# Increase your pension opportunity



## raynipper (Aug 4, 2008)

Any one seen or know about this opportunity to contribute some cash to increase your state pension?

http://money.aol.co.uk/2016/09/01/g...|main5|dl3|sec1_lnk2&pLid=1794955607_uk-ws-bb

Ray.


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## fatbuddha (Aug 7, 2006)

read about this a few weeks ago and seems like a good idea if you qualify - we don't, and we have a fully paid up NI contribution anyway


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## Penquin (Oct 15, 2007)

Yes, I looked into that after it was announced and the cost of £22,500 to get the extra £25 is simply too much - I missed out on the higher State Pension by one month and asked if by delaying claiming it I would get the extra.

I was wrongly told "Yes", but later when I rang to check, was told "No" - the Pensions Line simply made a mistake.

If you have £22,500 then it would give you an extra £25 per month for life, it all depends o how long you believe you are likely to live as to whether it is worth it.

The offer is available until next April but may be extended due to the very low take-up....... but it is a personal choice depending on your financial circumstances, the 6% benefit calculation depends entirely on how long you can claim it for , if sadly that turns out to be one year there would NOT be a 6% benefit.The cost for that extra £300 you receive would have been £22,200........ not such a good return IMO

Dave


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## raynipper (Aug 4, 2008)

OK and thanks. I think we do qualify but at 75 wonder just how much we would have to put in to get the max.
Tried the phone number and was told wrong office. Gave me another number I have to call Monday.

Ray.


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## GEMMY (Jun 19, 2006)

Nothing but a bluddy joke, me survive another 20 yrs, you've gotta be joking to break even.:surprise:


tony


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## Pudsey_Bear (Sep 25, 2008)

My maths is terrible but 

£22500 divided by £25 = 900 months which = 75 years, 

It just doesn't make sense, where did I go wrong?

25 x 900 = 22500.


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## Revise (May 13, 2012)

It's based on weekly, Not monthly.

*You can get between £1 and £25 extra every week*, and how much each £1 costs depends on your age. Someone who is 65 would pay £890 for every extra £1 of pension per week, so to get the full £25 would cost £22,250 - which is a return of almost 6%.

£25 x 52 weeks = £1300 per year

So you would need to live for just over 17 years to get your money back. The money is also inflation linked. But if you go to see your maker before the 17 years your kids say goodbye to the rest.


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## Pudsey_Bear (Sep 25, 2008)

Oops, that'll teach me to not follow the link, I went on Penguins post  



Penquin said:


> Yes, I looked into that after it was announced and the cost of £22,500 to get the extra £25 is simply too much - I missed out on the higher State Pension by one month and asked if by delaying claiming it I would get the extra.
> 
> I was wrongly told "Yes", but later when I rang to check, was told "No" - the Pensions Line simply made a mistake.
> 
> ...


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## GEMMY (Jun 19, 2006)

Is this £25 after income tax or before?


tony


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## Revise (May 13, 2012)

When you get money from a pension you pay tax on any income above your tax-free Personal Allowance. How much Income Tax you pay depends on the tax rate that applies to you. 

So you have already paid the tax on the money you saved to pay them the £22500, then when you claim your £25 per week they tax you again on it.


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## GMJ (Jun 24, 2014)

When explaining fiscal policy to my students I advise them that:-

"- You earn...you pay tax
- You spend...you pay tax
- You save...you pay take
- You retire...you pay tax
- You die...you pay tax

There are 2 things certain in life: death and taxes [paraphrasing Defoe or indeed Franklin!] however with a good accountant, maybe, just maybe, you can avoid some of it."

Then again if you are a large multinational company it seems you can avoid paying ad nauseam :wink2:

Graham :smile2:


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## raynipper (Aug 4, 2008)

I must admit it's looking less attractive the more it gets discussed. Although I would not pay tax on my state pension in UK I do in France. 

Ray.


