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  #41  
Old 06.07.2015, 12:00
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Re: UK state pension, new rules after 5. April 2015

Ref fatmanfilms -endowments

FYI this is not correct on older endowments - and I speak from personal experience. Older endowments were legally assigned to the mortgage lender (to pay off your mortgage). If you pay of your mortgage early you need to ensure you get a discharge of assignment on any remaining endowments (on older ones certainly) so that when the policy matures they can be paid directly to you without any complication. If there are assignments in place you physically can't be paid direct until they are discharged.

http://www.theguardian.com/money/2014/jan/29/property
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  #42  
Old 06.07.2015, 12:09
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Re: UK state pension, new rules after 5. April 2015

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FYI this is not correct on older endowments - and I speak from personal experience. Older endowments were legally assigned to the mortgage lender (to pay off your mortgage). If you pay of your mortgage early you need to ensure you get a discharge of assignment on any remaining endowments so that when the policy matures they can be paid directly to you without any complication.

http://www.theguardian.com/money/2014/jan/29/property
I guess the writer is fairly young, in the early days of endowment mortgages, my grandfather took out an endowment mortgage in 1921, I doubt his was the first.

I never had any insurance policy assigned, my first UK property purchase was 1983.

Even if it was still assigned, the insurance company or Bank have no right to the payout, so it's a theoretical rather than real issue.
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  #43  
Old 28.08.2015, 12:10
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Re: UK state pension, new rules after 5. April 2015

Good grief! I feel like my eyes are crossed. I've been working my way through the UK State Pension application form this morning trying to remember half the info they ask for. Who you worked for when, where you lived when, trips back to the UK, etc, etc, etc. Luckily I've still got a copy of my CV for most of the employment (can't remember the name of one company I temp'd for), but God knows how many times we've been back to the UK on holiday. And does it really matter? It was a holiday!
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  #44  
Old 12.10.2015, 08:01
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Re: UK state pension, new rules after 5. April 2015

For those eligible it might be worth looking at topping up your State pension.

http://www.bbc.com/news/business-34489326

http://www.bbc.com/news/business-34474028
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  #45  
Old 12.10.2015, 08:39
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Re: UK state pension, new rules after 5. April 2015

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For those eligible it might be worth looking at topping up your State pension.

http://www.bbc.com/news/business-34489326

http://www.bbc.com/news/business-34474028
Saw this in the Sunday papers yesterday. Seems a great idea, equivalent to 6% interest on the top-up amount, guaranteed by the UK government and inflation linked.

Of course if you snuff it a year or two after paying in, you'll lose out. But then you won't care and your spouse will still get half. I reckon I'll do this...
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  #46  
Old 12.10.2015, 09:28
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Re: UK state pension, new rules after 5. April 2015

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Saw this in the Sunday papers yesterday. Seems a great idea, equivalent to 6% interest on the top-up amount, guaranteed by the UK government and inflation linked.



Of course if you snuff it a year or two after paying in, you'll lose out. But then you won't care and your spouse will still get half. I reckon I'll do this...

It's not equivalent to 6% interest as you loose your capital.

An 80 year old person will be loosing money for over 10 years.

Bear in mind pensions are not tax free so it's worse than that.
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  #47  
Old 12.10.2015, 09:32
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Re: UK state pension, new rules after 5. April 2015

I'm thinking about it too. Need to save up a bit more first though, but I just squeeze in under the April 2016 date.

Still trying to get my UK claim form done - AHV Fribourg STILL haven't replied to the letter I sent them on the 10th September!
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  #48  
Old 12.10.2015, 09:48
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Re: UK state pension, new rules after 5. April 2015

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It's not equivalent to 6% interest as you loose your capital.

An 80 year old person will be loosing money for over 10 years.

Bear in mind pensions are not tax free so it's worse than that.
OK, but it's better interest than a deposit account at 0.1 - 0.4%.

All income is taxable...
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  #49  
Old 12.10.2015, 10:09
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Re: UK state pension, new rules after 5. April 2015

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OK, but it's better interest than a deposit account at 0.1 - 0.4%.

