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Thais Married to British Pensioners Could be Deprived of Their Pension Income

Business & Travel

Thais Married to British Pensioners Could be Deprived of Their Pension Income

Steve Webb, the British pensions minister, said too many foreign citizens who have “never set foot in Britain at all” are receiving UK pensions. Under current law, the spouses of British men or women are entitled to claim a “married person’s allowance” based on their partner’s history of National Insurance contributions.

But new legislation will include proposals to end claims for such allowances and introduce a new flat-rate state pension, based on individual contributions paid to the UK government during a person’s working life.

Mr Webb told the Daily Telegraph that the current situation, in which foreigners receive pension payments based solely on their spouse’s British work history, is “unacceptable”.
Spouses who qualify under the current rules can receive as much as £3,500 a year, or more than 160,000 baht.

Tom McPhail, head of pensions research at Hargreaves Lansdown, told the BBC that the proposals could cause an administrative “nightmare”, in terms of working out which current claimants should or should not continue receiving payments
Though all new claims for the allowances will be stopped eventually, interim arrangements are likely to mean that payments are stopped for foreign spouses who have never been to the UK, while retired British stay-at-home mothers, for example, continue to receive cash.

“The government is going to face some interesting challenges in terms of administering this distinction they are seeking to make between UK recipients of this married person’s pension and people living abroad,” McPhail said.

Norman Cudmore, who served in the British Royal Airforce for 22 years and worked overseas for another 16 years, lives in the Philippines with his Filipina wife. He criticised the plans.

“I have contributed to the UK pension scheme for all those years and will qualify for a state pension. I did this so my wife would have some security when I finally pass away,” he said.

…………..At Asia Pacific Pensions we advise our expat clients to transfer their UK private or company pensions to a QROPS. That way upon death 100% of the fund can be passed to the nominated beneficiary e.g. wife, rather than only 45% with 55% being taken in tax if left in the UK

We will be at the Inspire Fun Day this Sunday 19th – come and see us if you want an informal chat about your options

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