State pension for expats and foreigners

blueton

margaretclare wrote: »

I'm a bit puzzled as to why anyone thinks they should receive retirement pension in the UK if they don't think they'll be living here in retirement, receive it across the sea in fact. Wouldn't it be more logical to claim retirement pension in whatever country you choose to spend your retirement years in? Or is that too obvious?

The State Pensions in some countries are a pittance compared to the UK although the cost of living isn't much less. If I paid NICS all the years I worked in the UK and paid voluntary NICS since working overseas, as well as paying the social taxes due here, I hope I will get the UK Pension, not the pension I'd get here.

srcandas wrote: »

As I understand the rules you claim in the last country where you worked (made contributions). They then sort out contributions from the various countries where you may have built up entitlement.

From a previous post by Xylophone in 2012: "Where should I apply?

Even if you have worked in several countries, you should apply for your pension in the country where you live, unless you never worked there. In the latter case, you should apply in the country where you last worked."

Of course the level of contribution, retirement age, pension levels all come into play.

So my spanish wife has 28 years entitlement built up in Spain but now works in the UK and will have built up 10 years here. So she will try to claim in the UK. Her spanish entitlement should begin a year later. But as Spain will be bankrupt by then who knows!!!

I believe in some countries your pension does not increase with inflation. This is not the case I believe in the EU (while we brits remain in it ).

HTH but do try official sources :beer:

I hope I won't be required to claim my Pension here just because I have lived and worked here. For the reason given to the previous reply.

My wife has never worked here, so the question remains whether having previously worked in the UK she can and should continue to pay voluntary NICS if that will give her a UK State Pension.

srcandas

blueton wrote: »

The State Pensions in some countries are a pittance compared to the UK although the cost of living isn't much less. If I paid NICS all the years I worked in the UK and paid voluntary NICS since working overseas, as well as paying the social taxes due here, I hope I will get the UK Pension, not the pension I'd get here.

I am fairly certain you will get the part pension from the country where contributions were paid. What is unclear is how contribution years are calculated. In Spain for example the calculation depends on the most recent years but if those years were overseas where does that leave you?

But as I say Spain is a poor example and hopefully will totally breakdown and start to rebuild itself prior to 2023 (when my wife retires).

Must admit it seems odd to me to contribute to a state pension in a country where you are not resident. I'd assumed that would not be allowed so I will have to have a look at that. We live and learn

blueton

srcandas wrote: »

I am fairly certain you will get the part pension from the country where contributions were paid. What is unclear is how contribution years are calculated. In Spain for example the calculation depends on the most recent years but if those years were overseas where does that leave you?

But as I say Spain is a poor example and hopefully will totally breakdown and start to rebuild itself prior to 2023 (when my wife retires).

Must admit it seems odd to me to contribute to a state pension in a country where you are not resident. I'd assumed that would not be allowed so I will have to have a look at that. We live and learn

I thought that UK State Pensions were paid directly into the expats bank accounts, wherever they have emigrated to. I would hope that the country of residence in retirement would not influence the amount of the UK State Pension the expat receives if the Pension is a result of paying UK NICS while living and working in the UK and then keeping up the voluntary contributions after emigrating.

I have to pay the local social insurance tax in our country of residence as all workers have to pay it, but I am still getting a NIC statement each year and paying the amount is says I need to keep up my UK NIC as I am close to the required 30 years (but soon going up to 35) and want the full UK State Pension. My wife worked and paid UK NIC in the UK until she stopped working to raise a family, and then after we emigrated she has not worked abroad but continues to get her NIC statement too and pay the UK NIC amount required for each year, again because she wishes to to eligible for a UK State Pension.

I am hoping someone on the forum will be able to confirm and answer to my OP about whether my wife will in fact be eligible for a UK State Pension by continuing to pay NIC, but I would now expand that to include me too, as some of the posts have put doubts in my mind about whether I will get a full State Pension too!

atush

I think you need to call next time you are ho9me, or write.

The plain facts as stated above are, that if you are living and working in Spain, you'll get the spanish pension. If you want a UK pension, you might have to come back a bit and work and pay Nics then retire and move back?


The only fudge i could see is of you got a partial UK pension based on your UK NIcs and registered for the spanish one seperately but I don't know if that is allowed.

srcandas

Each country adds together your contribution periods from all countries and works out how much pension you would get if these contributions had all been paid into its own scheme.

This amount is then adjusted to reflect the actual time you were covered in that country (called the pro rata benefit).

Result

The amounts are compared and you will receive whichever is higher.


http://europa.eu/youreurope/citizens/work/retire/state-pension-claims-and-calculation/index_en.htm

HTH

blueton

I found this on HMRC. I can't post the link as a new member but it is:
hmrc.gov.uk/ni/volcontr/abroad.htm

It includes this:

Voluntary National Insurance contributions if you live abroad
Voluntary contributions will count towards your State Pension, and protect certain state benefits and allowances if you return to the UK.

Who can pay voluntary National Insurance contributions while abroad?
If you want to pay voluntary National Insurance contributions while abroad, either of the following conditions must
apply:
• you must have lived in the UK for a continuous three-year period at any time before making your payments
• before you went abroad, you paid National Insurance contributions for three years or more

If you move abroad, continuing to pay UK National Insurance contributions may help keep your entitlement to:
• certain state benefits in the European Economic Area (EEA) and some reciprocal agreement countries
• certain state benefits and allowances when you return to the UK
• a full State Pension



I'm not sure where the mix-and-match pension arranegement on europa.eu fits in with this, but seems to confirm if expats maintain voluntary NIC they can get a full UK State Pension.