Pensions

[Penny29]

Hi,

I wrote some time on here (also think it was put on the FAQs) about the best times to apply to Newcastle for E forms etc. I think I also mentioned retirement pensions and the fact that most people get "4 years off" of paying NI contributions yet can still qualify for 100% UK Old Age Pension.  This may not be true so people who are not working, not paying voluntary NI, and who are living in France but hoping to get 100% retirement pension should write to Newcastle and ask for written confirmation on the subject.

A friend of mine who works for the DWP (but sadly in the medical bit NOT in the pensions bit!) reckons that if someone is no longer resident in the UK then the "4 year rule" will no longer apply & 100% will only be paid out if NI has been paid throughout a full working life (i.e. 16 - 65). I'm not convinced this is wholly true as the 4 year rule was originally bought in to safeguard RP for those who went to university and therefore did not start paying NI until they were 20 or so................................ I've asked a few other CS friends but no-one seems to know the answer so I feel another letter coming on to Newcastle (sigh). Why does it have to be so complicated

On the same lines has anyone read the various proposals for future Retirement Pensions in the UK (including raising working age to 68 etc) and if so, have you noticed the words, "pensions only paid to residents" keep being used????? Somewhat worrying, if true!

 

[LesLauriers]

Penny, are you referring to the automatic credit between age 60 and 65? As I understand it this credit has only ever been available if you are UK resident throughout this period of your life.

Yes, I think the writing is on the wall for a "UK residents only" pension.

[Teamedup]

I have had frequent communication with Newcastle about pensions and we have been allowed the four year thing as far as we are aware. We have always been told that x number of years was a working life and this included this.

We have kept up voluntary payments.

 

We will ofcourse check up as to what is what as the time approaches.

[derf]

I was told by the nice lady at Newcastle when I telephoned to enquire about my status before I left the UK, " I have some good news for you, you have got 39 years paid up NI contributions and the UK government if you remain resident in the UK, when you reach the age of 60 will pay for the other 5 years contributions to make up the required 44 years for a full pension, ah but if you move to France, sorry you will have to pay for them yourself"[*-)]

[Benjamin]

Why should this come as a surprise to anyone. This govenment and presumably the one before although it seems such a long time ago I can't remember, has progressively stopped/withdrawn benefits that are normally claimable by UK reidents from those living elsewhere in Europe.

In view of the bankrupt situation regarding the State Retirement Pension it's on obvious move sooner or later. It's just a case of when and how it can be dressed up as a "good" deal for everyone.

What we should all be looking at is what the situation here in France is if we were to be disenfrachised.

Mind you, once M Chirac discovers we all might be foisted on him by Mr B Liar, he'll soon give him another bloody nose.

 

Benjamin

 

[Ron Avery]

I did a retirement seminar before leaving work.  On that the Financial Advisor worked out for each person if it was worth continuing to pay  NI until retirement age.  When you did the sums for the hundreds of £'s that would be paid to get a "full" pension, it meant a matter of a literally a few pence per week off the pensions of most people leaving before age 60 who had worked for nigh on 40 years. 

So before you panic and believe rumours, opinions and gossip, get  on to Newcastle and ask for a pension forecast.  That will tell you what you will receive and what you would get if you do pay NI up to retirement age.  Yes it has been mentioned that people who live abroad might not get a state pension, this was one of the things being considered to plug the pensions black hole, but very unlikely to happen,  I would be more concerned if I was receiving a  Disablity Allowance, with the proposals bering made by the UK government to reduce the enormouis amount paid out on that every week and get some of the "fitter" recipients into work.  BUT even if the UK pension was withdrawn,  ( which it will not be), do you really think that the  French are going to bail us out?   I think not.

[Penny29]

Ron,

Thank you for saying it all more clearly than I did ! Yes, the main thing is to write and ask for a pensions forecast but make sure you mention in your letter that you are not resident in the UK - that way, later, there can be no "misunderstandings" about auto-credits. In fact, get everything in writing from Newcastle, never ever do it by phone!

Ron, I'm not as confident as you that Retirement Pension will ALWAYS be paid to people who are no longer resident in the UK, this current government (whom I voted for not just once but twice!) have a very bad track record of passing new legislation but then applying various terms and conditions retrospectively. For instance, your point about Disability Allowance (INCAP) is very true but claims are already being radically reduced by the new rules being applied NOW rather than in 2008 under the guise of "pilot schemes", hence many of the "fitter" recipients are already finding themselves obliged to make regular visits to the Jobcentre (or having their benefit reduced if they do not). One of my ex-colleagues said recently that, to qualify for sickness benefit in the future, you'd have to be a comatose quadruple amputee & even then some civil servant would say you were fit enough to get a job licking stamps, she said it'll be like that Monty Python sketch ("Come back - I'll bite your legs off!").

Incidently, to the other poster - auto credits (paid 60 - 65) are not the same as the "4 years off rule for NI" - auto credits were bought in for a completely different reason - namely when Mrs T wanted to reduce the unemployed statistics after 1979, so 60-65's weren't counted as u/e any more!!!!

 

[Teamedup]

I have kept every bit of correspondance from Newcastle over the years including the forecasts. For us the not being there may not apply, as we had always planned on returning to the UK for our dotage, well pre dotage, we will be there from the age of 55 onwards more or less. It will all get sorted out. It is something we have tried to sort out, but I am not going to worry about any of it.