Chortlepuss Posted November 26, 2022 Share Posted November 26, 2022 Anyone understand state pension and residency? We are returning to the UK for a period of time to live in our UK house. We will be there long enough to be considered tax resident but as we retain Aus property will also be considered resident of Aus for tax purposes. My hubby becomes eligible to claim his state pension in Jan, we are leaving in Feb. If he defers taking his pension until we are resident in the UK (after April) will he get it at UK rates or ‘frozen’ rates? Thanks! Quote Link to comment Share on other sites More sharing options...
Marisawright Posted November 26, 2022 Share Posted November 26, 2022 @ramot knows more than I do about how to claim the "unfrozen" pension temporarily, while you're in the UK (which you can do even if it's just a holiday). When your hubby becomes eligible for the pension, he will get whatever figure applies at the time (which is the same whether he's residing in the UK or not). When they talk about a "frozen" pension, they just mean he won't ever get any increases to that figure once he returns to Australia. 1 Quote Link to comment Share on other sites More sharing options...
Chortlepuss Posted November 26, 2022 Author Share Posted November 26, 2022 What Im confused about is when the pension is frozen. He will be eligible in January. I understand that If still in Aus and claims, the pension is frozen as at Jan. When we move to UK in Feb and reside in UK, he is entitled to any increases whilst in the UK. But if he defers starting his pension till post April 10% rise (when we will reside in the UK) will the pension be frozen at the post April rate even if we subsequently move back to Aus? Or will it revert to value as at January when he first became eligible to claim? Quote Link to comment Share on other sites More sharing options...
Cup Final 1973 Posted November 26, 2022 Share Posted November 26, 2022 It’s all to do with the date you first claim your pension. When you are eligible isn’t a factor. If he first claims his pension in April and subsequently returns to Australia his pension will be frozen at the rate he’s receiving when he leaves the UK. It makes sense to defer!! 1 Quote Link to comment Share on other sites More sharing options...
technophobic Posted November 27, 2022 Share Posted November 27, 2022 If he claims when he's first eligible whilst still in Aus, he will receive his pension at the applicable rate. When you move to the UK his pension rate will be uprated to the current UK rate, (which will be the same as he's getting, as there won't have been any increases). Whilst you are resident in the UK, his pension will be uprated as for any other UK pensioner. If you subsequently leave the UK and return to Aus, his pension will be frozen at the amount in force at the time of leaving. On the other hand were you to remain in Aus throughout, his pension remains at the same amount as at the date he claimed it-i.e. frozen. 1 Quote Link to comment Share on other sites More sharing options...
Chortlepuss Posted November 27, 2022 Author Share Posted November 27, 2022 Thanks! He will defer until post April 6th when we will be resident in UK in order to get 10% uplift! Quote Link to comment Share on other sites More sharing options...
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