slipshot

Chaps

I'm sure this has been covered but a quick question following a search.

My private pension I will transfer here to Aus into the QROPS scheme suppliers once I have a new job and super etc sorted out. That bit is fine as I've done my research.

However, as I've been paying into the UK state pension for years I'd like to keep this up.

Is this Class 2 payments that I should be making or is it more complicated than that? I'm sure there must be others doing this and thus would appreciate the process you went through to continue to do this?

Cheers

Slip

FRAYNE

Hi I contacted the DWP, sorry I dont have a link but you should find it online they gave me a forecast of what my pension would be and I now pay my contribution once a year in arrears.
Janet

charlie5

I think you need to pay class 3 voluntary payments.

Charlie

lesleys

For a forecast
http://www.thepensionservice.gov.uk/...ecast/home.asp

And for contributions start here
http://www.hmrc.gov.uk/cnr/osc.htm

louie

This is the relevant booklet - http://www.hmrc.gov.uk/pdfs/nico/ni38.pdf

You can pay class 2 contributions (much cheaper than voluntary class 3) if you are either employed or self-employed abroad. See page 13 of booklet.

Also bear in mind that you now only need 30 years contributions to get a full state pension. I can't work out how, bearing in mind I was in full-time education until I was 22 and lived in Oz for a couple of years after that, but according to the forecast I obtained from NICO, at 47 I already have 30 years contributions.

slipshot

Thanks all chaps.

Been on the phone to them last night and basically, have now applied for the forecast and will then see what I need to do.

I paid Class 2 when I was here before to keep things ticking over and I'll see what they say when the forecast comes back. I remember Class 2 as being peanuts so worth it for the peanut pension I shall see at the end!

Louie - I'm like you, and will be interested to see what they say given I'm about to hit 40, graduated from Uni at 21 but then travelled and worked for a few years before starting proper employment at 24. So theoretically I should be years away from the 30 years of payments but we'll see what they say.

Thanks again all of you. Most appreciated...

cornishexpat

i have 22years of ni contributions,ive asked uk tax office for advice but the reply has baffled me somewhat.
i understand to qualify for a full uk state pension i need 30 years of ni contributions.
going on what ie paid in already i will get 22/30ths of the full state pension.

how much is the voluntary ni contributions to top up to 30 years?

would it be better to pay the extra into my super fund from which i will transfer my 9 year civil service pension and 4 years construction pension with added contributions from employer and myself.

any advice will be gratefully recieved.
Brisbane in 7 days.

nutgrove

for cornishexpat, this response has to take into consideration your age today & whether you're still working or not

http://www.thepensionservice.gov.uk/...basic/faqs.asp

numbers below are approximate

1. if you have already paid in extra back contributions for the years 1996-2001 (approx £2000 - £3500 depending on class 2 or 3 & the years you pick) then you may have may have maxed to your current 22-years?

Also they may still have open the right to contribute for years 1996 -2002 - 2008 to get to the 30 years (the + 8 years needed). That cost depending on class 2 or 3 may cost you upwards of £4000+

You may also need to look at how adding a further 6-years based on approved new rules (total of £3757.20 or £626.25/yr) will help your cause.

2. If you are already retired, again you can still I believe contribute back years. Ask HMRC, phone number below

3. If you have not contributed back years 1996 - 2008, I believe that there is still a window of opportunity

4. If you are still 8 years from retirement then give pensions or HMRC a call. The current rate for back contributions is steep at £626.25/year x 8 years = £5010

contact numbers as follows. Just make sure that you have your NI number ready

HMRC 00-44-191 203 7010 (this is the number for all NI contribution info under 65)

Pensions in Newcastle 00-44-191 218 7777

as a side note, the current state pension at 100% is £95.25. For future value I have been using a flat 3.5% increase each year to get the number what it would be at a retirement age, even though the last years increase was 5% over the previous year.

all the best

Blossom

This state pension lark really confuses me! I was lead to believe that the state pension can be paid to Aus, however, you will not receive the year on year increases.

If you work for more than 5 years in Aus, you are entitled to claim the Australian State Pension.

However, I was also told you cannot claim both.

Can somebody confirm what is what please?

Bonnie65

The difference is that the Aussie state pension is means tested but the UK (basic) one isn't. If you qualify to receive the UK pension on retirement, then chances are your income will then be too high to receive the Aussie one.

Hope that helps.

Pomster

if you are in recognised full time education beyond 16, this is credited as a working year for purposes of pension. Also when you sign on/receive sickness benefit etc...also recognised as a contributory time for state pension purposes (only)

ozzieeagle

Hmmm can you pay a large figure as a lump sum and get the UK pension ?

What would 20 years worth be ? How long do you have to reside in the UK annually to have the payments not affected.

Personally I'll be probably in a position where a chunk of my Aus Pension gets deducted because of superannuation. If things really go well in my last 12 years in the work force I may not get the Aus Pension at all.

So I'm very interested in this question.

Kevin Rudd was talking about being able to buy annuated pensions from the Government @ 60000 dollars equals 2000 Aud per year non means tested. I reckon the UK pension could be better value than that avenue.

nutgrove

annuated pensions from the Government - what the heck is that?

Vash the Stampede

My wife has a UK teacher's pension. What happens to that? Can she transfer it, or is she best to leave it where it is and draw on it when she reaches retirement age? Will it be taxed by the Australian government?

MartinLuther

This is my opinion. Class 3 contributions are not worth it. Class 2 are borderline. Personally I haven't bothered. The pension is frozen when you collect it and they are already raising the age at which you can collect it. I think this moves class 2 from borderline to not worth it for peeps who'll not be allowed to collect it until they are 70.