Are UK immigration retirement security benefits comprehensive enough?

UK pension age eligibility

The UK government adjusts the local statutory retirement age from time to time, depending on the date of birth and gender of wage earners. When you reach the legal retirement age, you can apply for the State Pension.

The old policy in the UK was:

– For men born on or before 5 April 1951, the retirement age is 65;

– Ladies born on or before April 5, 1953, the retirement age is 60.

The above-mentioned persons have reached the statutory retirement age on or before 6 April 2016 and need to follow the old pension policy.

UK's new statutory retirement age benefit system

For those born at different times of birth, they must follow the new UK government pension policy, which is as follows:

Men:

– born between April 6, 1951 and April 5, 1960, with a retirement age of 66;

– For those born between April 6, 1960 and April 5, 1977, the retirement age will start from 66 years old and will be extended every month, until March 6, 1961 to 67 years old;

– For those born between April 6, 1977 and April 5, 1978, the retirement age will start from 67 years old, and it will be extended every month, until April 6, 1978 to 68 years old

Miss:

– born between April 6, 1953 and December 5, 1953, with a retirement age of 65;

– born between December 6, 1953 and April 5, 1960: retirement age is 66;

– For those born between April 6, 1960 and April 5, 1977, the retirement age will start from 66 years old and will be extended every month, until March 6, 1961 to 67 years old;

– For those born between April 6, 1977 and April 5, 1978, the retirement age will start at 67 and extend monthly until April 6, 1978 to 68

In other words, according to the current method, the statutory retirement age will rise to 68 between 2044 and 2046. Think the calculation method is too complicated? It doesn't matter, you can use the retirement age calculator on the UK government's official website to calculate it.

Apply for UK immigration pension

When you reach the legal age, it does not mean that you can apply for the state pension immediately. Because one of the important conditions for applying is to pay at least ten years of National Insurance (National Insurance). In other words, even if you have reached the statutory retirement age, but you do not have 10 years of national insurance record, you cannot receive pension.

Partial pensions are available for 10 years of national insurance record, and full for 35 years. For those who have reached 10 years but less than 35 years, they will be calculated on a proportional basis. The pension received by each person depends on the number of years of national insurance contributions, regardless of the amount paid.

The number of years of payment of this national insurance does not necessarily need to be calculated continuously, as long as the following conditions are met in the year, it will be counted:

• Employed persons with a weekly salary of £184 or a monthly salary of £797 need to pay the normal national insurance. Those earning between £120 and £184 a week will not be required to pay National Insurance contributions, but will be considered paid.
• If you are self-employed with an annual income of £6,515, National Insurance will deduct it from your annual income.
• Self-employed persons with an annual income of less than £6,515, unemployed persons and overseas workers can choose to make voluntary contributions (Voluntary National Insurance).
• Unemployed, or unable to work for various reasons, can receive National Insurance Credits in lieu of National Insurance contributions.

UK pension amount

From April 2021, the state pension amount is £179.6. Generally, pensions are paid monthly.

Other Immigrant Pension Plans

In addition to the country's guarantees, there are other refund schemes in the UK that you can freely participate in:

Workplace Pensions

Basically the same as MPF in Hong Kong, but you can choose not to participate in the work. When an employee earns more than £520 a month, or earns more than £120 a week, employers are required to make contributions to their employees. When the employee's annual salary is higher than £10,000, they will automatically participate in the plan when they join the job (but the employee can opt out), and the increase in the amount of voluntary contributions is tax deductible. The employer's contribution to the occupational pension is at least 3%, and the employee and employer's combined contribution is at least 8%. It is available after the age of 55.

Personal Pensions

Private pensions are actually a tax refund method, mainly for high-income earners. In the UK, when personal income reaches a certain level, a very high rate of personal income tax (up to 40%-45%) will be levied. Therefore, high-income working people will look for different legal tax refund methods. Private pension is one of the options. The annual income of £40,000 can be put into private pension tax-free. The same can be paid after turning 55 years old.

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source:

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