Thanks for clarifying. I have answered this in the third paragraph above.

Basically - yes. The train doesn't even need to stop at Surbiton.

The Veteran's railcard is a red herring. Even if you do not have a railcard, you don't need to get off the train when using a combination of 60+ Oyster and paper ticket (but remember the 60+ Oyster is only valid after 0930 on working days - meaning the train has to pass Surbiton after 0930 if it doesn't stop there).