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Pension from UK while in the Philippines

Discussion in 'Migrating to the Philippines' started by jsp1982, Mar 8, 2021.

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  1. oss
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    oss Somewhere Staff Member

    Yes it does :D

    It is a gamble, but everything is, I am saving a couple of grand a month into my main pension and I might never see it.
    oss, Apr 20, 2021
    #61
  2. Tony James
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    Tony James Member

    Haven't you got it set up so that any funds transfer to your next of kin if you were to die?

    I've got a mix of private pensions and property which should give the wife and I a comfortable retirement when we choose to pack work in. The properties should go on to the kids once both of us have shuffled our mortal coils. I plan to release a significant amount of equity from the houses to pass on to the kids to reduce my IHT liability and ensure that they can pay what taxes there will be due.

    I plan on taking up the draw down option @ 6% which should keep topping itself up as I anticipate a similar growth rate. It all sounds like a good plan but I need to see a financial advisor nearer the time.
    Tony James, Apr 20, 2021
    #62
  3. oss
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    oss Somewhere Staff Member

    Most people who save for a private pension save a portion of their earnings throughout their lives in order to provide a good pension on retirement and if they die early to provide for their loved ones but that portion of their earnings is usually a sensible amount and does not represent too great an immediate sacrifice in their ability to live and enjoy their life.

    In my case, yes the kids would get supported I've set up a trust for them but it is still possible that their mother could get her hands on some of the money and piss it away in a Casino which is not something that I find appealing.

    Before Covid-19 I was already saving so much of my salary that it has a large impact on my ability to live my life, this is to make up for saving too little in the past and also to reach a particular target amount of 25% tax free cash, I need that money because I still have debts 12 years after my business failed and also because I am hoping to have enough left after the debts are cleared to let me buy a flat in Scotland, although I intend to spend a lot of time with my children in the Philippine I want to retain a base in the UK and I cannot afford to be in the position of having to rent in the UK and rent in the Philippines.

    So the gamble for me is that the money I am investing right now, because of my particular circumstances, is money I might never see, the saving I am doing right now is for me myself, if I died tomorrow the kids would be provided for although times would be very tough for them while the will was being processed.

    Right now the markets are high enough that I could stop working tomorrow and pay off the debts but I could not retain a base in the UK and the 4 year gap before state pension that I would have to fund myself would eat into the funds invested in my pension dramatically, and my remaining cash funds outside of my pension would be quite small, I also would not be able to offer the kids as good a lifestyle as they have now.

    So in my case it is a self imposed gamble but at this stage in the game it is my personal gamble, I am gambling life and life experiences now for the hope of better life in 4 years time.

    Your plan sounds quite sensible, the main thing you need to check is that the type of pension you have is designed for drawdown as there have been lots of changes in recent years and most older pension schemes were designed around the purchase of an annuity.

    Funnily enough I just looked at my model where I retire age 66 and my drawdown rate would be about 7% or about £24,000 a year, I have modelled fund growth at 2% per annum and I run out of money age 83 but would still have my state pension then, and I would also still have fairly large amount of the tax free cash available too, I am also modelling a state pension increase of 2.5% a year which is unlikely but the idea is to adjust the model annually once I reach that age.

    However if I retired next year I would run out of money by age 77 and my drawdown for the next 3 years would be a lot lower and my long term drawdown after state pension age would be a fair bit less too, I would still have cash at age 77 but not a huge amount, it is surprising the difference a couple of years can make at this late stage in pension saving.
    oss, Apr 20, 2021
    #63
  4. John Surrey
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    John Surrey Well-Known Member

    Out of interest ... what happens if I die here and my State Pension is being paid into a bank account in the UK ?

