State pension advise please.

hewittinspain

I'm 52 now and I moved to Spain to work between 1998 and 2011 so when I've checked my state pension forecast it shows me that I would receive £221 in 2039 but I  need 14 more years of NI to qualify for that amount which will have me paying NI contributions until in 66.
Now if I want to retire at 63 is it financially advisable to pay for 3 years of missing gaps (total to pay £2500) before April 2025 so that the remaining NI contributions I will have to pay will go from 14 years down to 11 years?
Does this make sense?

I plan to retire at 63 but because I was abroad for a few years it's looking like I need to work til 66 to get the full pension forecast but in my head if I plug 3 years of gaps now then I would qualify when I'm 63 to get the full pension when I'm 67/68yrs old..? Is this right or not.?

pinnks

As you were abroad you may qualify to pay Class 2 voluntary NI for any years you were working abroad at a cost of £163.80 per year, so far as paying years from 2006/07 to 2010/11 or 2011/12 (depending on when you left Spain) will improve your forecast and, of course, assuming that you do stop working and paying NI mandatorily.  

You would need to send form CF83 to HMRC asap to establish whether you can pay Class 2.  You need to have working in the UK until immediately before you left and for any week you want to pay at Class 2, you must have been working abroad, otherwise that week is at Class 3.

Separate to that you would want to establish whether paying years 2015/16 and earlier will increase your forecast.

Brie

Have you checked if your contributions to any Spanish SP could count towards your UK one?  Assuming you were employed and paying taxes etc in Spain.  You might need to check with the international pension centre.  

International Pension Centre - GOV.UK (www.gov.uk)

hewittinspain

Brie said:

Have you checked if your contributions to any Spanish SP could count towards your UK one?  Assuming you were employed and paying taxes etc in Spain.  You might need to check with the international pension centre.  

International Pension Centre - GOV.UK (www.gov.uk)

I never thought of that. Would that mean I could potentially pay less than £800 per year for 1 year or contributions of NI to fill a gap?

jem16

hewittinspain said:

Brie said:

Have you checked if your contributions to any Spanish SP could count towards your UK one?  Assuming you were employed and paying taxes etc in Spain.  You might need to check with the international pension centre.  

International Pension Centre - GOV.UK (www.gov.uk)

I never thought of that. Would that mean I could potentially pay less than £800 per year for 1 year or contributions of NI to fill a gap?

Any years in the Spanish system would help you to meet the minimum qualifying period of 10 years in the UK. However it won't give you a higher UK pension as that would still be based on the number of UK years you have.

I'd suggest you follow pinnk's suggestion of finding out if you're eligible for Class 2 contributions which are much cheaper than Class 3.

hewittinspain

jem16 said:

hewittinspain said:

Brie said:

Have you checked if your contributions to any Spanish SP could count towards your UK one?  Assuming you were employed and paying taxes etc in Spain.  You might need to check with the international pension centre.  

International Pension Centre - GOV.UK (www.gov.uk)

I never thought of that. Would that mean I could potentially pay less than £800 per year for 1 year or contributions of NI to fill a gap?

Any years in the Spanish system would help you to meet the minimum qualifying period of 10 years in the UK. However it won't give you a higher UK pension as that would still be based on the number of UK years you have.

I'd suggest you follow pinnk's suggestion of finding out if you're eligible for Class 2 contributions which are much cheaper than Class 3.

Ahh so because I was in Spain I could plug 4 years gaps (potentially) with class 2 contributions?
Is that right? 
I'm so hopeless with all this. 

molerat

hewittinspain said:

jem16 said:

hewittinspain said:

Brie said:

Have you checked if your contributions to any Spanish SP could count towards your UK one?  Assuming you were employed and paying taxes etc in Spain.  You might need to check with the international pension centre.  

International Pension Centre - GOV.UK (www.gov.uk)

I never thought of that. Would that mean I could potentially pay less than £800 per year for 1 year or contributions of NI to fill a gap?

Any years in the Spanish system would help you to meet the minimum qualifying period of 10 years in the UK. However it won't give you a higher UK pension as that would still be based on the number of UK years you have.

I'd suggest you follow pinnk's suggestion of finding out if you're eligible for Class 2 contributions which are much cheaper than Class 3.

Ahh so because I was in Spain I could plug 4 years gaps (potentially) with class 2 contributions?
Is that right? 
I'm so hopeless with all this. 

Yes.  Basically if you were working in UK immediately (a period that is not defined) before you left you will be eligible to pay class 2 for any week you were working overseas.  The eligibility for paying those particular years ends on 5 April 2025 so if you are going to do it you will need to get busy. Social Security abroad: NI38 - GOV.UK

But, as was mentioned earlier up, will pre 2016 years actually add to your pension ? (They should do as it looks like there is only a max of 28/29 pre 2016 years possible)  Post up a few anonymous details from your forecast and you will get some pointers

Current weekly £££.pp amount accrued up to April 2023 or 2024, not all have been updated so please specify.
Number of full NI years 15-16 and earlier
Number of full NI years 16-17 and later
Tax year you reach state retirement
Any COPE amount.  If you have "You've been in a contracted-out pension scheme" on your forecast then click
here https://www.tax.service.gov.uk/check-your-state-pension/account/cope whilst logged into your tax account
Years which show not full and prices

hewittinspain

molerat said:

hewittinspain said:

jem16 said:

hewittinspain said:

Brie said:

Have you checked if your contributions to any Spanish SP could count towards your UK one?  Assuming you were employed and paying taxes etc in Spain.  You might need to check with the international pension centre.  

International Pension Centre - GOV.UK (www.gov.uk)

I never thought of that. Would that mean I could potentially pay less than £800 per year for 1 year or contributions of NI to fill a gap?

Any years in the Spanish system would help you to meet the minimum qualifying period of 10 years in the UK. However it won't give you a higher UK pension as that would still be based on the number of UK years you have.

I'd suggest you follow pinnk's suggestion of finding out if you're eligible for Class 2 contributions which are much cheaper than Class 3.

Ahh so because I was in Spain I could plug 4 years gaps (potentially) with class 2 contributions?
Is that right? 
I'm so hopeless with all this. 

Yes.  Basically if you were working in UK immediately (a period that is not defined) before you left you will be eligible to pay class 2 for any week you were working overseas.  The eligibility for paying those particular years ends on 5 April 2025 so if you are going to do it you will need to get busy. Social Security abroad: NI38 - GOV.UK

Thanks very much. I'll look into that and come on here if that's ok if I need help unless there is a helpline?!

molerat

https://www.gov.uk/international-pension-centre

hewittinspain

molerat said:

https://www.gov.uk/international-pension-centre

Brill.
When i look at my forecast it says I'm forecast to get £221 if I contribute 14 more years of NI contributions but at the bottom of the page it says I was contracted out so is that forecast wrong and just an estimate or should I get that if I contribute to what they need?

eskbanker

hewittinspain said:

molerat said:

https://www.gov.uk/international-pension-centre

Brill.
When i look at my forecast it says I'm forecast to get £221 if I contribute 14 more years of NI contributions but at the bottom of the page it says I was contracted out so is that forecast wrong and just an estimate or should I get that if I contribute to what they need?

Your forecast already takes that contracting out into account.