Hello there.
It looks as though the economy is still floundering worldwide doesn’t it? Greece is in a really bad way, with Portugal also having a hard time of it too. Plus of course us here in the UK…
Are you still thinking of moving abroad? If you are, and you are of pensionable age, you need to bear in mind that some countries have reciprocal social security agreements with the UK and you will qualify for the annual rise in pension. However in other countries the government does not give cost-of-living increments to expats living there and your pension will be ‘frozen’ at the initial rate you received for your first pension payment.
It really is important to look at your pension status when making this decision to see how your country of choice handles this, and also how other countries stack up if you are wavering as to where to move. If you would like a complete list of a country’s pension status incidentally, I am able to let you have a comprehensive list on this: just phone Elaine on 0207 898 0549 and ask for it.
What I have found over the years that I have been working for The Overseas Guides Company is that many people start off intending to buy in one country and end up actually buying in another. The reasons for this are varied – it could be cost, input from a new partner, the cancellation of cheap airfares or simply a desire to be nearer the UK.
Many Brits living abroad are saying this is a moral rather than a financial issue. Over half a million British pensioners are currently having their pensions docked because they have chosen to live abroad - this applies mainly to Commonwealth countries, with almost half of affected pensioners living in Australia. What really outrages people is that any MPs now living overseas do not have their official pensions frozen – this in a time of enormous disenchantment with MPs generally, and with their financial shenanigans in particular!
What is so unfair is that the cost of unfreezing is not great, less than 1% of the annual cost of paying pensions. Says James Nelson of the British Australian Pensioner Association “This is not just a financial matter. The main argument for unfreezing is a moral issue, a question of justice. Pensioners in frozen countries have met the same conditions as those in unfrozen countries.”
This effectively means that thousands of pensioners who would love to be living nearer their family or friends abroad are unable to do afford to do so because of this and are forced to spend their old age alone in the UK. Of the Commonwealth’s 53 nations, 48 are adversely affected in this way. As someone who lived most of her life in South Africa, may I add that it seems an unworthy response to retirees living in countries that fought in two World Wars for Britain. Now folk are penalised for living there – go figure! We need to get Joanna Lumley on to this!
However, some are not going down without a fight - they have taken steps to have this very unfair system rectified. In November, a lower court of the ECHR rejected the applicants’ case in a 6-to-1 decision, but a referral subsequently was granted. A group of expat pensioners charged the British government with discrimination over its policy of "freezing" the state pensions. The case was heard on 2 September 2009 before the Grand Chamber of the European Court of Human Rights (ECHR) and was subsequently thrown out, but my guess is that we have not heard the last of this.
A spokesman for the UK's Department of Work and Pensions (DWP) said the decision whether or not to "uprate" UK pensions paid to expats has to do with the "reciprocal agreements" that Britain has with some other countries - including other EU members - but not with others. Pensioners who live in countries with which Britain does not have such reciprocal arrangements do not receive these upratings, he added.
Peter Kennan, chairman of the Canadian Alliance of British Pensioners, disputes the DWP argument, noting that some countries with which Britain does not have such agreements - such as Canada - nevertheless boost the pensions of their own nationals living in the UK. "It has nothing to do with reciprocal agreements, and everything to do with saving money," he added.
If you have any questions or queries about pensions abroad you can go to the link below for all information. http://www.direct.gov.uk/en/BritonsLivingAbroad/Moneyabroad/DG_4000013
The section dealing with pensions is:http://www.direct.gov.uk/en/Pensionsandretirementplanning/StatePension/Basicstatepension/DG_10026714
You can write to:
The Pension Service, International Pension Centre (IPC)
Payments - Room TD 111
Tyneview Park, Newcastle upon Tyne, NE98 1BA, England
and the email address is:
tvp.internationalqueries@thepensionservice.gsi.gov.uk
Telephone Number - 0191 21 87777
Fax Number - 0191 2183305
There is plenty of useful information on The Pension Service website at www.thepensionservice.gov.uk
You may be wise to consult an Independent Financial Advisor (IFA) before venturing abroad. If you need any help with finding someone perhaps try phoning the Overseas Guides Company Resource Team on 0207 898 0549 – there is no fee associated with their services yet and they do have people they may be able to recommend.
http://www.emigrationguide.com
Friday, 30 April 2010
Friday, 23 April 2010
My 10 Top Reasons To Emigrate...
