Pension rights in two countries

Gewitty

Before retiring, I worked continuously for 37 years. Of these, fourteen were in Ireland. I paid PRSI in both countries at all times and am now looking at what my pension entitlements will be when I reach 65. Can anyone tell me if under current rules, I can pay up my UK credits to give me the 30 years now required for a full pension, and if I will be entitled to claim an Irish pension as well. If I cannot claim two pensions, then I assume that I will have to combine the credits for the UK and Ireland and take a full pension from one or the other.

Debt_Free_Chick

When did you work in Ireland? If during membership of the EU, then the social security contributions you paid in Ireland will count towards your UK state pension. The reverse might work as well i.e. UK NIC counting towards an Irish State pension, but you can only claim one of these not both.

Where will you retire to? Suggest you aim to get the state pension for the country of your retirement.

Quite complex, but there are rules in place where you work within the EU.

Start off with a UK state pension forecast - start here

Gewitty

Debt_Free_Chick wrote: »

When did you work in Ireland? If during membership of the EU, then the social security contributions you paid in Ireland will count towards your UK state pension. The reverse might work as well i.e. UK NIC counting towards an Irish State pension, but you can only claim one of these not both.

Where will you retire to? Suggest you aim to get the state pension for the country of your retirement.

Quite complex, but there are rules in place where you work within the EU.

Start off with a UK state pension forecast - start here

I was in Ireland from 1973 (the year they joined the EU) until 1987. I will be staying in the UK after reaching retirement age. If I can only claim from one country, then the decision on which country to opt for when taking my pension will be significantly affected by whether the UK has adopted the Euro, or if not, what the exchange rate is at the time.

Debt_Free_Chick

Gewitty wrote: »

I was in Ireland from 1973 (the year they joined the EU) until 1987. I will be staying in the UK after reaching retirement age. If I can only claim from one country, then the decision on which country to opt for when taking my pension will be significantly affected by whether the UK has adopted the Euro, or if not, what the exchange rate is at the time.

I don't think you need worry about the Euro. The social security contributions you paid in Eire between 1973 and 1987 will count as if you'd paid NIC in the UK. They don't get converted from punts/euros to sterling - I think it works out that one year's credit in Eire is the equivalent of one year's credit in the UK, irrespective of the amount you paid.

But get the UK state pension forecast (online is down until later) as it ought to show credits for the UK state pension from 1973 to 1987. If not, you can call them up and see what needs to be done.

This can be a huge benefit, depending on the different levels of state pension in the UK and Eire and the exchange rate when you retire.

HTH

Gewitty

My point about the Euro was that if I have the option to take either a UK or an Irish pension, then the exchange rate becomes an important factor, because an Irish pension would be paid in Euros. Another issue is the fact that at the moment the Irish pension is currently better than the UK.

Were those the huge benefits you mention?

Debt_Free_Chick

Gewitty wrote: »

My point about the Euro was that if I have the option to take either a UK or an Irish pension, then the exchange rate becomes an important factor, because an Irish pension would be paid in Euros. Another issue is the fact that at the moment the Irish pension is currently better than the UK.

Were those the huge benefits you mention?

Yes - you would need to look at both options, assuming they're available and I'm not sure they are.

Bear in mind that if you retire in the UK, the Irish state pension might look attractive at that point in time, but you would be subject to the vagaries of future exchange rates and you have to consider any "added benefits" you get from having a pension in one country or the other e.g. Winter Fuel Payment in the UK.

BUT .... not sure you can pick and choose ... you'll need to look into that.

EdInvestor

Debt_Free_Chick wrote: »

BUT .... not sure you can pick and choose ... you'll need to look into that.

I suspect what happens is that overseas entitlements (whether in Europe or in other countries where the UK has an arrangment, eg Australia) under a certain number of years (possibly 10) get rolled into the main pension. but a separate pension is paid if the entitlement is larger. Pension Service people can explain it to you.