robin1234

One thing about NICs is that you can only pay them up till your retirement age, 65 in my case. US SS there is no age limit, if you are working you keep on paying, I believe?

This means with NICs you can time out if you start the voluntary Class 2 too late. This is what happened with me, I'll be 65 and will only have 29. My fault,for several years I looked at the rules and couldn't figure out whether I was eligible for Class 2, so delayed applying. When I did apply, it was incredibly easy, I paid my six years arrears and pay each year now in April ... but I should have started at least one year earlier!

A word to the wise...

dunroving

3 years is what I recall from previous threads on this.

Uncle_Bob

Both myself and my wife worked only about 5-6 years after graduation. We were eligible for class 3 NICs but as i said i'm writing back to request class 2.

I view the UK pension as a coverage in an unlikely event of a disaster, or the more lightly event that my 401k and retirement savings here are going to fall short. The pension would at least be food on the table.

i suppose it could get means tested in which case you could easily move some money around the family.

Its slightly unfair that despite being allowed to make voluntary contributions as expats we will never get the pension increases once we retire.

Giantaxe

If you live in the US you will, thanks to the US/UK reciprocal SS agreement.

Pulaski

Are you planning on immigrating to Canada, Bob?

Residents of a number of countries get annual increases in their UK state pension, including the whole of the EEA, countries in or near SE Europe (the Balkan countries and Turkey), a bunch of islands banana republics mostly, (such as the Channel Islands, Jamaica, Mauritius, the Philippines) .... and the USA.

Residents of Canada, Australia, New Zealand, India, Pakistan, and anywhere in Africa all lose out!

Steve_

I'm sure it's on the DWP website, but basically, if you're not required to file a tax return, they're going to invoice people once a year (starting in July). Why they can't just do the DD once a year for £145 I don't know, but still it's better to get invoiced once a year because then you can hopefully pay with a credit card so no more need for a UK bank account.

So make absolutely sure you've got your address up-to-date with the DWP so you don't miss the invoice, seems to be the key point.

I think they've also moved the goal posts as they will only count years from the age of 19 onwards, not sure if that applies retroactively though. But say you started work at 17, you've just lost two years worth of contributions. I'm not sure on that point though.

Steve_

As Pulaski pointed out, in the US and EEA, you do get the cost of living increases. But anyway, it is already effectively means tested, the basic pension is what you get if you don't qualify for any of the extra doodads. This is the downside of living abroad I suppose.

Steve_

I don't know whether they're going to mess with the pension provisions again, but one thing I do know for 100% certain is that HMRC, the IRS, CRA etc. are going to link all their systems as provided for under the tax treaties so if you're thinking of pretending to live in another country to get the cost of living increases - think again, they will know.

Even now when you claim CPP and OAS in Canada, they check with HMRC to see if you qualify for a British pension, says to contact the DWP on the letter that comes from the CPP.

Steve_

I thought it was calculated when you hit 62? Or do they recalculate it if you delay claiming it? I mean you can keep on paying but does it alter the calculation? How Social Security Benefits Are Calculated | Bankrate.com

robin1234

As far as I know, your SS entitlement is continually recalculated as you age, accrue further credits, etc. Pretty sure that it doesn't stop at 62. They no longer mail out the statements annually, but with an online account you can see your record at any time, although the credits are only reflected on the statement once annually, I believe.

durham_lad

My existing NI record includes the year I started getting paid at age 17, I'm almost 60 and will be pretty annoyed if they take two years off my record.

durham_lad

I'm pretty sure that is correct, you continue to accrue credits as long as you continue to work up until full retirement age.

The paper statements are being sent out annually again starting last September

Social Security Paper Statements Return – AARP

Pulaski

I'd not thought about that, but if they apply that curtailment retroactively then I'll probably lose a year too. I didn't work the whole year I turned 18, but I think it was enough to be credited with a year.

kodokan

Didn't everyone get the years from 16-19 credited? I did; first in 6th form FE college, then uni. I thought everyone did, as they'd either have been working, studying, or claiming a benefit which entitles them to a credit.

Pulaski

Oh, I don't know. Maybe. Maybe that is the sneaky rationale for docking those years, that they were mostly "nominal", not paid for in cash?