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UK state pension and USA social security

UK state pension and USA social security

Old Jun 10th 2015, 5:39 pm
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Default Re: UK state pension and USA social security

Originally Posted by nun
The "final pension from National Health Service" is an example.

Superannuation is just another term for a retirement plan.....it's used in Australia to refer to the their retirement system.....it's a bit anachronistic elsewhere. Back in the 1960s I imagine that your relative's company pension plan was described as a superannuation plan. Taking a lump sum from it back in the 1960s won't change the UK state pension. However, your relative should find out how they are affected by the New State Pension. They might be able to make extra voluntary National Insurance Contributions and some other special contributions to top up the pension amount

Top up your state pension? Your questions answered - Telegraph
Thanks nun for the article and other useful information re "superannuation". As you said earlier, withdrawl of superannuation would not affect the UK State pension.

When I requsted my pension forecast sometime back, the Pension Deferral Dept. also provided the figures for the deferral Lump Sum and the "extra pension" which I could take in lieu of the lump sum. The artcle talks of such options.
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Old Jun 10th 2015, 9:01 pm
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Default Re: UK state pension and USA social security

This is a very helpful thread and web site. Many thanks to all the contributors. I read the first 18 pages, before I realized that there were 56 in total !
I am 70, and have worked for over 30 years in the US - and am still working. My wife is 67. We both receive US SS pensions, and have started the process to claim UK pensions for the years we worked in England before coming to the US. I think I am right in that I am excused the windfall tax. My wife has not completed 30 complete years. Is she liable for the windfall tax?
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Old Jun 10th 2015, 9:07 pm
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Default Re: UK state pension and USA social security

Originally Posted by Francis1945
This is a very helpful thread and web site. Many thanks to all the contributors. I read the first 18 pages, before I realized that there were 56 in total !
I am 70, and have worked for over 30 years in the US - and am still working. My wife is 67. We both receive US SS pensions, and have started the process to claim UK pensions for the years we worked in England before coming to the US. I think I am right in that I am excused the windfall tax. My wife has not completed 30 complete years. Is she liable for the windfall tax?
If your wife is claiming SS based on her own contributions, if she does not have 30 years contributions then she will be subject to the WEP. If however she is claiming a spouse benefit based on your contributions, she will not be subject to WEP.
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Old Jun 11th 2015, 7:44 pm
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Default Re: UK state pension and USA social security

Thank you. I'm so glad I found this site.
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Old Jun 22nd 2015, 10:41 pm
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Smile Re: UK state pension and USA social security

Hello! We are new here. I cannot read the 56 pages of this thread but was wondering if someone had an answer for us or could point us to the correct place to find the answer.


Keith was born in the UK and worked in UK from 1976-2005, short of 30 years. He is a dual citizen of the US/UK now working here from 2006-present. He will retire in 2025 and will only have 20 years of paying SS in the U.S. He has NOT been contributing to his UK state pension since he moved here. He has a UK state pension and a UK private pension (shipbuilding 20 years).


Questions:
1. Will he get any UK state pension since he worked UK less than 30 years and has not contributed since he left in 2005? I assume yes but how would we figure this out?
2. Will his private pension be included in the WEP calculations?


Thank you for any answers!!!
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Old Jun 22nd 2015, 10:44 pm
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Default Re: UK state pension and USA social security

1) Yes - why doesn't he buy the years he is short of the full now 35.

2) Yes

Last edited by lansbury; Jun 22nd 2015 at 10:47 pm.
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Old Jun 23rd 2015, 2:37 am
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Default Re: UK state pension and USA social security

Originally Posted by lansbury
1) Yes - why doesn't he buy the years he is short of the full now 35.

Well being a guy, he doesn't know what he is supposed to do and me being the US citizen, I have no idea what that means and/or how to do it. Wouldn't that be expensive? (And yes, I realize it sounds like if he does that he will get more pension but we don't have extra money at this time.) Wouldn't he have had to do that years ago or can he go back now (after being here for 10 years) and do it?


And are you saying you have to have 35 years of paying into it rather than the 30 I thought?


