British Expats

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-   -   Pension Options (https://britishexpats.com/forum/canada-56/pension-options-935330/)

BristolUK Oct 18th 2020 8:23 pm

Re: Pension Options
 

Originally Posted by christmasoompa (Post 12923176)
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.

:nod:


Originally Posted by Piff Poff (Post 12923260)
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.

This is exactly what I meant when I said that everything I had read suggested I would have to pay the higher of the two rates. I made a formal application and my response said I could pay the lower rate so as christmasoompa says, the break even point comes much sooner.

BuckinghamshireBoy Oct 18th 2020 9:24 pm

Re: Pension Options
 

Originally Posted by BristolUK (Post 12923327)
:nod:


This is exactly what I meant when I said that everything I had read suggested I would have to pay the higher of the two rates. I made a formal application and my response said I could pay the lower rate so as christmasoompa says, the break even point comes much sooner.

I would surmise that as you (and Piff Poff) are resident in non-EU/EEA countries, then that's what allows for the eligibility for the class 2 contributions?

As an EEA resident I could not get class 2, and having done the sums I opted not to go with class 3; less weekly uplift than mentioned above, and much, much longer to achieve break-even for monies paid in.

adele Oct 18th 2020 9:51 pm

Re: Pension Options
 
Here are the details re: eligibility: https://www.gov.uk/voluntary-nationa...-contributions
Here's the info for applying for class 2 voluntary NICs: https://www.gov.uk/voluntary-nationa...-contributions
Fill out form CF83 and send it (I enclosed supporting documentation) to the address on the form.
I mailed the form and evidence in late June and received the letter back in late September (when I looked online on my Government Gateway account it showed that they received it the first week of August and processed complete the last week of August. Their letter to me was dated first week of September)
If they approve you, you can then send the payment for previous years and arrange to make payments going forwards (if applicable/necessary).
I just sent the payment for the past 11 years of class 2 contributions (@ approx 160 pounds per year) from my Canadian bank account to HMRC about a week ago using Transferwise.
Seems like a great deal to me!
:thumb:

BristolUK Oct 18th 2020 10:13 pm

Re: Pension Options
 

Originally Posted by BuckinghamshireBoy (Post 12923339)
I would surmise that as you (and Piff Poff) are resident in non-EU/EEA countries, then that's what allows for the eligibility for the class 2 contributions?

It doesn't seem to be. :confused: Being employed seems important

Originally Posted by adele (Post 12923347)
Here are the details

Screen print of the being abroad parts:


https://cimg8.ibsrv.net/gimg/british...341c08b19d.png
I was (am) living abroad (obviously :lol:) but not working and it says Class 3 (the more expensive ones) only.

As a former civil servant in DSS/DWP used to reading official booklets for public information and official reference manuals that staff worked to, I was always aware that actual law sometimes threw up different bits of information that would override those manuals.

So I assume this is something similar because even if you ignore the fact of me being abroad, the only other situation in that table that I could be in is unemployed and not claiming benefits and that one says Class 3 too.

BuckinghamshireBoy Oct 18th 2020 11:16 pm

Re: Pension Options
 

Originally Posted by BristolUK (Post 12923354)
It doesn't seem to be. :confused: Being employed seems important

Screen print of the being abroad parts:


https://cimg8.ibsrv.net/gimg/british...341c08b19d.png
I was (am) living abroad (obviously :lol:) but not working and it says Class 3 (the more expensive ones) only.

As a former civil servant in DSS/DWP used to reading official booklets for public information and official reference manuals that staff worked to, I was always aware that actual law sometimes threw up different bits of information that would override those manuals.

So I assume this is something similar because even if you ignore the fact of me being abroad, the only other situation in that table that I could be in is unemployed and not claiming benefits and that one says Class 3 too.

Ok, point taken, but drill down on the purple hyperlink, then it becomes less obvious...

