Advice needed on retiring early

the butler


Joined: 22/06/2007
Posts: 1958

Message Posted:
14/08/2010 20:05

Hi all,



My husband intends to take early retirement early next year and we will move to our bungalow in the TRNC, we will however keep a UK address. We are having difficulty finding out any implications of retiring early, especially if you retire abroad. He will have paid more than 40 years insurance contributions so we think his UK state pension should be ok but are there any other things we should know about?



The butlers wife

Quarmby


Joined: 15/09/2008
Posts: 975

Message Posted:
14/08/2010 20:24

Just try and keep active and don't succumb to the booze. Be aware of the medical facilities.

Geoff1131MK11


Joined: 04/04/2009
Posts: 396

Message Posted:
14/08/2010 20:32

If you ring the department of works and pensions they will tell you all you need to know regarding his pension. I came out here over two years ago now and was only 57 when i came out. I have paid enough contributions to qualify for a full pension when i reach 65. Just ring them and tell them your NI number and what you intend to do, they are very helpfull.

spider


Joined: 03/01/2009
Posts: 5527

Message Posted:
14/08/2010 20:32

Hi someone gave me this advice so i will pass it on..Live as you would at home, dont make it one long holiday going out every night living it up..and like the post above take it easy on the booze I have met a few people who are boozing their retirement days away..and whats that all about but an early death.!





Spider,X

wanderer


Joined: 05/02/2009
Posts: 1653

Message Posted:
14/08/2010 20:36

If he has a private/work pension have all the wages /salary paid into it its tax free and draw it out as a tax free lump sum.

walkerscott


Joined: 13/08/2009
Posts: 901

Message Posted:
14/08/2010 20:51

http://www.direct.gov.uk/en/Pensionsandretirementplanning/index.htm





http://www.direct.gov.uk/en/BritonsLivingAbroad/index.htm

rowan


Joined: 04/09/2008
Posts: 450

Message Posted:
14/08/2010 21:49

If you follow the new government initiative "work till you drop" it will save them a hell of a lot of monet "at the end of the day"



Really do your maths and think that if you have to "PayUP" the shortfall for the extra 6 Pence a month at the end of the day is worth it, then that is entirely up to you.

But do remember they are the ones wanting your dosh.



Sorry using er in dors sighning on

this is Cassius, who retired early and refused to pay. so I loose 6 - 10 pence a month???????

Woodspeckie


Joined: 25/01/2009
Posts: 2263

Message Posted:
14/08/2010 22:08

If he was born after 1945 he only needs 30 qualifying years if you go on the http://www.direct.gov.uk website as walkerscott has given you all the information you want is there, you can apply for a pension forecast to give you an idea.

rowan


Joined: 04/09/2008
Posts: 450

Message Posted:
14/08/2010 22:19

Sorry Msg 8 needs to re evaluate his stance on this ...

Female have to pay FULL stamp for 40 years and Males 44 years from the age of 16. further education to the age of 20 is taken into consideration as paying full stamp.



This is of course to entitle you to a FULL pension at 60-65

Cassius

the butler


Joined: 22/06/2007
Posts: 1958

Message Posted:
14/08/2010 22:22

Hi Spider,



Thanks for this advice, I have seen this happen to people but as neither of us smoke and I only drink on special occasions and hubby only drinks a couple of beers a night at home, I don't think this will happen to us.

We have never been ones for going out alot mainly owing to our jobs but we are looking forward to being able to socialise much more when we move to the TRNC. We have always been careful with our money, so I doubt this will change.



The butlers wife

No1Doyen


Joined: 04/07/2008
Posts: 16617

Message Posted:
14/08/2010 22:27

If you can afford it - go for it. Lifes too short, live your dream!

teatime


Joined: 20/10/2008
Posts: 852

Message Posted:
14/08/2010 22:40

Cassius, see http://www.direct.gov.uk/en/Pensionsandretirementplanning/StatePension/DG_069498

teatime


Joined: 20/10/2008
Posts: 852

Message Posted:
14/08/2010 22:40

Go for it Butlers, you only live once.

briggus


Joined: 25/07/2007
Posts: 161

Message Posted:
14/08/2010 22:48

Message 9

I think you will find from April 10 the number of qualifying years required is now 30 years for 100% State Pensions (both male/female). It was part of number of changes brought under the previous government's Pension Reforms.

Woodspeckie


Joined: 25/01/2009
Posts: 2263

Message Posted:
14/08/2010 22:48

rowan. On the website http://www.direct.gov.uk under qualifying years:

Men born before 6th April 1945 need 44 years.

Men born after 6th April 1945 need 30 years.



Women born before 6th April 1950 need 39 years.

Women born after 5th April 1950 need 30.

cooper


Joined: 23/10/2007
Posts: 3386

Message Posted:
14/08/2010 22:52

rowan i think you will find that Woodspekie was correct -

The number of qualifying years you need for a full basic State Pension depends on your age and whether you are a man or a woman.



Men born before 6 April 1945 usually need 44 qualifying years.



Women born before 6 April 1950 usually need 39 qualifying years.



Men born after 5 April 1945 need 30 qualifying years.



Women born after 5 April 1950 need 30 qualifying years.

everon


Joined: 18/04/2009
Posts: 956

Message Posted:
14/08/2010 22:57

dont forget, when you apply for your state pension, ask for it weekly, not 4 weekly, it should be in your bank asap! x

Hector


Joined: 26/08/2008
Posts: 2352

Message Posted:
14/08/2010 23:23

One important aspect in retirement is to keep active and your mind busy. If you simply retire without having interests it's a receipe for an early demise.

Groucho



Joined: 26/04/2008
Posts: 7993

Message Posted:
15/08/2010 08:08

Consider removing money stuck in a works pension scheme and investing in a SIPS scheme. If you leave it in a works scheme almost without question up to 50% of it will die with you, i.e. a widow/widower won't get the full amount when you die.



Whereas if you move it out it does not disappear it still has 100% value and can be left to your widow, children grand children etc. Also you may find the SIPS scheme performs better than the works pension fund. They (works pension funds) are notoriously conservative in their investment strategy. Do check it out with an Independent Financial Advisor.

Geoff


Joined: 25/06/2008
Posts: 1370

Message Posted:
15/08/2010 09:41

Take advice about your tax position. Retaining a UK address can result in your being taxed in UK.

This is a very complex subject and I am not qualified to advise you. But I speak from experience about getting advice - I did and now legally avoid ALL UK taxes, BUT I had to give up my UK property.

See a tax advisor ASAP,

Good luck,

Geoff

Famagusta City

kavenkoy


Joined: 10/04/2008
Posts: 1787

Message Posted:
15/08/2010 09:44

good advice from groucho



moved mine 3 years ago and its out performed works pension by miles



kav

Groucho



Joined: 26/04/2008
Posts: 7993

Message Posted:
15/08/2010 09:46

Geoff that's why I suggested a SIPS scheme... if they did not have a UK address then I would investigate a QROPS off-shore scheme.



Do check it out with an Independent Financial Advisor/Tax Advisor

stilluvithere



Joined: 03/12/2008
Posts: 765

Message Posted:
15/08/2010 10:12

You have all the information to hand now, so I don't need to ad any more other than I retired at 55 and moved here the following day and have never regretted it for a minute. If you can afford it, grab the opportunity, life is too short