National Insurance Contributions
#16
Account Closed
Joined: Mar 2017
Posts: 0
Re: National Insurance Contributions
Back in 2014 i paid 6 years class 2 contributions in one lump sum to bring me up to the maximum number of years to get the full pension, the total amount i paid was 683 quid. With voluntary class 2 contributions you dont have to pay a full NI contribution as you are basically just paying to increase your pension you are not paying for all the rest of the stuff that you would pay for if you were still working in the UK. the contribution rate for 2019 is 3 quid a week (156 a year) so it has gone up a bit since 2014, but in my opinion it was money well spent especially considering that the pension is frozen for people abroad.
#17
BE Forum Addict
Thread Starter
Joined: Jan 2011
Location: Orton, Ontario
Posts: 2,028
Re: National Insurance Contributions
When I looked at this a few weeks ago it seemed to me that a missing year payment of approx £780 would add £250 a year to the basic state pension. So living 3 years into retirement would result in a benefit overall. 35 years contributions needed for a full basic state pension. Is that how you would see the situation?
#18
Re: National Insurance Contributions
How can you find out if you can make class 2 contributions when you’re living abroad? When I briefly looked on the uk gov website it didn’t look obvious that class 2 contributions would apply as a default when living in Canada?
#19
Re: National Insurance Contributions
#20
BE Forum Addict
Thread Starter
Joined: Jan 2011
Location: Orton, Ontario
Posts: 2,028
Re: National Insurance Contributions
You have to fill out a form and request to pay Class 2 and they tell you if you qualify - but yes certainly should do - I haven't sent the form in yet.
#21
Re: National Insurance Contributions
This remains a mystery to me. I was short of only three years and according to the conditions I would not qualify for the lowest rate. But I applied and they confirmed I did. It's a good example of how such things are just guides and not a complete set of conditions.