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Ricbak

Another question on the UK pension

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Skywalker

To get the full State Pension, you need to have a minimum of 30 years qualifying National Insurance contributions.  You can, if there is a shortfall, pay voluntary NI contributions.  The details can be found at:

 

www.gov.uk/voluntary-national-insurance-contributions

 

Alternatively you can call them (using skype for instance) on 0845 300 0168  (Mon - Fri 8am - 8pm)  or you can email them:

 

[email protected]

 

My understanding is that you can only pay for the 'missing' years, within 6 years of the end of that particular tax year.  But you need to do some research because this is a very complicated subject, for instance the tax year in which you attained the age of 16 can also count as a qualifying year.  In my own case, for instance, I was working full time at age 16.

 

It is worth pointing out, that if you have exceeded the minimum 30 year qualifying period, your pension increases above the minimum full State Pension - which is why in any particular group of pensioners, the sum received will not be the same, since the number of qualifying years varies.  This extra amount, beyond the minimum (or basic) state pension, is called the State Second Pension (S2P) which superseded SERPS (State Earnings Related Pension Scheme) in April 2002. 

 

If you are under pensionable age, you can apply (online or on the telephone) for a State Pension Statement:  Summary which will give you an up-to-date estimate of your State Pension based on your National Insurance contributions.  

 

I received my summary statement earlier this month, so I can tell you that it does work!

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Skywalker

 

So I did some calculations presuming I had 22 years of unpaid contributions at a rate of 2.70 pound a week and ended up with the figure of 3088 pounds. This seems to me a fairly reasonable amount to pay to get a UK aged pension

 

Hahahaha  yes, in a perfect World perhaps!   :snap:

 

There is a possibility to pay voluntary class 3 NI contributions to cover up to 6 years of unqualified years - but here's the stinger; you must have at least 20 qualifying years.

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sperry

To get the full State Pension, you need to have a minimum of 30 years qualifying National Insurance contributions.  You can, if there is a shortfall, pay voluntary NI contributions.  The details can be found at:

 

www.gov.uk/voluntary-national-insurance-contributions

 

Alternatively you can call them (using skype for instance) on 0845 300 0168  (Mon - Fri 8am - 8pm)  or you can email them:

 

[email protected]

 

My understanding is that you can only pay for the 'missing' years, within 6 years of the end of that particular tax year.  But you need to do some research because this is a very complicated subject, for instance the tax year in which you attained the age of 16 can also count as a qualifying year.  In my own case, for instance, I was working full time at age 16.

 

It is worth pointing out, that if you have exceeded the minimum 30 year qualifying period, your pension increases above the minimum full State Pension - which is why in any particular group of pensioners, the sum received will not be the same, since the number of qualifying years varies.  This extra amount, beyond the minimum (or basic) state pension, is called the State Second Pension (S2P) which superseded SERPS (State Earnings Related Pension Scheme) in April 2002. 

 

If you are under pensionable age, you can apply (online or on the telephone) for a State Pension Statement:  Summary which will give you an up-to-date estimate of your State Pension based on your National Insurance contributions.  

 

I received my summary statement earlier this month, so I can tell you that it does work!

are you sure about this?

 

I pad my voluntaryies by direct debit and HMRC stopped them without notice om 30th  anniversary.  And they wont let me strat up again ntil the single tier pension comes into force

 

also according to this http://www.hmrc.gov.uk/ni/volcontr/abroad.htm

 

you only need three contributions before you can make voluntary.

 

but to all readers out there:

 

UK voluntray contributions are such a good deal that the government will either stop them some time soon or vastly increase the cost.  the government is charging at class 2, about 3% of what an annuity company would.

 

dont dilly dally

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Skywalker

are you sure about this?

 

Sure about what?  I thought my explanation was clear enough.  You can only qualify for the full State Pension with 30 qualifying years.

 

Paying more than the 30 qualifying years is perfectly acceptable, and in most cases inevitable.

 

But as I pointed out in my previous post, contributions above the 30 year qualifying period then go into the S2P scheme.  As a rough guide, each extra qualifying year will add about £3.67 (taxable income) a week to the Basic State Pension of (currently) £110.15 a week.

 

Here is an illustration from DWP:

 

post-12091-0-29930500-1373766130_thumb.jpg

Edited by Skywalker

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Skywalker

 

also according to this http://www.hmrc.gov....ontr/abroad.htm   you only need three contributions before you can make voluntary.

 

This is cut'nPasted from that link.

 

Topping up your National Insurance contributions

Going abroad - even for less than a tax year - can create gaps in your National Insurance contributions record. This may reduce the number of years that count towards your full State Pension and restrict certain state benefits when you return to the UK.

Providing you qualify to make voluntary contributions while abroad, you can normally make up any shortfall in your National Insurance contributions record for the previous six tax years.

 

As I mentioned, this is a very complex issue, and individuals really need to engage with the Department for Work & Pension (DWP) to get the definitive answer to their particular circumstances. 

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David_LivinginTalisay

Analysis from Middlesex University disputes the Government "cost to taxpayer" figure of family migration

 

July 9, 2013

 

An analysis by academics at Middlesex University published today

revealed that, contrary to claims made by the Government, the new

income requirement for sponsoring a non-EEA spouse or partner may

actually be costing the public purse rather than saving it money.

    The Government claims that the rules have been designed to ensure

that those coming to the UK to join their spouse or partner will not be a

burden on the taxpayer.

