freebo

Just doing my retirement sums.

I'm in the process of topping up our UK state pensions, its pretty cheap and I'll get it regardless of which country I retire in.

As I've been in Australia for 10+ years I know if I retire here I'll get the UK new State Pension but it won't be index linked.

What if I come back for good before retirement age? Will it then be index linked and any impact on it?

durham_lad

I think that whenever you come back the pension will reset to the current amount for the number of years contributions you have made then continue to be index linked. For example if you start receiving OAP in Australia at £100/week then it will stay fixed at that value unless you return and become resident in the UK at which point it will immediately change to the value for those years of contributions so may jump to say £130/week

Beraider

I agree.

spouse of scouse

Exactly this. Also, if after living permanently in UK and having your pension uprated to the current rate you then decide to move overseas again, your pension will stay at the 'new' rate in a country without a SS agreement with the UK, or will continue to be indexed in a country that does have this agreement.

freebo

OK, got it, but if I come back before retirement age will I receive the full New State Pension (assuming I've paid up all the required NI), then have it index linked from then on, i.e. as if I'd never been away?

spouse of scouse

Yes, once you actually reach the UK State pension age of course.

durham_lad

Yes, and I speak from personal experience having spent 29 years in the USA, and started receiving my OAP this year. While I did pay voluntary NI I ended up with 31 years so not quite a full pension.

freebo

That's good to hear, did the USA have the index-linking arrangement? Australia doesn't. i.e. if you had stayed in the USA would your payment still be index linked?

ianandhelena

https://www.gov.uk/government/public...-state-pension

spouse of scouse

I know you're asking durham lad these questions, but I'll risk another reply in an attempt to help..

It makes no difference that you've been living in a country (Australia) that doesn't have an 'index linking arrangement' (Social Security agreement) with the UK.

If you return to the UK, whether before your State pension age or after, you'll get the same amount of State pension as everyone else in the UK who has paid the same amount of NI contributions as you, and you will also receive the yearly increases.

brits1

Hi, just curious as to when you say that "topping up" was pretty cheap....can I ask how cheap? A friend lives in Australia and is looking to do the same thing as they have not really worked that often in their 10 years in Australia for a few reasons but has started working now.

christmasoompa

Really, really cheap, compared to what you can potentially get back. If they qualify for Class 2, then it’s just over £150 a year. https://www.gov.uk/voluntary-nationa...ibutions/rates

And he can pay voluntary contributions even if not working in Oz.

HTH.

durham_lad

Exactly right.

tdrinker

Is there a minimum qualifying period you have to live in the UK to retain the uprated pension amount if going overseas again, rather than it reverting to its previous lower overseas amount? I read elsewhere 2 years, but can't find any official policy.

durham_lad

I couldn’t find any official policy either, but I think that once you start receiving the new updated pension that if you leave again then it will be frozen at the current rate. If I was in that situation I would contact DWP and check before leaving.