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Another Social Security Question

Another Social Security Question

Old Sep 5th 2017, 12:50 am
  #1  
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Default Another Social Security Question

Sorry for another SS/NI question.

I have met 30-years Social Security contributions, so I should avoid any WEP. I am planning to work in the US for an additional ten years. I found out today that I have nine years of NI contributions. I can go back and buy up the previous six years- each year would cost around 650-700 pounds/year payable before my retirement age in 2026. If I pay up my NI contributions can I claim both pensions? Given the good exchange rate now, does it make sense to purchase the six years and an additional ten years or, only buy one year to meet the ten years NI contributions minimum?

I also have VA and Dept of Defence Survivors benefits for life; I am not sure where or if that benefit plays a part in anything?

Thanks for any info.
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Old Sep 5th 2017, 3:04 am
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Default Re: Another Social Security Question

Yes, you can claim both. If you have worked long enough to escape WEP (30 years) then the deal is even better.

You should apply to make Class 2 contributions, which for years prior to 2018 will save you about £560/yr of contributions. .... But even at £715 Class 3 contributions the British state pension is an extraordinarily good deal, buying years for £143-£145 (the Class 2 rate) is unbeatable, so buy up as many years as they will allow you to!

IIRC a Class 2 year at around £144 will pay back in some where around 10 months after you retire, a Class 3 year means that you will be ahead after around 4 years of retirement. I don't know of any other investment that comes anywhere close to this rate of return.
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Old Sep 5th 2017, 4:56 pm
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Default Re: Another Social Security Question

Thanks! Yes, according to the SS I have 31 years of employment under my belt, and I still plan to work for another 10. When I was on the UK gov website, it didn't seem to allow me to purchase at the lower class 2 rate, but I will look into that. Thanks for the info. Deb
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Old Sep 5th 2017, 5:05 pm
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Default Re: Another Social Security Question

Originally Posted by DebzinUS View Post
Thanks! Yes, according to the SS I have 31 years of employment under my belt, and I still plan to work for another 10. When I was on the UK gov website, it didn't seem to allow me to purchase at the lower class 2 rate, but I will look into that. ....
Yes, you have to apply - submit a request (a form is available), to be allowed to contribute at the Class 2 rate
..... Thanks for the info. Deb
You're welcome.
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