difference between UK retirees and US

[Alan]

That is beautiful country out there in Utah. One thing I was wondering was the property taxes, I know you usually pay a stamp tax when you purchase property but is it correct there are no annual property taxes of any significance in the U.K.?

The equivalent of property tax is council tax and that is the responsibility of and paid for by the occupants of a property, not the owner in the case of a rental. Properties are assessed and put in “bands”, A - F (?) and then the tax very much depends on the local authority you live in. We live in 4 bedroom detached house in band D, and our annual council tax is £2,150, approx $2,800. Single occupants of a property pay a reduced price. The council tax includes waste and sewerage but not water. (We have a water meter as do many these days).

When our son moved back from the USA he was a first time house buyer, never owned a property in the USA, so he paid no stamp duty which is a concession for first time buyers to help them get onto the property ladder.

 

[ShokWaveRider]

When our son moved back from the USA he was a first time house buyer, never owned a property in the USA, so he paid no stamp duty which is a concession for first time buyers to help them get onto the property ladder.

So is it a world Wide issue of property ownership? I thought it was local to the country.

 

[Alan]

So is it a world Wide issue of property ownership? I thought it was local to the country.

Definitely world wide, the HMRC rules are crystal clear on that, and you must state that you have never owned any property anywhere in the world.

 

[Amethyst]

I wonder how much the NHS varies by location inside the UK? We lived for 3 years in North Yorkshire County, and both our British and American acquaintances swore by the NHS (we Americans could use it, too). One American I worked with, raved about the treatment his young daughter received for a complicated heart ailment.
Mr. A. and I were impressed when the Doctor actually came to our home to treat me for a terrible back spasm where I couldn't get out of bed. In the U.S., for the same issue, you would have to call an ambulance and be taken to the ER for triage. And hope that your insurance paid for the ride.

But then we heard horror stories from other regions, about people on NHS waiting lists for so long that death occurred.

You know I have retired family in the UK and due to many unhappy NHS experiences they pay extra for "private" insurance.

 

[Amethyst]

The UK seems very landlord-friendly. As renters, we were exempt from council tax by reason of various U.S.-UK agreements, but the council sent us the assessment anyway, just to ensure we jumped through the appropriate hoops

The equivalent of property tax is council tax and that is the responsibility of and paid for by the occupants of a property, not the owner in the case of a rental.

.

 

[NomDeER]

hi, I am new to forum but have been reading posts for sometime as I ponder my retirement plans (can I, can't I).

What strikes me is the seemingly huge difference between UK wannabe retires (and those already retired) and those in North America. UK newspaper regularly do "reviews" of folks wanting to retire, and their pension plans seem so pitiful to the USA folks. Examples "I am 63 with GBP80,000 in the bank and waiting for the state pension of GBP800 a month at the age of 66 - can I retire now?". It is hugely different to what I read in this forum of people with millions in cash, stocks and shares and property and still question whether they can afford to retire.

Is this because salaries are much higher in the US with lower taxes or because relatively wealthy Brits do not go on these types of forums (I cannot find such a good equivalent for UK retirees). Of course we do not have to worry about health care cover as we have the NHS.

The Americans posting on this site definitely are not representative of the typical American. Although I don't have a net worth as high as the majority of people on this site, I'm definitely doing better than the typical American. The majority of Americans have very little saved for retirement. For example, according to this CNBC article, the median family between the ages of 56 and 61 has only $17,000 saved for retirement: https://www.cnbc.com/2017/04/07/how...ly-has-saved-for-retirement-at-every-age.html

So, the vast majority of Americans cannot choose to retire early. Many of those that do retire early because of health problems or because they can't find jobs find themselves in dire financial circumstances. The most common reason for bankruptcy in the United States is health care costs.

As for the comparative salaries, I think we are higher than the U.K. at the higher end and lower than the U.K. at the lower end. (The minimum wage in the majority of the U.S. is $7.25 per hour.) I don't think it's really salaries in general that explain the high amount of savings indicated in this forum. It's just skewed. Based on wages, health care costs, and our consumer culture, I wouldn't be surprised if a smaller percentage of Americans can retire early than is true for the British.

Most Americans who choose to retire early either had careers that guaranteed them health insurance in early retirement - such as military retirees - or have so much money that they are able to handle the high costs of health care or are willing to take the risk that the ACA will end before they are eligible for Medicare. This simply isn't the case for the vast majority of Americans.

