Advice needed. I am 34 and have no pension plan or NI contribs.. Where do i start?

Stacey101

Hi. I need some advice.

I am from the UK and am 34. I live and work abroad and have done most of my working life. I have no pension and am unsure about what to do. I have about 18 months paying NI contributions in the UK. I paid taxes in Japan, Spain and Italy over the years but have no idea if that helps.. Currently on holiday in the UK.

Now I finally have some money to start a plan and am starting to look at options. There seem to be so many options I don't know where to start really... I have a 6 year old son and a steady income that would allow me to put in monthly to some kind of plan I guess.

A friend mentioned bonds? I really do not know anything though and am worried I will make the wrong decision but feel that at 34, I should start a pension..

Any advice appreciated! Thanks!

edinburgher

This link may be of some assistance re. the state pension:

https://www.gov.uk/new-state-pension/living-and-working-overseas

atush

Basically, you need to check your record, but you will have 3 years from 16-18 plus your working period. It may be 2 more years, if you earned enough in your half year. So make that 5 years.

You need 10 years to get any sort of SP. Your years in spain and italy would count to their state pensions, and may be able to be liked to your UK one under EU rules (but i have no idea what changes will be made after brexit). AS it stands you claim in the country of your retirement and they get the other countries you worked in to show how much you are due.

Read the link. Then you can buy added years it he UK SP, but you need to contact HMRC about that. And you need to think hard about where you want to spend the rest of your life and build up a pension (public and private) in that country?

dunstonh

I have a 6 year old son and a steady income that would allow me to put in monthly to some kind of plan I guess.

That is not an eligibility criteria. Residency in the UK is (or being a crown employee/armed forces)

A friend mentioned bonds?

onshore investment bond
offshore investment bond
corporate bond
high yield bond
savings bond
premium bond
any many others using bond in the name when they really shouldnt.

Is the friend in the UK or where you are resident? (UK options largely wont apply to you).

bigadaj

Stacey101 wrote: »

Hi. I need some advice.

I am from the UK and am 34. I live and work abroad and have done most of my working life. I have no pension and am unsure about what to do. I have about 18 months paying NI contributions in the UK. I paid taxes in Japan, Spain and Italy over the years but have no idea if that helps.. Currently on holiday in the UK.

Now I finally have some money to start a plan and am starting to look at options. There seem to be so many options I don't know where to start really... I have a 6 year old son and a steady income that would allow me to put in monthly to some kind of plan I guess.

A friend mentioned bonds? I really do not know anything though and am worried I will make the wrong decision but feel that at 34, I should start a pension..

Any advice appreciated! Thanks!

Where do you currently live, are you likely to be there for a long period and if not where might you move.

Also where do,you see yourself retiring?

mozza78

If you paid taxes in Japan then you should be able to claim back the pension payments your company will have made on your behalf. Did you get a little blue pension book with your details? You'll need to send that off to the relevant authorities along with some other information. Its a bit of a pain to do and takes about 6 months to finally get the cash but can be pretty rewarding depending how much you earnt. I managed to claim back close to 2 million yen which I think is the cap but then I was in Japan for 8 years so made a lot of payments.

It may also be worth while buying back the missing years for your NI contributions. You need 10 years minimum for a state pension and I think can buy up to 10 years previously. They work out about 700 quid per year and will earn you 4.45 per week for each year. You probably have at least one year already from your work (maybe 2) and may have more if you were in full time education. You can get a statement from the Pension Centre (0845 3000 168). It would certainly be a far more cost effective way than buying an annuity assuming they are still paying out when you reach state pension age.

NI YEAR COST TO BUY NOW
2011/12 or before £689
2013/14 £705
2014/15 £723
2015/16 £733

NO OF MISSING YEARS BOUGHT ANNUAL BOOST TO YOU COST YRS TO BREAK EVEN
5 £1,156 £3,445 2yrs 11 mths
10 £2,312 £7,576 3yrs 2mths

Ian011

mozza78 wrote: »

You can get a statement from the Pension Centre (0845 3000 168).

The number changed a year or two ago. It is now 0345 3000 168. Check the official gov.uk website for confirmation and further details.