THANKS!
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Old Jun 23rd 2015, 3:56 am
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Default Re: UK state pension and USA social security

I think from 2016 a full pension will be paid on 35 years of payments. So if he has paid in for 28 years he would get 28/35ths of the full amount.

Contact details for the UK pensions office that deals with expats is here https://www.gov.uk/international-pension-centre

Others here on BE pay voluntary contributions and if he is going to be working until 2025 he has time to make up 35 years of payments. He should contact the pensions office and ask for the costs involved.
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Old Jun 23rd 2015, 5:07 am
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Default Re: UK state pension and USA social security

This is probably a simple sounding question but why would I pay back contributions on a UK pension if I am maxed out on US pension contributions/ I thought I cannot collect both that was the point of the WEP? Or am I missing the most basic of things?
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Old Jun 23rd 2015, 5:37 am
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Default Re: UK state pension and USA social security

Originally Posted by vikingsail
This is probably a simple sounding question but why would I pay back contributions on a UK pension if I am maxed out on US pension contributions/ I thought I cannot collect both that was the point of the WEP? Or am I missing the most basic of things?
WEP will only reduce SS by a certain amount (no more than about $500/month I think).

I am in a similar position in that I had 17 years of work in the UK before moving to the USA, where I paid into SS for 23 years before retiring. I also have a private UK pension.

The UK private pension is not big, but enough to apply the max WEP to my SS. Therefore it does not matter how much UK OAP I will get. By the time I can collect UK OAP I will have 27 years of NI contributions because I decided that doing voluntary NI contributions is a good investment.

I think that the least your husband should do is a little research before making any final decision on this.
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Old Jun 23rd 2015, 5:53 am
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Default Re: UK state pension and USA social security

Originally Posted by vikingsail
This is probably a simple sounding question but why would I pay back contributions on a UK pension if I am maxed out on US pension contributions/ I thought I cannot collect both that was the point of the WEP? Or am I missing the most basic of things?
If by maxed out you mean you have paid 30 years of SS contributions, then your SS will not be subject to WEP. You can be paid both SS and UK State pension so nothing the lose by paying voluntary contributions and increasing your UK pension.
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Old Jun 23rd 2015, 6:53 pm
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Default Re: UK state pension and USA social security

Thanks, I've ordered my pension statement via Newcastle and the number I got here. Now to wait and see how many years I have and then decide contributions. Class 3 I think if I'm abroad working?
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Old Jun 25th 2015, 1:44 pm
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Default Re: UK state pension and USA social security

Originally Posted by KeithAndShari
And are you saying you have to have 35 years of paying into it rather than the 30 I thought?
Currently 30 years, max amount £98/wk, April 2016 35 years, max amount £152/wk.
If your full retirement age is before April 2016 there is a provision for purchasing the extra 5 years.
Currently you can buy back 6 years for approximately £1000, which is a very good deal, then pay going forward.

Originally Posted by vikingsail
Class 3 I think if I'm abroad working?
Nope, Class 2, which makes it such a great deal.

I encourage both of you to buy back the 6 years at Class 2 rate before they decide to change it.
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Old Jun 25th 2015, 8:53 pm
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Default Re: UK state pension and USA social security

Originally Posted by Disenchanted
Currently 30 years, max amount £98/wk, April 2016 35 years, max amount £152/wk.
If your full retirement age is before April 2016 there is a provision for purchasing the extra 5 years.
Currently you can buy back 6 years for approximately £1000, which is a very good deal, then pay going forward.



Nope, Class 2, which makes it such a great deal.

I encourage both of you to buy back the 6 years at Class 2 rate before they decide to change it.
Thank you
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Old Jun 26th 2015, 1:56 am
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Default Re: UK state pension and USA social security

[QUOTE=Disenchanted;11684565]Currently 30 years, max amount £98/wk, April 2016 35 years, max amount £152/wk.
If your full retirement age is before April 2016 there is a provision for purchasing the extra 5 years.
Currently you can buy back 6 years for approximately £1000, which is a very good deal, then pay going forward.

Maybe I missed something in an earlier post, but I just retired at 65 with 30 years UK contributions and the pension is 120 pounds sterling per week.
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