State Pension Changes / Living Abroad

technerd95

Hi all, just reading about the changes to the state pension that is planned for next year.

perhaps someone can explain to me where I stand.

i lived in the UK as a student from 2004-2009 and worked until 2011/2012, before moving back to Europe. 

Paid back 15 years worth of NI contributions (class 2) a few months ago, under the guidance that I would be able to claim the state pension when I turn whatever age on the condition that I keep paying into the system. Last week has changed that, and it seems that I would have to increase my contributions to Class 3 from next year, which I guess is understandable. 

My concern is that I didn’t live / work in the UK for the full 10 years and this might exclude me from getting it at all now. 

I have no issues paying the extra for the 15/20 years ahead, I could well wind up back in the UK for work at some point in the future. 

If anyone could demystify this for me I’d be eternally grateful. 

No doubt there will be a lot of people in the same boat as me. 

Many thanks! 

TN95

p00hsticks

I don't think they've ironed out the details as to how exactly it would work and whether the rules would be applied retrospectively yet. When a similar rule was bought in as part of the new State Pension reforms in 2016 to say that everyone needed a minimum of ten years to get any pension, people were temporarily given the right to buy back additional years to help them reach that target. Ironically, it was all the publicity surrounding that right that led to a large number of people 'with a limited connection to the UK' to realise what an incredibly good deal it was and take them up on it, which I imagine is what has led to this announcement.    
The statement so far says that 

2.80 The government is closing loopholes in current Voluntary National Insurance contributions (VNICs) rules that allow those with a limited connection to the UK to build UK State Pension entitlement at a cheaper rate whilst overseas. To fix the most unfair elements of these rules, the government is removing access to the cheapest Class 2 VNICs for individuals abroad and increasing the initial residency or contributions requirement for VNICs to 10 years. The government is also launching a wider review of VNICs, with a call for evidence to be published in the new year. 


HC 1492 – Budget 2025 Strong Foundations, Secure Future – November 2025

molerat

The changes are around the eligibility and rates for paying NI, not around receiving what you have already contributed towards. Once you have 10 years in the bag you are entitled to a pension proportionate to those contributions . 

p00hsticks

There's a link on another thread to this page
Voluntary National Insurance contributions for periods abroad from April 2026 - GOV.UK

p00hsticks

molerat said:

The changes are around the eligibility and rates for paying NI, not around receiving what you have already contributed towards. Once you have 10 years in the bag you are entitled to a pension proportionate to those contributions . 

Is there not a potential issue though around those now living abroad who have perhaps made additional voluntary contributions due to all the recent publicity but still have less than 10 years in the bag and will not now be eligible to buy future years to take them up to the ten year minimum? . 

Suhusa

There's a section on transitional arrangements - I suspect (or rather hope) that people in this situation fall under those arrangements. I also wonder how that will intersect with those people who can use their EU years to lift themselves over the 10 year pension payout requirements.

squirrelpie

p00hsticks said:

Is there not a potential issue though around those now living abroad who have perhaps made additional voluntary contributions due to all the recent publicity but still have less than 10 years in the bag and will not now be eligible to buy future years to take them up to the ten year minimum?

I can't say I feel much sympathy for somebody who can't claim a UK state pension despite not being here for at least ten years!

Suhusa

See, and I find that talk about "closing a loophole" in the official information a bit cheeky when paying Class 2 contributions from abroad has been based on something that the law explicitly allows. My definition of a loophole is that you're using the system for something that it wasn't intended to be used. The problem is going to be those people who have paid additional contributions in the last few years to get over that 10 year limit, and who wouldn't have paid those additional contributions if they'd known in advance that they're not gonna help them get over the limit. They have essentially wasted their money.

Eldi_Dos

Suhusa said:

See, and I find that talk about "closing a loophole" in the official information a bit cheeky when paying Class 2 contributions from abroad has been based on something that the law explicitly allows. My definition of a loophole is that you're using the system for something that it wasn't intended to be used. The problem is going to be those people who have paid additional contributions in the last few years to get over that 10 year limit, and who wouldn't have paid those additional contributions if they'd known in advance that they're not gonna help them get over the limit. They have essentially wasted their money.

Better than taxpayers money being wasted, hence the announcement to fix the most unfair elements and having a wider review.

technerd95

Eldi_Dos said:

Suhusa said:

See, and I find that talk about "closing a loophole" in the official information a bit cheeky when paying Class 2 contributions from abroad has been based on something that the law explicitly allows. My definition of a loophole is that you're using the system for something that it wasn't intended to be used. The problem is going to be those people who have paid additional contributions in the last few years to get over that 10 year limit, and who wouldn't have paid those additional contributions if they'd known in advance that they're not gonna help them get over the limit. They have essentially wasted their money.

Better than taxpayers money being wasted, hence the announcement to fix the most unfair elements and having a wider review.

That’s an interesting attitude on something that was specifically able to help British expats claim their own pensions in other European countries. 

I paid contributions in good faith, within the rules that were not created by me. 

Eldi_Dos

technerd95 said:

Eldi_Dos said:

Suhusa said:

See, and I find that talk about "closing a loophole" in the official information a bit cheeky when paying Class 2 contributions from abroad has been based on something that the law explicitly allows. My definition of a loophole is that you're using the system for something that it wasn't intended to be used. The problem is going to be those people who have paid additional contributions in the last few years to get over that 10 year limit, and who wouldn't have paid those additional contributions if they'd known in advance that they're not gonna help them get over the limit. They have essentially wasted their money.

Better than taxpayers money being wasted, hence the announcement to fix the most unfair elements and having a wider review.

That’s an interesting attitude on something that was specifically able to help British expats claim their own pensions in other European countries. 

I paid contributions in good faith, within the rules that were not created by me. 

National Insurance contributions are a tax which pays for more than just pensions, and we are told that state pensions are a benefit not a right, admittedly one we contribute to.So I do not see it as a unjustified attitude that people with less than ten years residency do not qualify for that benefit.

The Treasury must be having concerns about what I consider is turning into a form of Ponzi scheme for them to be having a wider review.

For the record when I worked abroad I made a conscious decision to pay the full NI stamp on my earnings, mainly because I did not want to get hit with a big bill if I had returned to UK before the required time to qualify for the reduced stamps as it was referred to then. After I did return to the UK, unbidden by me about nine months later a repayment was made into my account, via Paye from whatever department dealt with it at that time for the difference.