Planning for retirement

I am just starting to think seriously about this, as I have 25 years left in my working life. I will have done 31 years in the UK by the time I reach State Pension Age, which qualifies me to draw the full state pension. I also have 13 years working life back in the US. Are there any rules against my drawing a full state pension in the UK at the same time I draw US Social Security? I hope not!

I'm trying to come up with a 'real numbers' monthly income so I can get an idea of my pension gap and take appropriate action! I am in a Local Government Pension Scheme, but not sure yet if the three combined will be enough.

Oh, it all seems so grown up!

Sure - you should get both but it is only a guess right now on what age you'll be allowed to your hands on the money  - 68; 70; 75; older??  Who knows what governments will do in 25 years.

The LGPS is easier - it is non-US qualified so you'll already be reporting the vested accrued benefit as taxable income on your annual US income tax returns which means you'll have basis in the value you eventually get to put out.

The LGPS is easier - it is non-US qualified so you'll already be reporting the vested accrued benefit as taxable income on your annual US income tax returns which means you'll have basis in the value you eventually get to put out.

hi guya-- am i reading this correctly that if your employer contributes towards your UK pension, you have to pay US taxes on their contributions?  wouldn't that be a lot of money you would owe each year??  and wouldn't that be equivalent to being taxed twice--once, as the pension is growing (by the US) and again, once you start receiving the pension annually (by the UK)?  am i completely looking at this the wrong way?

The US tax code is quite simple.  Worldwide tax - for ever.  Period.

This is not a US qualified plan so the vested accrued benefit (contributions and growth if you like) are taxable because they are not to a US qualified plan.

You are unlikely to owe much if any tax year on year because you'd use foreign tax credits.  If there were not enough tax credits one year you might opt to claim treaty exemption that year instead.

The US tax code is quite simple.  Worldwide tax - for ever.  Period.

This is not a US qualified plan so the vested accrued benefit (contributions and growth if you like) are taxable because they are not to a US qualified plan.

You are unlikely to owe much if any tax year on year because you'd use foreign tax credits.  If there were not enough tax credits one year you might opt to claim treaty exemption that year instead.

thanks for your response...i think i understand.  my pension is a final salary pension, so i would report the 23 percent of my salary that my employer contributes each year?  i think my confusion was with how foreign tax credits could be used.  i didn't think they could be used to decrease money owed for pension contributions because i won't be paying taxes on those contributions in the UK. 

Well, I'm the OP and I don't understand any of this. But I have a lowly job and will draw a meager pension, so I'm sure I will be well under any thresholds that would require me to pay the US government anything. I intend to start drawing teacher retirement from when I worked in the US at age 60, and continue working for local government until I reach state pension age of 67. I cannot imagine being able or willing to work much past that age.