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Old 01-24-2013, 12:57 PM   #21
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Will this new pension replace both the basic pension as well as the pension that is linked to earnings?

I grew up in the UK, but moved to the US shortly after graduating from University. My work history there is minimal, so the changes won't affect me. However, my first reaction on reading that the max benefits will be 144 GBP/week was that it isn't very much, and that US SS looks positively generous by comparison.
Yes it replaces the basic and second earnings related pensions.

UK state pension isn't much compared to the US or other countries, but you don't have any health insurance costs and get other benefits like bus passes and fuel allowances, although they might not be around much longer.
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Old 01-24-2013, 12:58 PM   #22
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Originally Posted by Huston55 View Post
If you're 51 (born after 1960) your US SS FRA is 67, not 65. So, even though you can take US SS early at 62, your payment will be decreased by 30% versus a 20% decrease for someone (born in 1937 or earlier) who's FRA is 65. I don't know of any reason these rules would differ because you have dual citizenship.

Hope this doesn't cause an adjustment in your RE plans.
Doh! I had Medicare on the brain
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Old 01-24-2013, 01:07 PM   #23
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Originally Posted by nun View Post
Yes it replaces the basic and second earnings related pensions.

UK state pension isn't much compared to the US or other countries, but you don't have any health insurance costs and get other benefits like bus passes and fuel allowances, although they might not be around much longer.
I hadn't thought about the lower out-of-pocket healthcare costs in the UK - and I remember hearing my brother (in the UK) talk about getting his winter fuel allowance.
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Old 01-24-2013, 02:06 PM   #24
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I hadn't thought about the lower out-of-pocket healthcare costs in the UK - and I remember hearing my brother (in the UK) talk about getting his winter fuel allowance.
Also remember the generous tax free allowances in the UK. If you are over 65 the first $16k (10.5k GBP) of income is tax free and the first $16k of capital gains are also tax free
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