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A Couple of Quick Leaver's Questions

#1
Having already attended my FAR Brief, I know I should know the answer to the first of these questions, if not both, but can anyone help me out:
  • During their brief, the FPS said to try and leave in April to maximise the annual pension uplift. Is there a key date in April that it's worth hanging on until, or is any date in April good enough?
  • Our plans do not include returning to UK and we will be moving to (hopefully) sunny Spain - does anyone have any experience and useful advice of getting their pension there, specifically:
    • Is it possible to get the pension paid directly to a bank in Spain?
    • Are there any advantages or disadvantages to doing so?
    • Can I pay the tax in Spain at a slightly lower rate than UK or must it be taxed at source in UK?
  • While not strictly a pension question, does anyone have any experience of final moves to an overseas home. I am already serving overseas in Belgium and the JSP says I'm entitled to a contribution based on a notional move back to Catterick but the details seem pretty sketchy and it's obviously a question my Admin office isn't too familiar with....
I have already tried the search function but didn't turn anything up, apologies if it's there and I missed it!
 
#2
Why don't you join the FPS? £35 for a years membership and you can get sound financial advice - a sound investment me thinks as you are talking about not insignificant sums of money; you need to get this right.
 
#3
I am in the process of joining but, especially in the case of getting the pension overseas, I suspect that the practice may vary substantially from the theory!
 
#4
Having already attended my FAR Brief, I know I should know the answer to the first of these questions, if not both, but can anyone help me out:
  • During their brief, the FPS said to try and leave in April to maximise the annual pension uplift. Is there a key date in April that it's worth hanging on until, or is any date in April good enough?
  • Our plans do not include returning to UK and we will be moving to (hopefully) sunny Spain - does anyone have any experience and useful advice of getting their pension there, specifically:
    • Is it possible to get the pension paid directly to a bank in Spain?
    • Are there any advantages or disadvantages to doing so?
    • Can I pay the tax in Spain at a slightly lower rate than UK or must it be taxed at source in UK?
  • While not strictly a pension question, does anyone have any experience of final moves to an overseas home. I am already serving overseas in Belgium and the JSP says I'm entitled to a contribution based on a notional move back to Catterick but the details seem pretty sketchy and it's obviously a question my Admin office isn't too familiar with....
I have already tried the search function but didn't turn anything up, apologies if it's there and I missed it!
1/ No idea.

2/Yes you can. The pension office can pay into any overseas bank.
Advantage - less bank fees when getting the cash. Disadvantage - keeping a UK bank account can be useful even in todays Interconnected world.

3/The UK taxman will take his share (but remember it will be your only UK income so the tax should be reasonable) and then of course the Spanish taxman will want his bit as well as they will add the pension onto your yearly income (this is the law in Germany anyway so I would think Spain is the same)

4/ I have been out too long to know what the final move rules are anymore.

5/ There are a few Dagoes botherers who have retired to Sapin on here already so you may find they will seek you out.
 
#6
As for the final move point, it is my understanding that it is the case you mentioned. I'm sure The Snail is all over that stuff
 
#7
Thanks to all so far...

Steven - your point 3 - I assume you mean that it's taken into account as "income already taxed" rather than being taxed twice. In other words, it might push additional earnings in country up into a higher tax bracket, even if the amount of those earnings would otherwise leave then in the lower bracket?
 
#8
On moving to Spain.
Your pension can be paid directly into a Spanish bank account. Quinetic (or however they spell it nowadays) make a nominal charge of a couple of quid but pay it in at the bank rate.
The UK tax man will continue to tax your pension at source. The Spanish tax man can't tax you on it however, from this year, they can add it to any other income to work out your tax rate. Your other income is then taxed at that rate.
Paying a regular income into a Spanish bank account means that there are no bank charges to pay either.

Are you aware that you and your family will not be entitled to free healthcare in Spain unless you have a job and are paying social security? Either that or become self employed (autonomo) and pay about €250 a month as your own social security payments.
 
Last edited:
#9
Having already attended my FAR Brief, I know I should know the answer to the first of these questions, if not both, but can anyone help me out:
  • During their brief, the FPS said to try and leave in April to maximise the annual pension uplift. Is there a key date in April that it's worth hanging on until, or is any date in April good enough?
  • Our plans do not include returning to UK and we will be moving to (hopefully) sunny Spain - does anyone have any experience and useful advice of getting their pension there, specifically:
    • Is it possible to get the pension paid directly to a bank in Spain?
    • Are there any advantages or disadvantages to doing so?
    • Can I pay the tax in Spain at a slightly lower rate than UK or must it be taxed at source in UK?
  • While not strictly a pension question, does anyone have any experience of final moves to an overseas home. I am already serving overseas in Belgium and the JSP says I'm entitled to a contribution based on a notional move back to Catterick but the details seem pretty sketchy and it's obviously a question my Admin office isn't too familiar with....
I have already tried the search function but didn't turn anything up, apologies if it's there and I missed it!

Any date is April is better than leaving in the previous month. If you PM me you email address I will send you the table which shows the way the CPI is tapered.

You can have your pension paid into an overseas bank account but think about the problems expats in Cyprus and Greece have experienced. You cannot pay tax in Spain as far as I know. Make sure you get a copy of next month's Pathfinder as it will contain an article by us on living abroad - it has useful links. It also talks about double taxation agreements.

Can't help with your last point, sorry.
 

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