I realise this doesn't have much to do with Thailand but I'm getting the run around and wondered if anyone who has recently left the forces may be more up to date or anyone who works for the UK pensions.
I left the RAF in 1996 and get a pension as I served almost 18 years (left early as I took redundancy). This is the money we live on in Thailand and we just about get by. What I am trying to find out is am I allowed to claim a UK standard pension too when I reach retirement age? I realise it would be frozen as I live in Thailand and I will not be able to claim until I am aged 66. When I was leaving the RAF I'm sure I was told I would but the gossip here is I may not, so I am a little worried about this.
I have tried my forces pension people and was referred to HMRC who would not answer the question unless I downloaded and mailed a completed general forecast form which I could not complete as I do not have all the info required here. They have the info from my records but don't want to help.
With the new pensions coming in next year you need 35 years contributions to get a full pension..It used to be 30 years..You can buy more years but they are not cheap.So..if you only have say 25 years contributions you will get a lot less than a full pension..With a teachers pension if you retired at 55 instead of 60 you would lose 25 percent of your pension..
I have 33 years of contributions. I know I will not get the full amount but it's whether my military pension will affect the amount I will receive. I've paid the Nat Ins contributions so I hope to get most of it but I've heard otherwise in gossip out here, I hope that is all it is, gossip and unfounded.
Some good reading on the links above, I have contacted them and await a reply.
Your forces pension will not have any effect on your state pension..I have 2 pensions ,one from Teachers and one from local authority..but they are completely separate from the State pension. Your State pension is based purely on the number of years contributions you made .
There was a Serps pension brought in the 1990s which added more to your pension but most people who had a Teachers pension,Police,Forces ,Government pension opted out .I would enquire about buying the 2 extra years perhaps..
I thought it shouldn't but when the rumours start and you are far away you need to make sure.
When I receive my forces pension in April I have been informed I will not be allowed to claim benefits if I don't obtain employment as it more than the dole money. Further more the pension is taxible.
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Nec Aspera Terrent
Well yes...my Teachers Pension is taxable..any pension greater than the tax free allowance is taxable..The only good thing is they don't tax your State pension.....yet..
For the short periods I have been out of work since leaving the forces I never received any benefits because of the pension. BUT I STILL GOT THE OBNOXIOUS WOMAN TELLING ME WHAT TO DO. And trying to make you feel like ❇❇❇❇ when you already do because you haven't got a job.
Bad memories from a few years ago.
According to those nice chaps over at HMRC...
"Your income [for income tax purposes] includes:
- the State Pension
- private pensions (workplace, personal, stakeholder)
- earnings from employment or self employment
- any taxable benefits you might get
- any other income, money from investments, property, savings
When you start getting your regular pension payments, eg from an annuity, you’ll have to pay Income Tax on them. "
At the moment, I'm drawing my Teacher's Pension (took early retirement from inner London headship). I'm taxed on that. I'd planned ahead and bought added years back in the late 1990s and early 2000s before that option was closed down.
I'm not eligible to draw my UK State Pension for a good few years yet, but I am aware that I'll be taxed on that too. To be honest, I'm rather unsure of what I'll get as I'm hearing that those in UK state occupational schemes (Teachers, NHS, Armed Forces, Police Service and so on) were "contracted out" of higher rate NICs and that this now affects entitlement to that much publicised new proposed post-2016 flat rate State Pension of £144 pw. According to one financial magazine I read last week, only 45% of those retiring between 2016 and 2020 will get the full amount of £144pw even though they have the right number of qualifying years (35) in their NI record:
"Those who are not eligible for the full rate will normally have paid less in National Insurance (NI) contributions because they have a private or workplace scheme in addition to a state pension - an arrangement known as "contracting out".
And Tom McPhail, a pension adviser from a pretty large and well known investment company (Hargreaves Lansdown) said that it will "ultimately be a simpler and fairer system," but that "in the short term it will be complicated and many people are likely to get less than they may expect".
So my assumption from all of this is that drawing an Armed Forces pension may well affect the percentage you get of that proposed new £144 rate State Pension if you retire between 2016 and 2020 because of being "contracted out".
And, if we retire to Thailand then the State Pension, as we are painfully aware, will be frozen at the rate it was when you left Blighty...but at least the occupational pension keeps its linkage to UK CPI.
As the Pension Adviser said, come April 2016 there'll be much complexity in the short term.
Yes..but you have a good pension so you are one up on the jobsworth in the jobcentre..I stopped doing the lottery when I got early retirement because I had won the lottery in so many ways..retirement at 56!
I think it's quite complex at the moment which is probably why no one in authority will give me an answer. It's a sad day though when people who have put their lives at risk for the country are penalised for doing it.
you will get your state pension when you reach retirement age. you can ask for a pension forecast from HMRC.