 

[Teacher Terry]

Yes this site has lots of high earners and good savers.

 

[Chuckanut]

Careful folks. I'm not sure the British really understand Americans very well.

I am watching the 11th series of the 'new' Dr. Who (the one with the doctor regenerating as a female). Alas, the Brits still depict Americans as swaggering, loud, egotistical, self-centered, greedy fools.

It's a wonder that we all don't beg to reunite with England and end our misery.

 

[Sunset]

Definitely world wide, the HMRC rules are crystal clear on that, and you must state that you have never owned any property anywhere in the world.

As in ever in your life or just currently ?

What puzzles me is how would they know if you lied ?

 

[ShokWaveRider]

Alas, the Brits still depict Americans as swaggering, loud, egotistical, self-centered, greedy fools.

Not just the Brits, some Europeans too.

 

[NomDeER]

Careful folks. I'm not sure the British really understand Americans very well.

I am watching the 11th series of the 'new' Dr. Who (the one with the doctor regenerating as a female). Alas, the Brits still depict Americans as swaggering, loud, egotistical, self-centered, greedy fools.

To be fair, there are Americans who portray Americans in the same way. And, let's be honest, we can all think of at least a few Americans who fit that description. Though I'm sure we could find some Brits who do as well.

Media images or accurate isolated incidents can distort reality. Also, based on my experiences abroad, I have the impression that Americans tend to be more conspicuous consumers, so it can appear to others that we have more money than we do. But, the reality is that the typical American wage is not that high: https://wallethacks.com/average-median-income-in-america/

Absent help from affluent parents and/or inheritances, most Americans simply will not be able to afford early retirement on such wages, especially if they have to pay for health care and are hoping to help pay for their kids' educations (often after paying off their own significant student loans).

 

[Chuckanut]

Not just the Brits, some Europeans too.

All in good natured humor. [emoji1]. I’ve never had a problem in any country simply because I’m American. I just find the depictions funny. Sort of like Americans think all Brits drink tea at 4:00 pm while speaking like “I say old chap, have you seen my bowler?”

 

[Bamaman]

What tickles me is that those in the U.K. also fund pensions like our 401K's. And the English advertising pensions even call'em 401K's over there. The 401K comes from the name of the U.S. IRS laws that setup those pension funds.

We travel overseas every year, and find the standard of living for middle class Americans can often be about the same for the moderately wealthy of many countries. Our working poor folks have automobiles, televisions, washing machines and dishwashers that the middle class of some countries don't even have. I guess we're spoiled in some ways.

 

[Alan]

As in ever in your life or just currently ?

What puzzles me is how would they know if you lied ?

We British are very honest

It is very unusual for the first house a person buys to be abroad and then manage to buy their first house in Britain without disclosing it to the banks and lawyers. When we moved back and bought a house I had to produce paperwork showing where the money came from (we bought our house for cash using the money we had from the sale of our house in Louisiana some years earlier). A person would have to commit perjury, and while undoubtedly a few might do this, the loss in revenue to HMRC is going to be a pittance. Tax evasion and perjury carry jail sentences.

The absolute maximum you can save is £5,000 as the stamp duty is only waived for first time buyers on the first £300,000. Our son’s 3 bedroom house in 2017 cost £140,000 and he saved about £300 I think by not paying stamp duty.

https://www.moneyadviceservice.org.uk/en/articles/everything-you-need-to-know-about-stamp-duty

How much is Stamp Duty?

There are several rate bands for Stamp Duty.

The tax is calculated on the part of the property purchase price falling within each band.

For example, if you buy a house for £275,000, the Stamp Duty Land Tax (SDLT) you owe is calculated as follows:

0% on the first £125,000 = £0
2% on the next £125,000 = £2,500
5% on the final £25,000 = £1,250

Total SDLT = £3,750

 

[Vacation4us]

Ahhh...the grass is always greener in someone else's backyard.

 

[Oz investor]

lucky for me the grass doesn't have to be green , but i do prefer it when the roof doesn't leak ,

if i had of been healthier i MIGHT have moved to NZ or rural Bolivia , i am just over terrible politicians and neighbours

both US and UK both get embarrassed when lots of elderly die in the street , but after their days of paying taxes are over , do they really care ( NO they don't )

i notice elderly women in Japan ( normally single , now , and without family support )

are tending to prefer jail to the other alternatives .

is this a glimpse of the future ??

