National Insurance Contribution top up query

castellondude

I have been living in Spain since 1988. I only have the three "freebie" years on my record pre 2016 and no years since 2016. My state pension forecast states that I will not have enough years on my record to claim the state pension (logical as I am 62 and have only 4 years left until retirement age).
I have filled in the CF83 form and have been told I can pay voluntary contributions from 2006, most at class 2 rates.
The message on my state pension forecast that I will not have enough years to claim a pension left me a little worried. Is it worth paying pre 2016 and post 16 years?
I still live in Spain and plan to stay here.
Thanks!

molerat

As long as you have a total of 10 years either in UK or combined with your Spanish contributions you will get whatever you have accrued under the UK system. The message is a bit generic for those with only a UK record.  Surprised they allowed class 2 without a prior UK work history but there you go,  grab it with both hands and fill your boots with as much as you can and sort out paying the remaining 4.  Class 2 gives you a pension of £328 per year for life for a one off £182 payment - you do the maths !

QrizB

castellondude said:

I have been living in Spain since 1988. I only have the three "freebie" years on my record pre 2016 and no years since 2016. My state pension forecast states that I will not have enough years on my record to claim the state pension (logical as I am 62 and have only 4 years left until retirement age).
I have filled in the CF83 form and have been told I can pay voluntary contributions from 2006, most at class 2 rates.
The message on my state pension forecast that I will not have enough years to claim a pension left me a little worried. Is it worth paying pre 2016 and post 16 years?
I still live in Spain and plan to stay here.
Thanks!

Have you bene paying taxes in Spain and contributing to the Spanish "state pension"?

If you have, you might qualify for 3/35ths of the UK state pension without paying anything else.

However, if you buy more years you'll increase that. Once you get to ten years, you'll definitely have UK pension rights independently of whatever you've been doing in Spain.

Class 2 contributions are an absolute bargain; you'll get your contribution back in the first year of claiming your UK pension. Class 3s typically pay back in about 3 years.

Suhusa

I don't know your precise circumstances, but if you can afford to pay all years, I would do that. Class 2 rates are usually a no-brainer. Essentially you'll get another pension on top of your Spanish pension. That said, you should be able to claim a UK pension equivalent to your freebie years using the EU mechanism to use your Spanish years to lift you over the UK's 10 year requirement (others can explain more eloquently how that works). But paying voluntary contributions would give you a pension in the low double digits, wheras with the additional years you can get to well over £100 (more if you pay the 3 or 4 future years till you reach retirement).

castellondude

molerat said:

As long as you have a total of 10 years either in UK or combined with your Spanish contributions you will get whatever you have accrued under the UK system. The message is a bit generic for those with only a UK record.  Surprised they allowed class 2 without a prior UK work history but there you go,  grab it with both hands and fill your boots with as much as you can and sort out paying the remaining 4.  Class 2 gives you a pension of £328 per year for life for a one off £182 payment - you do the maths !

Yep, it was a stroke of luck as I had been seeking work just before leaving the UK and had claimed job seekers allowance 

molerat

castellondude said:

molerat said:

As long as you have a total of 10 years either in UK or combined with your Spanish contributions you will get whatever you have accrued under the UK system. The message is a bit generic for those with only a UK record.  Surprised they allowed class 2 without a prior UK work history but there you go,  grab it with both hands and fill your boots with as much as you can and sort out paying the remaining 4.  Class 2 gives you a pension of £328 per year for life for a one off £182 payment - you do the maths !

Yep, it was a stroke of luck as I had been seeking work just before leaving the UK and had claimed job seekers allowance 

That is confirmation of something that has been asked many times on here and not had a definitive answer.

castellondude

QrizB said:

castellondude said:

I have been living in Spain since 1988. I only have the three "freebie" years on my record pre 2016 and no years since 2016. My state pension forecast states that I will not have enough years on my record to claim the state pension (logical as I am 62 and have only 4 years left until retirement age).
I have filled in the CF83 form and have been told I can pay voluntary contributions from 2006, most at class 2 rates.
The message on my state pension forecast that I will not have enough years to claim a pension left me a little worried. Is it worth paying pre 2016 and post 16 years?
I still live in Spain and plan to stay here.
Thanks!

Have you bene paying taxes in Spain and contributing to the Spanish "state pension"?

If you have, you might qualify for 3/35ths of the UK state pension without paying anything else.

However, if you buy more years you'll increase that. Once you get to ten years, you'll definitely have UK pension rights independently of whatever you've been doing in Spain.

Class 2 contributions are an absolute bargain; you'll get your contribution back in the first year of claiming your UK pension. Class 3s typically pay back in about 3 years.

Hi. Yes, I will have 36 years when I retire on the Spanish system. Still worth paying voluntary contributions though.

QrizB

castellondude said:

QrizB said:

castellondude said:

I have been living in Spain since 1988. I only have the three "freebie" years on my record pre 2016 and no years since 2016. My state pension forecast states that I will not have enough years on my record to claim the state pension (logical as I am 62 and have only 4 years left until retirement age).
I have filled in the CF83 form and have been told I can pay voluntary contributions from 2006, most at class 2 rates.
The message on my state pension forecast that I will not have enough years to claim a pension left me a little worried. Is it worth paying pre 2016 and post 16 years?
I still live in Spain and plan to stay here.
Thanks!

Have you bene paying taxes in Spain and contributing to the Spanish "state pension"?

If you have, you might qualify for 3/35ths of the UK state pension without paying anything else.

However, if you buy more years you'll increase that. Once you get to ten years, you'll definitely have UK pension rights independently of whatever you've been doing in Spain.

Class 2 contributions are an absolute bargain; you'll get your contribution back in the first year of claiming your UK pension. Class 3s typically pay back in about 3 years.

Hi. Yes, I will have 36 years when I retire on the Spanish system. Still worth paying voluntary contributions though.

Yes. Your years in the Spanish system will mean you should get a UK pension despite only having 3 years (not the 10 you'd normally need) but it'll still only be 3 years worth of pension. You can safely add as many past years as they'll let you.

castellondude

molerat said:

castellondude said:

molerat said:

As long as you have a total of 10 years either in UK or combined with your Spanish contributions you will get whatever you have accrued under the UK system. The message is a bit generic for those with only a UK record.  Surprised they allowed class 2 without a prior UK work history but there you go,  grab it with both hands and fill your boots with as much as you can and sort out paying the remaining 4.  Class 2 gives you a pension of £328 per year for life for a one off £182 payment - you do the maths !

Yep, it was a stroke of luck as I had been seeking work just before leaving the UK and had claimed job seekers allowance 

That is confirmation of something that has been asked many times on here and not had a definitive answer.

While they did not specify this in the letter, I had read on the HMRC site that seeking work immediately prior to leaving the UK was equivalent to working before leaving the UK, and so I mentioned this in the observations section of the online claims form, and I can only assume that is this is why they assessed me as class 2, otherwise it makes no sense. They did classify years where I had not been working in Spain as class 3.

Northwind36

I want to pay for my wife to make up for two years' NIC. I have used the Govt. website and I know how much to pay but it will not let me pay on line. I cannot talk to the Future Pension Centre or anyone else. Can I make a Bank Transfer?