State or private pension?

=bostonerimus;Although maybe the UK could adopt the US approach where you can take SS early (age 62) and get a reduced benefit as that's allows you some retirement timing flexibility.

I believe that's been looked at but discounted because of the minimum income guarantee (MIG) at State pension age.

Say someone with no other pension income or savings took a reduced pension 5 years early. Assuming 5% reduction per year, that could give them £123.75 per week in today's money. But when they hit SPA then the MIG would have to increase that back up to £165 per week. Meaning that they would have received 5 years x £123.75 per week for 'free'.

It would work for those of us who do have other pension income, and so wouldn't need the MIG top up - but can't you just hear the screams of 'one rule for the rich, one for the poor'.

The only way round this would be to eliminate the MIG - but be very careful what you wish for!

lisboa84 wrote: »

But Ireland social insurance doesn't pay for a NHS.

Cost to see a GP or go to hospital in UK - £0.
Cost to see a GP in Ireland - £45.
Hospital appointment in Ireland - £70.
Emergency department in Ireland - £85.

UK and Ireland are lucky, The costs for healthcare in the US are eye watering.
I'm on a very good plan for state retirees, but it's still expensive.

Monthly insurance premium $100
Emergency Dept visit $100
I pay reduced rates for tests etc, but in a year I can pay up to a max of $5k in medical costs and only then does my insurance take over for 100% of the cost.

This is a very good plan and most people will be paying far higher premiums and deductibles

UK voluntary contribution to top up your state pension - £780 maximum a year for class 3.
Ireland voluntary contribution to top up your state pension - for most people it's 6.6% of reckonable income from the previous tax year. So a basic wage of say 18,000 would mean a payment of 1,188 if you didn't work the next year.

I guess the overall point is it's not just a case of comparing one SP figure with another when there are a multitude of other factors and permutations about measuring these types of social comparisons.

Class 2 NI contributions for expats or self employed are just £154 a year
That low amount gets you one year towards the 35 for the full flat rate pension.
As an expat I've been paying Class 2 since the early 1990s, I had a couple of years at Class 3 and a few in college where I got years credited without paying anything. My last NI payment will be this year and I estimate that I've paid a total of £5k into the system to qualify for the UK flat rate pension at age 67...which is pretty silly IMHO.