All income is taxable...
Your capital is already taxed so the 80 year old could spend his £25 a week from capital for 10 years even with 0% interest & still be better off. For the first 10 years he is down before tax but also has a tax liability. TBH break even must be 92-95 years of age. I won't bother with that.
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  #50  
Old 12.10.2015, 10:17
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Re: UK state pension, new rules after 5. April 2015

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Saw this in the Sunday papers yesterday. Seems a great idea, equivalent to 6% interest on the top-up amount, guaranteed by the UK government and inflation linked.

Of course if you snuff it a year or two after paying in, you'll lose out. But then you won't care and your spouse will still get half. I reckon I'll do this...
If it was that advantageous the government wouldn't be promoting it.


It's not equivalent to 6% interest, whatever they say. It's a 6% annuity which at age 65 isn't particularly remarkable (my CHF pension fund gives near 7% at age 64).


Interesting they are less active in promoting working life Class II payments which are more attractive.
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  #51  
Old 12.10.2015, 20:17
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Re: UK state pension, new rules after 5. April 2015

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Still trying to get my UK claim form done - AHV Fribourg STILL haven't replied to the letter I sent them on the 10th September!
Well of course not, that is against the EU rules, they are supposed to do the form for you.
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  #52  
Old 13.10.2015, 13:13
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Re: UK state pension, new rules after 5. April 2015

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Well of course not, that is against the EU rules, they are supposed to do the form for you.
Ha, ha! If only. I've just had a reply back from my letter enclosing TWO forms I have to fill in: E 202 Instruction d'une Demande de Pension ou de Rente de Vieillesse (Instruction of a Demand of Pension or Annuity of Old age) and E 207 Renseignements Concernant la Carrière de l'Assuré (Information Concerning the Insured's Career). So on top of doing the UK one I now have to do the Swiss ones - in French. What fun.

I'll update when I've had a chance to go through them more.
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  #53  
Old 26.12.2015, 19:36
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Re: UK state pension, new rules after 5. April 2015

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Hi Snoopy did you managed to get an answer on this?

Ie selling 100% of a UK pension pot and being resident in Switzerland:
-Does HMRC get a look in on the 75% or is that Swiss taxed.
-If it is Swiss taxed do they also view the 25% one may have received into a UK bank account as being tax free.

Thanks
Just an update.

I finally managed to get my money out of the UK. It was very bureaucratic and I think that was more down to the ineptness of the insurance company that I was dealing with than the actual rules. I had two "pots" one smaller than the other and the small one was paid out in about two weeks. The larger one took 5 months with continual requests for additional information and paper work.

After the tax-free amount I was then taxed at 37% on the remainder.
I have now applied to get the tax refunded under the UK/Switzerland Double Taxation Convention using Form R-GB 11(860) which needs to be filled out in triplicate (there are two copies in German and one in English) and then sent to the Swiss tax authorities in Bern. They apparently confirm that one is subject to Swiss tax and forward it to the Inland Revenue.

I wonder how long this will take.....
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  #54  
Old 27.12.2015, 14:55
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Re: UK state pension, new rules after 5. April 2015

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No, the endowment policy was to enable the policyholder to pay off his debt. It was written in the policy holders name for his benefit & for nobody else.
Not that many mortgages ran for their full term.
See this explanation: http://www.royallondon.com/financial...ans-explained/

and lots more: https://encrypted.google.com/search?...ortgage+policy

I believe that you are correct that (at least conventionally) the policy owner is the insured party, but I've not been able to find anything online quickly that would attest to that. And my professional experience with "janitor insurance" is such that I have little regard for the ethics of either insurers or the kind of employer who would buy such policies (in the USA they are no longer a tax dodge for employers).

Much of the basis for buying insurance is just that: tax savings. And if I were crafting an endowment mortgage insurance scheme for a lender I would be concerned about something else: bankruptcy of the insured and the unavailability of the cash value of the policy to meet any deficiency (i.e., if the house and mortgage are "under water").

Perhaps there can be a charge on policies in favour of the bank?

I recall there are issues when homeowners sell up and want to transfer mortgages. That's still an issue today even without endowment policies involved.
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  #55  
Old 27.12.2015, 16:41
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Re: UK state pension, new rules after 5. April 2015

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Ha, ha! If only. I've just had a reply back from my letter enclosing TWO forms I have to fill in: E 202 Instruction d'une Demande de Pension ou de Rente de Vieillesse (Instruction of a Demand of Pension or Annuity of Old age) and E 207 Renseignements Concernant la Carrière de l'Assuré (Information Concerning the Insured's Career). So on top of doing the UK one I now have to do the Swiss ones - in French. What fun.

