UK state pensions

[Dusak]

Finally after a lot of hassle I received the information I needed plus the downloadable forms that I need to fill in and send to the UK. Some of the information they ask for is inconvenient as I have never been a holder of papers, always left that to her, so its been a mega task finding what they required, but not all, so I hope this will be enough. My main point of this post is that yesterday a friend told me that an expat friends of hers has her pension paid into her UK bank, something that I do not have now. The pensions department hold back 25% of her pension because she lives here in Egypt, but she can, if she returns to the UK, claim this deduction back. Is this a fact, can they withhold 25% of my entitlement which is due to pay out in March, one month in arrears. Has anybody living here suffered this?

[carrie]

I'm on a pension Dusak and I have it paid into a UK bank account. The authorities know I am here I don't claim under some false address like some. I get my full pension paid into the bank the only thing is that I have never received an increase in the state pension. This was explained to me when I went to the pensions office before I left. I don't get winter fuel allowance or Christmas bonus.

When I went back to the UK some time ago I rang them because I was changing my bank account details, they asked where I was ringing from and I said Folkestone and they asked me how long I would be staying in the UK, two weeks. They told me that I must in future ring them when I was in the UK because then I would get my pension increases but only for the period that I was in the UK when I left it would revert to the original sum.

They also told me that I could get my pension paid into an Egyptian bank, it would be paid via Citibank, they would convert the monies into Egyptian pounds and transfer it to an account here. I never bothered with that so can't tell you how it works but they did say there were three rates of exchange, the normal that everyone gets then a higher rate that Citibank uses and then a still higher one for those who deal in foreign currency.

I know of a few people here that get a state pension and none of them say that one third of their pension is withheld but that just like me they don't receive pension increases.

Hope that's been of some help.

[newcastle]

I've never heard of UK tax being charged "because of living in Egypt". That makes no sense.

Your pension may have tax deducted depending on your tax status in UK i.e whether you're UK resident or not (presumably not in Dusak's case) and whether your total UK income exceeds the personal tax allowance.

If you are more or less "unknown" to the UK tax authorities, they will probably deduct tax at the basic rate until you make contact and fill in a tax return.

[Dusak]

I read the part about the pension being paid in your local currency, so asked them if this was so via their ask a question web site I only have a Stirling account here and an Egyptian account can not process two currency's, [slight fib to get an answer] but although they gave reply to my other three questions, they did no respond to my Stirling query. So again I put this fact on my pension papers. I do not see the problem or need to convert to the local currency unless you request it. My private pension goes into the Stirling account ok and more Le is is of no use to me. They say the forms could take up to three weeks to process, so I will have to wait and see. Only other thing I can do is get it payed into a friends account in the UK, then have it transferred over every month, but don't fancy that option, knowing my luck they would probably drop dead a week after the first payment went in.

[Major Thom]

If you live outside the UK your pension is frozen and you get NO rises during the time you get it paid, nor Winter fuel, nor the 10 GPB every Christmas. However if you have a UK address and a UK Bank you will get the lot. Carrie explained it the best, my wife got over a 150GBP increase when we moved back to Europe, I got my Pension when I reached 65 with no problem, also because I am retired and claiming a UK State Pension it entitles me to a S1 Certificate which yo exchange for a free medicare card in Cyprus or any other Country you live. In April both myself and wife get a 3% rise in the state pension. On my index linked pensions I have just this January had a 24 GBP a month rise on one and a 31 GBP on the other. I am now a Cypriot Tax Payer (Registered) and pay no tax on anything in the UK, I only pay ta in Cyprus, I can have an income of 18000 Euros and not pay tax, anything over that and up to 28,000 Euros I pay 5% tax. Really beneficial. I also got almost 8,000 GBP Tax Refund over the period of time 8 years in Luxor. so I am not grumbling at all. You forget the benefits of living in Europe.

