tbm

Can you please post your whole question as a new thread. Most of it isn't related to voluntary NI.

Also, did you leave in September 2017 or 2016? (You can answer this when you post the new thread.)

Aquapanther

hutchison

you can apply to pay class voluntary 2 them through the HMRC website (i think I did it that way) and a letter came through my uk post address door just now. the post receiver gave me images of the post and i paid from over here via my remaining uk bank account (just switched it online). I have been here 2 years working U.S, no other contributions were made. I had 27 years prior to this.

just did this APR 2019 , so class 2 NI is still available to pay as a voluntary contribution.

mrken30

I just called them and they sent me the relevant forms to my US address. 0300 200 3500 or you can just fill out the form on this site and return it https://www.gov.uk/government/public...ty-abroad-ni38 The same site also tell you what you need to do to get tax refunds and to finalize leaving the UK https://www.gov.uk/tax-right-retire-abroad-return-to-uk

OldJuddian

Due to "You'll need 35 qualifying years to get the full new State Pension." Is there any reason for an expat to pay class 2 NI once 35yrs has been reached?

mrken30

Not really, except they keep moving the goal posts every few years.

durham_lad

No need to get more than 35. It was only recently that it was increased from 30 to 35 so is unlikely to increase again anytime soon. Even when they did announce the increase in years needed, people already receiving the pension were not penalized and people close to retirement age were allowed to buy extra years to get up to 35. Unfortunately we were not close enough when they increased it to 35 so I will have 30 years and my wife 31 years when we receive the State pension in a couple of years time.

celticgrid

Altruism?

No reason, but do keep up to date with rule changes. As already noted, it is unlikely there will be significant change so soon after a rather large overhaul, but even if there was you could expect to have the chance to pay in arrears to catch up again.

Glasgow Girl

There is a reason to continue to contribute Class 2 NICS if you ever contracted out of the state pension. The reason is that even if you paid 35 full years, your pension will be reduced by an amount calculated in line with the number of years that you contracted out. However, since April 2016 every full year of contributions will increase your state pension by about 4.81 GBP until you reach the maximum of 168.60 GBP. When you reach that amount you should cease contributions.

As an example, in my case I contracted out in the late 80s and 90s. Even though I contributed 35 full years, my state pension was only forecast as about 129 GBP instead of the full 155 GBP (as it was a few years ago when it was first introduced). So my pension was reduced by 26 GBP. In my case, if I contribute a further 6 years NICS then I will restore my pension to the full amount. I have done so, and since 2016, each year when I get a forecast I can see the forecast amount increasing getting me up towards the full pension.

Some say, this reduction is unfair, but in reality you paid less NICS back in the day and so you saved back then, plus by contracting out you were able to invest elsewhere. In any case, those who contracted out made that choice and we now have to live with the consequences, fair or not.

So, in short, if you contracted out and are eligible for Class 2 NICS then the ROI is most definitely in your favor. Right now It costs you 3 GBP a week to increase your state pension by 4.81 GBP for every year that you collect it. Even if you only collect for 5 years you are looking at a return of 24.05 GBP on that 3 GBP investment. If you live a long time the return is as good an investment as you will ever get.

Once you get a forecast that is the full pension you should stop contributing as you cannot increase it above that amount. Plus, only the years starting on of after April 2016 count towards increasing you pension. So, if you had 37 years before April 2016, the extra 2 years will not do anything, but all years after that will.

newadventure

Wot Glasgow girl said. I am in a similar position having contracted out during the 90s. I can't see the argument for the reduction being unfair - as Glasgow Girl said, we paid less NICs when contracted out and as long as this was properly explained, you (don't) pays your money and takes your choice

durham_lad

Pulaski

Thanks GG, that's good advice, and confirms what I thought to be the case. Your situation sounds very similar to mine, and I will probably continue contributing after I reach 35 years for the reason you explained.

Oregon99

Folks - i have received my quote for the past 8 years ay approx 8 x 145 quid . year.
The Ref code they gave me over the phone was my NI Number two random letters and my Name - and to use this when sending my money from my UK bank
So question - do i add all 8 years and send one lump sum? Or divide it into 8 payments (that all differ slightly) so that they "know" which year is for what ?
thanks !

chawkins99

I called their hotline and told them what I was sending and for which years then sent a lump sum. They made a note on my account to that effect. All applied correctly except for one which was short as I didn't allow enough to cover wire fees from the US. Shouldn't be a problem from your UK bank.

For the number, see post #53 above.

Oregon99

thanks!