Can UK O.A.P'S Survive in Spain On Basic Pensions.?

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Nimrod
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Re: Can UK O.A.P'S Survive in Spain On Basic Pensions.?

Postby Nimrod » Thu Aug 29, 2013 12:20 pm

The baby boomers growing up in the 60's will remember the leaner times in the early 50's.
Some things were still rationed and ,as Gordon says,it was very much make do and mend.
Nothing was wasted in our house,particularly food,socks were darned not thrown away and even the newspapers got "recycled"....Gordon will know what I mean!

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Re: Can UK O.A.P'S Survive in Spain On Basic Pensions.?

Postby anyroads » Thu Aug 29, 2013 1:15 pm

"and even the newspapers got "recycled"....Gordon will know what I mean!"

I believe the Sun still is.........

anyroads

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Re: Can UK O.A.P'S Survive in Spain On Basic Pensions.?

Postby swerve » Thu Aug 29, 2013 2:26 pm

Daily mirror cut into squares with a hole in for a piece of string. And that was the 70s.

We still think Spain is better value than uk we don't buy uk goods in Spain we either bring them with us or use Spanish equivalent. Stuff that we bring dumpling mix, brown sauce, mint sauce,decent bacon and sausage. We've started using markets for our fruit and veg. Any others taking uk goods Please tell.
It always seems imposible until its done. Nelson Mandela

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Re: Can UK O.A.P'S Survive in Spain On Basic Pensions.?

Postby MarkF » Fri Sep 06, 2013 8:48 am

Flitting between the 2 I have noticed that "cheap" food is far more expensive in Spain, but because it's inexpensive to start with, there is not much difference in the total shopping cost.

My MIL & FIL live on just UK state pensions in El Palo. They rent out their UK house which covers the Spanish rent/utilities/net access. They live "small", use the bus for transport or more usually, they cycle, 2 riders + 4 panniers = no problem shopping! They don't need "stuff" or "luxuries" to enjoy life and their own company.

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Re: Can UK O.A.P'S Survive in Spain On Basic Pensions.?

Postby swerve » Fri Sep 06, 2013 12:09 pm

MarkF wrote: My MIL & FIL live on just UK state pensions in El Palo. They rent out their UK house which covers the Spanish rent/utilities/net access. They live "small", use the bus for transport or more usually, they cycle, 2 riders + 4 panniers = no problem shopping! They don't need "stuff" or "luxuries" to enjoy life and their own company.



That's the way to do it get back to basics and there getting a bit of exercise as well.
They could easily grow a bit fruit and veg in pots to help as well.
It always seems imposible until its done. Nelson Mandela

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Re: Can UK O.A.P'S Survive in Spain On Basic Pensions.?

Postby elusive » Sun Oct 06, 2013 3:58 pm

Would a pension of approx €25,000 a year ontop of savings and taking your 25% lump sum be above average. would it give you a comfortable retirement?

how can i work out what tax would be payable so i can find out the real amount we would have to live off each year? googling says if we take the lump sum before we become tax residents then thats not taxable.we also have approx €14,000 coming in the form of a annunity which ive read is taxed favourably and approx €11000 from a joint state pension

using the help section would i be right saying the tax on the above would be around 3.500 euros?
also we may have upto 90,000 left in a uk account. whats the situation with paying tax on that?

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Re: Can UK O.A.P'S Survive in Spain On Basic Pensions.?

Postby elusive » Sun Oct 06, 2013 10:19 pm

Looking on the F&Q am i right in saying we would pay tax just on any intrest the 90k makes,same as if we were in the uk .but the different amounts listed are abit confusing ie 21% upto 6,000 etc etc whats that in relation to? any intrest made off an amount of money over 6k is taxed at 25%? so intrest made off 90k eould be taxed at 27%.

also if one of the retired couple has a tiny pension that is below their allowance should they do a seperate tax return rather than a joint one and keep the 90k in an account in their name in the uk. then no tax will be payable in spain as is the case in the uk

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Re: Can UK O.A.P'S Survive in Spain On Basic Pensions.?

