Pensions

[Terpe]

Everyone,
Lets not forget that our spouses may also become eligible for a UK state pension.
Whether from their own NI contributions or from the spouse.

If you don't qualify for the full basic State Pension

If you reach State Pension age on or after 6 April 2010

If you have some qualifying years but not enough for a full basic State Pension, then you will get some basic State Pension. For each qualifying year that you have built up, you will get some basic State Pension. You may be able to take action to increase your State Pension if you don't have enough qualifying years.

If you have worked in the UK and paid National Insurance contributions (NICs) for even a short period, you will now be entitled to receive part of a basic UK State Pension (a pro-rata basic UK State Pension) provided you have at least one qualifying year of NICs.

A qualifying year is a tax year (6 April in one year to 5 April the next year) where you had sufficient income to pay NICs or were treated as having paid or were credited with NICs.

My wife has paid NI contributions for 7 full tax years which means at current rates she has built up a UK state pension of 7/30 x £102.15 = £23.83 per week
That just over £100 per month or P6800 per month

[Arthur Little]

Everyone,
Lets not forget that our spouses may also become eligible for a UK state pension.
Whether from their own NI contributions or from the spouse.

That's EXACTLY the sort of information I have been looking for, Peter ... -

- you must be psychic!

[Terpe]

That's EXACTLY the sort of information I have been looking for, Peter ... -

- you must be psychic!

I could say great minds think alike Arthur.......
but I'm pretty sure there'd be the expected retort from somewhere.

[jonnijon]

It was an EU regulation that bought down the amount of NI stamps from 49 to 30 years.Thats about the only useful thing they have done.

[Arthur Little]

It was an EU regulation that bought down the amount of NI stamps from 49 to 30 years.

... eu serious? ...

Thats about the only useful thing they have done.

Eu're RIGHT there, chum! ... even though it's a bittie late for the likes of me 'n' eu!!

[imagine]

Well, in my even dimmer past I also used to be a wages clerk..doing pay sheets for 200 people.

It's possible that what you're thinking of is when the transition was made from actual little stamps that used to be stuck on to your National Insurance Card, to when they started deducting a percentage of your gross wage at source.

This would have been around the early seventies.

yes thats sounds like it, i now remember the stamps

[Terpe]

yes thats sounds like it, i now remember the stamps

Many older folk still call it the stamp

BTW I used to pay graduated pension, it's not worth much these days though. Just a couple of quid a week.

[fred]

That just over £100 per month or P6800 per month

at what age would she receive such payment these days?
My wife will be entitled to a Uk pension one day but we chose to semi retire whilst we could still walk etc..
I have worked with people that were obsessed with pension payments from the age of 18..
I always considered that a bit sad and always planned to go in a different direction.

[stevewool]

how i look at it, if its not in my pocket or bank i dont count it, money that is

[Terpe]

at what age would she receive such payment these days?

Under the latest legislation my wife will be eligible to claim UK state pension when she is 66 years of age.
The payable amount will increase every year by whichever of the following is the highest
•earnings – the average percentage increase in UK wages that year
•prices – the percentage the cost of living increases by that year
•2.5 per cent

My wife will be entitled to a Uk pension one day but we chose to semi retire whilst we could still walk etc..

Does she still have entitlement Fred?

I have worked with people that were obsessed with pension payments from the age of 18..
I always considered that a bit sad and always planned to go in a different direction.

The vast majority of people in UK are employees. Their employers make deductions of NI payments (so that covers the state pension).
If they are lucky they may join a reasonable occupational pension scheme run by their employer. Or they may choose to contribute to a chosen private scheme, or they
or they may choose to do nothing.

Also don't forget that all contribtutions towards 'pension' schemes get great tax breaks and not bad additional payments from the government, and the words 'pension scheme' can cover all sorts of
diverse investments.
Anyone paying into an occupational pension scheme has no control at all over where the investments are made. That's done by the investment arm of the administrators.
So against a backdrop of 'regular' employment it's easy to see why some people might go overboard if they can actually choose not only where their own hard earned money gets invested, but also the
enhancements paid by the government.

Your comments are perfectly valid and following that same route to determining your own long term direction future financial security is ideal if it's within your capability. Some may go that same route and succeed, whereas other may go that route and fail.
To be fair though, what percentage of people even have the courage to take that same direction you took? Not too many.

Anyway, as everyone knows the state pension can never pay for the lifestyle we all want.
That why the government is introducing new legislation this October 21012:-

Enrolling into a pension at work

Fred, I've always respected your views and your opinions.
The direction you took may well yet be the winning formula.
All I'm saying is that, for all kind of reasons, most people end up not being able to exploit the opportunity you grabbed.
That's life.

[stevewool]

so i am reading this right, Emma pays nat insurance but as many know she is on the flr applying fr the ilr this year when do they take the pension from when she started work or when she becomes a citizen, may be a silly question but i dont know the answer

[fred]

Does she still have entitlement Fred?

she paid in on and off for 20 years so I hope so!
I have a private pension that I started at age 27..Stopped paying in to it aged 33/34.
I asked my accountant if I should pay in a lump sum to make up for a about 10 years of non payments..His advice was just to start regular payments again and not add a lump sum..Long story short he said there were better ways to invest my cash. He charged me 40 Quid for telling me that!
We have been very lucky with our small business investments here and if the internet had not been invented things would have been sooo different.
When we arrived 5 years ago our bank on the Isle of man was paying 7.5% tax free! obviously,that deal has gone pear shaped since..I just feel sorry for the savers that thought they could depend on high interest to live abroad and then had their income cut to nothing.If only they had a crystal ball!
One issue that needs to be considered for UK pensioners wanting to retire in the RP is that inflation here may go up more than their pensions do..
Not to mention exchange rates!
I prefer to earn the local currency if I can.