    I mean how do they find out I've kicked the bucket?
    John Surrey, Apr 22, 2021
    #64
  5. Br28016
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    Br28016 Active Member Trusted Member

    I suspect they write out asking you to confirm still alive every so often although probably rely mainly on relatives informing them of your death. In theory if you die then no money goes out of your bank account and is available to be reclaimed when eventually they realise you are dead. One of duties of executor will be to advise pension payers that you are dead and settle debts and overpaid pension is an estate debt.
    Br28016, Apr 22, 2021
    #65
  6. oss
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    oss Somewhere Staff Member

    oss, Apr 22, 2021
    #66
  7. John Surrey
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    John Surrey Well-Known Member

    I seem to remember something about families (think they were from India) claiming pensions/benefits from loved ones who were living to about 130 years old!
    John Surrey, Apr 23, 2021
    #67
  8. Jim
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    Jim Well-Known Member Trusted Member

    They send out a 'proof of living form' to fill out and return. But since the pandemic you are allowed to phone them up at your own expense. They sent me one last year, seems like it's annually.
    Jim, Apr 23, 2021
    #68
  9. John Surrey
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    John Surrey Well-Known Member

    I sent off my Class 3 NI forms to set up the DD... no response from HRMC... been about a month ... is this fairly normal?
    John Surrey, Jun 19, 2021
    #69
  10. Anon220806
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    Anon220806 Well-Known Member

    Where are you John? If you are in the U.K., give them a bell. I phoned them only a couple of weeks ago.
    Anon220806, Jun 19, 2021
    #70
  11. Jim
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    Jim Well-Known Member Trusted Member

    If your in the Philippines it takes months to get them back. I sent a letter requesting to pay a 5 years gap in my state pension last year it took 12 months and I missed the deadlock, but that was when covid-19 first hit.
    Sent another letter this year to Works and Pension, May 5th with DHL. Hopeful will get it back this Christmas. Maybe it's because I live in the sticks on Negros Oriental.
    Philippines post sucks big time.
    Edit. you can also phone them up in the Philippines, I use Skype.
    Jim, Jun 19, 2021
    #71
  12. Anon220806
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    Anon220806 Well-Known Member

    I did wonder if Skype or maybe WhatsApp was possible.
    Anon220806, Jun 19, 2021
    #72
  13. John Surrey
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    John Surrey Well-Known Member

    Thanks - I actually sent the original over to a friend to post on to them about a month ago and it arrived using standard post in a couple of weeks - quite good from Leyte!

    The other think I did was uploaded the PDF to https://www.ukpostbox.com/ and sent that off to them directly from UK (quite a handy service that one - bit expensive though) ... haven't heard from them and the dd hasn't been set up at the bank ... so that's why I was wondering.

    Maybe I'll send them a reminder
    John Surrey, Jun 20, 2021
    #73
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  14. John Surrey
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    John Surrey Well-Known Member

    What number do you use for them Jim - we have viber - suppose that might work too
    John Surrey, Jun 20, 2021
    #74
  15. Jim
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    Jim Well-Known Member Trusted Member

    I used this number +44 191 218 7777. Viper should work too.
    Jim, Jun 20, 2021
    #75
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  16. Anon220806
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    Anon220806 Well-Known Member

    I get through to them pretty regularly on 0800 7310181 from the U.K.
    Anon220806, Jun 20, 2021
    #76
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  17. Jim
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    Jim Well-Known Member Trusted Member

    Got another form from Work and Pensions yesterday dated 6th January 2021, for volunteer class 3 contributions. Final date without penalty 5th April 2021. :(

    They sent an identical form last year that overlapped the Final date for payments. I sent a reply with DHL in May 2021 should have took a few weeks to reach them. Waiting for a reply, looking at this December, maybe January
    February. Phil post stinks. :poop:
    Jim, Jul 28, 2021
    #77
  18. John Surrey
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    John Surrey Well-Known Member

    Try this one: https://www.ukpostbox.com/ much cheaper than DHL... just take a good color copy
    John Surrey, Jul 28, 2021
    #78
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  19. John Surrey
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    John Surrey Well-Known Member

    Just to update ... they've set me up now ... so took about 3 months.. no phone call or anything.
    John Surrey, Aug 5, 2021
    #79
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  20. Anon220806
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    Anon220806 Well-Known Member

    I will getting my first payments at the end of the month. (in the U.K. though)
    Anon220806, Aug 5, 2021
    #80
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