UK pension reciprocal agreement or not...
Re: UK pension reciprocal agreement or not...
It's very hard to say something specific about it because it depends on your personal situation, but the UK will not accept you not being tied to one country.Fourkinnel wrote: ↑Wed Apr 03, 2024 3:42 pmAny up to date links on the " more ties to " please?cautious colin wrote: ↑Wed Apr 03, 2024 7:21 amNot necessarily breaking the law. Law is more than half a year makes you resident.jah steu wrote: ↑Tue Apr 02, 2024 12:42 am As long as you realise that I’d guess you are breaking the law by declaring that you are resident in the UK but are in fact living long-term in Cambodia.
I found out the hard way that these days countries’ governments share huge amounts of data about tax, foreign residents and pensioners.
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If you don't stay anywhere for more than half a year the default will be the country you have "more ties to". This is a grey area.
A yearly visa does not imply residency
In that case, and many other cases, they will hold you liable for the income tax in the UK.
Re: UK pension reciprocal agreement or not...
The issue with the OP is that if you are resident in the UK your pension will increase every year in line with the rate of increase in average earnings (or currently also a couple of other factors). The same happens if you are resident in a country with a reciprocal social security agreement with the UK. However, if you are resident in a country that doesn't have such an agreement (and there's a lot including Australia, Canada and New Zealand) the pension is frozen at the amount when you reached retirement age or moved abroad, it doesn't increase at all.Kammekor wrote: ↑Wed Apr 03, 2024 3:50 pmIt's very hard to say something specific about it because it depends on your personal situation, but the UK will not accept you not being tied to one country.Fourkinnel wrote: ↑Wed Apr 03, 2024 3:42 pmAny up to date links on the " more ties to " please?cautious colin wrote: ↑Wed Apr 03, 2024 7:21 amNot necessarily breaking the law. Law is more than half a year makes you resident.jah steu wrote: ↑Tue Apr 02, 2024 12:42 am As long as you realise that I’d guess you are breaking the law by declaring that you are resident in the UK but are in fact living long-term in Cambodia.
I found out the hard way that these days countries’ governments share huge amounts of data about tax, foreign residents and pensioners.
Sent from my iPhone using Tapatalk
If you don't stay anywhere for more than half a year the default will be the country you have "more ties to". This is a grey area.
A yearly visa does not imply residency
In that case, and many other cases, they will hold you liable for the income tax in the UK.
Re: UK pension reciprocal agreement or not...
The answer is no. He will lose that.Bluenose wrote: ↑Wed Apr 03, 2024 4:15 pm
The issue with the OP is that if you are resident in the UK your pension will increase every year in line with the rate of increase in average earnings (or currently also a couple of other factors). The same happens if you are resident in a country with a reciprocal social security agreement with the UK. However, if you are resident in a country that doesn't have such an agreement (and there's a lot including Australia, Canada and New Zealand) the pension is frozen at the amount when you reached retirement age or moved abroad, it doesn't increase at all.
https://www.gov.uk/government/publicati ... agreements
- cautious colin
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Re: UK pension reciprocal agreement or not...
https://www.gov.uk/hmrc-internal-manual ... /rdrm11500Fourkinnel wrote: ↑Wed Apr 03, 2024 3:42 pmAny up to date links on the " more ties to " please?cautious colin wrote: ↑Wed Apr 03, 2024 7:21 amNot necessarily breaking the law. Law is more than half a year makes you resident.jah steu wrote: ↑Tue Apr 02, 2024 12:42 am As long as you realise that I’d guess you are breaking the law by declaring that you are resident in the UK but are in fact living long-term in Cambodia.
I found out the hard way that these days countries’ governments share huge amounts of data about tax, foreign residents and pensioners.
Sent from my iPhone using Tapatalk
If you don't stay anywhere for more than half a year the default will be the country you have "more ties to". This is a grey area.
A yearly visa does not imply residency
Can test here https://www.gov.uk/tax-foreign-income/residence
- newkidontheblock
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Re: UK pension reciprocal agreement or not...
Do Brits have an option for IRAs or any other additional alternative retirement plans in addition to the pension during their working years?
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Re: UK pension reciprocal agreement or not...
Private pensions arrangements are very common. Company pensions are also common although not as lucrative as in years gone by. It wouldn't be strange for someone to have state pension, several company pensions and a private pension.newkidontheblock wrote: ↑Wed Apr 03, 2024 6:01 pm Do Brits have an option for IRAs or any other additional alternative retirement plans in addition to the pension during their working years?