Trawling through the Internet, I picked up on an article on the top reasons that people emigrate. Reading through their list, there were some that coincided with the reasons I had for moving abroad, but many that didn’t. And my guess is that everyone’s list would differ slightly…Here is mine - tell me what you think. Are these much the same as you would give for planning such a dramatic move?
1. Move to be near family: Actually, without wanting to appear overly sentimental, this would probably cover at least one through five for me! As far as I am concerned, there is nothing more important than family. I decided to move back to the land of my birth in a heartbeat because my children had moved here
2. Move to a family-orientated area: Strange as it may seem, I find my London district far more family orientated than South Africa, where I had to padlock the door behind me when I got home. Here we have an annual street party and people greet one another at our local corner shop or as they walk their dogs – or cats! Italy, Greece, Spain – people have given the same reason to move to these countries…
3. Safety: This is a difficult one to explain to those who have not actually felt threatened on a regular basis. I am blown away daily by the fact that I can stroll along the Thames, here in London, without having to cower when I hear running footsteps behind me – it took me a while to adjust!
4. Public transport: Coming from a country with absolutely no public transport, you will seldom hear me complain about tubes and buses here. I had a nasty car accident a while back that left me very reluctant ever to drive again. This meant that, before I moved, I was a virtual prisoner in my own home. Now, with my beloved Freedom Pass, I am as free as a bird!
5. Health care: You won’t hear a word of complaint about the much-maligned National Health Service from me. I am sure that there are many justifiable complaints, but I have not experienced anything but wonderful service and massive help and support. As one gets older this is an absolute must…
6. A caring society: I personally find it strange that people in the UK are not grateful for the many opportunities they have available. By this I mean help with getting jobs, job-seekers allowances, dole, NHS, help to get qualified for a job, council houses and so on. Where I come from there is absolutely no help AT ALL – you could starve in the street and no one would notice
Do my reasons to move have any similarities with yours? Why don’t you do what I have done: put a list together and see what is REALLY important to you? Will the country of your dreams fulfil your expectations? It may be a good idea if you can to go to your dream country and stay a while before committing yourself to a permanent move. Perhaps go on to an ex-pat website and ask what those who have moved feel – will it be as you think it will?
I had friends who moved from South Africa to Canada – the wife wanted to be nearer her sister. To do so they had to leave an older married child behind, he had to close his legal practice and they had to find schools for two kids in Canada. They returned to SA a year later, financially far worse off than when they left and with one child having chosen to remain behind in Canada. Not what you might call a success story…My move however has been utterly successful, and so can yours be – you just need to give the matter sufficient thought.
I’d love to have your thoughts on this – take care and I’ll be back soon!
Kim
http://emigrationguide.com/
1. Move to be near family: Actually, without wanting to appear overly sentimental, this would probably cover at least one through five for me! As far as I am concerned, there is nothing more important than family. I decided to move back to the land of my birth in a heartbeat because my children had moved here
2. Move to a family-orientated area: Strange as it may seem, I find my London district far more family orientated than South Africa, where I had to padlock the door behind me when I got home. Here we have an annual street party and people greet one another at our local corner shop or as they walk their dogs – or cats! Italy, Greece, Spain – people have given the same reason to move to these countries…
3. Safety: This is a difficult one to explain to those who have not actually felt threatened on a regular basis. I am blown away daily by the fact that I can stroll along the Thames, here in London, without having to cower when I hear running footsteps behind me – it took me a while to adjust!
