United Kingdon Retirement Question

[JJReyes]

I was reading an AOL Money article by Sarah Coles entitled, "The overseas retirement hotspots: why?" It mentions that a UK state pension can be frozen at the point of retirement if the country does not have a reciprocal agreement with the UK. What this means is the state pension will no longer be adjusted for inflation. Does anyone know if there is a reciprocal agreement with the Philippines? 

 

By the way, the article states that Spain remains as the top retirement destination for UK retirees.

[Genius]

I don't know but they are taking the winter allowance away from pensioners who live in hot countries. Sounds fair enough to me. Though, I guess they never considered an a/c allowance is needed in some of those countries.

[brock]

Yeah, it means it will not rise with inflation.

[Malcolm Graham]

There is a reciprocal agreement for the state pension.  The full list is on the pension website. http://www.dwp.gov.uk/international/benefits/state-pension/state-pension-arrangements-in-social/#philippines.   And just as a side note that website, the .gov.uk one won website design of the year award for its ease of use and simplicity

[JJReyes]

Thanks Malcolm. That's the website with the information I am seeking. The national government is working on a global strategy to make the Philippines more attractive as a retirement destination. The issues being discussed include visas, pensions, money transfers, investment opportunities, part time employment, and repatriation of remains.

 

While it is only at the discussion level, someone with an advanced degree might be permitted to teach part time in a college or university. The compensation isn't much, but the incentive is issuance of an SRRV Courtesy visa. 

[Thomas]

I don't know but they are taking the winter allowance away from pensioners who live in hot countries. Sounds fair enough to me. Though, I guess they never considered an a/c allowance is needed in some of those countries.

As comparing:

No such in Sweden (as far as I know)

but some other disadvantages:

/No guarantee minimum retirement sum if living abroad. (Otherwize it's around 56 000 pesos per month) In worst case it can be big diiference, even more than 50 % reduction!

/Tax is reduced to 25% (from normaly around 30 % depending of in which Swedish "baranggay" you live otherwice) 

BUT the deduction is lost too, so many LOSE by it totaly.

/Many retired get EXTRA support for covering a part of the costs for the home. This is lost when moving abroad*)

 

* (Some benefits are kept only if stay within European Union.)

 

These PUNISHMENTS Swedish retired get if moving abroad (outside EU), although stop using the SUBSIDIZED hospitals and retirement homes, so the Swedish state get LESS costs!!! :bash:    :th_unfair:

[JJReyes]

Thanks Thomas. Maybe what you wrote is the reason why few Swedes retire abroad. 

 

Spain remains the top destination for retirees from the United Kingdom. I recall there were British retirement colonies along the Costa del Sol between Malaga and Marbella. We visited Torremolinos because James Michener wrote about the place in "The Drifters." Lots of Scandinavian tourists, but the place was overbuilt. 

[Genius]

I think with the srrv, if they substituted the deposit requirement in a philippine bank, to it being in a time deposit with an international bank and that they had to be notified in the event of the closure of that account, then many would not fear their funds being captured by somehow within the philippines in the event of ever wanting to leave. Although, perhaps I m paranoid but I do consider a possibility that said funds could be treated unfairly at some future point. Look for example the debacle in Cyprus. Italian banks also confiscated credit balances but it was so small no one got too perturbed but I wouldn't not deposit in Italian banks either for that reason. I understand they want to attract people who are reasonably monied, which is a fair requirement but I do not think it encourages to require effective control over a deposit as an adjunct to that. My fifty pence.

[Genius]

Lots of coastal Spain, terribly over built and spoilt by invasion of expats from the Northern European countries.

[earthdome]

For US Citizens one of the drawbacks of the SRRV is that the $10,000 USD deposit puts you over the limit that requires you to do an annual financial report to the IRS for your foreign financial assets.