kullymack

I have been working full time and paying my taxes and NI contributions since the age of 18 and am now 32. So aroung 14 years of contributions.
I am wondering if the contributions have gone to waste as I will be emigrating to Canada in a couple of months and guess I will pay in to the Canadian state pension.
Is there any way of having the contributions transferred into the Canadian system or would I have to pay voluntary NI contributions into the UK state pension?

spaceace

you can pay minimal contributions to keep it alive in order to claim at a later date....seems plane wrong to me, but rules is rules and I'll be taking advantage.

http://www.hmrc.gov.uk/leaflets/nic.htm

http://www.hmrc.gov.uk/rates/nic.htm

kullymack

Is there anyone out there who is in this situation and paying ?

dbd33

The driver of the shuttle bus where I have the serviced paid a lump sum to bring his contributions up to date, after being gone for years. Doing so allows one to claim a UK pension and have it sent to Canada. The pension is not indexed but, I believe, you only have to stagger on for half a dozen years after retiring to win.

JonboyE

Under current rules you will be entitled to 14/30ths of the UK state pension when you retire. Once you are in Canada you can make voluntary contributions. If you make 16 voluntary contributions you will be able to claim a full pension.

Once in Canada you will pay Canada Pension Plan premiums on your earned income and you will also (assuming you stay in Canada until you retire) be entitled to Old Age Security pro rated on the number of years you were resident before retiring.

You will end up with part of your state pension from the UK and part from Canada.

JGK

I am and have been since 2001, I do it by direct debit from my UK bank account. It wasn't hard to set up, but it was so long ago, I've forgotten most of the details.

scottymallo

This is a good thread! I am looking in to this at the moment also.
I paid in to the UK scheme for the last 10 years. So looks like il be entitled to 10/30th following on from JonboyE response. If you where paying 40% tax some of the period in the UK does that make any difference?
So would i have to contribute for 20 years to get a full UK pension?

How many years does it take to get a full Canadian pension?

kullymack

Theres a pension age calculator on the uk official site and it calculated my retirement age to be 65 years 7 months. Might not even be around for that long and is it worth paying

http://pensions.direct.gov.uk/en/sta...lator/home.asp

Do you have to pay class 2 contributions from overseas ?

blue monday

im 34 so Ill be in a similar situation, so do i just pay the 16 contributions before i retire in 35 yrs or so time or do i pay them at any time over that period? or Indeed is it worth it?

john.t

Call UK 01912 254833 - they are really helpful and efficient

kullymack

Im considering paying the contributions as my mum had some missing she only found out when she phoned up to get a forecast and was told she would not be intitled to a pension because of it.

99problems

I really don't think its worth continuing contributions. Regardless, the pension you receive will be at 66 (based on current rules) and probably more like 70 by the time it come around. Secondly, it won't be index linked as you are expat meaning is you have 10-15yrs paid in then by the time you reach the age it will be say 15/30 of c£90pw (today) but at the prevailing prices of 30yrs from now -i.e. about £5pw. Pocket money and you'll still need to suffer the exchange cost and rate. Blair and Brown brought in the cut in indexation of pensions for expats. Legalised theft.

Best to track your occupation pension here and look heavily into pension contribs in Canada, I will be seeking to over-contribute to their system to make up any shortfalls where possible. I view whatever the UK pension pays as a small spending money fund for visiting UK / Europe every few years once I'm retired!

JonboyE

I don't think your tax rate in the UK makes any difference.

That is how I understand it.

The Canadian state pensions are based on a 40 year working life.

No. You would pay Class 3 contributions if you wanted to boost your UK pension.

You can only pay for the previous six years at any time so don't leave it too late if you want to top up your UK contributions. The other problem with waiting is that the rates might go up.

A very good question. The answer depends on how long you plan to live.

You will get your UK state pension based on the rate that is prevailing on the date you retire. If it is £90 now it should have the equivalent spending power then. Once you start drawing your pension it will no longer be index linked if you stay in Canada.

It has always been this way and nothing to do with Blair/Brown. However, you are right that you have to consider exchange rate volatility.


I also agree that everyone should make additional provision for their retirement. The basic state pensions for either country will keep body and soul together, but not much more.

scottymallo

one thing to point out if you have less than 11 years national insurance contributions you wont get anything. In my case I ve worked for 10 years in the UK so worth me contributing for a year or so just to get the basic entitlement. Though this will no kick in until aged 68 for me according to my pension forcast! $40 a week doesnt seem much but it will be a little extra in retirement.

Number of qualifying years Amount of basic State Pension you will receive (2010-11 rates)
Men: 11-44

Women: 10-39
Between the minimum of £24.41 a week and the maximum of £97.65 a week
Men: 0-10

Women: 0-9
You won't get any State Pension based on your own National Insurance contributions record (you might still get something on your spouse's or civil partner's record if they've paid enough National Insurance contributions)

JonboyE

They changed the rules quite recently:

How many qualifying years do you need?

The number of qualifying years you need for a full basic State Pension depends on your age and whether you are a man or a woman.

Men born before 6 April 1945 usually need 44 qualifying years.

Women born before 6 April 1950 usually need 39 qualifying years.

Men born after 5 April 1945 need 30 qualifying years.

Women born after 5 April 1950 need 30 qualifying years.

http://www.direct.gov.uk/en/Pensions...on/DG_10014671