Several Queries (UK/Ireland Work)

sunonthecross

QrizB said:

sunonthecross said:

nigelbb said:

You can make voluntary NI contributions in the UK whatever your situation is work-wise abroad. If employed or self-employed you can pay Class 2 at around £150 for each added year instead of Class 3 at around £800 for each added year. Each extra year of contributions buys an index-linked pension of £250 per year for the rest of your life which given average life expectancy at retirement is worth at least £5,000.

Thanks for the detailed response and that seems very straightforward. What would be the difference in making the Class 2 payment versus the Class 3 at retirement age? Just a larger pension payout?

From a pension perspective there is no difference between Class 2 and Class 3 NI contributions. See the table at this l

Thanks again, much appreciated.

nigelbb

sunonthecross said:

nigelbb said:

You can make voluntary NI contributions in the UK whatever your situation is work-wise abroad. If employed or self-employed you can pay Class 2 at around £150 for each added year instead of Class 3 at around £800 for each added year. Each extra year of contributions buys an index-linked pension of £250 per year for the rest of your life which given average life expectancy at retirement is worth at least £5,000.

Thanks for the detailed response and that seems very straightforward. What would be the difference in making the Class 2 payment versus the Class 3 at retirement age? Just a larger pension payout?

No. The UK state pension is dependent on the number of complete years of contributions. Whether you can pay Class 2 (about £150 for each added year) or Class 3 (about £800 for each added year) depends on your circumstances so read the link I posted earlier. Either is great value.