Justhaggis

Hi guys

Can anyone give advice on UK NI voluntary contributions? I have contacted them and they said it will be class 3 for us, which is really expensive. According to the booklet and http://www.britishpensions.org.au/pe...nes_index2.htm we can apply for class 2 contributions.

What do I need to do to be qualified for that class 2 contributions? Any advice will be appreciated!

Many thanks!

lesleys

Try looking here
http://www.pensionsadvisoryservice.o...-contributions

Justhaggis

Thanks Lesleys

cheshire-cat

I sent off for a pension forecast earlier this year and was told I had 20/30ths for a pension of 92 pounds a week. They said I could by extra years by paying class 3 contributions of 680 pounds a year.
I had heard about class 2 payments so I rang the people in newcastle, they were very helpfull and said if I was working in Australia then I should be eligible for class 2, but you have to apply in writing.
This I did and I have just received a letter confirming the years that I can buy (2005 to 2011 plus the next 3 years to my retirement) all at class 2 rates of 130 pound per year.
They are all very helpfull but you have to ask, they don't volunteer the information.

Justhaggis

Thank you cheshire-cat. That is very helpful!
I already sent our request for the pension forecast and still waiting for it.

Thanks again!

carzinoz

This is very interesting! We applied when we came to Oz, partner working here, me not and were told we both had to pay class 3, which as said is expensive. We've been paying it since then.

I just checked the original letter hubby got from them. It said as he hadn't been employed "immediately prior to leaving the UK...i.e. the contribution week prior to leaving the UK...you do not meet the criteria to pay Class 2". I'd be interested to know Cheshire Cat if you received the same response initially or were your circumstances different?

cheshire-cat

Hi Carzinoz, In my original application to pay class 2 NI, I just stated that I was working upto when I left the uk.
I checked the direct gov uk website and on leaflet NI38 it does state that you have to be employed "immediately before you went abroad"

Having said that it does seem petty to penalise you for having a week off before moving, and it seems that the rules on pensions have been relaxed somewhat since 2010. So I would have thought it might be worthwhile ringing the international case worker team in newcastle to see just what the rules are.
cheers

bingobob777

pay 130 a year for 30 years = 3900

get 95 a week for 17 years = 83980

No wonder the UK is skint

If it needs to find 80k for 10 million people that's 800 billion

cheshire-cat

Wow bob, there's a few assumptions in your post.
Firstly, its good to know that I'm going to live to be 82, thanks for that.
Second, I did pay full NI contributions for 20 years so 130 times 30 is way off the mark.
Third, there are closer to one million british expats who will get a pension not ten million.
I agree that the UK will face a huge pension bill in the future as the population ages but don't expect me to feel guilty for what I am legally entitled to.
Remember that as an expat, I will not be a burden on the british tax payer in my old age as my health care needs will be taken care of by the Australian hospital system.

carzinoz

Thanks for your info. It does seem a bit of nonsense that you have to work right up till the last week, not very realistic. I've written a letter to post off to ask about it so, fingers crossed.

bingobob777

it wasn't directed specifically at you, I was more having a whine about the general reason the UK and most probably the World is funked

Amazulu

And therein lies the problem - many countries can no longer afford their pension liabilities. In fact, the UK is in better shape than many European countries as they have a strong private pension system. Countries like Germany, France, Italy, Spain etc are going to be in deep shit in the not too distant future.

carzinoz

Can anyone tell me how having a UK pension affects the entitlement to the Oz pension?

I found I already had a forecast for the UK state pension and it warns on it that if I make voluntary contributions to my NI it could affect my Oz pension.

The Oz state pension is means tested, right? so if I get my £95 a week from the UK pension would that count as income and cause my Oz pension to be reduced?

Grayling

Yes

swans

The pension is a pay as you go type of thing,thus 10 workers support 1pensioner,the shit is expected to hit the fan in 2050 according to the experts(?).They expect 2.5 workers to support 1 pensioner and his/ her medical costs then.That is based on falling birth rates etc.How they predict so far ahead is beyond me,they seldom get things right.

Steps were taken years ago to meet this problem,super, 401K plans etc,and pensions being converted to DC rather than DB plans.Then the baby bonus to increase birth rates.from Costello.

The big OZ plan of a population of 35 million,I think they will import young people,not old people,thus averting a crisis,possibly.

I would think for OZ the worst scenario that will happen is 'spend your super first and then come and see us".Of course the, I am entitled mindset, will have to change.Then of course I cannot predict the future either.The I don't want to pay tax mindset will also need to go

By 2050 I will be dead.or in the guinness book of records,time will prove one of two things,I was right or I was wrong.

Just in case the experts get something right,I would strongly advise a financial education to set people up,knowledge is always very useful.

Inflation is a wonderful/terrible thing,depending which side of it you are on.With wages growing @ 5% ayear then in 30 yrs time average wages will be circa 300K yearly,you'll need 200k a year to live in poverty.Can you see 9-12%super providing anything like that.

Maybe it is all a scare campaign,maybe it isn't.That financial education gives an immense protection.

Geordie down under

Things may turn out not to be as frightening as they try to tell us