# UK State Pension - Benefits you might not know you have now you're an expat



## ChrisCB

Did you know that you're still entitled to your UK State Pension from no matter where you live in the world!*

- The full basic State Pension is currently £175.20 per week (£9,110.40 p.a).
- You need to make 35 years of National Insurance contributions in order to be eligible for the full State Pension
As an Expat, you can make voluntary overseas contributions. As long as you worked full time in the UK for a minimum of 3 years, there are significant benefits you can take advantage of, and include the following:*
- You can "buy back" up to 11 years of missed contributions.
- Your contributions needed could be as little as*£3.05 per week*(£158.60 per year).
- If you have*worked the minimum of 3 years in the UK and still*had 32 years of contributions remaining at*£158.60 per year, you would be contributing a total of*£5075.20 to receive a yearly pension of*£9,110.40
- If you were to receive the state pension at the age of 68 and lived till you were 81 (average life expectancy in the UK)*you would receive, throughout those 14 years, a total value of*£127,545.60 from your*£5075.20 worth of contributions!


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## Richjohn

And if as a UK national living in Thailand, you are in receipt of a UK state pension, you won't get the annual/cost of living increases in the UK state pension. It will effectively be frozen at the level it was when you moved to Thailand, or started receiving it, if later.


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## ChrisCB

Richjohn said:


> And if as a UK national living in Thailand, you are in receipt of a UK state pension, you won't get the annual/cost of living increases in the UK state pension. It will effectively be frozen at the level it was when you moved to Thailand, or started receiving it, if later.


That is correct. However, if you decide to move back to the UK permanently, the State Pension will then align itself with the current State Pension rate. If you decide to stay abroad, whilst the pension may not increase, you do now have access to a full UK State Pension. It's a win-win situation, and a great start towards your retirement funds.


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## Richjohn

ChrisCB said:


> That is correct. However, if you decide to move back to the UK permanently, the State Pension will then align itself with the current State Pension rate. If you decide to stay abroad, whilst the pension may not increase, you do now have access to a full UK State Pension. It's a win-win situation, and a great start towards your retirement funds.


Agreed, though it's not such a win if you decide to stay in Thailand for an extended retirement, as your UK pension won't increase, whereas the cost of things in Thailand will, and based on the last 15, 10 or even 3 years the exchange rate would have hammered you too.


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## ChrisCB

Richjohn said:


> Agreed, though it's not such a win if you decide to stay in Thailand for an extended retirement, as your UK pension won't increase, whereas the cost of things in Thailand will, and based on the last 15, 10 or even 3 years the exchange rate would have hammered you too.


I like to think of the State Pension as a bit of extra pocket money. It's not something you should rely on in retirement.
We should all have regular savings plans in place, and ensure that our actual pension is reviewed regularly. This will ensure that our risk profile is up to date and our pensions are in the right investments (especially in times like we are now). With Bank interest rates at an all time low globally and inflation remaining relatively consistent, if we aren't investing our money, were basically throwing it away.

According to figures from an OECD report, 1.9 million UK retirees are currently living in poverty, with a further 1 million in fuel poverty. Whilst this may not be overly relevant to those living abroad, it shows the importance of being prepared for retirement.

Whilst your state pension isn't going to save you from this, I'm sure you'll agree it's a great start.


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## dontheturner

Richjohn said:


> And if as a UK national living in Thailand, you are in receipt of a UK state pension, you won't get the annual/cost of living increases in the UK state pension. It will effectively be frozen at the level it was when you moved to Thailand, or started receiving it, if later.


But if you then pop back to the UK for a month or so, you can get the increases that you have missed while out of the UK , paid updating your pension receipts in Thailand. - because I have done that , and we are now selling up again to go back to the land of Smiles.


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## Richjohn

dontheturner said:


> But if you then pop back to the UK for a month or so, you can get the increases that you have missed while out of the UK , paid updating your pension receipts in Thailand. - because I have done that , and we are now selling up again to go back to the land of Smiles.


Yes, agreed, but if it is a short visit to the UK don't they put it back down when you return to LOS?

I was an expat in Thailand, but returned to the UK to live a year after I formally retired. (I do miss LOS). Note as a pensioner in the UK one doesn't pay for NHS prescriptions.


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