a 'plan de ahorros'with ocaso which i pay 150e into monthly.any advice would be much appreciated.
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Old Oct 6th 2017, 7:33 am
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Default Re: Pension advice

Hi and a warm welcome to the Spanish forum on BE. Myself and Fred James are the moderators for the Spanish forums whilst BEVS moderates Europe. Moderators are there to ensure that the site runs smoothly within the rules of BE. This is so that members gain the information that they are looking for and find their experiences on the forums to be friendly and worthwhile.

Problems and complaints should always be addressed to a moderator who will look into the matter and deal with it efficiently and fairly. Our members who post in the Spain Forums are usually friendly and helpful with a wealth of knowledge about the issues of living in Spain. I hope that you enjoy your time participating in the forums.

Please let me know if you need any further help.

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Old Oct 6th 2017, 7:35 am
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Default Re: Pension advice

Thanks!
Originally Posted by Rosemary View Post
Hi and a warm welcome to the Spanish forum on BE. Myself and Fred James are the moderators for the Spanish forums whilst BEVS moderates Europe. Moderators are there to ensure that the site runs smoothly within the rules of BE. This is so that members gain the information that they are looking for and find their experiences on the forums to be friendly and worthwhile.

Problems and complaints should always be addressed to a moderator who will look into the matter and deal with it efficiently and fairly. Our members who post in the Spain Forums are usually friendly and helpful with a wealth of knowledge about the issues of living in Spain. I hope that you enjoy your time participating in the forums.

Please let me know if you need any further help.

Rosemary
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Old Oct 6th 2017, 4:47 pm
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Default Re: Pension advice

I was in your position about 15 years ago and with hindsight I would do the following:

1 Start paying voluntary class 2 NI contributions in the UK. At the moment these cost about £146 a year and if you pay for twenty years you will have 35 years contributions and a full basic UK pension ( for life). Do the sums, that's a real bargain.

You can immediately make a back payment of six years. The online INFO is at UK Government Gateway. The risk is the possible fall in value of the pound but I think it's a sound gamble as I wouldn't like to predict Spain and the Euro in 20 years time.

2 Increase your autonoma payments rather than planes de pensiones. Once again it's a risk that the Spanish state will be paying out in the future.

3 Private plans only really benefit high earners and the banks who market them, as the commissions are very high and the profitability very poor in many cases. You have to pay tax on the whole amount when you choose to cash them in.


Hope that's given you food for thought.
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Old Oct 6th 2017, 5:52 pm
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Default Re: Pension advice

Ah many thks will loook into htwthe uk part!!

Originally Posted by Mustard View Post
I was in your position about 15 years ago and with hindsight I would do the following:

1 Start paying voluntary class 2 NI contributions in the UK. At the moment these cost about £146 a year and if you pay for twenty years you will have 35 years contributions and a full basic UK pension ( for life). Do the sums, that's a real bargain.

You can immediately make a back payment of six years. The online INFO is at UK Government Gateway. The risk is the possible fall in value of the pound but I think it's a sound gamble as I wouldn't like to predict Spain and the Euro in 20 years time.

2 Increase your autonoma payments rather than planes de pensiones. Once again it's a risk that the Spanish state will be paying out in the future.

3 Private plans only really benefit high earners and the banks who market them, as the commissions are very high and the profitability very poor in many cases. You have to pay tax on the whole amount when you choose to cash them in.


Hope that's given you food for thought.

Last edited by Rosemary; Oct 6th 2017 at 6:37 pm. Reason: corrected quote
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Old Oct 11th 2017, 11:29 am
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Default Re: Pension advice

Originally Posted by Mustard View Post
I was in your position about 15 years ago and with hindsight I would do the following:

1 Start paying voluntary class 2 NI contributions in the UK. At the moment these cost about £146 a year and if you pay for twenty years you will have 35 years contributions and a full basic UK pension ( for life). Do the sums, that's a real bargain.

You can immediately make a back payment of six years. The online INFO is at UK Government Gateway. The risk is the possible fall in value of the pound but I think it's a sound gamble as I wouldn't like to predict Spain and the Euro in 20 years time.

2 Increase your autonoma payments rather than planes de pensiones. Once again it's a risk that the Spanish state will be paying out in the future.

3 Private plans only really benefit high earners and the banks who market them, as the commissions are very high and the profitability very poor in many cases. You have to pay tax on the whole amount when you choose to cash them in.


Hope that's given you food for thought.
This is what I do and you're right - the UK state pension is an absolute steal. Retiring with both UK and Spanish state pensions has a few advantages in terms of spreading both currency risk as well.

However I think there might be an age limit these days as to when autonomos can increase their social security payments - the OP may need to check this out.
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