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Doug B

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If you've paid in I thought you could claim it where ever you are when you retire?
 

marcros

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Dunno. At the end of the day, as a population, we are not saving enough for retirement. When established, the state pension provided for something like 6-10 years after retirement before death. It is now expected to last for an average of many times that. The sums just don't add up.
 

Silverbirch

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MMUK":3lkjp316 said:
There's no way on this earth I'm paying into a state pension when I won't be in this country to draw it!

Don`t know where you`re intending to be, but can you predict with certainty what your circumstances will be in X year`s time?

I know I couldn`t have.

Ian
 

wellywood

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phil.p":1jnelh34 said:
In common with many others, I would have saved much more over the decades had I not been taxed to the hilt on just about everything I ever earned or bought to pay to keep other people.

Well said. I don't know where the heads of these people are who exhort you to save when it takes all your income just to get live these days. It's no different here.
 

Cheshirechappie

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Actually, the whole pension provision system is a complete mess in the UK. It urgently needs a complete overhaul if the ludicrous inequalities and unfairnesses are to be ironed out, and as has been said, we're not saving enough.

Getting everybody - public and private sector, high and low, MP and non-MP - saving for their own pensions (and not having to contribute excessively to other people's) would be a good move. Controlling the urge of some of the big insurers to cream off excess profits from other peoples' pension savings would be another good move, as would the overhaul of taxation of pension savings.
 

finneyb

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Cheshirechappie":lknlu79y said:
Actually, the whole pension provision system is a complete mess in the UK. It urgently needs a complete overhaul if the ludicrous inequalities and unfairnesses are to be ironed out, ....
+1
And we can start by removing tax relief on pension contributions and using that to give all pensioners a decent state pension. After that you are on your own if you saved you have additional money if you don't you have a living pension.

All current pension schemes including public sector should become defined contributions ie you get a lump sum on retirement and buy an annuity or draw down from the lump sum. We have companies saddled with the cost of pensions which is preventing them investing in their future. Much the same as US's General Motors in 2008 was paying more for its pensioners and employers health care than it was spending on steel. That's now changed, jam tomorrow until tomorrow comes.

As I see it the current private defined benefit pension schemes are in danger of going to the PPF (Pension Protection Fund) with significantly reduced benefits - which is just typical of both the Finance Industry and the Govt - again, jam tomorrow until tomorrow comes.

Brian
 

mailee

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It beats the hell out of me, Years ago the Government said you could opt out of the state pension (which I did) and put the money into a private pension (which I did) now the Government are saying you can have your state pension again? As it is even with my private pension that has been running for a lot of years now if I retire at 65 I can look forward to a grand sum of £18,000! that is going to get me a long way I am sure. :roll:
 

beech1948

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The government has passed legislation which forces ALL employers to offer to put ALL eligible employees into a pension scheme where the employee pays in some percentage and also the employer a percentage. Its called Pensions Automated Enrollment. Started Oct 2012 with the big companies and now down to companies of about 250+. The others will have deadlines to join based on no of employees upto 2015.

Establishing eligibility can be a bit tricky but pension costs are tax free.

If you do not want to join then you do not have to. The employer can offer but you can reject it. You would need to sign a form saying the pension been offered and you rejected it.

You would be offered this again every 3 yrs or if you changed your mind at any point.

Al
 

rannndy

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If you've paid in I thought you could claim it where ever you are when you retire?

you can, i live in holland now and my state pension is payed every 4 weeks. you can have it payed into a bank either in uk or in the country you live in. [if you have a bank account in uk that is].
john
 

KevM

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rannndy":1v01y6ka said:
If you've paid in I thought you could claim it where ever you are when you retire?

you can, i live in holland now and my state pension is payed every 4 weeks. you can have it payed into a bank either in uk or in the country you live in. [if you have a bank account in uk that is].
john

Is it still the case that retirees to certain countries get their UK pension paid index linked whereas others have it frozen at the date of their emigration?
 

MMUK

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Personally I'm more in favour of bricks and mortar pensions. When I get to pensionable age, I won't be a UK citizen so I won't get a UK pension anyway. I fully intend to relinquish my UK citizenship as soon as I emigrate to the Canaries and become a Spanish citizen.
 

finneyb

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KevM":1kpn3i2x said:
[
Is it still the case that retirees to certain countries get their UK pension paid index linked whereas others have it frozen at the date of their emigration?

I'm no expert, but I thought that if it was a Commonwealth country eg Oz, NZ, Canada you didn't get inflation increases from the UK ie the pension when first paid stays at that level BUT that the country of residence gives you the inflation rises.

If you live in a non-Commonwealth country you get the UK pension with inflation rises.

Don't ask me why.

Brian
 

Student

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Before I retired, my day job was as a pensions consultant and I had been involved with pensions planning and pensions administration for the best part of 30 years.

To answer some specific queries raised

The answer to whether state pensions can be paid abroad is “yes” - see

https://www.gov.uk/state-pension-if-you ... w-to-claim

However, as far as increases on state pensions is concerned, it depends where you choose to live. Living in the EU and most of the Commonwealth countries should mean you get inflation linked increases but you need to check e.g. re Australia - see

https://www.gov.uk/state-pension-if-you ... te-pension

With regard to the other points made, the major problem with pensions, both private and State, is that they have been subjected to more and more political interference. At one time, there tended to be only one bit of legislation passed every 5 years. Now it seems to be 5 times a year. The original idea was that contributions to private pension schemes could be offset against income tax and that the investments would grow tax free. At retirement, you could take a certain amount of tax free cash and the balance pension was subject to income tax. This way you only paid tax on what you actually received. However, the concession on contributions has been constantly whittled away in recent years although the effects are probably felt only by high earners. Tax on the investments was introduced in part by the Tories and then wholeheartedly by Gordon Brown.

State pensions have always been funded on a pay-as-you-go basis i.e. simplistically, you pay for your parents’ pensions and your children pay for yours. With ever increasing longevity, this is becoming unsustainable if people retire at age 65. When state pensions first started, the average length of state pensions payment was about 5 years, now it’s more like 15. This is why the State Pension Age is being put up.

Going back to the subject of tax relief on pensions’ contributions, if these have to be paid out of taxed income then, logically, there is an argument to say that pensions’ payments should be tax free as would happen if, for example, you invested in ISAs where the investments grow tax free and you can drew down the payouts tax free in retirement. This argument doesn’t completely hold water because other investments not held in ISAs are taxed and income and capital gains from them in retirement is also taxed, up to a point.

When my children first started work, they asked me if they should invest in a pension scheme straight away. Unless they were going into a government type final salary scheme or one where their employer put in a large contribution for them, e.g. 10%, my answer was always, get yourself on the housing ladder, look after your kids and start worrying about retirement when the kids have started to grow up and allow you more money to spend on yourself. However, if they had a family, to make sure they had adequate life assurance and, if the employer offered it, sickness and injury cover.
 

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