Johnnyboy11

It's worth checking the eligibility criteria for Class 2 NICs:My understanding is that HMRC interpret the above word "immediately" as being no more than one week, which will probably rule out eligibility for most expats.

Norm_uk

The UK Government uses rates from Sept then raises them the following April - inflation doesn't stop for six or seven months and wait.

The triple lock you mentioned goes back to 2010 - pensioners were promised by the government to have an increase based on the highest of three benchmarks - the CPI, 2.5% or the National Average Earnings. Yet, last year the UK government suspended the National Average Earnings part of their 'guarantee' for 2022-2023, as that would have triggered a pension increase of about 8% after vast amounts of borrowing and economic slowdown due to government Covid policies.

UK pensioners were left with the CPI as stated, at 3.1% from April 2022, actual CPI figures from April 2021 to 2022 months were in excess of 6% - so the gov got away with paying less than half the real rate of inflation.

They have many, many creative ways to ensure their measures of inflation don't match reality - from delays to using different benchmarks.

State pensions can be a low-cost, easy way to bring in some money for expats when they retire, but anyone who thinks they are going to rely on them for a significant portion of their retirement is in for a shock. People need to make their own arrangements and should view the state pension as an added extra at best. Successive governments borrow more and more to promise the electorate things they don't have money for. Inflation will continue to eat into everyone's wealth, and we can be certain government now and in the future will fudge the numbers, move the goal posts, change the retirement age and anything else they can to keep on paying people less than the actual rate of inflation.

N.

Norm_uk

Precisely - people retiring overseas really need to look into this if they are expecting an inflation-linked state pension. Most expats can and should be making their own arrangements and viewing state pensions and potential added extra at best.

N.

Duoduo

Your point is very valid, but the message I was trying to make was that for what it cost to contribute to have a guaranteed income at the end of it, really is a too good of an option to pass up on (inflation linked or not).

Most of the expats I’ve spoken to this year, have come to the ME purely for tax efficient higher income purposes and will either have plans to one day return to the UK or somewhere less expensive in the EU.

Legislation changes and so working with the knowns, we know that the State Pension will provide a fixed level of income at worst, when people hit retirement. This shouldn’t be disregarded for what cost £3.15 a week now.

Thank you for keeping this post going with your thoughts and opinions

slytrellis

Great Post.

With ref to point 3 - Do they actually reply to you with a letter or will they communicate back via email? I have doubts about a letter getting to me over here.

Duoduo

They will reply via letter.

shelley748

How long in advance of the state pension age do they contact you? For example hubby is 66 June 2024- so when should we expect to hear anything? Also is the process very complicated? thanks in advance

tdrinker

"You will not get your new State Pension automatically - you have to claim it. You should get a letter no later than 2 months before you reach State Pension age, telling you what to do.

If you have not received an invitation letter, but you are within 3 months of reaching your State Pension age you can still make a claim.

The quickest way to get your State Pension is to apply online."

https://www.gov.uk/new-state-pension/how-to-claim

Duoduo

Usually sent out 12 months before your state pension age

shelley748

Thanks everyone for the replies!!

Dxbstu387

Hi All - I recently did this after spending 10 years in Oman, if anyone would like an example form to complete their Class 2 submission please feel free to DM me. It took a while back in 2020 due to COVID and I eventually chased up the HMRC office in Sunderland from memory before heading back to the UK. With everyone striking in the UK at the moment and HMRC staff due to go on strike soon, I suspect it will have the same lag period in 2020. Well worth doing though for what is effectively very little money.

shandyw

Hi Duoduo, thanks for the useful advice. I wrote and got my state pension forecast. However, when I click your link to buy my added years, I was asked to input my Class 2 National Insurance reference number, which is an 18 digit number. I don't see this on the Stae Pension forecast letter I got, even though they do say I can improve my forecast. Any idea how I can get this number? Thanks Shandy

Duoduo

Hi

You need to apply for the contributions via application and they will then provide the reference number you need. The forecast is only to show your current position.

UKMS

If you call DWP they will work out which years to pay and then generate the reference number. After which you call HMRC to arrange to make the payment. It all Takes a while on the phone but obviously worth it. Also worth noting it can take a couple of months for the payment to reflect in your NI record.

shandyw

Thanks for the useful info. I can't login because the UK Gov identity app doesn't work with iPhones! I will try to call them, preparing myself for a long wait!