UK pension (split)

[MattyUKtoUS 242]

Can I just ask, and I am sorry to bring this post back from the dead.

 

I'm 32 Years old and from the UK - Has anyone had success claiming their UK state pension living the US as a US Citizen, after green card etc. 

 

I'm currently going through the process of moving to the US and this is really one the questions I haven't really felt comfortable reading various of replies and threads on the subject. 

 

Any help would be greatly appreciated. 

 

Matt

[ambrella 62]

On 03/02/2018 at 4:28 PM, MattyUKtoUS said:

Can I just ask, and I am sorry to bring this post back from the dead.

 

I'm 32 Years old and from the UK - Has anyone had success claiming their UK state pension living the US as a US Citizen, after green card etc. 

 

I'm currently going through the process of moving to the US and this is really one the questions I haven't really felt comfortable reading various of replies and threads on the subject. 

 

Any help would be greatly appreciated. 

 

Matt

I am the same age as you and would be interested to know this as well. I find it all very confusing. I also have superannuation in Australia as I worked there for four years. 

 

Alll I know is that you can't get a *full* state pension from the UK unless you've worked 30 years.  

[Wuozopo 4,293]

I am a US citizen.  I plan to collect full state pension when I get old enough. At 32 you'll likely get a better deal out of US Social Security. 

[MattyUKtoUS 242]

7 hours ago, Wuozopo said:

I am a US citizen.  I plan to collect full state pension when I get old enough. At 32 you'll likely get a better deal out of US Social Security. 

I know it's hard to say since things change year on year, but do you know if you would receive your full entitlement or Is it reduced? I know as it stands I only have paid in about 14 years to NI. 

 

 

Thanks in advance, Matt

[Wuozopo 4,293]

1 hour ago, MattyUKtoUS said:

I know it's hard to say since things change year on year, but do you know if you would receive your full entitlement or Is it reduced? I know as it stands I only have paid in about 14 years to NI. 

 

 

Thanks in advance, Matt

I have more than 30 years in the UK. I think it moved up to 35 years for younger folks. The easiest explanation is Social Security and UK state are both government retirement programs and due to agreements you can't get your full amount from both. If you take your UK retirement, then Social Security won't pay your full amount. It's reduced by what you get from the UK. The UK won't reduce you for being American, but Social Security will reduce you for getting government retirement elsewhere.  I had an appointment at SSA to inquire and even the expert in that area couldn't explain it much better than that. So that's the  basic concept. 

 

For UK it's a fixed amount pretty much for everybody (some wobble room for various thing) but basically high earners and low earners at the same number of years get the same flat fee.  With Social Security, high earners get more than low earners. The career engineer is going to get a way bigger check than the minimal wage retail worker with the same number of years. 

 

Private UK pensions (which I also have) and US pension payments or 401k plans, do not affect Social Security benefit amounts. But private  pensions are fully taxable income. Social Security can be partially taxable depending on other income amounts you receive. The more you continue to earn (or your spouse even because of joint income) can make a higher percentage of your Social Security taxable income. TurboTax figures that part out for you. LOL.

 

 

Edited February 7, 2018 by Wuozopo

[MattyUKtoUS 242]

4 minutes ago, Wuozopo said:

I have more than 30 years in the UK. I think it moved up to 35 years for younger folks. The easiest explanation is Social Security and UK state are both government retirement programs and due to agreements you can't get your full amount from both. If you take your UK retirement, then Social Security won't pay your full amount. It's reduced by what you get from the UK. The UK won't reduce you for being American, but Social Security will reduce you for getting government retirement elsewhere.  I had an appointment at SSA to inquire and even the expert in that area couldn't explain it much better than that. So that's the  basic concept. 

 

For UK it's a fixed amount pretty much for everybody (some wobble room for various thing) but basically high earners and low earners at the same number of years get the same flat fee.  With Social Security, high earners get more than low earners. The career engineer is going to get a way bigger check than the minimal wage retail worker with the same number of years. 

 

Private UK pensions (which I also have) and US pension payments or 401k plans, do not affect Social Security benefit amounts. But private  pensions are fully taxable income. Social Security can be partially taxable depending on other income amounts you receive. The more you continue to earn (or your spouse even because of joint income) can make a higher percentage of your Social Security taxable income. TurboTax figures that part out for you. LOL.

 

 

Thank you so much for the info.

 

I figured as much that the US SS would not pay me the full amount, even if I had 35 years in both lol.

 

Well my plan is to focus more on a 401K and just see what happens with the SS fund. Some people are telling me that there will be no SS pay-out by the time I retire. I like to plan to for the worse, so to speak. 

 

I also see that the current SSF can be 1 to 2 K per month depending on your 35 highest earning years. An interesting system. 

 

I will certainly try my best to make sure I get everything I am entitled to though, considering I have paid in.

 

 

Many thanks for your help Wuozopo!

 

Matt

 

[Wuozopo 4,293]

26 minutes ago, MattyUKtoUS said:

Well my plan is to focus more on a 401K and just see what happens with the SS fund. Some people are telling me that there will be no SS pay-out by the time I retire. I like to plan to for the worse, so to speak. 

 

The 401k is the best plan I think. Max out your contributions to anything your company will match. Company pensions in the US are rare these days, but Americans in my age group are collecting company funded pensions plus have 401k money that the company matched.

 

As to Social Security, my wife says she has heard that same thing for literally 50+ years and it's still paying. It's a politic football that's tossed around in election years as long as she can remember. You have no option of not paying in so hopefully you'll get that check as well. 

[MattyUKtoUS 242]

Just now, Wuozopo said:

 

The 401k is the best plan I think. Max out your contributions to anything your company will match. Company pensions in the US are rare these days, but Americans in my age group are collecting company funded pensions plus have 401k money that the company matched.

 

As to Social Security, my wife says she has heard that same thing for literally 50+ years and it's still paying. It's a politic football that's tossed around in election years as long as she can remember. You have no option of not paying in so hopefully you'll get that check as well. 

That exactly my thought on it. There is always a conspiracy theory.

 

Since I gotta pay it, I may was well put eggs in other baskets too. 

 

Thanks again!

 

Matt

[Ontarkie 14,419]

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