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Pension Options

Old Oct 17th 2020, 5:42 pm
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Default Pension Options

I know this isn't black and white BUT, I little query if I may. I am short on my government pension by 13 years, is it better for me to top up my UK pension OR put the money into a Canadian fund? Or just allow Hubby to by more cars and make more money? As it stands to bring me upto date I have to invest 16K Cad, I'll then have to still contribute another 2 years to bring my to full pension qualification. I won't have full Canadian qualification as I have had periods of time where I have not worked and only have worked part time, we do have small private pensions.

Thanks for your thoughts

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Old Oct 17th 2020, 6:17 pm
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Default Re: Pension Options

Originally Posted by Piff Poff View Post
I know this isn't black and white BUT, I little query if I may. I am short on my government pension by 13 years, is it better for me to top up my UK pension OR put the money into a Canadian fund? Or just allow Hubby to by more cars and make more money? As it stands to bring me upto date I have to invest 16K Cad, I'll then have to still contribute another 2 years to bring my to full pension qualification. I won't have full Canadian qualification as I have had periods of time where I have not worked and only have worked part time, we do have small private pensions.

Thanks for your thoughts
Not sure if it's still available, but HMRC used to have (it was there several years ago) a "what if" calculator; create an HMRC account, give it your NI number and it will give an estimate of what you might receive, along with estimates on various 'make up for lost years' scenarios.

I'm aware that quite a few posters on BE recommend topping up UK pension contributions, but when I ran my numbers about three years back, it was not in our best interests, so I didn't.

I'd go with hubby + cars; what price adrenaline?
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Old Oct 17th 2020, 8:54 pm
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Default Re: Pension Options

Originally Posted by BuckinghamshireBoy View Post
Not sure if it's still available, but HMRC used to have (it was there several years ago) a "what if" calculator; create an HMRC account, give it your NI number and it will give an estimate of what you might receive, along with estimates on various 'make up for lost years' scenarios.

I'm aware that quite a few posters on BE recommend topping up UK pension contributions, but when I ran my numbers about three years back, it was not in our best interests, so I didn't.

I'd go with hubby + cars; what price adrenaline?
Yep - that’s still available and works well! We’ve done it recently - seemed a no brainer for our particular circumstances but you need to investigate. We’ve spoken to HMRC twice and found them particularly helpful - you still have to make your own decision but it’s so much easier when you have information that’s been clearly explained to you. If you’re eligible for Class 2 contributions, it’s a big saving.
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Old Oct 17th 2020, 10:13 pm
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Default Re: Pension Options

I am 13 years short as of today. I currently stand to get 90 gbp per week. If I pay up to full pension that increases to 175 per week. But should I put that money into a canadian thing or into the uk thing is my wondering.
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Old Oct 17th 2020, 10:16 pm
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Default Re: Pension Options

Go for maxing your UK NI contributions @ Class 2
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Old Oct 17th 2020, 10:28 pm
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Default Re: Pension Options

Originally Posted by Twitcher1958 View Post
Yep - that’s still available and works well! We’ve done it recently - seemed a no brainer for our particular circumstances but you need to investigate. We’ve spoken to HMRC twice and found them particularly helpful - you still have to make your own decision but it’s so much easier when you have information that’s been clearly explained to you. If you’re eligible for Class 2 contributions, it’s a big saving.
Do you have a link?
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Old Oct 17th 2020, 10:35 pm
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Default Re: Pension Options

Originally Posted by Piff Poff View Post
I know this isn't black and white BUT, I little query if I may. I am short on my government pension by 13 years, is it better for me to top up my UK pension OR put the money into a Canadian fund? Or just allow Hubby to by more cars and make more money? As it stands to bring me upto date I have to invest 16K Cad, I'll then have to still contribute another 2 years to bring my to full pension qualification. I won't have full Canadian qualification as I have had periods of time where I have not worked and only have worked part time, we do have small private pensions.

Thanks for your thoughts
Originally Posted by Piff Poff View Post
I am 13 years short as of today. I currently stand to get 90 gbp per week. If I pay up to full pension that increases to 175 per week. But should I put that money into a canadian thing or into the uk thing is my wondering.
Assuming your figures are correct it costs you $16k CAD which is £9400. If it only turns £90 a week into £150 a week your £60 a week gain is £3120 and you'd get your money back after about four years when annual uprating is included.

