State Pensions

matt19_2

Dear all

It has recently been brought to my attention about topping up on NI contributions to make sure we all gain the maximum advantage from our state pensions.

As we are members of the European Union, does anyone out there know if we can pay into the state pension of other EU member states and take advantage of what they have to offer (free movement of capital and all that!)?

Thanks

FatherAbraham

matt19 wrote: »

It has recently been brought to my attention about topping up on NI contributions to make sure we all gain the maximum advantage from our state pensions.

As we are members of the European Union, does anyone out there know if we can pay into the state pension of other EU member states and take advantage of what they have to offer (free movement of capital and all that!)?

You can't just buy into the state pension scheme of a country you've never worked in. This has nothing to do with free movement of capital.

If you've worked in an EEA (which is bigger than the EU) country, and have contributed to that country's state pension via social-security deductions, then you may, depending on that country's local rules, be able to buy extra benefits there.

However, you may only buy extra years, months or weeks in one country, under the EEA rules for pension benefits. (This means that only purchases in one country can count for your combined pension benefits under EEA rules -- of course, it may still be advantageous to buy extra years in more than one country if the extra years in the second country would generate a better pension portion from that country than the EEA combination rules would offer).

As a rules of thumb (based on what a French colleague told me): UK extra bennies are cheap to buy, and not worth very much; extra years in France are worth a lot, and cost a stupendous amount. I didn't look into his figures.

You'd have to go and do some research. Please let us know your findings.

Warmest regards,
FA