4. Public transport: Coming from a country with absolutely no public transport, you will seldom hear me complain about tubes and buses here. I had a nasty car accident a while back that left me very reluctant ever to drive again. This meant that, before I moved, I was a virtual prisoner in my own home. Now, with my beloved Freedom Pass, I am as free as a bird!
5. Health care: You won’t hear a word of complaint about the much-maligned National Health Service from me. I am sure that there are many justifiable complaints, but I have not experienced anything but wonderful service and massive help and support. As one gets older this is an absolute must…
6. A caring society: I personally find it strange that people in the UK are not grateful for the many opportunities they have available. By this I mean help with getting jobs, job-seekers allowances, dole, NHS, help to get qualified for a job, council houses and so on. Where I come from there is absolutely no help AT ALL – you could starve in the street and no one would notice
Do my reasons to move have any similarities with yours? Why don’t you do what I have done: put a list together and see what is REALLY important to you? Will the country of your dreams fulfil your expectations? It may be a good idea if you can to go to your dream country and stay a while before committing yourself to a permanent move. Perhaps go on to an ex-pat website and ask what those who have moved feel – will it be as you think it will?
I had friends who moved from South Africa to Canada – the wife wanted to be nearer her sister. To do so they had to leave an older married child behind, he had to close his legal practice and they had to find schools for two kids in Canada. They returned to SA a year later, financially far worse off than when they left and with one child having chosen to remain behind in Canada. Not what you might call a success story…My move however has been utterly successful, and so can yours be – you just need to give the matter sufficient thought.
I’d love to have your thoughts on this – take care and I’ll be back soon!
Kim
http://emigrationguide.com/
Friday, 16 April 2010
Planning...Before Rather Than After Your Move!
Hello there.
What an erratic time it has been weather-wise hasn’t it? After a particularly warm day last week I set off for a long day out, only returning in the evening. I optimistically left my coat at home – MISTAKE! I have learnt the ‘umbrella lesson’ (never leave home without one…!) and I am now rapidly learning the coat one!
I was recently reminded of my move abroad in that a really good friend of mine has fallen into a trap that I narrowly avoided - he left South Africa without actually going through the emigration process. His wife has a British passport so there was no problem when it came to entering Britain, but the problem has arisen now that he wants to transfer the balance of his funds to the UK.
If he had officially emigrated this process would have been comparatively easy but since he did not do so it has become highly restricted and complex. Plus of course there is the added problem of trying to get things done from a distance. For myself, it took me a full month of visits and endless phone calls to tax and government offices before I finally had all the papers I needed to formally emigrate – I don’t want to think of the frustration and the cost of trying to do this from abroad. Quite apart from anything else, it was a personal relationship that I forged with one of the people in the tax office that finally ‘cracked the case’ – never lose sight of the personal touch and of being remorselessly pleasant and patient throughout! A few tantrums and ill temper can delay you by weeks as obstructive staff may decide that it’s payback time!
You obviously need to make sure in your own mind that you intend to remain abroad, but once you are absolutely sure of this – as I was – you need to go into all the tax implications of your move in order so that you get the most possible value from your savings.
For instance, British pensions – when paying out – are now deeply unattractive. One of the reasons for this is that the income generated by a pension is restricted by the fund it is invested in. Then only 25% of the fund value is available as a tax-free lump sum, plus of course the annual/monthly amount paid is taxed at source. And sadly the final proceeds on death often disappear back to the insurance company rather than going to loved ones.
Alternatives are available and benefits can be extremely advantageous - this is what you need to look into before rather than after your move. In 2006 new EU legislation opened up opportunities for UK pension holders to move their pension abroad, thus giving greater control to the pension holder. However, the scheme, called Qualifying Recognised Overseas Pension Scheme (QROPS – pronounced Crops) needs to meet certain criteria.
