Voluntary contributions State pension?

HarryGray

Hi,

I’m 27 and plan to move abroad in two years time probably for the remainder of my life. I have 6 qualifying years and as I’m working for another two, I’ll have 8 qualifying years by the time I leave.

Is it worth making voluntary contributions? I have checked and I am able to do this. However I’ve been told that UK state pension being paid to someone abroad isn’t really worth it as it doesn’t increase with RPI? So is it worth it if I have no plans to come back to the UK? It just feels like a waste of 8 years of contributions.

Thanks

[Deleted User]

Yes!!! Biggest giveaway you will ever receive, and the state pension rises in some countries and not in others, best check. But it only kicks in when you take it

molerat

https://www.gov.uk/government/publications/state-pensions-annual-increases-if-you-live-abroad/countries-where-we-pay-an-annual-increase-in-the-state-pension

8 years are wasted as wherever you live they are worthless, the minimum needed is 10 years. That £1600 payment gets you, at current rates, £50 per week for the rest of your life even if it does not increase with inflation once in payment.  Even better is that if you are in employment when you leave the UK and get employment when overseas you can purchase class 2 contributions for only £3.05 per week, each £158.60 gets you £5.01 per week for the rest of your life.

HarryGray

molerat said:

https://www.gov.uk/government/publications/state-pensions-annual-increases-if-you-live-abroad/countries-where-we-pay-an-annual-increase-in-the-state-pension

8 years are wasted as wherever you live they are worthless, the minimum needed is 10 years. That £1600 payment gets you, at current rates, £50 per week for the rest of your life even if it does not increase with inflation once in payment.  Even better is that if you are in employment when you leave the UK and get employment when overseas you can purchase class 2 contributions for only £3.05 per week, each £158.60 gets you £5.01 per week for the rest of your life.

Thanks for the help. I will go ahead and make the voluntary 2 years contributions. On the Class 2 note, where have you read that? And does that count for non EEA countries who do NOT have a social security agreement with the UK?

molerat

https://www.gov.uk/voluntary-national-insurance-contributions/who-can-pay-voluntary-contributions

You can pay class 2 wherever you live.  I expect that option will be ending soon though, it is a totally unaffordable government giveaway.

xylophone

However I’ve been told that UK state pension being paid to someone abroad isn’t really worth it as it doesn’t increase with RPI?

Whether you are living in Surrey or Outer Mongolia the SP does not increase by RPI.

https://www.which.co.uk/news/2020/01/how-much-state-pension-will-you-get-in-april-2020/

HarryGray

xylophone said:

However I’ve been told that UK state pension being paid to someone abroad isn’t really worth it as it doesn’t increase with RPI?

Whether you are living in Surrey or Outer Mongolia the SP does not increase by RPI.

https://www.which.co.uk/news/2020/01/how-much-state-pension-will-you-get-in-april-2020/

Okay I definitely should've specified CPI, avg earnings or 2.5% to help you out a little

HarryGray

molerat said:

https://www.gov.uk/voluntary-national-insurance-contributions/who-can-pay-voluntary-contributions

You can pay class 2 wherever you live.  I expect that option will be ending soon though, it is a totally unaffordable government giveaway.

It seems you can't do a voluntary contribution unless you're in the EEA countries or those with social security agreements if you click on the 'working abroad' link. Only for the first 12 months, which I guess I'll do

nigelbb

HarryGray said:

molerat said:

https://www.gov.uk/voluntary-national-insurance-contributions/who-can-pay-voluntary-contributions

You can pay class 2 wherever you live.  I expect that option will be ending soon though, it is a totally unaffordable government giveaway.

It seems you can't do a voluntary contribution unless you're in the EEA countries or those with social security agreements if you click on the 'working abroad' link. Only for the first 12 months, which I guess I'll do

As far as I am aware that is not true & the HMRC leaflet NI38 on Social Security abroad makes no mention of it. You can pay voluntary National Insurance contributions matter what country you live in. You just set up a direct debit before leaving the UK. 

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/832814/NI38.pdf

snowqueen555

Actually paying seems very difficult, I spent so long trying to search how to actually pay that I gave up. I have one year I'd like to pay, it is only £140

xylophone

https://www.gov.uk/voluntary-national-insurance-contributions
Have you checked with Future Pension Centre that this would be to your benefit?