thinbrit

I recently received by UK State Pension statement. I have 17 qualifying years, and need a further 13 years to entitle me to a full UK state pension.

My statement gives me the opportunity of 'catching up' on the 4 years of payments I did not make due to living in the US. Can I pick and choose which years to pay, or must I have continuous payments once I left the UK? The paperwork doesn't clearly state this, and it took 3 months for a response to my last enquiry.

The reason I ask is each years amount due varies enough to make it worth considering skipping a year. ie:
2005-2006 - £382.20
2006-2007 - £626.60
2007-2008 - £405.60
2008-2009 - £421.20
I have another 25 years until I reach 65, so it seems I have plenty of time to make those additional 13 years payments. I'd like to skip 2006 for obvious reasons.

I am a US citizen and have no plans to return to the UK.

Thoughts? Pitfalls?

Thanks

Ozzidoc

I can't answer your question, but I would (almost) bet $100 that 2009-2010 will be close to £1000, if not more. An large increase was announced in April this year.

I also understand that the "quotes" the dept give are based on them receiving payment in that year, and if you leave it for a few more years, the amount for that designated year could increase. This is how I understood things to be from the annual statements that they have sent me over the years.

thinbrit

Thanks for the heads up on the rate increase, perhaps 2006 doesn't look so bad after all, especially if the new rate hike is a trend for things to come.

The paperwork has dates for each year we need to pay before to avoid penalties:
We'd have to pay 2006-2007 and 2007-2008 by April next year to avoid penalties. 2008-2009 is not due until April 2011 without penalties, and the oldest one 2005-2006 is not due until April 2012 without penalties. I'm not sure why 2005-2006 has a longer grace period, but it does.

thinbrit

It seems the 2009-2010 rate is £12.05 per week, which is the same as the 2006-2007 year.

http://www.hmrc.gov.uk/rates/nic.htm

Ozzidoc

Yes, I saw that.

Maybe all the kerfuffle on Radio 4 about the increased rates was just that....

psb1821962

You will recieve a full US pension and 17 yrs UK pension why would you want to make up another 13 yrs??? If you invest the money you would have to pay for those 13 years and and forget about it I would bet the return would be at least 3 times better than the diffenence between a 30 yr pension and a 17 yr pension

mayhemuk

Slightly related....
I have been 'here' for 2 years now and even when in the UK I have not had a pension statement from the lovely govt dept that administers them.
Is there something I need to do to trigger them?

tonrob

You could write to them but be prepared to sit tight and wait months for a reply.

BritishGuy36

Can I ask how you obtained that? I would be interested in obtaining mine.

vegas

http://www.direct.gov.uk/prod_consum.../dg_180422.pdf

BritishGuy36

Thanks.

The website linked in there clearly states you can't get a pension forecast by any means unless you live in the UK. I'm wondering how thinbrit got his.

vegas

If you are living outside the UK you will need to contact HM Revenue & Customs for pension forecasts. You can ask any questions about your National Insurance contributions. The contact details are:

HM Revenue & Customs Charities, Assets and Residence (Residency)
Room BP1301
Benton Park View
Newcastle-upon-Tyne
NE98 1ZZ

If you are in the UK you can also telephone the Centre for Non-Residents (Newcastle) helpline on:

Tel: 0845 915 4811

If you are telephoning from outside the UK, dial the international code, then:

Tel: +44 191 203 7010

thinbrit

This site should answer questions you have:
http://www.hmrc.gov.uk/cnr/osc.htm

To get the forecast you download, complete, and return this form:
http://www.hmrc.gov.uk/pdfs/ca3638.pdf

Even after completing the form they wrote to me and asked I confirm I had not worked in the UK since leaving. A cover letter clearing stating the last time you worked in the UK and that you have not worked there since that date may expedite your enquiry.
The initial response I received asking for more information took about 6 weeks. I then waited another 6 weeks after supplying additional information stating I left when I said I did, and did not work in the UK after that period.

BritishGuy36

Ok that's good info, thanks.

I reckon I should have over 20 years NI contributions as I worked between the ages of 16 and 37 in the UK.

thinbrit

They only count full years, which may reduce your total. Its especially frustrating if you were not working for the last week of one year and the first year of the next and didn't claim benefits or make voluntary contributions for that period - you lose 2 years for the sake of two weeks. Using that formula you probably lost at least 2 years - the year you turned 16 and the year you left the country. I also lost several years when I was out of work for a brief period but too proud (stupid) to claim benefits. I also lost when I changed jobs and took a week or two off between the jobs.