Groover

Background: I moved from the UK when I graduated so I haven't paid into the UK system at all. I am nearly at 10 years of paying into the US system and I am now a dual citizen. I'm currently thinking of moving back to the UK in the next five years.

It seems to me that if I move back to the UK and pay into the UK scheme then the following happens:

1. I stay in the UK until retirement - my US payments are credited to my UK pension.

2. I return to the US by retirement age - my UK payments are credited to my US social security.

3. Either situation - I have worked 10 years in the US making payments and meeting the minimum requirements (40 quarters). I will also meet the minimum requirements in the UK after moving back. So I can choose to receive two pensions - one from each country - instead of having one country apply credits to the other.

Is this correct? If so it seems a bit pointless to bother with voluntary NI payments. Also can I really choose whether to apply credits from one country to the other or have two pensions?

Incidentally I found the SSA website to be much more useful regarding information on the treaty than any UK government websites.

Andy

dunroving

I believe your understanding is correct. The Web site below describes the totalization agreement that allows UK citizens to credit their UK NI payments towards US pension, or vice versa:

http://www.ssa.gov/international/agr..._overview.html

As long as you meet the minimum requirements in each country, I believe you can receive pension from both countries. I've read posts on here before from people who do that.

There were some posts on the USA forum recently that mentioned the minimum period for receiving UK pension may be reduced in the near future. Off the top of my head, I think there was talk of it going down from a minimum of 33 years to 27 years (don't quote me on that though).

It seems the best move would be to wait until just before you intend to retire and then look into which alternative would pay you the most. I have a sneaky feeling that state pensions in both countries will change a lot in the next 10-20 years.

Scout

Oh wonderful....now I get to go and have a headache about Social Security......forget the headache I had earlier this year working on my US taxes.........and the mess my UK taxes are going to be in because the twits won't give me a NI number..........now I learn there's all sorts of things wonky with Social Security too

Bob

you can have two pensions, thing to look out for is the tax that could be applied, depending on how much you get.

Groover

Thanks for the replies! It's good to have independant confirmation I'm not going crazy with this stuff...

Andy