    However analysis of the Government’s

Impact Assessment for the policy suggests that the new policy may be

generating substantial costs rather than savings. Home Office data also

suggests that non-EEA partners, who have the right to work in the UK but

cannot claim most benefits, were not a burden on the welfare state

under the previous rules.

    Dr. Helena Wray from the School of Law at the Middlesex University, who co-authored the research briefing, said:

 
“It

appears the Government got its sums wrong when designing this policy.

When the cost-benefit calculations for this policy in the Impact

Assessment are properly carried out, the figures actually show that the

income requirement could cost the public purse £850 million over 10

years. It will not reduce the benefits bill; in fact, it is likely to

increase it as single people are more likely to claim benefits than

those living with a partner”.

Ruth Grove-White, Policy Director at the Migrants

Rights Network, a campaigning organisation, which has been working with

affected families since the rules were introduced said:

 
“These

figures are a further damning sign that the Government did not fully

consider the costs or the wider implications of splitting up families.

Everyone who has been separated from their children and loved ones as a

result of this policy now hopes that the Government will agree to fully

review these rules, both in light of the recent calls from MPs from all

major parties and given emerging evidence of this kind”.

Recent numbers have revealed that the applications

fell from 25,664 in the six month before 9 July 2012 to 10,854 in the 6

months post 9 July 2012. Studying the numbers Prof. Eleonore Kofman from

the Middlesex University warned:

 
Based on the information we have about the effects

of the rules, it’s not just the 58% drop in overall number of

applications, but also that the new regulations affect women

disproportionately which should be of concern to the policy makers. The

number of visas issued to male partners of a British spouse decreased

even further, by 83.6%. It was foreseen that the new regulations would

affect women more, but this still came as a shock.

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sperry

Sure about what?  I thought my explanation was clear enough.  You can only qualify for the full State Pension with 30 qualifying years.

 

Paying more than the 30 qualifying years is perfectly acceptable, and in most cases inevitable.

 

But as I pointed out in my previous post, contributions above the 30 year qualifying period then go into the S2P scheme.  As a rough guide, each extra qualifying year will add about £3.67 (taxable income) a week to the Basic State Pension of (currently) £110.15 a week.

 

Here is an illustration from DWP:

 

attachicon.gifPension.JPG

 

I think you misunderstood the example.

 

he is paying s2p so these contibutiuons will continue to mount up.

 

his basic state pension wont. thtas ceilinged at 110 a week this is what they do in other countriees

 

but Im not an expert on the UK

 

This is cut'nPasted from that link.

 

Topping up your National Insurance contributions

Going abroad - even for less than a tax year - can create gaps in your National Insurance contributions record. This may reduce the number of years that count towards your full State Pension and restrict certain state benefits when you return to the UK.

Providing you qualify to make voluntary contributions while abroad, you can normally make up any shortfall in your National Insurance contributions record for the previous six tax years.

 

As I mentioned, this is a very complex issue, and individuals really need to engage with the Department for Work & Pension (DWP) to get the definitive answer to their particular circumstances. 

 

yes, but you can only make voluntay if you have contrubted for 3 years, and not the 20 you stated earlier

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Skywalker

 

yes, but you can only make voluntay if you have contrubted for 3 years, and not the 20 you stated earlier

 

 

Let me quote from the document DWPP04ORAMBV | v1.0 (April 23013)

 

"If you reach the state Pension age between 6 April 2008 and 5 April 2015 you may be able to pay voluntary Class 3 NI contributions for up to 6 extra years, starting from the tax year 1975/76, to cover years that do not currently count towards your Basic State pension.  To do this you must already have at least 20 qualifying years."

 

Your own voluntary contributions were capped out at 30 years, because that is the rule to get the full basic pension.

 

"Voluntary contributions only count towards basic State Pension and bereavement benefits."  So I would concur from that unambiguous statement, that voluntary NI contributions (beyond the 30 year rule) cannot be added to an S2P.

 

I suggest you contact the DWP for further clarification.

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stevewool

all i know is i will get my pension when i reach 65 but i plan to retire when i am 60, so just have to make sure i have enough income until that date

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spritsail

Yes it was me!  This is the web site - https://www.gov.uk/browse/working/state-pension

 

You can make back payments to bring your account up to date, and there is an online form you can fill in to get your account details - you will need your National Insurance number.

My special thanks goes to Skywalker who prompted my search for my UK state pension. I filled in the online form early may, received an email saying that it was being processed, and in july,  a call from DWP to clarify a few points on my departure date from UK.. Yesterday I received a letter from the DWP UK, saying that I am fully up to date with my qualifying years and will receive a full state pension in a couple of years when I am 65. I would not have done anything about this had it not been for this thread. Thank you Lin C and Skywalker for the information .

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hyaku

It keeps changing. First I needed 40 years. Then they changed it to thirty. When I finally paid what I owe it was 6 at a higher rate not including the current tax year Pension forecast will tell you exactly what you would be entitled to. If you're younger it doesn't get any better.

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sperry

It keeps changing. First I needed 40 years. Then they changed it to thirty. When I finally paid what I owe it was 6 at a higher rate not including the current tax year Pension forecast will tell you exactly what you would be entitled to. If you're younger it doesn't get any better.

yes it does keep changing its going to 35 soon probably

 

and yes the pension service in uk is really well organised and very professional to deal with on phone.

 

as long as u dont ask how much serps you will get though, they only calulate those at last moment

 

and here is a handy warning

 

if u have 30 yeras service and a serps pension u must pay 35 years to keep your serps, otheriwse they will get lost in the updated calculation

ie confisacted off you and given to women

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