BristolUK Oct 19th 2020 12:31 am

Re: Pension Options
 

Originally Posted by BuckinghamshireBoy (Post 12923369)
Ok, point taken, but drill down on the purple hyperlink, then it becomes less obvious...

Do you mean from an EU perspective?
From my Canada perspective it doesn't change.

Sorry, I don't mean to be disinterested in the EU aspect - or is that uninterested, I never know the difference :lol: - I'm just focusing on Piff Poff's calculation based on the website saying class 3 would apply when she may, like I was, be allowed to pay class 2 which is a lot less.

Siouxie Oct 19th 2020 4:51 am

Re: Pension Options
 
See page 9 - opens in new tab: https://assets.publishing.service.go...32814/NI38.pdf

BuckinghamshireBoy Oct 19th 2020 12:22 pm

Re: Pension Options
 

Originally Posted by BristolUK (Post 12923389)
Do you mean from an EU perspective?
From my Canada perspective it doesn't change.

Sorry, I don't mean to be disinterested in the EU aspect - or is that uninterested, I never know the difference :lol: - I'm just focusing on Piff Poff's calculation based on the website saying class 3 would apply when she may, like I was, be allowed to pay class 2 which is a lot less.

No worries, I'm chasing my tail (again). In the past I've huffed and puffed, but always ended up with class 3 being the only route for me, which I declined. Obviously if class 2 were to be an option, then that would be the way to go.

Tangram Oct 20th 2020 6:33 pm

Re: Pension Options
 
I haven't bothered topping up the UK. Wife has 2 year short of max and myself 10 years short. Who's to say it will even be there in 10 years when I'm eligible or whether the goal posts have been shifted by whatever Tory scumbag is in charge.

christmasoompa Oct 20th 2020 6:38 pm

Re: Pension Options
 

Originally Posted by Tangram (Post 12924014)
I haven't bothered topping up the UK. Wife has 2 year short of max and myself 10 years short. Who's to say it will even be there in 10 years when I'm eligible or whether the goal posts have been shifted by whatever Tory scumbag is in charge.

Could well be the case, but certainly for your wife I'd be tempted to take a punt for £300 as she'd make that back in only 2.5 weeks of claiming a full pension! Might be worth doing the sums to see what difference it would make, if you could pay Class 2.

Tangram Oct 20th 2020 6:42 pm

Re: Pension Options
 
Will do

Piff Poff Oct 21st 2020 2:45 pm

Re: Pension Options
 
I've sent a request off for some help. It's all become a little more interesting to work out as my husband is currently in CCU with heart issues. He only went in for a CT scan...

Siouxie Oct 21st 2020 3:22 pm

Re: Pension Options
 

Originally Posted by Piff Poff (Post 12924420)
I've sent a request off for some help. It's all become a little more interesting to work out as my husband is currently in CCU with heart issues. He only went in for a CT scan...

:(
Oh no Piff! Hope he is ok...

Piff Poff Oct 22nd 2020 2:20 am

Re: Pension Options
 

Originally Posted by Siouxie (Post 12924433)
:(
Oh no Piff! Hope he is ok...

They have managed to get his blood pressure down it was 284 over 173 for a while there and every time they started to bring it down he would throw up. He has just been diagnosed with hereditary cardiomyopathy and thats why he was in for a scan. Apparently one side of his heart is working at 30%. It's very worrying but he is in the best place. He looked so much better today and he is hungry.

shelley748 Oct 22nd 2020 5:39 pm

Re: Pension Options
 

Originally Posted by Piff Poff (Post 12924662)
They have managed to get his blood pressure down it was 284 over 173 for a while there and every time they started to bring it down he would throw up. He has just been diagnosed with hereditary cardiomyopathy and thats why he was in for a scan. Apparently one side of his heart is working at 30%. It's very worrying but he is in the best place. He looked so much better today and he is hungry.

sending best wishes Piff for his recovery!


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