Sarah266

Hi,
I would like to hear from anyone who is paying 3rd class national insurance while in Oz. Where can i learn more about it and what benefits can i get?
Thanks,
Sarah

Alan Collett

Hello Sarah.

I think you are referring to voluntary Class 3 NI contributions. There are details in the pdf booklet that is available here:
http://www.inlandrevenue.gov.uk/pdfs/nico/ca08/ca08.pdf

Hope this helps.

Sarah266

Thanks Alan, That's exactly what i was looking for.

yvsie

Hi Thanks Sarah.......

Didn't know about that....

Me thinks that there's a lot that I dont know about.......................

renth

I wouldn't bother if you are emigrating but if you will be returning to the UK I think it might entitle you to some sort of non-pension in your old age (if it hasn't been abolished by then)

Don

Renth,

A UK citizen can continue to pay NI contributions whilst abroad and at retirement he/she will be entitled to the pension 'earned' (ie number of years' NI contributions as a percentage of the number of years NI contributions you would need to contribute to get a full UK state pension. If you choose not to continue paying contributions, you'll still be entitled to the pension accrued, ie number of years' NI contributions you made before leaving the UK.

The UK state pension is payable in Aus and NZ but unfortunately is not index linked (as it would be in the UK) - a gross unfairness.

Whether you choose to continue making NI contributions is worth thinking about carefully, there are lots of implications (eg could I invest that money better elsewhere? Will my Aus/NZ state pension be means tested and therefore my UK pension mean I lose pension in my new country? Can I trust the UK govt to continue the state pension under the same general conditions by the time I come to retire? etc)

Cheers - Don

Stan J

The rationale used to be take the retirement age 65 less school age 16 less five years for training/what-have-you equates to a working life of 44 years.

If you have at least 11 years paid contributions you qualify for 11/44th or 1/4 or 25% of the Basic UK Pension anything less than 11 years you get nothing. 44 years you qualify for 44/44ths or 100%.

Women (retiring at 60) may have been calculated on 39 years ... the moving target for retirement may lengthen the baseline.

At age thirtysomething I judged that despite the gamble that the UK Government may cancel the Pension and that I might die before 65 paying those contributions was 'the best value return on planet earth'. Schhh don't tell everyone.

... course it would be better if it were index linked ...