Regarding Canadian money, you may be short on CPP but don't forget that OAS is still a possibility (depending how much other income) and Canadian residence counts for that.

I was three years short. For some reason I was allowed to make them up by paying the lower of the two rates. Not according to everything I read on the UK gov website but that's what they told me when I applied. I paid one year and then decided I may not live long enough to see the benefit so I haven't bothered with the other two. But a quirk in the Canadian system (no CPP for me) means that I'll get a higher rate of OAS than usual so gains I make on my UK pension will affect my Canadian OAS, meaning overall it won't make much difference.


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Old Oct 18th 2020, 1:30 am
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Default Re: Pension Options

Thanks for the replies everyone. I said to hubby I might just give him the money to invest on a car, he is desperately trying to find an investible one lol
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Old Oct 18th 2020, 1:39 am
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Default Re: Pension Options

Originally Posted by Siouxie View Post
Do you have a link?
Just the gov.uk website- it invites you to register, then once you’ve done that you can request an update on your status. It’s recommended to do this before speaking to them - you only need your NI number and personal details .to register
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Old Oct 18th 2020, 3:35 am
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Default Re: Pension Options

Originally Posted by Twitcher1958 View Post
Just the gov.uk website- it invites you to register, then once you’ve done that you can request an update on your status. It’s recommended to do this before speaking to them - you only need your NI number and personal details .to register
I've been waiting nearly 3 months for a letter from them... I wondered if there were a simple link you could utilise.. not to worry.. it's doubtless too late for me anyway
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Old Oct 18th 2020, 9:39 am
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Default Re: Pension Options

Originally Posted by Siouxie View Post
I've been waiting nearly 3 months for a letter from them... I wondered if there were a simple link you could utilise.. not to worry.. it's doubtless too late for me anyway
https://www.gov.uk/check-national-insurance-record

HTH.

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Old Oct 18th 2020, 9:42 am
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Default Re: Pension Options

Originally Posted by Piff Poff View Post
I know this isn't black and white BUT, I little query if I may. I am short on my government pension by 13 years, is it better for me to top up my UK pension OR put the money into a Canadian fund? Or just allow Hubby to by more cars and make more money? As it stands to bring me upto date I have to invest 16K Cad, I'll then have to still contribute another 2 years to bring my to full pension qualification. I won't have full Canadian qualification as I have had periods of time where I have not worked and only have worked part time, we do have small private pensions.

Thanks for your thoughts
Are you sure you're not eligible for Class 2 contributions? The $16k sounds like Class 3.

Class 2 contributions are £3.05 per week = £158.60 per year, times the 13 years shortfall (although obviously only 6 years could be paid now, the rest would be paid going forward, so I'd expect to increase a bit). That would be £2061.80.

And if it would give you an extra £85 per week, you'd break even after about 6 months by my calculations. If so, that's a no brainer IMO, and would be well worth doing.

Last edited by christmasoompa; Oct 18th 2020 at 9:47 am.
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Old Oct 18th 2020, 11:56 am
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Default Re: Pension Options

Originally Posted by Siouxie View Post
I've been waiting nearly 3 months for a letter from them... I wondered if there were a simple link you could utilise.. not to worry.. it's doubtless too late for me anyway
I spoke to them in early March but didn’t receive letter until late May so It took approx 3 months and I can’t imagine things have speeded up rapidly since then.
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Old Oct 18th 2020, 3:12 pm
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Default Re: Pension Options

Originally Posted by christmasoompa View Post
Are you sure you're not eligible for Class 2 contributions? The $16k sounds like Class 3.

Class 2 contributions are £3.05 per week = £158.60 per year, times the 13 years shortfall (although obviously only 6 years could be paid now, the rest would be paid going forward, so I'd expect to increase a bit). That would be £2061.80.

And if it would give you an extra £85 per week, you'd break even after about 6 months by my calculations. If so, that's a no brainer IMO, and would be well worth doing.
im6going by what the website told me with my details. I do have a help request in with them. I will keep checking. Thank you.
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Old Oct 18th 2020, 3:47 pm
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Default Re: Pension Options

Originally Posted by Siouxie View Post
I've been waiting nearly 3 months for a letter from them... I wondered if there were a simple link you could utilise.. not to worry.. it's doubtless too late for me anyway
Scouse waited about 3 months for his letter Siouxie, although that's a bit more understandable given where we live. Well, not really! Letters are send by air mail these days, not slow steamers. Hope you get yours soon.
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