kodokan

New rules come in April 2016 - I figured best wait to order my forecast until after then, in case the computers are ridiculously set up to run the old algorithm right up until the change date. You never know...

Pulaski

People who were "fully paid up" at thirty years and who were not yet retired were given the option to pay a further five years (to give them the new 35 required years) even if they didn't qualify to make additional contributions under the usual "six years of arrears" rule.

In short, there is no "granfathering in" of the 30 years of contributions.

bewildering

Yes. And I'd prefer to have control of my own money in 30 years. The current rise in state pension costs in the UK is unsustainable. Overseas pensioners will be prime targets to have their pensions 'pruned' to save money.

Pulaski

It's just one of a number of investments and income streams I have planned for retirement. Under a doomsday scenario, it's not a bad "insurance policy" and has been dirt-cheap under Class 2 contributions.

That said I held off making voluntary contributions when I was younger so I could be more sure the state pension will be there when I retire.

Steve_

Oh I can't be bothered, read through this and tell me what the answer is: https://www.gov.uk/government/upload...d-Feb_2016.pdf



I used to pay into SERPS so I get more, so that means my "starting amount" is presumably a lot higher, yes? Er, so what does that mean.

Pulaski

I doubt it. If you opted out of SERPS you apparently get less. I suspect that if you paid in to SERPS it just ups you to the par amount.

Steve_

Don't follow that, why would you make additional payments if you are fully paid up?

And it does appear having paid into SERPS gives me some sort of advantage, what exactly I'm not sure.

Pulaski

Because they could shift the goal posts, making you "not fully paid up", which IIRC is exactly what happened to Yorkieabroad - he had been fully paid up at 30 years, then had to pay for five additional years so that he was fully paid up again. AFAIK he is still young enough that before he retires they could move the goal posts again, say to 40 years, and he would have to pony-up again. I heard indirectly of someone else who had apparently been offered the opportunity to pay for additional years when they changed the rules to 35 years, despite have none of the last six years available to make payments in arrears (which is what I was referring to in part of the post of mine that you quoted).
From what I read, if you never opted out of SERPS you are in line to potentially get the "new full pension" and that anyone who had for a period of time opted out of SERPS, would get their pension reduced by an amount to reflect each year that they had opted out. .... Which begs the question: might it be worth paying in additional years even after you have reached 35 years (under the current rules) to give you more years during which you were not opted out? I doubt it would be financially sensible, especially with Class 2 abolished for expats, but I would like to see the numbers.

celticgrid

This...

Except my previous one was 8 years ago and I can't find it now!

I wondered about...

But until recently the website suggested not to apply, as things were transitioning. Now that wording has gone and it appears to invite requests from us folks stuck in the middle of the changes. So...waiting to see what arrives and hoping to do any catching up before they do away with Class 2.

NatashaB

I'm awaiting the latest bill, I assume it will arrive sometime this month. Will it be at the old rate or the new rate?

Pulaski

Mine came in May, last year.

The Class 2 rate varies slightly every year, but I suspect that you meant "at the Class 3 rate" when you said "at .... the new rate". .... Ckass 3 will apparently be the rate that expats pay from 2018, so 2016 and 2017 will still be at the Class 2 rate if that is what you were approved for previously.

Owen778

As I mentioned in post 4 in this thread, I received the update for the coming tax year a month ago. Contributions are set at Class 2 rates.

Steve_

Given that I've got until 2018, I think it's one of these situation where it's best to let the dust settle and ask them in a few months.

Even the PDF is very vague. There seems to be this habit for the UK govt. to progressively dumb down publications and websites so the dumbest dullard can understand them but in so doing, they lack the necessary detail.

Unlike the IRS, who are constantly pissing out new forms and regulations. One of my relatives was going on about Form 8965 which she now has to file "I spent half an hour finding that bloody exemption code!"

What I like about the tax systems in Canada and the US is that you are compelled to figure out how they work so you know exactly how much tax you're liable for, whereas in the UK they try and hide how much tax you're paying to the maximum extent possible. E.g. including VAT in retail prices. PAYE RTI.

NatashaB

Yes, I meant the class 3 rate when I said 'the new rate'. Thanks Owen778 and Pulaski

scot47

Goal posts continually shifting. I think it is safe to assume that we cannot trust any of these b***ers.