UK Voluntary Contributions - Class 2 - worth it?
Jul 19th 2014, 1:33 pm
#1
Forum Regular
Thread Starter
Joined: Nov 2012
Posts: 36
UK Voluntary Contributions - Class 2 - worth it?
Hello All
I'd like to ask this forum about your opinion on contributing voluntarily (Class 2) to the UK pension system.
Me:
I am 30
Worked in the UK for 3 years
Have been working abroad for more than 7 years and have no inmediate plans to return to the UK
Have applied and been accepted to continue paying, voluntary, Class 2 Contributions. To me, this comes to about 240 GBP per year.
Questions:
Is it worth it?
Pros, Cons?
I'd like to ask this forum about your opinion on contributing voluntarily (Class 2) to the UK pension system.
Me:
I am 30
Worked in the UK for 3 years
Have been working abroad for more than 7 years and have no inmediate plans to return to the UK
Have applied and been accepted to continue paying, voluntary, Class 2 Contributions. To me, this comes to about 240 GBP per year.
Questions:
Is it worth it?
Pros, Cons?
Jul 20th 2014, 3:15 am
#2
BE Enthusiast
Joined: Feb 2014
Posts: 592
Re: UK Voluntary Contributions - Class 2 - worth it?
Thanks for this question as it arises on a regular basis.
Basically the UK State Pension can be topped up under a number of circumstances including living abroad and sometimes small contributions will see you qualify for a part pension at least.
The link covering this is found at : HM Revenue & Customs: Voluntary National Insurance contributions - the basics
Everyone situation is different and I can only respond by saying that you need to weigh up your own personal situation and do a cost benefit analysis - that is if you pay the amount per year - you will need to work out how much you have to pay in total for a part pension or a full pension and what that pension will pay you.
So in some cases a person may only have to pay 1 years worth to get a part pension which results in a high return of Investment. In other cases you may have to invest for a long period of time.
In addition to this are factors such as can I afford this amount, what other investments can i put my money into or other pension schemes, and the list goes on..
For those wishing to know their actual current status, what they would have to pay or qualify for either a part or full pension then contact the state pensions directly: Their link is https://www.gov.uk/browse/working/state-pension
So do a personal cost benefit review, review your personal position and weigh up your other options and then make a decision. If still stuck PM me.
Cheers John
Basically the UK State Pension can be topped up under a number of circumstances including living abroad and sometimes small contributions will see you qualify for a part pension at least.
The link covering this is found at : HM Revenue & Customs: Voluntary National Insurance contributions - the basics
Everyone situation is different and I can only respond by saying that you need to weigh up your own personal situation and do a cost benefit analysis - that is if you pay the amount per year - you will need to work out how much you have to pay in total for a part pension or a full pension and what that pension will pay you.
So in some cases a person may only have to pay 1 years worth to get a part pension which results in a high return of Investment. In other cases you may have to invest for a long period of time.
In addition to this are factors such as can I afford this amount, what other investments can i put my money into or other pension schemes, and the list goes on..
For those wishing to know their actual current status, what they would have to pay or qualify for either a part or full pension then contact the state pensions directly: Their link is https://www.gov.uk/browse/working/state-pension
So do a personal cost benefit review, review your personal position and weigh up your other options and then make a decision. If still stuck PM me.
Cheers John
