Topping up NI Contributions
#1
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Topping up NI Contributions
I'm a Green Card holding Brit and been in the USA since 2014 and have been looking at retirement stuff recently.
Realized, I haven't made the full 35 years NI contributions necessary for the full state pension. Has anyone completed NI38 and gone through the process of "back filling" their Class 3 contributions and can give some advice - especially as the form seems to assume you are completing it before you leave the UK, asks for your UK address, etc.
Thanks.
Realized, I haven't made the full 35 years NI contributions necessary for the full state pension. Has anyone completed NI38 and gone through the process of "back filling" their Class 3 contributions and can give some advice - especially as the form seems to assume you are completing it before you leave the UK, asks for your UK address, etc.
Thanks.
#2
Re: Topping up NI Contributions
Yes I did it from Australia.
I just filled in the form at the back of the NI38 and applied to pay Class 2 contributions (only costs about GBP156 p.a. rather than 780).
In the box asking for my UK address, I just wrote "none".
When you are in a position to pay, ensure you phone Future Pensions (+44 (0)191 218 3600) to clarify which years it is worth contributing for, as it's possible to pay for some years that don't provide any uplift in the value of the pension. From memory in my case, it wasn't worth paying for more than 30 years prior to 2016 when the pension changed.
I just filled in the form at the back of the NI38 and applied to pay Class 2 contributions (only costs about GBP156 p.a. rather than 780).
In the box asking for my UK address, I just wrote "none".
When you are in a position to pay, ensure you phone Future Pensions (+44 (0)191 218 3600) to clarify which years it is worth contributing for, as it's possible to pay for some years that don't provide any uplift in the value of the pension. From memory in my case, it wasn't worth paying for more than 30 years prior to 2016 when the pension changed.
Last edited by ianandhelena; May 5th 2020 at 7:41 am.
#3
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Joined: Dec 2010
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Posts: 729
Re: Topping up NI Contributions
Yes I did it from Australia.
I just filled in the form at the back of the NI38 and applied to pay Class 2 contributions (only costs about GBP156 p.a. rather than 780).
In the box asking for my UK address, I just wrote "none".
When you are in a position to pay, ensure you phone Future Pensions (+44 (0)191 218 3600) to clarify which years it is worth contributing for, as it's possible to pay for some years that don't provide any uplift in the value of the pension. From memory in my case, it wasn't worth paying for more than 30 years prior to 2016 when the pension changed.
I just filled in the form at the back of the NI38 and applied to pay Class 2 contributions (only costs about GBP156 p.a. rather than 780).
In the box asking for my UK address, I just wrote "none".
When you are in a position to pay, ensure you phone Future Pensions (+44 (0)191 218 3600) to clarify which years it is worth contributing for, as it's possible to pay for some years that don't provide any uplift in the value of the pension. From memory in my case, it wasn't worth paying for more than 30 years prior to 2016 when the pension changed.
#4
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Joined: Aug 2013
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Posts: 4,098
Re: Topping up NI Contributions
I'm a Green Card holding Brit and been in the USA since 2014 and have been looking at retirement stuff recently.
Realized, I haven't made the full 35 years NI contributions necessary for the full state pension. Has anyone completed NI38 and gone through the process of "back filling" their Class 3 contributions and can give some advice - especially as the form seems to assume you are completing it before you leave the UK, asks for your UK address, etc.
Thanks.
Realized, I haven't made the full 35 years NI contributions necessary for the full state pension. Has anyone completed NI38 and gone through the process of "back filling" their Class 3 contributions and can give some advice - especially as the form seems to assume you are completing it before you leave the UK, asks for your UK address, etc.
Thanks.
#5
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Posts: 199
Re: Topping up NI Contributions
Thanks Ian and Helena and the other folks for the good advice - interesting on the Class 2 vs 3 - I assumed class3 after I read that CF83 leaflet as I was employed not self-employed - was that your situation? Also, Wonder if UK.Gov cares I got divorced after marrying in the US, again seems to assume you were married at the time of completing the form, which i wasn't. Did you put TBA for the question "How long do you intend to stay abroad?"
#7
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Re: Topping up NI Contributions
A cautionary tale
My brother left it too late and as a result he has long gaps in his record and is now "out of time"
He should have taken my advice years ago.
To all of you out there. Checkout your NI Contribution Record. Be like me and not like my brother !
My brother left it too late and as a result he has long gaps in his record and is now "out of time"
He should have taken my advice years ago.
To all of you out there. Checkout your NI Contribution Record. Be like me and not like my brother !
#8
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Posts: 199
Re: Topping up NI Contributions
Thanks again and for scot47's handy addition - I checked my NI online and at 33 years I have 2 years to "back fill" to get to the 35, with April 2021 being the end date for the "oldest year". Ill be getting on with it shortly as the difference in state pension just for being 2 years behind is around 35 quid a week. Well worth the top up. Cheers all.
#9
Re: Topping up NI Contributions
Thanks Ian and Helena and the other folks for the good advice - interesting on the Class 2 vs 3 - I assumed class3 after I read that CF83 leaflet as I was employed not self-employed - was that your situation? Also, Wonder if UK.Gov cares I got divorced after marrying in the US, again seems to assume you were married at the time of completing the form, which i wasn't. Did you put TBA for the question "How long do you intend to stay abroad?"
Here's a guide to which contributions to apply to pay: https://www.gov.uk/voluntary-nationa...-contributions
#10
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Re: Topping up NI Contributions
Thanks ianandhelena. So really - by that calculation just doing the 2 years would only add a fiver a week ...may not be that worth it. Unless I've misunderstood the calculation of course.
#12
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Re: Topping up NI Contributions
If you qualify at the lower rate of contributions this is a very good buy. Just make sutre you live to collect. I have been getting my pension now for 9 years and I hope will get it for many years to come !
#13
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Re: Topping up NI Contributions
#15
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Re: Topping up NI Contributions
Depends on when you start collecting. For example if you contribute at Class 3 one year before you start collecting it will take 2.5 years to get your money back, and the OAP goes up each year, so the contribution continues to grow throughout your lifetime. If you start contributing 10 years out then you have to calculate how much interest you will be losing each year on that ~£700 contribution.
Spreadsheet heaven