Author Topic: UK pension advice  (Read 950 times)

s0198362

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UK pension advice
« on: January 21, 2024, 06:28:08 PM »
Iím looking for guidance from the community here on my uk state pension.

My situation is this.  Iím 42, and have spent the last 10 years in the USA.  I also spent 3-4 years living in France.  Before that I was a student so not much wages.
I'm considering moving back to the UK, and checked on my state pension eligibility.  Here is what it states:

You can get your State Pension in 2050

Your forecast is £203.85 a week, £886.38 a month, £10,636.60 a year

You currently have 9 years on your record and you need at least 10 years to get any State Pension.

It appears I can top up some missing years for about £800 each.
Should this be a path I really look at?

If I top up the 16 missing years it seems I am allowed to do, would that then mean I would only need a further 10 years to meet full eligibility(35 years)?  Thatís within my plan for early retirement still.


Thanks for any thoughts.



s0198362

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Re: UK pension advice
« Reply #1 on: January 22, 2024, 05:08:51 AM »
Iíve read this about too up national insurance contributions:

https://www.moneysavingexpert.com/savings/voluntary-national-insurance-contributions/

However it isnít really geared to someone intending to have FI and RE.

daverobev

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Re: UK pension advice
« Reply #2 on: January 22, 2024, 05:19:55 AM »
Are you going to be working in the UK? If so, you don't need to do anything - 67-42 = 25 more years of contribs so you'll get to 34/35.

If you're not planning on working, look into starting a small self employment - and then pay Class 2 NICs at about £200 a year. If that's too much like hard work (ie you're already retired), just pay the Class 3s if you want to - check what Social Security entitlement you have as well.

Yes you want to get to 10 years at least. For safety I'd pay Class 3 up to 15 years regardless. But, all moot if you're going to be working at least a few years - do so, and review when you're thinking about retiring.

s0198362

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Re: UK pension advice
« Reply #3 on: January 22, 2024, 02:04:42 PM »
Thank you daverobev.

The intention is to work a bit in the uk, but obviously (based off my interaction with the Fire community) not to ďretirement ageĒ.

Setting up a self employment is an interesting idea.  Iíll need to evaluate a bit more.  I do realize there is an upcoming cutoff for some of my older contribution years.

Iíll also be getting some US social security (11 years here or so) and French pension(3 years of employment there).  The French one will likely be very hard to find of course.

daverobev

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Re: UK pension advice
« Reply #4 on: January 22, 2024, 02:42:25 PM »
France is easy - https://www.info-retraite.fr/portail-services/login

There's no point doing the older years I don't think as you have enough time to get to the full 35 years - you can fill years going forwards instead.

IE: you're better off investing £800 now and paying for extra years later, than paying for extra years now and investing money later.

PhilB

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Re: UK pension advice
« Reply #5 on: February 13, 2024, 02:29:39 AM »
Depending on your exact circumstances, you may be able to pay the cheaper class 2 NIC for some of the years you have been working abroad.  If you qualify, and won't get your full 35 years otherwise, then that could be the best route.

You will qualify for a state pension whatever happens, as you have worked in countries that count towards the 10 year rule - although the amount you get will be based on your UK NI record.

LateStarter

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Re: UK pension advice
« Reply #6 on: February 13, 2024, 07:59:26 AM »
Not very precise or up-to-date info but I looked into this a few years back and recall the following:
Buying extra years was generally a very good deal. If that's still the case, I would do it sooner rather than later: as I recall, you can only buy x-years from the past, and the good-deal could be taken off the table (like the deferment good-deal was halved a few years back).
Also, given your nomadic tendencies, note that if you end up outside UK, any UKStatePen will be fixed - not index-linked - significantly reducing the plus-side of the equation.

PhilB

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Re: UK pension advice
« Reply #7 on: February 13, 2024, 11:43:24 AM »
Not very precise or up-to-date info but I looked into this a few years back and recall the following:
Buying extra years was generally a very good deal. If that's still the case, I would do it sooner rather than later: as I recall, you can only buy x-years from the past, and the good-deal could be taken off the table (like the deferment good-deal was halved a few years back).
Also, given your nomadic tendencies, note that if you end up outside UK, any UKStatePen will be fixed - not index-linked - significantly reducing the plus-side of the equation.
That depends which country you end up in.  There are a bunch of countries where we have reciprocal social security agreements where you do get the indexation.

exoatteacher

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Re: UK pension advice
« Reply #8 on: February 19, 2024, 01:06:28 PM »
As a couple, we both applied to pay NI contributions and were accepted as paying Class 2 ones for the time working abroad. We had to use Class 3 to top up incomplete years whilst living in the UK.

This works out to £163.80 a year only, not they £800+ and so a no brainer.