Mosha
Crazy Mango Extraordinaire
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Post by Mosha on Sept 4, 2018 18:24:54 GMT 7
It's a while off yet, but something I'm wondering about. My Birthday is right at the end of the tax year. So is it better to wait a month and ask for it to start at the end of April? Bearing in mind I'm based here, and no permanent UK address.
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siampolee
Detective
Alive alive O
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Post by siampolee on Sept 4, 2018 18:46:09 GMT 7
No wucking forries concerning no U K address.  As I recall in 2010 I was informed by the then D W P I should apply some three months ahead of becoming eligible for the state pension. The claim forms were sent by snail mail to be completed and returned again snail mail. I made copies of the forms for dummy runs and scanned and deposited the completed forms into both Google Docs and Hotmail's Docs, plus a hard copy for the personal family files. Always useful as if telephone contact is made random personal questions are asked to confirm your identity. Emails are not accepted for replies or to notify any changes in circumstances etc. Other than that a painless process.  |
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Post by rgs2001uk on Sept 4, 2018 21:03:48 GMT 7
Makes no difference, dont know what other pensions you have, but if you are over the tax threshold, it will be taxed.
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Post by rgs2001uk on Sept 4, 2018 22:51:58 GMT 7
^^^ contrary to what you may read elsewhere, NEVER once has the Thai taxman hit me up for any money.
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Mosha
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Post by Mosha on Sept 5, 2018 6:06:19 GMT 7
Makes no difference, dont know what other pensions you have, but if you are over the tax threshold, it will be taxed. It's more about the sight rise that occurs round that time, and it being a 1 off event for me. |
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Post by Fletchsmile on Sept 5, 2018 10:37:14 GMT 7
I guess what you're driving at has 2 main components: 1) By deferring a pension you can get an increased pension.
2) Thailand is a frozen rate country. So once you start getting your pension it will not increase. |
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Post by Fletchsmile on Sept 5, 2018 10:51:30 GMT 7
For part 1) terms for deferring are less favourable than pre 2016. Key to bear in mind is that you need to defer for at least 9 weeks. During that time you will missed 9 weeks of pension payments, but get a return of 1% extra. In their example: you'll miss 9 payments of 164.35 (= 1479.15) but get an extra 1.64 a week after that in return. Very crudely (ignoring time value of money etc) you'll therefor need about 900 weeks or close to 17 years to break even. So somewhere in your 80's  . This offset used to be more favourable pre 2016 Personally I wouldn't bother with that, and my strategy is basically to take as much as I can as quick as I can, as I can do better things with it and you never know how long you will live. (Bird in the hand and all that) |
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Mosha
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Post by Mosha on Sept 5, 2018 11:11:51 GMT 7
Thanks, it was a thought. Back to what I do best, not thinking. |
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Post by Fletchsmile on Sept 5, 2018 11:17:45 GMT 7
For part 2) because your payment is frozen in Thailand, this is a more interesting question. As it's some way off for you, it's not something that you could realistically decide now. Amounts and rules can and will change. But it is worth thinking about the issue you raise, and knowing it is there. For that it would be worth contacting their help centre when the time comes www.gov.uk/international-pension-centreThings to consider (and discuss) though will be: i) Will they freeze the rate based on when you start claiming or your date of birth when you were eligible and moved abroad? ii) How much would the increase be? Inflation rates and increases etc tend to be low at the moment, but if higher may make more favourable iii) Your personal life expectancy, financial situation and how much you need the cash and what else you can do with it. etc etc This 2nd part is less clear cut to me, and too soon to decide. It could well be worth waiting a few weeks to get an increase due to you be so close to the end of the tax year, so you get the "new rate" for the new tax year. An additional twist is that if you are deferring to cross tax years and increase your amount before frozen, it may be worth taking a couple of incremental weeks to take you to 9 weeks to get the increase in part 1) as well which I wouldn't normally do, but would consider if already waiting say 4 weeks for the frozen rate element. i.e looking at incremental weeks. You're waiting 4 so waiting another 5 incrementally may be worth it. All in all I'd say too soon to answer. It could be worth it. Be aware of the issues though, and getting specific amounts/ help nearer the time. For me if sat in the UK I wouldn't bother with deferral. But the Thailand frozen rate element may make it worthwhile for those close to the end of a tax year. |
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Post by Fletchsmile on Sept 5, 2018 11:19:38 GMT 7
Thanks, it was a thought. Back to what I do best, not thinking. Think you typed that while I was answering the second part.
For that it is worth a thought, so don't stop thinking just yet |
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Mosha
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Post by Mosha on Sept 25, 2018 12:25:21 GMT 7
I finally got round to assessing how much I'll get, given I'm 5 years short of the maximum. Added to my company pension We'll be comfortably off.
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. This offset used to be more favourable pre 2016