Don't talk to Brits about IRA.
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Re: UK pension reciprocal agreement or not...
‘Wouldn’t be strange for someone (to have multiple sources saved away for retirement).’khmerhamster wrote:Private pensions arrangements are very common. Company pensions are also common although not as lucrative as in years gone by. It wouldn't be strange for someone to have state pension, several company pensions and a private pension.newkidontheblock wrote: ↑Wed Apr 03, 2024 6:01 pm Do Brits have an option for IRAs or any other additional alternative retirement plans in addition to the pension during their working years?
Don't talk to Brits about IRA.
So do most Brits survive only on government pension and nothing else?
US social security was initially established to prevent the elderly from starving to death on the streets and nothing more. Certainly not established for retirees to have a comfortable retirement. That was up to individual responsibility to save and invest.
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Re: UK pension reciprocal agreement or not...
No, that's not what I said at all. Read it again. This time think about the words.newkidontheblock wrote: ↑Wed Apr 03, 2024 9:47 pm‘Wouldn’t be strange for someone (to have multiple sources saved away for retirement).’khmerhamster wrote:Private pensions arrangements are very common. Company pensions are also common although not as lucrative as in years gone by. It wouldn't be strange for someone to have state pension, several company pensions and a private pension.newkidontheblock wrote: ↑Wed Apr 03, 2024 6:01 pm Do Brits have an option for IRAs or any other additional alternative retirement plans in addition to the pension during their working years?
Don't talk to Brits about IRA.
So do most Brits survive only on government pension and nothing else?
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Re: UK pension reciprocal agreement or not...
As khmerhamster said. We have state and private pensionsnewkidontheblock wrote: ↑Wed Apr 03, 2024 9:47 pm‘Wouldn’t be strange for someone (to have multiple sources saved away for retirement).’khmerhamster wrote:Private pensions arrangements are very common. Company pensions are also common although not as lucrative as in years gone by. It wouldn't be strange for someone to have state pension, several company pensions and a private pension.newkidontheblock wrote: ↑Wed Apr 03, 2024 6:01 pm Do Brits have an option for IRAs or any other additional alternative retirement plans in addition to the pension during their working years?
Don't talk to Brits about IRA.
So do most Brits survive only on government pension and nothing else?
US social security was initially established to prevent the elderly from starving to death on the streets and nothing more. Certainly not established for retirees to have a comfortable retirement. That was up to individual responsibility to save and invest.
State is a fixed amount each year (to simplify) that everyone gets assuming they've either worked or claimed for x many years
Private you contribute yourself. Nowadays private are normally through the company, and they match your contribution by 5%. Tax free when putting in, but taxed when taken out (apart from the lump sum you may wish to take at the start)
OP is talking about state pension. As private pensions are yours and you can do as you wish
Private can be taken when you want after usually 55
Re: UK pension reciprocal agreement or not...
I know someone who barely paid a penny in tax for their entire working life. (working in the UK) Always self employed, somehow stayed under the radar for his entire career, and he seemed to just disappear from the books.
When it came to him retiring and having to claim a pension, he was clearly worried about what was going to happen to him. He had no private pension, and therefore had to make himself known to the authorities, who would work out that he's not made a single contribution towards tax or NI for his whole life.
Somehow, don't ask me how, they decided not to take action against him, probably because he was too old and it wouldn't have been 'in the public interest', but told him he wasn't eligible for a state pension, as he'd made no contributions. He then got some legal advice, and discovered there is a law which says there is a bare minimum amount that all citizens are expected to be in receipt of, regardless of their circumstances, which he ended up getting, and was worth almost what is pension would have been anyway.
There are ways and means around most things if you look hard enough.
When it came to him retiring and having to claim a pension, he was clearly worried about what was going to happen to him. He had no private pension, and therefore had to make himself known to the authorities, who would work out that he's not made a single contribution towards tax or NI for his whole life.
Somehow, don't ask me how, they decided not to take action against him, probably because he was too old and it wouldn't have been 'in the public interest', but told him he wasn't eligible for a state pension, as he'd made no contributions. He then got some legal advice, and discovered there is a law which says there is a bare minimum amount that all citizens are expected to be in receipt of, regardless of their circumstances, which he ended up getting, and was worth almost what is pension would have been anyway.
There are ways and means around most things if you look hard enough.
The difference between animals and humans is that animals would never allow the dumb ones to lead the pack.
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