UK pensions for overseas residents

[Arcadian]

I know there is a thread somewhere regarding pensions not being increased if you live abroad but i cannot find it. I have just received a communication from the Pensions Service, reference no. IPC SU 1339 06/08 where it clearly states " You can still get the increased amount if you visit the UK, or a country where EC regulations apply, as long as you are covered by the regulations."
That seems pretty straightforward, but you never know. As I visit 3 or 4 times a year I will contact them to clarify and let you know the outcome.

[Super Joe]

I know there is a thread somewhere regarding pensions not being increased if you live abroad but i cannot find it. I have just received a communication from the Pensions Service, reference no. IPC SU 1339 06/08 where it clearly states " You can still get the increased amount if you visit the UK, or a country where EC regulations apply, as long as you are covered by the regulations."
That seems pretty straightforward, but you never know. As I visit 3 or 4 times a year I will contact them to clarify and let you know the outcome.

Is this the thread ... http://www.huahinafterdark.com/forum/uk ... 13719.html


On this Government website it says: "You can claim your State Pension if you live outside the UK. However, you'll only receive the yearly index-linked increases if you live in the European Economic Area (EEA) or Switzerland or in a country (not Thailand) with which the UK has a social security agreement that includes state pensions. If you live outside those areas, you won't be entitled to the yearly index-linked increases. However, if you return to live in the UK, your State Pension will be increased to current levels."
http://www.direct.gov.uk/en/Pensionsand ... G_10026714


Re: Being classed as resident or non-resident, for tax purposes the criteria says you are classed as a non-resident if "your visits to the UK do not average 91 days or more a tax year over a maximum of 4 years."

SJ

[margaretcarnes]

SJ - that 91 day rule I'm sure only applies to tax - not to the classification of 'residency' for pension purposes.
Residency isn't necessarily determined only by the length of time spent abroad. Other factors such as main residence (home ownership) business interests, marriage to a person abroad, where bank accounts are maintained, whether a person is still on the electoral register in the UK etc are also considered.
Basically, the Revenue has to have well defined rules. The DWP has 'guidance' plus rules. As a general guide, absence from the UK for a year or more will affect pensions and other benefits in a country with which the UK has no reciprocal agreement.
I'm only aware of one successful case where a Brit, who owns property in both the UK and Australia, and spends 6 months a year in each country, successfully appealed a decision to freeze their UK pension increases.
A word of caution - those government info sites are very useful for general guidance (and in the case of tax issues should obviously be spot on), but any which give info on pensions/benefits should not be taken at face value. Unfortunately I found misleading information on one just last month. Again regarding state pensions.

[chopsticks]

It was announced yesterday that UK pensioners living outside of the EU have lost their final appeal to EU courts to receive annual pension increases as is the case with pensioners who chose to retire to EU countries. So their pensions will continue to remain frozen at the amount paid at date of moving overseas.
Affects those who chose to retire to Thailand, Australia, New Zealand, South Africa etc. instead of Spain, France, Portugal etc.

[PeteC]

OK, what happens when someone does what I do in the USA. Establish an address at my daughters residence and all funds are sent there or direct deposit in a US bank. Does the UK track your comings and goings? If so, I would think a visit within the permitted limits of time would suffice that you were just 'traveling' and still a resident of your registered UK address. Pete

[Big Boy]

That is what a lot do. However, it is illegal, and the UK Government has been cracking down on it recently. Also, I beleive if you need a letter from the Embassy to prove your income, Big Brother is watching.

[Khundon1975]

Yes BB, and the embassy is really pushing Brits abroad to "register" at the embassy. I know they say it is so they can keep us informed of dangerous events etc but maybe there is another reason.

Don't you have to register, in order to get a proof of income letter from them? Sneaky buggers.

[lomuamart]

To get the letter, you do have to be registered:
http://ukinthailand.fco.gov.uk/en/help- ... -thailand/

[margaretcarnes]

Just an update on UK Pensions (this seems as good a place as any to put it!)
And I quote - 'A new service allowing online applications for retirement pensions is due for introduction during the summer. The service, called State Pension Online (SPOL) has been undergoing tests and is due to be made available on the Directgov website at http://www.direct.gov.uk

Source - CPAG. An exact date for the launch isn't given.