I'll update when I've had a chance to go through them more.
I think I applied for all four of my state pensions (UK, USA, QC, CH) directly with the various authorities. If you are not seeking totalisation (because you are eligible for a separate annuity from each) that's always an option. Perhaps the better option if you have local bank accounts to receive the money.

Of the four only AVS demands that I report to a consular officer or office de la population each year to prove I am still alive. (I know that the French require that too.) My local Office de la Population refused to stamp the paper one year (a different one, a few years before that was glad to do so) because I am not registered there. I had to go to the Swiss Embassy when abroad, and they withheld my monthly annuity until I did so, then paid me a lump sum.

The QPP (RRQ) surprised me with something else: I got a FATCA letter with a demand that I prove I was paying US tax, or was exempt. And they said the reason for the letter was because I get my post at a P.O. box.
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  #56  
Old 27.12.2015, 16:50
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Re: UK state pension, new rules after 5. April 2015

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Saw this in the Sunday papers yesterday. Seems a great idea, equivalent to 6% interest on the top-up amount, guaranteed by the UK government and inflation linked.

Of course if you snuff it a year or two after paying in, you'll lose out. But then you won't care and your spouse will still get half. I reckon I'll do this...
It seems to me that it should be easy to compare annuity rates and see if the payout is attractive. https://www.sharingpensions.co.uk/pension_annuity9.htm

Generally National Insurance is one of the better (i.e. cheaper) deals -- compared with the rest of the world. All state pensions have been cheap in the early years when there are lots of contributors and few pensioners. Then reality hits and the politicians listen to the actuaries.

State insurance is (Québec aside, since it's subsovereign and can't print money like the others) usually transfer payments by current workers to the retired. US Social Security pretends to have a "trust fund" but in fact it's all lent to the Treasury and spent. Québec has real investments.
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  #57  
Old 27.12.2015, 17:17
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Re: UK state pension, new rules after 5. April 2015

Just to update the Swiss forms weren't as bad as the UK ones to do and everything seems to be okay as I heard from the office in Geneva that they were waiting for the UK end to confirm my entitlement to the UK pension. So as far as I know everything's proceeding as it should.

Realised a few days ago I get the fun of applying again next year for the Swiss one.
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  #58  
Old 27.12.2015, 17:37
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Re: UK state pension, new rules after 5. April 2015

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I think I applied for all four of my state pensions (UK, USA, QC, CH) directly with the various authorities. If you are not seeking totalisation (because you are eligible for a separate annuity from each) that's always an option. Perhaps the better option if you have local bank accounts to receive the money.
That really depends on the country. You can certainly apply for the UK pension directly but for the other EU countries ( not sure if all of them but certainly Belgium, France and Germany) you have to apply via the agency of the country you're living and can't apply directly yourself if you are not resident.

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Just to update the Swiss forms weren't as bad as the UK ones to do and everything seems to be okay as I heard from the office in Geneva that they were waiting for the UK end to confirm my entitlement to the UK pension. So as far as I know everything's proceeding as it should.

Realised a few days ago I get the fun of applying again next year for the Swiss one.
The Swiss AVS form is much worse than the UK one or the overseas entitlement form. You've really got something to look forward to there.

Last edited by Belgianmum; 27.12.2015 at 17:50.
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  #59  
Old 27.12.2015, 18:35
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Re: UK state pension, new rules after 5. April 2015

It'll probably depend on how much I need to fill in. I haven't worked here so any entitlement comes from what my OH pays on my behalf each month. Whether they're going to need the UK info too I don't know, only had a quick look at the form once I realised I'd be at "that age" next year to apply.
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Old 27.12.2015, 18:55
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Re: UK state pension, new rules after 5. April 2015

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It'll probably depend on how much I need to fill in. I haven't worked here so any entitlement comes from what my OH pays on my behalf each month. Whether they're going to need the UK info too I don't know, only had a quick look at the form once I realised I'd be at "that age" next year to apply.
Yep. You have to fill in all the info for everywhere you've worked and lived ( just like the UK one) and provide documentation ( salary slips etc) to support it. So just as bad as the UK one but in French:
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