To get you started you can access a short guide that the Overseas Guides Company has put together which details exactly how this works. It's about what can be done about increasing the income you get, eliminating or reducing the tax you will pay and effectively ensuring that beneficiaries get ALL of the funds upon death rather than just a percentage plus lots more. This may be a good way to start the process - if you are interested in getting a copy of this guide, please go to: http://www.overseasguidescompany.com/downloads/OGCQROPSGuide.pdf
Also, Smart Currency has put out a brilliant FREE relocation report. One of the toughest lessons I learned was that I should have used a currency company to transfer my money abroad rather than my high street bank. Why? Well, this report will explain all that and tell you how to save money…always useful! Go to http://www.smartcurrencyexchange.com/emigrationreport.aspx if you want to access this.
Once again, it’s all down to planning and homework but seriously, not a minute of the planning I did was time wasted and, in the end, it allowed me to move seamlessly and with the minimum of trouble.
More next week! Please jump in and add anything that you feel may help or that you would like me to discuss won’t you?
Best,
Carol.
http://www.emigrationguide.com/
What an erratic time it has been weather-wise hasn’t it? After a particularly warm day last week I set off for a long day out, only returning in the evening. I optimistically left my coat at home – MISTAKE! I have learnt the ‘umbrella lesson’ (never leave home without one…!) and I am now rapidly learning the coat one!
I was recently reminded of my move abroad in that a really good friend of mine has fallen into a trap that I narrowly avoided - he left South Africa without actually going through the emigration process. His wife has a British passport so there was no problem when it came to entering Britain, but the problem has arisen now that he wants to transfer the balance of his funds to the UK.
If he had officially emigrated this process would have been comparatively easy but since he did not do so it has become highly restricted and complex. Plus of course there is the added problem of trying to get things done from a distance. For myself, it took me a full month of visits and endless phone calls to tax and government offices before I finally had all the papers I needed to formally emigrate – I don’t want to think of the frustration and the cost of trying to do this from abroad. Quite apart from anything else, it was a personal relationship that I forged with one of the people in the tax office that finally ‘cracked the case’ – never lose sight of the personal touch and of being remorselessly pleasant and patient throughout! A few tantrums and ill temper can delay you by weeks as obstructive staff may decide that it’s payback time!
You obviously need to make sure in your own mind that you intend to remain abroad, but once you are absolutely sure of this – as I was – you need to go into all the tax implications of your move in order so that you get the most possible value from your savings.
For instance, British pensions – when paying out – are now deeply unattractive. One of the reasons for this is that the income generated by a pension is restricted by the fund it is invested in. Then only 25% of the fund value is available as a tax-free lump sum, plus of course the annual/monthly amount paid is taxed at source. And sadly the final proceeds on death often disappear back to the insurance company rather than going to loved ones.
Alternatives are available and benefits can be extremely advantageous - this is what you need to look into before rather than after your move. In 2006 new EU legislation opened up opportunities for UK pension holders to move their pension abroad, thus giving greater control to the pension holder. However, the scheme, called Qualifying Recognised Overseas Pension Scheme (QROPS – pronounced Crops) needs to meet certain criteria.
To get you started you can access a short guide that the Overseas Guides Company has put together which details exactly how this works. It's about what can be done about increasing the income you get, eliminating or reducing the tax you will pay and effectively ensuring that beneficiaries get ALL of the funds upon death rather than just a percentage plus lots more. This may be a good way to start the process - if you are interested in getting a copy of this guide, please go to: http://www.overseasguidescompany.com/downloads/OGCQROPSGuide.pdf
Also, Smart Currency has put out a brilliant FREE relocation report. One of the toughest lessons I learned was that I should have used a currency company to transfer my money abroad rather than my high street bank. Why? Well, this report will explain all that and tell you how to save money…always useful! Go to http://www.smartcurrencyexchange.com/emigrationreport.aspx if you want to access this.
