State pension query

[JEM44]

Hi, we are due to move to Perth next month and therefore my NI contributions in the UK will cease, assuming we don't come back! We have PR so plan on this being a permanent move.

 

Im 42 and due to travelling in my early life have probably paid just less than 20 years of NI. As I understand it you need to have paid 30 years NI to be eligible for state pension when I am old enough. So I have two questions:

 

1: how do I go about continuing my NI contributions so that I can claim pension when I am old enough and how would I find out the amount each month. Assuming it is worth it.

 

2: assuming I work til 60-65 in Australia, will I be eligible for Australian state pension?

 

Thanks

 

Laura

[JockinTas]

A pension expert will probably be along soon to answer your query but as far as I'm aware, if you do continue to pay your NI contributions whilst in Australia thus receiving the full UK pension when retirement age you won't be eligible for an Australian pension as you will be receiving the British pension.

[Loulou]

Hi Jem44, I am moving to Perth also on Sunday! Done quite a bit of research but no expert! To be eligible for a uk state pension you have to have payed NI for a minimum of 10 years so you will get some entitlement, to get full pension you need 35 years and over (changed from 30 beginning of April) which gives you approx 155 per week. I have phoned and had a projection for myself and husband as looking in to paying up to 35 years for us both, I have 19 years he has 24. I am going to wait to see if I settle in oz as if not and We return we both have 25 years plus to work so have plenty of scope! If I stay in oz as far as Iam aware you have to claim your UK state pension first then oz will make it up if under full pension entitlement. Iam going to look into this further whilst in oz before I decide as even though you may pay NI contributions from oz you will not get the inflation rise each year it will be froze at entitlement when left UK. Good luck hope this helps.

[JEM44]

Hi Jem44, I am moving to Perth also on Sunday! Done quite a bit of research but no expert! To be eligible for a uk state pension you have to have payed NI for a minimum of 10 years so you will get some entitlement, to get full pension you need 35 years and over (changed from 30 beginning of April) which gives you approx 155 per week. I have phoned and had a projection for myself and husband as looking in to paying up to 35 years for us both, I have 19 years he has 24. I am going to wait to see if I settle in oz as if not and We return we both have 25 years plus to work so have plenty of scope! If I stay in oz as far as Iam aware you have to claim your UK state pension first then oz will make it up if under full pension entitlement. Iam going to look into this further whilst in oz before I decide as even though you may pay NI contributions from oz you will not get the inflation rise each year it will be froze at entitlement when left UK. Good luck hope this helps.

 

Loulou, thanks for that. Say I may be best to leave it and let Aus make the pension up, that way I will get inflation? It seems so complicated for something that is so far off.

Laura

[Quoll]

Best to keep on contributing - it's only pennies in comparison while you are overseas. Australia doesn't have a pension in the same way and there's a good chance that by the time you get there you won't get it anyway as it's a Centrelink means tested benefit not an entitlement. You might have 20-30 years to build up a decent superannuation pot - get advice and put in as much as you can. You never know where the future will take you so a UK pension might give you a bit more pocket money when you need it. I wish we had continued to contribute!!!!

[amibovered]

 

A pension expert will probably be along soon to answer your query but as far as I'm aware, if you do continue to pay your NI contributions whilst in Australia thus receiving the full UK pension when retirement age you won't be eligible for an Australian pension as you will be receiving the British pension.

Not quite correct Jock, if your UK pension is the only income you get, then you would still get the Australian pension but at a reduced rate, but you'd still be considerably better off than if you were just getting one or other of the Brit/Aussie pensions, that's as it stands at the moment.