NI & state Pension Q

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Jan 4th 2019, 2:19 pm

UK2toUSA

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NI & state Pension Q

Hi All,

Need your expert opinion...
I will start to get my state pension in 2042 but I must contribution for another 24 years to get £714 a month from HMRC. I have couple of questions .. please help and advice.

- For 16 years of my NI contribution will I be able to get any state pension, or it gets null and void as i don't contribute more ?

- For each gap year do one has to make Class 3 voluntary or Class 2 voluntary contribution? I am NOT sure which category I fall in.

- If I have to contribute for 24 years more then Class 2 voluntary contribution only makes sense financially.

- Once you start to get these state pensions - Do one has to pays any taxes on state pensions in the USA or UK?

Last Q – Is it worth to make these contribution

Please advise what has been your experience so far!!

Thanks a lot!

Jan 4th 2019, 2:35 pm

durham_lad

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Re: NI & state Pension Q

Quote:

Originally Posted by UK2toUSA

max UK pension is after 35 years so you “only” have 19 years more contributions to go.

how much is a straight line computation so if the full pension is £164.35/week then you currently would qualify for 16/35ths of this. You will never lose those 16 weeks.

while working abroad I think you qualify for Class 2 which is a no-brainer as a good investment, but I’ll leave others to comment on that.

Your UK state pension is fully taxable in the USA if you are living in either country and are a USC but your US state pension (aka SS) is only taxable in the UK if you happen to be living there even as a USC.

Jan 4th 2019, 4:58 pm

celticgrid

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Re: NI & state Pension Q

Quote:

Originally Posted by durham_lad

while working abroad I think you qualify for Class 2 which is a no-brainer as a good investment, but I’ll leave others to comment on that.

It depends. It depends on the working circumstances when you left the UK and on what your current working circumstances are.

There's a form to complete in order to apply to be allowed to pay Class 2. Fill it in, send it off and wait a while. You'll get a better picture from a couple of older threads on this subject.

In general, if you can pay Class 2 it is worth it.