shelley748

Don't under estimate people power- remember the Poll Tax riots!!!

onlycanada

It's not going to happen. If we all get a bit heated about this in our ownfar-flung corner of the world, no one is going to care. Also there would be no home support as we would be perceived as 'living it up abroad' and not needing our UK pension anyway.

There have been loads of previous threads/rantings on this.

I've just learnt that I cant claim UK old age pension until age 66 now. Gutted.

BristolUK

Yes....perhaps a few molotov cocktails would do the trick.

johnh009

New rules are coming into effect on 06 April, 2009 regarding UK National Insurance contributions.

Of note, at the moment they are letting anyone buy back in retroactively to the the 1996/97 tax year. After, 05 April, 2009, you will only be able to buy back in for the previous six tax years.

After 06 April, 2009, anyone retiring between 06 April, 2008 and 05 April, 2015 will be able to buy back in retroactively to 1975.

Better to buy back in soon for those who are interested. At the moment, the rate of voluntary NI contributions is £8.10 a week. The cost is increasing to £12.05 a week in October, 2009.

http://www.pensionsadvisoryservice.o...Contributions/


On saying that, some aspects of seniors' care and unemployment benefits are already means tested in the UK so you have to decide if you think pensions will be the next and to what degree.

Thornby

I'm self-employed, which means I can pay Class 2 national insurance voluntary contributions to top up my UK pension, now I'm living in Canada. Class 2 contributions are cheaper. My last annual payment for tax year2007/08 was 114.40 pounds sterling.

onlycanada

[QUOTE=johnh009;7214480]
Better to buy back in soon for those who are interested. At the moment, the rate of voluntary NI contributions is £8.10 a week. The cost is increasing to £12.05 a week in October, 2009.
QUOTE]

Do you know if you can buy in advance?
If we move out this year, I will be three years short of the full 30. Can I pay them up front?
I realise I would loose out if I returned to the UK and worked again before retirement age. (2030 for me!) But it would be good to know I had max state pension (even if not index linked) and I had bought at the lower current £8.10 a week rate.

Wouldn't it be awful if state pension was means tested too. I suppose this is already done to some extent, as the pension credit top-up benefit is a means tested benefit.

johnh009

Not so sure, but after 3 years, you can buy back in retroactively from overseas to get your full pension.

kastan

Do you know how many years you have to contribute to CPP to get the maximum pension payment.

JonboyE

You can register with Service Canada to view forms like T4A slips online. Start here http://www.servicecanada.gc.ca/eng/online/mysca.shtml. It may be the best way to confirm whether or not non-resident tax is being withheld from your friend's pension.

JonboyE

I don't think they publish the formula. They do say the amount you receive is calculated using the amount you pay, and the number of years you pay it in.

If we take the number of expected working years 18-65 and disocunt 15% of the lowest earning years that leaves 40 years. CPP is supposed to replace 25% of pensionable earnings (which are just over $40,000 at present). So we can guess (and it is just a guess) that you would need to earn at or more than the maximum pensionable earnings for 40 years to get the maximum pension. I was 41 when I moved to Canada so in my planning I am assuming I will get 60% of the maximum pension if I take it at 65. I could increase this to 78% of the maximum pension if i delay until aged 70. However, this is all just a guess on my part so don't take it as gospel.

penny farthing

This may seem like a dumb question but is it really worth buying back many years (in my case) of voluntary NI contributions -quite expensive - been away 18 + years.
I will have pretty good canadian pension anyway.

They quoted me costs and deadlines for each year of buy back and it runs into thousands of pounds and the info is quite confusing.
Dont know if I can buy back just some of the years or must I buy all of them?

I could put same money in to canadian RRSPs , right?
any opinions?
I mean how much does the UK pension buy ,cost of living and so on?

Thornby

You don't have to buy back all the years, just as many as you want to, can afford or think is worthwhile.

johnh009

Good question which can provoke endless discussion. Interest rates are low and for me, I prefer the bluest of blue chip, dividend paying stocks. I also realise that the stock market is not for everyone.

In short, do your homework and invest in what works for you. Many of these pension funds, especially in the public sector (defined benefits), are nothing more than a giant pyramid scheme and a ticking time bomb. Look at the auto industry for example.

penny farthing

thank you so much for your reply.

I guess one positive of buying back voluntary NI contributions is that the return is guaranteed but the gambles are
unknown life expectancy -inflationary devaluation- the non reciprocal Canadian increases(index linking) think I am right on that one; UK ex pats in Canada don't receive increases?
I am sure this buy back option is really most critical to those who would otherwise be pensionless due to life events and circumstances, esp women who took time out from employment for various reasons.

Can I buy back some years only for example 2 instead of 5 ? rather than all which is very costly. any one know?

johnh009

I am not sure how old you are but currently you can buy back in for 6 years if you are going to retire before and including year 2015.

http://www.thepensionservice.gov.uk/...re/ni/home.asp