Pension top up

donnyscuba

This has probably been covered before, but I can’t find it. Apologies for the repetition if it has. 

I’ve just had a look at topping up my pension, I could add on another 10 yrs. the question is, I live abroad and have done for the last 11 yrs. am I allowed to top up as I wasn’t in the country during those unpaid years, and still resident in another country now?. I have no pension outside the uk as I’m not working or receiving benefits ( house husband with a working wife). 

TheBanker

Are you talking about paying extra National Insurance to improve your state pension? Or are you talking about paying into a private pension?

xylophone

What exactly does your state pension forecast say?

https://www.gov.uk/state-pension-if-you-retire-abroad

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

pinnks

If you are living abroad you can indeed pay voluntary NI as long as you meet the criteria.  Have a read of  Social Security abroad: NI38 - GOV.UK (www.gov.uk), then complete the form CF83 mentioned on that page and make sure HMRC receive it before 31 July 2023.  All years back to 2006/07 then remain available to pay at the current rates.  If they receive it after 31 July, then only 2017/28 onwards are available.

If you have worked in some of the empty years then you may qualify for Class 2 NI, which costs only about £163 per year you purchase.  Otherwise it is Class 3 at about £824 per year.  Either way, a year adds (currently) £302 per year to your pension.

If you have worked abroad then select Class 2 on the CF83; if not then select Class 3, then tick box 25 to indicate that you wish to fill historic gaps and leave the bank section blank.

It will probably take HMRC about 9 months to work through the mountain of forms they are currently receiving but they will then send you a schedule of years that you can purchase, the cost and a deadline by which you need to pay to secure those years and rates.  You can then decide what to do as you are still not obliged to pay.

In the meantime, you can get an idea of what HMRC will tell you by posting the stuff xylophone has suggested.

donnyscuba

according to the website I have 25 full years. So need to pay for 10 more to get the full pension. I’m unlikely to return to the uk for work so not likely to pay any further years naturally. I wasn’t sure I was allowed as I’m not a uk resident anymore. 

I’ve downloaded the CF83, that’ll be my next step I think. (After reading and confusing myself with the guidelines). Hopefully get away with selecting class 2 but it’ll be tough finding proof. Thanks for the help everyone. 

molerat

donnyscuba said:

according to the website I have 25 full years. So need to pay for 10 more to get the full pension.

35 years is of no relevance to you, you need as many as it takes, if 35 that is purely a coincidence.  How much is your accrued amount at April 2022 ?

MallyGirl

donnyscuba said:

according to the website I have 25 full years. So need to pay for 10 more to get the full pension. I’m unlikely to return to the uk for work so not likely to pay any further years naturally. I wasn’t sure I was allowed as I’m not a uk resident anymore. 

I’ve downloaded the CF83, that’ll be my next step I think. (After reading and confusing myself with the guidelines). Hopefully get away with selecting class 2 but it’ll be tough finding proof. Thanks for the help everyone. 

if the above is based on thinking that you need 35 years then this is not true. 35 years only applies to those who contribute only post 2016 NI i.e. young people. You will be in the transition period and the amount you need could be more, or less, than 35.

donnyscuba

Ahhh.  Who’d have thought it wouldn’t be easy. 

I don’t know what the accrued amount is, or where to find it. It did say my pension was going to be 145 ( approx) and I had 11 yrs unpaid ( last payment was 2011/2012). 

molerat

You have access to the on line forecast ?

If so the bit circled

donnyscuba

Hi molerat. Yep that’s the bit that says 145. Forecast if contributing another 11 yrs is 203. 

donnyscuba

Has anyone had any luck phoning the future pensions centre? I’m way into my twentieth time trying and get kicked every time.