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Moving to Philippines? Banking advice.

Discussion in 'Money Matters' started by Markham, Aug 21, 2012.

  1. Markham
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    Markham Guest

    You're forgetting about social welfare benefits such as Pension Tax Credits, care allowances, maybe even help with rent, light and heat: these - and in many cases free health care - are not available outside the UK so a retiree abroad could be saving the country a considerable amount over time.

    Unlike the UK's NHS, Malta's does send invoices to the patient's national government in respect of doctors' fees, tests, bed fees, medicines etc., etc. For us Brits, those invoices are met by the DWP. I've just had a flu jab (the quadrivalent one) and the DWP will be billed €50+ because the nurse required a medical fitness certificate issued by a doctor.

    ISTR that returning expats/retirees are no longer entitled to free healthcare under the NHS.
    Last edited by a moderator: Nov 3, 2019
  2. oss
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    oss Somewhere Staff Member

    So you think that the average ex-pat retiree is going to be like Graham someone with no other reserves than their state pension, I rather think that most retirees abroad will likely have sufficient resources to disqualify them from most of the benefits you mention had they remained in the UK.

    Pension Credit and savings credit were designed to provide a minimum level of income for pensioners who had little or no graduated/SERPS/SSP, the coalition replaced that with the new flat rate state pension which abolishes State Second Pension, I win from that to the tune of about 12 or 13 pounds a week as my state pension projection was a little less than the new flat rate pension.

    Housing benefit is gone so is Pension Credit, it's Universal Credit now and boy does that system look like fun. Since May this year you don't get any help with your rent unless both you and your partner are over state pension age, unless one party was already in receipt of housing benefit prior to May.

    Having recently looked into Universal Credit, that system is terrifying, my current rent which is very low at £425 a month would not be covered under Universal Credit, I would have to find 30 pounds a month to cover that rent if I needed to claim UC, no help with council tax etc.

    Correct but you generally get a one free pass if you state that you are returning permanently.

    I certainly would not be considering leaving the UK if I didn't have significant additional pension resources.
    • Agree Agree x 1
  3. bigmac
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    bigmac Well-Known Member Trusted Member

    i was awarded savings credit when i hit 65..i had been on guarantee credit before that. savings credit is now closed to any new applicants. its not means tested--although i did get a couple of forms demanding information--which i ignored. someone in the pensions dept didnt know their job.
  4. oss
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    oss Somewhere Staff Member

    Yes it's quite hard navigating the complexities of the old and new systems, as you say savings credit is closed to new applicants.
  5. bigmac
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    bigmac Well-Known Member Trusted Member

    initially it was awarded to me for 5 years. it has since been extended...but i dont know how long for. one year--it was reduced by about the same amount of the pension increase--so in effect it was zero. it just about covers my car tax.
  6. oss
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    oss Somewhere Staff Member

    For the thirteen years or so that I worked for myself I declared all of my income accurately as per the rules, I was especially scared of the VAT Office and made sure my declarations were 100% accurate.

    As a sole trader when the 2008 financial crisis came along I went under big time which makes me personally responsible for my debts at that time, I'm still paying HMRC today and will be for the next 14 years, that will be a total of 24 years, I am not proud of the debt I created through my own mismanagement and it is only right that I pay it all back.

    Had I been a limited company I could have walked away from all of it but at the same time I would probably just have gone under earlier, which would probably have been a good thing.
  7. Bootsonground
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    Bootsonground Guest


    For some reason,I found that post truly sad.
    • Agree Agree x 3
  8. graham59
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    graham59 Banned

    I was self-employed in the UK for about 35 years...had a good accountant, and paid my dues... and now receive a full government pension. :like:
  9. oss
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    oss Somewhere Staff Member

    I can 't remember, did you retire after 6th April 2016 or before?
  10. DavidAlma
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    DavidAlma Well-Known Member

    Interesting that you mention help with rent, light and heat. My neighbour here in Davao, a Brit retiree, was just telling me yesterday that he receives a heating allowance as well as his pension. I found that somewhat strange, as I certainly have never received anything beyond the basic pension.
  11. Markham
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    Markham Guest

    He's entitled to the Christmas Bonus (£10) but not the Winter Fuel Allowance (£100-ish); you have to reside in the UK to receive that (legally). He better hope that the DWP doesn't find out otherwise he'll have to repay every last penny plus interest and possibly also a hefty fine. And they are more than likely to find out eventually.
    • Agree Agree x 1
  12. Bootsonground
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    Bootsonground Guest


    Hold your horses!!
    He lives in Davao and he gets a "heating allowance"?
    • Funny Funny x 2
  13. Br28016
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    Br28016 Active Member Trusted Member

    Was curious about that and appears to be an optimum time to be in UK living there for at least one day.

