mandpete

Do any of you pay voluntary NI contributions and if so why?

We have been wondering whether or not to start paying but after looking at http://www.hmrc.gov.uk/pdfs/nico/ni38.pdf it would appear that the only real benefit of paying is a state pension and bereavement benefit.

We are not sure whether we would be throwing our money away if we pay or whether it is a good idea in the long run as we may move back to the UK one day.

Manc

I considered it for awhile, when the exchange rate was $1.5 to the quid.

since it's changed and I have decided against it.

Elvira

But Class 2 are only about 2 quid a week - or the cost of a frappuccino! Surely must be worth it?

Manc

you sure? When I looked into it I worked it out at $10 per week, then when the exchange rate went tits up was more like $15 a week or so.

I might be wrong though.

Elvira

Expats used to have to pay Class 3, which is more costly.

Rules changed and you can now pay Class 2 (though I believe some NI officials haven't heard of this, so you may need to dig up the rules...)

HTH!

neil

I think I only pay about 8 or 9 quid a month. I kept it going because at that time I was planning on going back within a couple of years - might have to look into whether it's worth it now it looks like I'm going to be staying. Hopefully someone will come up with some reasons for/against paying contributions to help me decide.

Elvira

Like you'll get a state pension when you retire?

BritGuyTN

Yup - i can't see the point at my age

Elvira

AFAIK you need 40 years of contributions to get the full state pension...

tony126

In the 3 years I have been taking my pension it has gone up $14.99/week (todays exchange rate). Penny wise pound foolish comes to mind. You also need to know that what you pay for your last year of contributions will not increase your pension 1d.

Eskimo

like they'll be any money in the pot when I get there (35 years) - Im not bothering to pay it... waste of time and our tax advisor said the same

AmerLisa

Kind of like Social Security then?

AdobePinon

Yes, I had a letter from them several years ago (don't know how they found me) to inform me that I would never be getting a full state pension. (Apparently you're not allowed to backpay more than a year or two.) Very sweet of them.

Elvira

The way I look at it, the odds are better than the lottery.

For me, for the cost of a weekly Frappuccino it is worth it

Sue

Doesn't the UK have a reciprocal agreement with the USA regarding Social Security? How does one benefit from that if they move back to the UK....anyone know?