Non O (Multi Entry) no longer issued at Royal Thai Embassy in London - new financial requirements fo
- Thread starter gotlost
- Start date
CO-CO
Rather wrinkly & occasionally cantankerous member
Can I ask what benefits make deferral attractive.
Nick has previous undertaken an analysis of deferring a UK State pension, with the conclusion being firmly in favour of NOT deferring. I am interested to learn how the American pension differs.
gotlost
Kap Chong R Us Member
CO-CO
Rather wrinkly & occasionally cantankerous member
More MONEY.
Hmmm....... is the money that would otherwise have been received lost forever ?
gotlost
Kap Chong R Us Member
We can start receiving SS at 62 at a reduced rate but if you wait as Coffee is doing he gets the full amount. If you take at the earlier age you will never get the difference.
Yorky
Fullritis Member
Yorky
Fullritis Member
The last time that I assessed it, for 1 year deferment it would take 11 years to recoup the loss.
Coffee
You chose a custom title
Tax avoidance on the benefits...as my current financial taxable investments /savings are ample to live on.
Somehow I recall the last time I sat down with different scenarios the cross-over point for favourability of delaying until age 70 was at ten years...upon turning 80.
If I don't survive that long I lose the bet.
Additionally I noticed that a slew of expats who retired early on their pension were in a monetary crunch which worried the bejusus outta me.
They're one serious hospital bill away from tears.
Yorky
Fullritis Member
AFAIK UK Government pensions are not subject to tax. However, they slam you on other pensions which you may have arranged (if you contributed to said pensions prior to tax being deducted).
CO-CO
Rather wrinkly & occasionally cantankerous member
They are subject to tax, as is all income derived from the UK.
It just so happens that the Personal Allowance is set above the State pension figure.
Yorky
Fullritis Member
Which, in layman's terms, means that you don't pay tax on it?
Coffee
You chose a custom title
[QUOTE="CO-CO, post: 287534, Nick has previous undertaken an analysis of deferring a UK State pension, with the conclusion being firmly in favour of NOT deferring. I am interested to learn how the American pension differs.[/QUOTE]
Additionally I was a tad worried that the US may change the rules and might follow Britain's lead on no COLA increases for citizens residing abroad...so figured I'd hold off in my current situation.
Additionally I was a tad worried that the US may change the rules and might follow Britain's lead on no COLA increases for citizens residing abroad...so figured I'd hold off in my current situation.
CO-CO
Rather wrinkly & occasionally cantankerous member
Yorky
Fullritis Member
These are not my words:
"Your tax-free Personal Allowance
The standard Personal Allowance is £12,500, which is the amount of income you do not have to pay tax on."
My understanding is that income you do not have to pay tax on is non-taxable. If it was taxable I'm sure that the government (what's left of it) would find a way to extract some of it from you.
CO-CO
Rather wrinkly & occasionally cantankerous member
It's taxable.
But the tax-free Personal Allowance invariably covers it.
If it didn't you would pay tax on the element not covered by the allowance. i.e. taxable.
CO-CO
Rather wrinkly & occasionally cantankerous member
Is the state pension taxable?
The short answer is yes, state pensions are taxed as they are treated as income.
However, many people may not pay any tax on their state pension, depending on how much they are getting annually. State pension is paid to Britons gross (without any tax deducted) for this reason.
The full state pension is currently £168.60 per week. Yearly, this equates to £8,767.20.
Yet, Britons are only taxed on any cash they earn over the personal allowance, which for this year is £12,500.
https://www.express.co.uk/life-style/life/1113570/state-pension-uk-tax-taxable-how-much-amount