Nine month deadline for expat pension provision

Today hundreds of thousands of pensioners live overseas. Yet, thanks to new government anti-fraud measures, they are discovering  their state pension is at risk of being cut off. …

Today hundreds of thousands of pensioners live overseas. Yet, thanks to new government anti-fraud measures, they are discovering  their state pension is at risk of being cut off.

If pensioners ‘fail to prove they are alive,’ they risk losing the pension allowance. Since 2013, the Department for Work & Pensions (DWP) has been making expat pensioners fill in official forms, to stop their friends and relatives fraudulently claiming their state pensions after they have died.


Move to protect your future

The situation came to light following a recent Telegraph report. The expose highlighted one reader living in the Philippines. She failed to fill in the forms that were sent to her in January last year, and again in June. In September the DWP cut off her state pension income, leaving her £896 a month worse off.

In spite of the potential for vast losses, there are also ways to increase the state pension by up to £54,000. A 62 year old who chooses to defer their state pension for three years will boost their total retirement income by around £54,000.

The boost has come about because of a short-term loophole, made available by the Government to help people bolster their pension entitlement in a relatively short period.

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Should I defer? If, when and why

The carrot is that by deferring, you can significantly boost the pension you receive in future years. But unless you have plenty of income from another source, you will need something else to live on in the meantime. For those with partners, it may be they could help throughout the three year ‘drought’. The eventual ‘bonus’ to the deferred pension is considerable.


How much better off am I if deferring for three years?

To discover this, you need to assume a given level of inflation. Then, the deferral strategy becomes profitable if the person lives for 11 years after state pension income starts to be taken.

After that, the longer you live, the more you will gain; up to the £54,000 profit figure, which was calculated by Fidelity for a pensioner who makes it to 90.

You can either take the increased pension, or you can take a lump sum, plus interest. This is potentially a useful safety net in case you fall ill and your life expectancy is reduced.

No matter what your financial situation, seeking the advice of a recognised, professional retirement adviser can pay many dividends. Taylor Brunswick Group can help you towards a happy, financially secure retirement. The Group can also offer medical insurance plans that will provide you with protection and advise on wider asset management.


About Taylor Brunswick Group

Taylor Brunswick offers expert wealth management advice that will increase the potential to maximise growth for any individual or business. Our expertise translates into smart financial decisions for you.

Taylor Brunswick is a collection of experienced and driven industry professionals who are bringing the standard and quality of onshore financial advice, offshore. The client-centric approach based on a set of fundamental servicing principles coupled with award winning technology has drastically improved the quality of service clients have been receiving in the offshore market.



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