 

[audreyh1]

I am watching the 11th series of the 'new' Dr. Who (the one with the doctor regenerating as a female). Alas, the Brits still depict Americans as swaggering, loud, egotistical, self-centered, greedy fools.

Hmmmmm......I wonder where they got that impression

 

[ivinsfan]

lucky for me the grass doesn't have to be green , but i do prefer it when the roof doesn't leak ,

if i had of been healthier i MIGHT have moved to NZ or rural Bolivia , i am just over terrible politicians and neighbours

both US and UK both get embarrassed when lots of elderly die in the street , but after their days of paying taxes are over , do they really care ( NO they don't )

i notice elderly women in Japan ( normally single , now , and without family support )

are tending to prefer jail to the other alternatives .

is this a glimpse of the future ??

lots of elderly die on the street, come on now, What a gross exaggeration. Both the US and UK have lots of safety nets for the elderly and anyone else that is struggling. Any facts and figures to back up your comments about Japan.

 

[Vacation4us]

I am really happy that I will soon be able to retire in America as an American and I hope those in the U.K. Feel the same regarding their homeland.

Comical how an Ozzy sees the US, UK,and even Japan. Even living in the homeless capital of the US the aged are not dying in the streets.....

 

[MRG]

lucky for me the grass doesn't have to be green , but i do prefer it when the roof doesn't leak ,

if i had of been healthier i MIGHT have moved to NZ or rural Bolivia , i am just over terrible politicians and neighbours

both US and UK both get embarrassed when lots of elderly die in the street , but after their days of paying taxes are over , do they really care ( NO they don't )

i notice elderly women in Japan ( normally single , now , and without family support )

are tending to prefer jail to the other alternatives .

is this a glimpse of the future ??

A very sad trend indeed. It's quite telling when we can't even count the number of homeless in the US.

The Japanese have a legand, ubasute, similar to granny dumping in the US. Of course one is a legend and the other happens frequently. [emoji13]

Ubasute sounds ok, go for a long walk out on nature. Spending your last days and hours in nature surrounded by beautiful sounds and smells. Watching wildlife and being one with nature during your final hours. Then Magpies and Crows come to pluck your eyeballs out.

 

[StuckinCT]

The equivalent of property tax is council tax and that is the responsibility of and paid for by the occupants of a property, not the owner in the case of a rental. Properties are assessed and put in “bands”, A - F (?) and then the tax very much depends on the local authority you live in. We live in 4 bedroom detached house in band D, and our annual council tax is £2,150, approx $2,800. Single occupants of a property pay a reduced price. The council tax includes waste and sewerage but not water. (We have a water meter as do many these days).

When our son moved back from the USA he was a first time house buyer, never owned a property in the USA, so he paid no stamp duty which is a concession for first time buyers to help them get onto the property ladder.

Thank you for this- very helpful.

I agree that we have too much of a consumption society in the U.S., but after the mc-mansion boom/bust (at least in the northeast), we may gravitating to old world values to some degree.

I could go on and on about British culture and history, and probably most of my impressions are off the mark.

 

[Nick12]

I am really happy that I will soon be able to retire in America as an American and I hope those in the U.K. Feel the same regarding their homeland.

Comical how an Ozzy sees the US, UK,and even Japan. Even living in the homeless capital of the US the aged are not dying in the streets.....

The homeless in my city where I live, eat pretty well from the free handouts and the food the restaurants throw out daily.

 

[MichaelB]

The homeless in my city where I live, eat pretty well from the free handouts and the food the restaurants throw out daily.

Which city is this? Most have very strict regulations concerning the disposal of leftover prepared food.

 

[Just_Steve]

Which city is this? Most have very strict regulations concerning the disposal of leftover prepared food.

I think he may be referring to dumpster diving.

 

[BigNick]

What tickles me is that those in the U.K. also fund pensions like our 401K's. And the English advertising pensions even call'em 401K's over there. The 401K comes from the name of the U.S. IRS laws that setup those pension funds.

Do you have a reference for the bit that I've highlighted in red? I have never seen any such advertising.