UK pension: catch-up costs, live abroad
#1
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Joined: Jan 2013
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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.
#2
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.
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.
#3
Onwards and Upwards!
Joined: Sep 2010
Posts: 884
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.
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.
#4
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Re: UK pension: catch-up costs, live abroad
Thanks for 2 great answers. Very helpful.
#7
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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.
#8
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Re: UK pension: catch-up costs, live abroad
But that cheap rate has been spotted by Treasury and that door will be closed soon.
#9
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Location: Of all the gin joints, in all the towns, in all the world, she walks into mine
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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
Savers are wasting their money trying to boost their incomes | Daily Mail Online
#10
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Joined: Mar 2013
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Re: UK pension: catch-up costs, live abroad
even worse... it's the Mail Online!
#11
I still dont believe it..
Joined: Oct 2013
Location: 12 degrees north
Posts: 2,775
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.
#12
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
Savers are wasting their money trying to boost their incomes | Daily Mail Online
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.
#13
I still dont believe it..
Joined: Oct 2013
Location: 12 degrees north
Posts: 2,775
Re: UK pension: catch-up costs, live abroad
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.
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.
#14
Onwards and Upwards!
Joined: Sep 2010
Posts: 884
Re: UK pension: catch-up costs, live abroad
This forum never ceases to amaze me. From National Insurance contributions to whorehouses in 13 posts!
#15
Re: UK pension: catch-up costs, live abroad
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. ....
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. ....
* 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.