I pay voluntary Class 2 contributions

TheLearner2008

I currently pay around GBP179 per year voluntary class 2 NI contributions 

I live outside of the UK

My question is how long can I continue doing this and will I get a full stake pension if I continue doing this or only a smaller amount? I currently have more than 11 years of contributions.

My follow up question is, how is this even possible that I get the same state pension as someone who pays full tax and lives in the UK?

molerat

Once you are eligible you can pay as long as you are working.  Once you stop working you would need to pay class 3, 5 times the price but still worth it.  You will get the amount relevant to your number of years contributions - have you had a pension forecast ?

My follow up question is, how is this even possible that I get the same state pension as someone who pays full tax and lives in the UK

A question to which there is no logical answer.  Voluntary class 2 is something that is really no longer relevant and should be scrapped.

TheLearner2008

molerat said:

Once you are eligible you can pay as long as you are working.  

Thanks for replying. Working anywhere in the world or working in the UK?

molerat

TheLearner2008 said:

molerat said:

Once you are eligible you can pay as long as you are working.  

Thanks for replying. Working anywhere in the world or working in the UK?

Anywhere in the world except the UK.

TheLearner2008

Do I have to come back to the UK before retirement or can I start claiming state pension in 20 years time without ever returning?

TheLearner2008

Why do you think its irrelevant?molerat said:

 Voluntary class 2 is something that is really no longer relevant and should be scrapped.

molerat

TheLearner2008 said:

Why do you think its irrelevant?molerat said:

 Voluntary class 2 is something that is really no longer relevant and should be scrapped.

For the reason you questioned why you pay a lot less than someone living in the UK and still get the same benefit.  Class 2 voluntary should be done away with and only the single class 3 for all voluntary contributions.

pinnks

TheLearner2008 said:

Do I have to come back to the UK before retirement or can I start claiming state pension in 20 years time without ever returning?

You claim your pension from wherever you are resident at the time - there is no need to return to the UK.

If you are in the EU then the EU regulations, that still apply post-Brexit, require you to claim via the pension authority in your country of residence.  Your UK pension will then be uprated for inflation each year by the same percentage as the pension.

If you live elsewhere, you would apply directly to the UK but except in a few countries like the USA, the pension is not uprated annually and stays at the level it was when first claimed unless you return to the UK to live, in which case it is raised to the rate it would have been had you been here all the time.

Have a chat with the International Pensions Centre - part of DWP