how will the autumn statement affect british expat pensioners?

How Will The Autumn Statement Affect British Expat Pensioners?

Source: www.expatfocus.com

British Expat Pensioners“The senior citizens of the United Kingdom have the right to claim their state pension even when they are residing in a foreign country, as long as they have paid the adequate number of National Insurance contributions (usually at least 10 years, without any exceptions).”

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http://www.expatfocus.com/



State Pension Over The Years

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“The start of Modern State Pension in the UK was marked by the Old Age Pensions Act of 1908, which provided 5 shillings a week to those who were over the age of 70 and whose annual means did not exceed £ 31.50. Today, like most other nations, the UK offers a number of pension plans to its citizens.”




State Pension Eligibility “It isn’t necessary for you to stop working once you reach State Pension age. All it means is that you are no longer required to pay National Insurance. Moreover, this also gives to the option of looking at more flexible working arrangements...”

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Taxes on State Pension

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If your total annual income exceeds your

Personal Allowance, you are eligible to pay tax on

your pension. Your total income could include:

- The State Pension you receive - Additional State Pension - Private Pension, work or

personal (though this could be tax-free in some cases)

- Earnings from being employed and / or self-employed

- Taxable benefits received - Revenue from any other

sources like savings, property and investments




Income Tax Rise for Expat Pensioners

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“Many senior citizens from the UK have been living a comfortable life on their pensions by choosing to settle down in overseas destinations that have a low cost of living. They also pay a lower tax amount compared to their counterparts that reside in Britain. However, things are about to change for the worse in the near future.”




Qualified Registered Overseas Pensioners Scheme “At present, those who claim their pension amount from the Qualified Registered Overseas Pensioners Scheme (QROPS) pay no more than 90% tax on the income produced by the fund. However, as per the latest proposal, 100% income tax will apply to them too.”7

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Pension tax relief

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“Each year, the state pays billions towards pension tax relief. A large percentage of this amount goes to wealthier savers as well as the organizations that have sponsored generous benefit style pensions. A complete overhaul in the system will therefore not only save the government a considerable sum of money but will also redistribute relief to the lower earners who are more likely to under-save.”




How the State Tops Up Pensions: Tax Relief “The amount of state pension you draw will probably be dependent on a number of factors: mainly, the National Insurance contributions you have made, your income and your tax bracket. The manner in which you claim tax relief could depend on the type of pension fund that you are saving into. ”9

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Various pension schemes

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“Understanding the various pension schemes as well as their implications could take a while, since there are so many different plans and each come with their own benefits.“



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how will the autumn statement affect british expat pensioners?

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