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## nicholsong (May 26, 2009)

For those that do not know another way to increase one's pension is to defer it. 

It rolls-up now at 5% p.a. (was 10.4%p.a. when I did it) and one gets the inflation-proofing, but not sure if it is still triple-locked . 

One has to live quite a few years to make it worthwhile. At the rate I did it at for 6 years delay, I calculated that after tax I had to take the increased pension(with inflation-link it went from £5,000 to £10,500) for 7 years to be ahead - 4 years to go. Now at 5% roll-up it would take longer, but you need to do the calculations.

My attitude was that if I die before the break-even point I will not be worrying about it anyway. If I live beyond it I will be many quids in.

For those outside UK, I also suggest that, in order to ensure the inflation-proofing continuing, one has it paid into a UK bank account - it also gives one control over when to transfer the money and into which convenient currency, which does not happen when it is paid directly to an overseas account on a set date each month.

Geoff


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## Revise (May 13, 2012)

My advice it to just take the £22500 and leave the UK for a tour of Europe. When the £22500 runs out then come home.:grin2:

Then you know you have got your moneys worth.


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## nicholsong (May 26, 2009)

raynipper said:


> I must admit it's looking less attractive the more it gets discussed. Although I would not pay tax on my state pension in UK I do in France.
> 
> Ray.


Ray

All UK pension income paid in the UK is *taxable* there whether one is resident or not. The only way it might not actually be taxed is if it were below the Personal Allownce. At one point(2014?) the Government threatened to withdraw the Personal Allownce for non-UK Residents but drew back from that proposal.

Maybe the equivalent of Personal Allowance in France is lower than UK and that is why you pay tax. Maybe you should declare yourself UK Resident again - Personal Allowance is £10,600 for 2015-16 and goes up to £11,000 in 2016-17. In Poland it is about £1,000. So I am not Resident in Poland. I am currently looking at Andorra.

Geoff


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## raynipper (Aug 4, 2008)

Thanks Geoff.
I end up paying tax in France as all our worldwide income is taken into account. 
State pension and income from savings and investments take our combined income to just over the French tax free allowance.

Ray.


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## nicholsong (May 26, 2009)

raynipper said:


> Thanks Geoff.
> I end up paying tax in France as all our worldwide income is taken into account.
> State pension and income from savings and investments take our combined income to just over the *French tax free allowance.*
> 
> Ray.


Which is what? - just out of interest.

UK tax system also takes account of 'worldwide income' for UK Residents.

Geoff


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## raynipper (Aug 4, 2008)

€19,380 according to this Geoff................ for a couple.

https://www.french-property.com/news/tax_france/income_tax_bands_2015/

Ray.


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## GMJ (Jun 24, 2014)

I have some maths to do soon...

I am planning on retiring early at the end of this academic year (possibly earlier if the right property comes along). We will downsize our house again and move back home to Wales ( yippee ).

Mrs GMJ has an income from her late first husbands pensions which we would probably be able to live on. I have a company pension which is worth just over a grand a month obviously depending upon when I take it from (after the age of 55) and a smaller teachers pension which I can take much later.

We have some investments from our first downsize which will be 5 years old next year and we are able to take a tax free income from plus we will have capital freed up from the next downsize which we can use to supplement our income until my pensions cut in.

For us though it will be a case of

- Seeing how much income we need to live on. We are not ostentatious nor materialistic but do have a healthy respect for money.
- Planning when to drop the pensions in
- Getting the balance right on investment v access to funds when required.

We plan on spending 3-4 months a year in winter in the south of Spain plus take mid week breaks in Blighty out of season when its cheaper (and adults only sites during school holidays!!). We also will factor in an upgrade to the MH as well at some stage to get perhaps the newer Comanche with the wider bed or a MH with slide outs. I am also looking forward to seeing the new Chausson with the double hab doors and reclining chairs up front (with a drop down bed at the back).

Anyway the financial advisor is coming next week for an annual update...

Graham :smile2:


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