Itís Your Money > Social Security and Pensions

Why Smart People Take Social Security at 62

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Personal gut feeling: grab the money as soon as you can while it's still there for the grabbing...

Chipping in with the UK perspective...

People get confused between state pension and private pension. Full UK state pension is (generally) available for men from age 67 (with slight variation depending on year of birth) if you have made 35 years of qualifying NI contributions (or on a pro-rata basis otherwise). You can retire abroad and have your state pension paid to you. In the special case of Philippines, UK has a reciprocal agreement [1], so that means you should receive your state pension index-linked (it goes up roughly in line with inflation).

This is another feather in the cap of Philippines as a retirement location, as other countries, such as Thailand, do not have a reciprocal agreement, and so you can receive your state pension there, but it is not index-linked.

With regards UK private pensions there is now a ton of flexibility since the pension reforms. You can pretty much do what you want with money in your private pension scheme from age 55 onwards. However, there are still the usual tax implications.

What I'd be interested to know is: if you are receiving a UK pension (state + private) in Philippines, and your income is above the personal allowance, do you pay tax in Philippines or UK?

[1] -

Yes it's a smart thing to do to retire and collect social security monthly annuity at the age 62. But beside social security its good to have other income like IRA annuity,Military pension or income property to live comfortably.

Then there is this.

The World Is Facing A $400 Trillion Retirement Shortfall By 2050


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