    Eligibility
    You qualify for a Winter Fuel Payment if both the following apply:

    • you were born on or before 5 April 1954
    • you lived in the UK for at least one day during the week of 16 to 22 September 2019 - this is called the ‘qualifying week’
    If you did not live in the UK during the qualifying week, you might still get the payment if both the following apply:

    • you live in Switzerland or a European Economic Area (EEA) country
    • you have a genuine and sufficient link to the UK - this can include having lived or worked in the UK, and having family in the UK
    You can not get the payment if you live in Cyprus, France, Gibraltar, Greece, Malta, Portugal or Spain because the average winter temperature is higher than the warmest region of the UK.
    • Informative Informative x 1
  14. DavidAlma
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    DavidAlma Well-Known Member

    Not sure how one would qualify as living in the UK for one day during 16 to 22 September. Would a visit there count? In either case he has not.
    Neither is he living in any of the countries you have listed.

    The plot thickens..........
  15. Br28016
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    Br28016 Active Member Trusted Member

    I was curious so looked up rules. Thought there might have been a broader category of legibility.

    Based on your response I suspect they believe he is still living in UK.

    For winter fuel allowance value probably better to tell them that in Philippines as then legal and still get pension indexed anyway as Philippines is one of the few countries outside EU that the rule applies to.

    • Agree Agree x 1
  16. oss
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    oss Somewhere Staff Member

    It sounds like the pension is being paid into a UK bank and then transferred to the Philippines, the guy will get caught eventually.

    One would imagine that if is pension were being paid to a local Philippine bank that the UK Pension systems would be smart enough to pick up on that.

    How long has the guy been retired?
  17. Br28016
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    Br28016 Active Member Trusted Member

    Lol. If I was living in philippines and getting pension think I would aim to have it paid into UK bank account from safety point of view. Then transfer out what was needed. Never even considered idea of getting it paid direct. That probably is what is making them think he is in UK. That said sure they must have him down as living at former UK address and probably has mail sent to UK address and forwarded as necessary.
    • Agree Agree x 1
  18. Jim
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    Jim Well-Known Member Trusted Member

    I thought my pension was fully paid but apparently not. In the 90's there was a lot of years not full, never knew that until I checked with the work and pensions Gov site. Too late paying back they only go back 6 years.
    So it tuns out I'm 3 years short of full pension. Don't know what happened to me in the 90's regarding not paying my NI stamps! Been self employed for most of my working life.
  19. oss
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    oss Somewhere Staff Member

    I'm not 100% sure if it this would work but there is one potential reason to have state pension paid in the Philippines, if it is paid in the Philippines then under the dual taxation agreement it is taxable only in the Philippines and as pensions are tax free in the Phils you pay no tax, that leaves any private pension you might have in the UK as your only taxable pension income in the UK which means that in effect you can draw down £12,500 a year in the UK without paying tax on your private pension add that to your £8762 state pension income and all you are losing out on is any markdown in the exchange rate added by the British Embassy or whoever it is that deal with the remittance and the transfer fee's you incur for your private drawdown.

    I would not move my private pensions overseas as QROPS are complicated and risky and as far as I know even if a UK pension company would comply with payment into a foreign bank account (there are many horror stories from people trying to arrange this) it would likely still be treated as UK income anyway (a QROPS scheme would not be treated that way) so there would be little point.

    I will be speaking to specialists in a few years time to find out what the best approach will be as I intend to draw down a bit more than that per annum and will still be liable for some tax in the UK but I would like to minimise that liability if possible.

    I agree that he must still have a UK address and is getting the mail forwarded but unless that is a friend or relative's address he won't be able to forward mail forever.
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    • Informative Informative x 1
  20. oss
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    oss Somewhere Staff Member

    You've been retired a good few years now Jim, yes?

    Are you on the old state pension or the new state pension?

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