Ash UK/US

I need some advice.

I received a letter from HM Revenue and Customs informing me I need to pay X number of £££ of National insurance contributions in order to qualify for basic state pension.

Has anyone else recieved this letter? Has anyone paid the basic contributions?

dunroving

Sorry, can't help you but I'm interested to learn about this idea of continuing to pay NI after leaving the UK, with the intention of drawing a UK State Pension. It seems like it's worth it as the payments are quite low, and I'll probably need all the help I can get in retirement.

Ray

I actually asked for a foecast and got the letter telling me how much
they wanted to get me a full UK pension..

You will now need 30 years .. down from 44 years under recent changes
IMO Its worth doing ...

Bob

It's worth doing as it doesn't cost much, but it probably depends how old you are...

I can't because you have to have made three years of contributions before buggering off abroad

Ray

if you are overseas ..you can ask for a pension foecast here

http://www.hmrc.gov.uk/pdfs/ca3638.pdf

Xebedee

You sure about that?
I think you get "freebie" years when you are young.
Like 16 or something.

Unless they told you so, of course.

kins

Yes I had one a while ago - it told me that I had to pay £150 to catch up on my contributions to cover a period I'd missed (which was actually while I was living in the US).

When I got the letter I thought about it for about a year then made the payment.

I've now asked for a pension forecast to find out how far I am from being able to get the full pension, and I would consider making extra payments if necessary (and if they're not ridiculously high).

Ray

Think of this way ...you will get even at todays prices £87 a week

so that just under 2 week pension....Madness not too

Dan725

I need to start paying into this again I think. I seem to recall reading something about Type 2 or Type 3 contributions or something to that effect; one lot is substantially cheaper than the other? Anyone know which one you pay here?

Bob

Aye, but I buggered off after I graduated, so at 22.

Xebedee

I figured that over the first 10 years of retirement they will pay back 45.4k quid. Thats for paying them 10k. Not a bad return.

I did hear that a USC spouse even, is eligible for an additional "spousal pension" . Not sure, but still looking into that one.

Either way, its worth it.

dunroving

Wow, that's $US750 per calendar month.

Xebedee

Shine on you crazy diamond.
The penny just dropped didn't it?

Also, look at it this way:

Its in addition to any SS handout (if you are all paid up) and if the buggers over here scrap SS, at least you will have the UK pension to fall back on.

Ray

Will keep me in coffee and cigs .....

rew1000

If you were working in the UK/are working here, you can probably pay the cheap ones (Type 2) which are two quid a week.

Full details here: http://www.hmrc.gov.uk/pdfs/nico/ni38.pdf

But if you're retiring after 2010, "The number of qualifying years needed for a full basic State Pension will be reduced to 30", so it may or may not be worth it.