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Decisions, decisions
Aug. 24th, 2012 10:23 pmI will turn 60 on November 8th. Big effing deal, one might say. Well, in the United Kingdom, it is usual that private pension funds "mature" on your 60th birthday. Any time after age 50, you can take your pension money and buy an annuity with 75% of it, and take as a lump-sum the other 25%, which is not taxable in the United Kingdom.
A few weeks ago my pension fund carriers noticed that I was about to turn 60. Therefore, I began to get material about it. However, the one time I clicked on a Facebook ad was for an outfit that shops around for the best deal with the money you have.
Briefly, the (gay) agent who spoke with me has gone through the entire process, and we have discovered that I will likely be able to take a lump-sum payout of a little less than £26,000. and buy an annuity that will provide me with around £430 per month. Those sums translate to a bit more than US$41,000 and around US$680 / month.
Now for the catch. While the lump-sum is not taxable in the UK, as I'm still a US citizen I will have to pay US taxes on it. My US tax accountant does not think it'll be excessive but I suspect that I'll lose up to 25% or so of that to Uncle Sam. Oh, how I wish I'd followed through and renounced my US citizenship a few years ago.
So, let's say that I'm left with around US$30,000 or around £19,000. What to do with that money? I have two ideas. The first is something that I've wanted to do for decades: take a trip to Australia. My health isn't getting any better, and if I don't do this now, I may never get to do it. I'm thinking March 2013. I would go to Sydney and Melbourne, with perhaps a trip to Ayres Rock on the way. I think this will cost somewhere around £4,000 for travel and lodging and mad money (just a wild guess). I would stop off in Singapore on the way there and the way back, of course.
But the other thing I would like to get is a gastric bypass. As the NHS is unwilling to pay for it, I would like to use the rest of the money for the operation and recovery. I think this will cost something around £13,000 in the UK. There is also the option of going abroad for it—Thailand and India specialise in this kind of operation for expats with ready cash and I suspect that it will be a bit cheaper there.
So after filling out the forms for actually getting the money, I will have to do some research on travel and health. In two years I will get my US Social Security (which I would have gotten even if I'd managed to renounce my US citizenship) and that will add another £600 or so to my monthly income. In five years, if I'm spared, I'll get my state pension here, which won't be a heck of a lot but will probably add a few bob to my total income.
I will continue to update here as I make my decisions.
A few weeks ago my pension fund carriers noticed that I was about to turn 60. Therefore, I began to get material about it. However, the one time I clicked on a Facebook ad was for an outfit that shops around for the best deal with the money you have.
Briefly, the (gay) agent who spoke with me has gone through the entire process, and we have discovered that I will likely be able to take a lump-sum payout of a little less than £26,000. and buy an annuity that will provide me with around £430 per month. Those sums translate to a bit more than US$41,000 and around US$680 / month.
Now for the catch. While the lump-sum is not taxable in the UK, as I'm still a US citizen I will have to pay US taxes on it. My US tax accountant does not think it'll be excessive but I suspect that I'll lose up to 25% or so of that to Uncle Sam. Oh, how I wish I'd followed through and renounced my US citizenship a few years ago.
So, let's say that I'm left with around US$30,000 or around £19,000. What to do with that money? I have two ideas. The first is something that I've wanted to do for decades: take a trip to Australia. My health isn't getting any better, and if I don't do this now, I may never get to do it. I'm thinking March 2013. I would go to Sydney and Melbourne, with perhaps a trip to Ayres Rock on the way. I think this will cost somewhere around £4,000 for travel and lodging and mad money (just a wild guess). I would stop off in Singapore on the way there and the way back, of course.
But the other thing I would like to get is a gastric bypass. As the NHS is unwilling to pay for it, I would like to use the rest of the money for the operation and recovery. I think this will cost something around £13,000 in the UK. There is also the option of going abroad for it—Thailand and India specialise in this kind of operation for expats with ready cash and I suspect that it will be a bit cheaper there.
So after filling out the forms for actually getting the money, I will have to do some research on travel and health. In two years I will get my US Social Security (which I would have gotten even if I'd managed to renounce my US citizenship) and that will add another £600 or so to my monthly income. In five years, if I'm spared, I'll get my state pension here, which won't be a heck of a lot but will probably add a few bob to my total income.
I will continue to update here as I make my decisions.
