Investing in a UK pension if i'm moving abroad

[Deleted User]

nigelbb said:

Deleted_User said:

macman said:

Don't forget that in many countries around the world, your UK state pension will be frozen at the level it is when you emigrate. There will be no annual uplift unless there is a reciprocal agreement in place.
Notably, Canada and New Zealand have no agreements in place with the UK. The USA does.

Not quite. It will be frozen at the level it will be when you start receiving it at pensionable age (assuming you leave Britain before retiring).  

There is an agreement between UK and Canada but it does not impose state pension indexation requirement on the UK.  This has nothing to do with an agreement; Canada indexes state pensions regardless of where you live. 

Even if the state pension received no uprating after payment started it's still an extraordinary bargain to get (using current figures) a pension of about £9,000/year (over £180,000 over an average lifetime without indexation) for an outlay of under £5,000.

That is true

r0adrunner

nigelbb said:

Don't forget to continue paying National Insurance contributions when you move abroad. Short of of buying a winning lottery ticket it will be the best investment you will ever make. As you are moving abroad you should be eligible to pay Class 2 contributions at £3/week. Each year of contributions buys a pension of £250. Average life expectancy at retirement is over 20 years so that will be worth over £5000 to you all for an investment of about £150. Continue for the next 32 years for a full pension of about £9000/year all for a total cost of under £5000.

Isn't it only necessary to continue to pay National Insurance contributions up to when you have reached the minimum number of qualifying years - currently 35 - in order to be eligible to receive a full state pension?

nigelbb

r0adrunner said:

nigelbb said:

Don't forget to continue paying National Insurance contributions when you move abroad. Short of of buying a winning lottery ticket it will be the best investment you will ever make. As you are moving abroad you should be eligible to pay Class 2 contributions at £3/week. Each year of contributions buys a pension of £250. Average life expectancy at retirement is over 20 years so that will be worth over £5000 to you all for an investment of about £150. Continue for the next 32 years for a full pension of about £9000/year all for a total cost of under £5000.

Isn't it only necessary to continue to pay National Insurance contributions up to when you have reached the minimum number of qualifying years - currently 35 - in order to be eligible to receive a full state pension?

Th OP stated that they have already paid 3 years contributions leaving 32 still to pay for a full pension.

r0adrunner

Oh I see.  Thanks for the clarification.