Postby BENIDORM » Mon Oct 07, 2013 9:03 am

Elusive asked ....''Would a pension of approx €25,000 a year on top of savings and taking your 25% lump sum be above average. would it give you a comfortable retirement?''

Well my Friend for most people living here I would suggest that the amounts that you have quoted would allow them to live in style.!
But of course how much money is needed is really a very personal issue, many can live a good life on relatively small amounts of income, whereas others would require substantially more to live perhaps a lavish lifestyle, only you know where you would fit in on this scale.

Obviously everyone needs money to live on , to pay bills and eat etc., but after that it really is down to individual requirements, for instance if you like fast women and slow horses then you would need much more, but for most of us we have a good living and enjoy ourselves on much less.

Please do remember that money doesn't buy happiness, it can help, of course, but you make happiness..you don't buy it. :D

With regards to the taxation questions I only really know how to deal with my own circumstances, so can't advise you, hopefully one of the A.Com members can help you.

Good Luck,
Regards, Gordon
Last edited by BENIDORM on Mon Oct 07, 2013 10:35 am, edited 1 time in total.

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Re: Can UK O.A.P'S Survive in Spain On Basic Pensions.?

Postby El Cid » Mon Oct 07, 2013 9:44 am

elusive wrote:Looking on the F&Q am i right in saying we would pay tax just on any intrest the 90k makes,same as if we were in the uk .but the different amounts listed are abit confusing ie 21% upto 6,000 etc etc whats that in relation to? any intrest made off an amount of money over 6k is taxed at 25%? so intrest made off 90k eould be taxed at 27%.

also if one of the retired couple has a tiny pension that is below their allowance should they do a seperate tax return rather than a joint one and keep the 90k in an account in their name in the uk. then no tax will be payable in spain as is the case in the uk


The savings interest is taxed at 21% on the first 6000 of the interest - not the interest on the first 6000 of capital.

You will be surprised how low your tax bill will be. The 14k annuity will only equate to a taxable income of 3360 and that is taxed at the lower savings rate of 21%.

With your personal allowances and age allowances I doubt that you will pay any tax at all. If you want me to work out the exact amount send me a PM with a deatiled breakdown of the two incomes and ages etc.

As for the benefits of joint vs individual taxation, the tax program works out the cheapest option automatically.

Sid

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Re: Can UK O.A.P'S Survive in Spain On Basic Pensions.?

Postby gus-lopez » Mon Oct 07, 2013 9:51 am

elusive wrote:Looking on the F&Q am i right in saying we would pay tax just on any intrest the 90k makes,same as if we were in the uk .but the different amounts listed are abit confusing ie 21% upto 6,000 etc etc whats that in relation to? any intrest made off an amount of money over 6k is taxed at 25%? so intrest made off 90k eould be taxed at 27%.

also if one of the retired couple has a tiny pension that is below their allowance should they do a seperate tax return rather than a joint one and keep the 90k in an account in their name in the uk. then no tax will be payable in spain as is the case in the uk


The tax rates quoted are for the 'interest' earned.
I.E. If you have 90k invested at 5% interest ,after one year you will receive 4,500€ in interest. That would be taxed at 21% in the 'up to 6k' band. It is the interest earned amount that specifies the tax band.
If you earnt no interest on the 90k you would pay nothing.
As Benidorm says it depends on lifestyle , outgoings as to how much is enough.
I know a lady who considers the 50k/year they spend as frugal.
Todos somos Lorca.

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Re: Can UK O.A.P'S Survive in Spain On Basic Pensions.?

