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National Insurance Contributions

National Insurance Contributions

Old Nov 12th 2019, 7:13 pm
  #16  
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Default 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.
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Old Nov 12th 2019, 9:16 pm
  #17  
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Default Re: National Insurance Contributions

Originally Posted by jimf

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?
The $780 payment per missing year is the full payment, living abroad can qualify you for Class 2 payments which as Cheltonian points out is much cheaper - so you get a significant pension increase for very little extra payment.
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Old Nov 12th 2019, 9:38 pm
  #18  
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Default Re: National Insurance Contributions

Originally Posted by HGerchikov
The $780 payment per missing year is the full payment, living abroad can qualify you for Class 2 payments which as Cheltonian points out is much cheaper - so you get a significant pension increase for very little extra payment.
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?
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Old Nov 12th 2019, 9:58 pm
  #19  
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Default Re: National Insurance Contributions

Originally Posted by jimf

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?
I pay these people https://www.uk2canadapensiontransfers.com/ a small fee to look after it.
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Old Nov 13th 2019, 7:53 pm
  #20  
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Default Re: National Insurance Contributions

Originally Posted by jimf

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?
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.
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Old Nov 13th 2019, 8:00 pm
  #21  
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Default Re: National Insurance Contributions

Originally Posted by HGerchikov
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.
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.
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