[Yildez]

If you live outside the UK your pension is frozen and you get NO rises during the time you get it paid, nor Winter fuel, nor the 10 GPB every Christmas. However if you have a UK address and a UK Bank you will get the lot. Carrie explained it the best, my wife got over a 150GBP increase when we moved back to Europe, I got my Pension when I reached 65 with no problem, also because I am retired and claiming a UK State Pension it entitles me to a S1 Certificate which yo exchange for a free medicare card in Cyprus or any other Country you live. In April both myself and wife get a 3% rise in the state pension. On my index linked pensions I have just this January had a 24 GBP a month rise on one and a 31 GBP on the other. I am now a Cypriot Tax Payer (Registered) and pay no tax on anything in the UK, I only pay ta in Cyprus, I can have an income of 18000 Euros and not pay tax, anything over that and up to 28,000 Euros I pay 5% tax. Really beneficial. I also got almost 8,000 GBP Tax Refund over the period of time 8 years in Luxor. so I am not grumbling at all. You forget the benefits of living in Europe.

As usual, a sweeping statement that is NOT correct. Living in SOME countries outside the UK results in the state pension being frozen, but NOT all. Pensioners living in EU countries, and those with a dual tax agreement such as Turkey, continue to get increases, but do not get extras such as the winter fuel allowance.

[Dusak]

When we left for Egypt, we had the option, freeze it or not, we chose to freeze it. I know about not getting any increases, that was accepted at the time, a fact that does not bother me. Not living in the UK I would not expect any seasonal increases, nor would I feel comfortable receiving any, I don't live there. Went to the main post office this morning to send off the paperwork, typical of here, every counter open but not the airmail one, so have to return tomorrow.

[carrie]

Ask for it to be recorded too Dusak, then it can be tracked.

Reminds me of another thing I get a letter from my private pension company every year that has to be signed by a third party I also get one from the State pension about every three years. Make sure that you have this letter sent to someone in the UK to forward on to you because if you don't sign and get it back to them they stop your pension. As soon as my daughter gets my letters she emails me and then I contact them and say I wont be able to return the form till such and such a date, waiting for a friend to bring it out then send it recorded delivery back.

They will wait if you explain. Just a pity they refuse to email the forms to me but civil servants everywhere like the red tape.

[Dusak]

I've never had anything from my private pension to sign in the ten years of receiving it, suppose different rules depending who pays it. I've arranged for all correspondence to go to a friend in the UK as I have with all important/personal matters. Once every three years is manageable. But having said that, I did put on the 'make ant comments page that I had no intention of leaving Egypt for the foreseeable future, so may no be adhered too their end.

[Major Thom]

I was referring to Egypt Yildez, the rest of Europe I have not interest in really, the problems they cause and the infighting is now on show for all to see. The way Turkey is at the moment it seems it wants to go back in time to to being an Empire, that's why it will never get full EU membership like it desires to. There is on the HMRC website a list of countries that can have a dual tax agreement and State Pension agreement, Cyprus is the same except you can also opt out of this and become a complete Cyprus Tax Resident on the benefits like I say. But who knows after Brexit? Not sure about non EU members and how they will get on, they have not been mentioned but we do know about EU members, (Even Australia if you emigrate your pension is frozen, my daughters pension pot when she moved was frozen immediately) and after a meeting the other week we know the Ex Pats in Cyprus will not be effected pension wise, soft or hard Brexit due mainly to the British Territorial land here, everyone living here has been asking but they forget things too easily.
Anyway back to the house work and sweeping the floors and cleaning the balconies after the storms, Limossal had floods when people got up yesterday morning, cars were stranded and properties flooded, the lightning was spectacular over the see, better than any fireworks I have seen, and yesterday the flora and fauna looked beautifully refreshed, green and colourful.

[carrie]

I think you will find MT that Turkey has no desire at all to join the EU. Why do you think that they want to return to the Ottoman Empire? One they want to join the EC two they want an Ottoman empire an oxymoron. None of which has anything to do with Dusak"s genuine request for information nor has your or your wife's pension details living in Cyprus.

[Mad Dilys]

I must pay more attention.

I seem to have lost the plot as I thought MT would be more interested in his pension arrangements in Australia than Cyprus.

[Dusak]

Well, the paperwork is on its snail post way, ten to fifteen days, 500Le, this is called express air mail delivery system, Egyptian style. I hope that I get what I'm entitled to as this is my adventure money for a months long visit to parts of Asia each year.

[newcastle]

Well, the paperwork is on its snail post way, ten to fifteen days, 500Le, this is called express air mail delivery system, Egyptian style. I hope that I get what I'm entitled to as this is my adventure money for a months long visit to parts of Asia each year.

Have you noticed the number of planes falling out of the air recently?

just thinking.....

[Dusak]

Probably as a result of hitting one of the many flying pigs.