NI contributions of only 7 years as person only lived and worked in the UK between age 60 and 67?

RogerPensionGuy

Hi All.

Any pointers most welcome on this item, a neighbour of mine has asked for some help, she is Italian and married her UK husband six years ago at age 60 and shes been working full time here in the UK and is intending to work full time until 72 is her plan, she previously lived and worked in Italy all her life.

She thought she would get a UK state pension at age 67 but now appears to understand that as she will of only paid 7 years of NI contributions at age 67 she will not get any UK pension.

She thought she could buy extra years but apparently this is not possible as only living and working in the UK for 7 years, I have had a look around the internet and her current view appears to be correct but, maybe a financial adviser should be contacted some links say.

I think when she came to the UK she expected to get the minimum 10 years NI as planning to work 12 years.

Any views or info most welcome, I will pass on to her as she's not very good on the internet, I am not much better.

Cheers Roger.

  

 

pinnks

She will only be able to pay UK NIC from the time she arrived in the UK until she reaches UK state pension age but as she was in the UK before the end of the transition period, she will be covered by the EU Withdrawal Agreement, which means that the EU rules on the coordination of social security systems will continue to apply.  These require years in all EU/UK countries to be aggregated to help people achieve any minimum years requirements in each country and to calculate a pro-rata pension based on their time in each country.  She will therefore get a pension, at normal pension age for each country, from each country.  So, a UK pension at 67 and an Italian one at their pension age.

From the UK perspective the UK 7 years will be aggregated with the Italian years, making more than 10.  The net outcome is that she will receive 7/35 x £new state pension max.  In 2022/23 terms that would be 7/35 x £185.15 = £37.03 per week, or £1925.56 per year.  That will of course increase each year with inflation, so plus 10.1% from April 2023.

From the Italian perspective, the years will also be aggregated and Italy will undertake 2 calculations:

1. Italy will calculate what pension she would get based only on her Italian years (no aggregation), or zero if she does not meet any minimum years requirements

2. Italy will also calculate a "theoretical amount" by assuming all periods were in Italy (aggregation), counting any overlapping periods only once, and then a "pro-rata" amount by apportioning the theoretic amount based on her actual Italian periods

Whichever if 1. and 2. gives the higher amount will be awarded as her Italian pension.

As she is resident in the UK she will apply for her Italian pension via DWP, who will send her a CFN901 form for completion.  Once they receive that form they will liaise with Italy, after which Italy will communicate directly with the claimant.

I hope that covers everything.

calcotti

Depending on their joint circumstances, if her pension turns out to be low, she may be able to claim Pension Credit to top up their joint income (if they are both of pension age).

RogerPensionGuy

pinnks said:

She will only be able to pay UK NIC from the time she arrived in the UK until she reaches UK state pension age but as she was in the UK before the end of the transition period, she will be covered by the EU Withdrawal Agreement, which means that the EU rules on the coordination of social security systems will continue to apply.  These require years in all EU/UK countries to be aggregated to help people achieve any minimum years requirements in each country and to calculate a pro-rata pension based on their time in each country.  She will therefore get a pension, at normal pension age for each country, from each country.  So, a UK pension at 67 and an Italian one at their pension age.

From the UK perspective the UK 7 years will be aggregated with the Italian years, making more than 10.  The net outcome is that she will receive 7/35 x £new state pension max.  In 2022/23 terms that would be 7/35 x £185.15 = £37.03 per week, or £1925.56 per year.  That will of course increase each year with inflation, so plus 10.1% from April 2023.

From the Italian perspective, the years will also be aggregated and Italy will undertake 2 calculations:

1. Italy will calculate what pension she would get based only on her Italian years (no aggregation), or zero if she does not meet any minimum years requirements

2. Italy will also calculate a "theoretical amount" by assuming all periods were in Italy (aggregation), counting any overlapping periods only once, and then a "pro-rata" amount by apportioning the theoretic amount based on her actual Italian periods

Whichever if 1. and 2. gives the higher amount will be awarded as her Italian pension.

As she is resident in the UK she will apply for her Italian pension via DWP, who will send her a CFN901 form for completion.  Once they receive that form they will liaise with Italy, after which Italy will communicate directly with the claimant.

I hope that covers everything.

The post above is so helpful and informative, thanks for making such a great post.

I am very happy to pass on this information to my neighbour. 

Cheers Roger.