Postby elusive » Mon Oct 07, 2013 1:21 pm

Thank you gus benidorm and cid. i so appreciate your help.thank you for the offer cid ill pm you the details.thats very kind of you. we are waiting on the final amount from the pension provider but the amount we have are from quite recent statements so it gives us a good idea.

things have moved on now as the original plan was for my father to retire next april at 65 but unfortunatly there have been redundances. so everything has been pushed forward a few months. we were looking at moving out around may/june but we are now looking at around march/april.typically we just received some compension from the equitable life compension scheme so that will probably end up going straight back out to pay the bills for the next few months. give with one hand take with another as they say! but thankfully interms of the pension and savings they hopefully have done better than they thought interms of a pension income (hopefully!!)

now its just really about deciding what to do with the house.finding either a rental or sale when we go out in early january and renting or selling our house in the uk.when and everything that comes with like removals and what do you take if you are just renting.its abit of a minefield in that aspect.



we have been researching and planning for the last three or so years but when it actually gets near its quite scary!!

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Re: Can UK O.A.P'S Survive in Spain On Basic Pensions.?

Postby gerryh » Mon Oct 07, 2013 4:57 pm

El Cid wrote:You will be surprised how low your tax bill will be. The 14k annuity will only equate to a taxable income of 3360 and that is taxed at the lower savings rate of 21%.

With your personal allowances and age allowances I doubt that you will pay any tax at all. If you want me to work out the exact amount send me a PM with a deatiled breakdown of the two incomes and ages etc.



Sid

I assume that that is only in respect of the tax on the savings?
Won't an income of 25K attract a tax of about 5K?
Cheers
Gerry
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Re: Can UK O.A.P'S Survive in Spain On Basic Pensions.?

Postby El Cid » Mon Oct 07, 2013 5:12 pm

gerryh wrote:
I assume that that is only in respect of the tax on the savings?
Won't an income of 25K attract a tax of about 5K?
Cheers
Gerry


The taxable income is only about 14k as the annuity income is discounted by 76% so is only in effect worth €3360 not 14k which is the actual income. It's all in the FAQ

Sid

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Re: Can UK O.A.P'S Survive in Spain On Basic Pensions.?

Postby gerryh » Mon Oct 07, 2013 5:20 pm

Perhaps I misread what Elusive posted but he/she said they had a pension of 25K and an 14K annuity.
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Re: Can UK O.A.P'S Survive in Spain On Basic Pensions.?

Postby El Cid » Mon Oct 07, 2013 5:25 pm

It is a bit ambiguous. I assumed that the 25K consisted of a 14k annuity and an 11k state pension, which I have now confirmed is actually the case.

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Re: Can UK O.A.P'S Survive in Spain On Basic Pensions.?

Postby elusive » Mon Oct 07, 2013 6:00 pm

Yeah sorry thats what i ment.to be more exact id say we are looking at a state pension of 13k euros and a innuity of 11,000 euros. we havnt bought the innuity yet so thats approx

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Re: Can UK O.A.P'S Survive in Spain On Basic Pensions.?

Postby gerryh » Mon Oct 07, 2013 6:19 pm

Glad the ambiguity has been cleared up. :wave:
For one moment I thought I was paying more income tax than I should.
Cheers
Gerry
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Re: Can UK O.A.P'S Survive in Spain On Basic Pensions.?

Postby anyroads » Fri Oct 18, 2013 5:50 pm

Not if gas and electricity keep going up as they are in the UK !.

I see where the boss of Centrica ( who owns British Gas ) has refused to give up his £2million bonus.

Why anyone needs a £2 million bonus to do their job beats me !

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Re: Can UK O.A.P'S Survive in Spain On Basic Pensions.?

Postby katy » Fri Oct 18, 2013 6:04 pm

anyroads wrote:Not if gas and electricity keep going up as they are in the UK !.

anyroads


I can see everyone flocking to buy up all those homes in Andalucía to keep warm :lol: Unless they read the Mail today :shock:

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Re: Can UK O.A.P'S Survive in Spain On Basic Pensions.?

Postby Lavanda » Fri Oct 18, 2013 6:19 pm

Terrible reporting. Was there a solicitor involved? We have no idea how or why they bought the house.


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