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UK pension: catch-up costs, live abroad

UK pension: catch-up costs, live abroad

Old Mar 6th 2018, 2:03 pm
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Default UK pension: catch-up costs, live abroad

Now in my 60s, leaving Saudi in next 3 years, what is approx annual payment to catch up with missed UK pension payments? Paying for the last 5 years will give 25 years contributions in total. Which stamp class is best. Will probably retire abroad eg cheap Asian country. Guess I could eventually access my pension from a UK bank account.
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Old Mar 6th 2018, 2:27 pm
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Default Re: UK pension: catch-up costs, live abroad

If you are eligible for Class 2 (you should request it), is around £144/yr, which works out as just slightly over £1,000 for "current year, plus six years of arrears". You will need to phone the DWP in Newcastle, the international desk, and they will advise. I think you can now download and print form.

If you get your skates on you might be able to get your foot in the door for "current year 2017-18" meaning that you can pay for years going back to 2011-12. If you can't get things done before the end of the tax year, April 5, then everything will slide back a year, and you will therefore miss out one extra year before you retire, but if you didn't retire for another four years you would still still have time to get to 35 years, for a "full" pension.

If you aren't eligible for Class 2, then the Class 3 cost is about £715/yr. It is rumoured, but not confirmed, that 2018-19 will be the last year that Class 2 is available.
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Old Mar 6th 2018, 2:48 pm
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Default Re: UK pension: catch-up costs, live abroad

Claim Form is at the back of this Guidance:

https://www.gov.uk/government/upload...NI38_12_17.pdf

Be careful how you fill the form in. There are some rules around eligibility for the cheaper Class 2 NI rate. Main one being that your were working in the UK and paying NIs immediately before you left the UK to start working overseas. I read somewhere that HMRC define 'immediately' as being no more than a one week gap. As above, best be quick, before the tax year turns, and before Cass 2 NIs are done away with.

I wrote a covering letter to HMRC enclosing the above form, explaining my circumstances and request to pay 6 year's arrears of Class 2 NIs only. Received a response from HMRC with a table listing the back payments due, which I paid, about £750 total. Monthly Direct Debit also set up for future Class 2 NI payments.

You can check your personal NI status online here and State Pension entitlement online here. You need to set up a Government Gateway account here, which can also be done online.
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Old Mar 6th 2018, 4:13 pm
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Default Re: UK pension: catch-up costs, live abroad

Thanks for 2 great answers. Very helpful.
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Old Mar 6th 2018, 4:17 pm
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Default Re: UK pension: catch-up costs, live abroad

Originally Posted by magnification
Thanks for 2 great answers. Very helpful.
You're welcome.
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Old Mar 6th 2018, 4:33 pm
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Default Re: UK pension: catch-up costs, live abroad

Originally Posted by magnification
Thanks for 2 great answers. Very helpful.

Happy to help!
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Old Mar 7th 2018, 3:41 am
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Default Re: UK pension: catch-up costs, live abroad

Originally Posted by Pulaski
If you are eligible for Class 2 (you should request it), is around £144/yr, which works out as just slightly over £1,000 for "current year, plus six years of arrears". You will need to phone the DWP in Newcastle, the international desk, and they will advise. I think you can now download and print form.
It's 153.40 GBP for the tax year 2018/2019. 2.95 GBP p/week collected in advance on the second Friday of each month, or 76.70 GBP collected every Jan and July.
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Old Mar 7th 2018, 4:42 am
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Default Re: UK pension: catch-up costs, live abroad

But that cheap rate has been spotted by Treasury and that door will be closed soon.
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Old Mar 7th 2018, 6:43 am
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Default Re: UK pension: catch-up costs, live abroad

I know it's the Mail, but...

Savers are wasting their money trying to boost their incomes | Daily Mail Online
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Old Mar 7th 2018, 8:17 am
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Default Re: UK pension: catch-up costs, live abroad

even worse... it's the Mail Online!
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Old Mar 7th 2018, 9:58 am
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Default Re: UK pension: catch-up costs, live abroad

Ive been saying this for years. Paying into the uk pensions pot is pixxing into the wind, the govt gives to the uk based special brew classes and raises 2 fingers to the guardian reader. Especially the international edition reader. When you want it - imho - the rules will be changed and not in your favour.
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Old Mar 7th 2018, 10:06 am
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Default Re: UK pension: catch-up costs, live abroad

Originally Posted by Bahtatboy
In fairness is this relates to (if I understand it correctly) paying beyond the 30 years.

This thread reminded me to make my top up. Just done a 9 year over payment - making me 22 years paid in. I'll stop if either the annual price goes up materially, or when I hit the 30 years. 1200 quid seems a good bet to make really for the catch up.

Yes, they may change the rules - but if it gives me a couple of hundred quid a month when I'm old and crusty it will still pay for the "massages" in Thailand.
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Old Mar 7th 2018, 10:26 am
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Default Re: UK pension: catch-up costs, live abroad

Originally Posted by Millhouse
In fairness is this relates to (if I understand it correctly) paying beyond the 30 years.

This thread reminded me to make my top up. Just done a 9 year over payment - making me 22 years paid in. I'll stop if either the annual price goes up materially, or when I hit the 30 years. 1200 quid seems a good bet to make really for the catch up.

Yes, they may change the rules - but if it gives me a couple of hundred quid a month when I'm old and crusty it will still pay for the "massages" in Thailand.
I recently read a global - i think mongering was the word - review, from some american who dedicates his retiring years to the altruistic review of whorehouses globally. I suggest you research trinidad or the dom rep, they make thailand look expensive. I wont recommend one of several african countries, it all sounded far too dangerous in several dimensions, it was downright sordid...
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Old Mar 7th 2018, 11:48 am
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Default Re: UK pension: catch-up costs, live abroad

This forum never ceases to amaze me. From National Insurance contributions to whorehouses in 13 posts!
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Old Mar 7th 2018, 12:10 pm
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Default Re: UK pension: catch-up costs, live abroad

Originally Posted by Millhouse
In fairness is this relates to (if I understand it correctly) paying beyond the 30 years.

This thread reminded me to make my top up. Just done a 9 year over payment - making me 22 years paid in. I'll stop if either the annual price goes up materially, or when I hit the 30 years. 1200 quid seems a good bet to make really for the catch up. ....
I agree. At Class 2 rates, I can buy an additional year of contributions for barely more than a nice meal out for the family, with a payback of six months of retirement.* If they change the rules, such as making pension payments means tested and I retire wealthy, then I haven't really lost much anyway - about £1,000 every seven years. If I retire poor and need the money then the investment will have been well worth it. Buying additional years seems to me to be an investment with very little downside. .... I suppose the main one would be the risk that I die before I retire, and my family get nothing back.

* Even at Class 3 rates I consider the return to be great, and well worth it - there aren't many legal ways to invest in something that returns 100% of invested capital in just three years of income distributions.
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