Once again, it’s all down to planning and homework but seriously, not a minute of the planning I did was time wasted and, in the end, it allowed me to move seamlessly and with the minimum of trouble.
More next week! Please jump in and add anything that you feel may help or that you would like me to discuss won’t you?
Best,
Carol.
http://www.emigrationguide.com/
Friday, 9 April 2010
Emigrating Abroad
Hello there!
My name is Carol. It was my birthday recently – the forth one since I immigrated to the UK (the land of my birth) after a lifetime spent in Africa. During my birthday party I had what Oprah Winfrey calls ‘a light bulb moment’ – one that I want to share with all who will listen!
This was the first birthday that I no longer felt like a ‘visitor’ – and it was such a great feeling! I was surrounded by friends and family - my son lives here in London but it also so happened that my son-in-law was over from Dubai to share the occasion too. Somehow I felt that I had lived here for ever; it took a while and, as I am sure all who move countries will agree, it does take time to make new friends and to get into a routine of life that is both enjoyable and practical.
But believe me, the day does come that your new country will feel like home. You just have to believe that and to actually work at it. I was fortunate at the time to have my daughter and her family living nearby. She had a friend who was moving to the States and who wanted to rent out her lovely little flat just a few blocks from my daughter and my adorable grandchildren – what a win! They moved to Dubai about a year later but at least they were there in the early days.
Then a friend of my daughter’s bore my CV off to her child’s school where it was picked up by my present boss’s wife…and here I have happily beavered away at The Overseas Guides Company for nearly four years!
Part of my job has been to travel abroad, to have a look at various property options and to meet all the property professionals that many of the OGC readers have come to use and rely upon.
I have talked to literally hundreds of folk who are taking the plunge and moving abroad and I have personally contributed to many of the Property Buying Guides that the OGC provides – you may want to look at them on www.emigrationguide.com. It struck me that it may just be useful for me to share with you what I have learnt, both from my own personal experiences and from listening to the many concerns, experiences and tales shared with me on a daily basis.
So do join me weekly as I chat about various aspects of moving abroad…You never know, there may just be something that will help you, inspire you or just plain bring a smile to your face!
My name is Carol. It was my birthday recently – the forth one since I immigrated to the UK (the land of my birth) after a lifetime spent in Africa. During my birthday party I had what Oprah Winfrey calls ‘a light bulb moment’ – one that I want to share with all who will listen!
This was the first birthday that I no longer felt like a ‘visitor’ – and it was such a great feeling! I was surrounded by friends and family - my son lives here in London but it also so happened that my son-in-law was over from Dubai to share the occasion too. Somehow I felt that I had lived here for ever; it took a while and, as I am sure all who move countries will agree, it does take time to make new friends and to get into a routine of life that is both enjoyable and practical.
But believe me, the day does come that your new country will feel like home. You just have to believe that and to actually work at it. I was fortunate at the time to have my daughter and her family living nearby. She had a friend who was moving to the States and who wanted to rent out her lovely little flat just a few blocks from my daughter and my adorable grandchildren – what a win! They moved to Dubai about a year later but at least they were there in the early days.
Then a friend of my daughter’s bore my CV off to her child’s school where it was picked up by my present boss’s wife…and here I have happily beavered away at The Overseas Guides Company for nearly four years!
Part of my job has been to travel abroad, to have a look at various property options and to meet all the property professionals that many of the OGC readers have come to use and rely upon.
I have talked to literally hundreds of folk who are taking the plunge and moving abroad and I have personally contributed to many of the Property Buying Guides that the OGC provides – you may want to look at them on www.emigrationguide.com. It struck me that it may just be useful for me to share with you what I have learnt, both from my own personal experiences and from listening to the many concerns, experiences and tales shared with me on a daily basis.
So do join me weekly as I chat about various aspects of moving abroad…You never know, there may just be something that will help you, inspire you or just plain bring a smile to your face!
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