SandBlasted Posted August 1, 2017 Share Posted August 1, 2017 Hi All Infrequent lurker here, first time posting and apologies if this has been asked before... I've just sent off the State Pension Statement Forms to DWP, but still trying to find further information about making voluntary NI contributions. Anyone here doing this? What amount should be contributed and specifically, is it worth it? I'm concerned because our Australian Super balances are very low for our ages(we wont qualify for Aus. state pension). TIA Quote Link to comment Share on other sites More sharing options...
Kathss56 Posted August 1, 2017 Share Posted August 1, 2017 2 hours ago, SandBlasted said: Hi All Infrequent lurker here, first time posting and apologies if this has been asked before... I've just sent off the State Pension Statement Forms to DWP, but still trying to find further information about making voluntary NI contributions. Anyone here doing this? What amount should be contributed and specifically, is it worth it? I'm concerned because our Australian Super balances are very low for our ages(we wont qualify for Aus. state pension). TIA If you ring them they will tell you. They are very helpful. Approx £700 a year to top up Quote Link to comment Share on other sites More sharing options...
BacktoDemocracy Posted August 1, 2017 Share Posted August 1, 2017 9 hours ago, SandBlasted said: Hi All Infrequent lurker here, first time posting and apologies if this has been asked before... I've just sent off the State Pension Statement Forms to DWP, but still trying to find further information about making voluntary NI contributions. Anyone here doing this? What amount should be contributed and specifically, is it worth it? I'm concerned because our Australian Super balances are very low for our ages(we wont qualify for Aus. state pension). TIA I would definitely recommend it if you are intending to return to the UK, we both did it whilst in Australia for 10 years and it increased my pension substantially. I think tho that you have to look closely at the new scheme, the number of years you have to pay in and the year you qualify for it, it is not as simply as it was. 2 Quote Link to comment Share on other sites More sharing options...
Guest The Pom Queen Posted August 2, 2017 Share Posted August 2, 2017 Have a chat with our pensions advisor @Andrew from Vista Financial Quote Link to comment Share on other sites More sharing options...
MTut Posted August 2, 2017 Share Posted August 2, 2017 My research on it suggests it would be Class Two Voluntary NI which is only £2.85 per week. https://www.pensionsadvisoryservice.org.uk/about-pensions/the-state-pension/voluntary-ni-contributions I'm definitely planning on doing it, as it's good value especially at the lower rate, if we come back. 2 Quote Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted August 3, 2017 Share Posted August 3, 2017 Hello You should be able to obtain a forecast online IF you have a valid UK passport....you can set up an account and it will tell you exactly where you are at and how many more years you will need to pay to get the full £159 per week. You may be able to apply for class 2 contributions, you will need to apply and be accepted as there is some criteria to fulfil but if you are accepted the cost like MTut suggests above is substantially lower than class 3 at around £145 a year as opposed to around £700. You may also be able to backdate for a number of years...it used to be 6 years but we have some clients that recently have been able to backdate as many as 10 years. Is it worth it......purely from a mathematical point of view and not factoring in anything else (ie legislation changes, foreign exchange, moving back to the UK etc) then typically you receive around 140% back from your initial cost outlay in year 1 of receiving the pension and then the full amount each year thereafter. For example if you topped up an additional year at class 2 (£145) the year 1 pension payment is around £200 extra and this £200 extra continues each year thereafter of receiving it. Obviously the timescale to year one differs for people depending on how long they have to go before they get to Pension Age. Also class 2 contributions are due to cease at some point, although this has been deferred as should have happened already. Regards Andy 2 Quote Link to comment Share on other sites More sharing options...
SandBlasted Posted August 3, 2017 Author Share Posted August 3, 2017 Thanks for all the helpful replies, sending off my applications today! Quote Link to comment Share on other sites More sharing options...
Kathss56 Posted August 3, 2017 Share Posted August 3, 2017 @Andrew from Vista FinancialWould you know is there a minimum number of hours/Dollars etc you would have to work for. i.e. 5yrs out of 10 in the new Oz pension ruling. (15yrs for pension now) Thank you! Quote Link to comment Share on other sites More sharing options...
Kathss56 Posted August 3, 2017 Share Posted August 3, 2017 On 01/08/2017 at 12:50, SandBlasted said: Hi All Infrequent lurker here, first time posting and apologies if this has been asked before... I've just sent off the State Pension Statement Forms to DWP, but still trying to find further information about making voluntary NI contributions. Anyone here doing this? What amount should be contributed and specifically, is it worth it? I'm concerned because our Australian Super balances are very low for our ages(we wont qualify for Aus. state pension). TIA What level /balance of super do you have to have to qualify please? Quote Link to comment Share on other sites More sharing options...
MTut Posted September 15, 2017 Share Posted September 15, 2017 I did a little bit more research on this yesterday. I should be able to pay Class 2 contributions as I'm leaving having been in a Class 1 paying job here. As Andrew says, £145 outlay is worth it - assuming you live to whatever pension age it'll be when I retire. More so when you factor in the triple lock for as long as it lasts. Looking at the options, it states: Class 2 - if you worked in the UK immediately before leaving, and you’ve previously lived in the UK for 3 years in a row or paid 3 years’ National Insurance @Andrew from Vista Financial - maybe you know, but as I read that, would my Wife (Australian National but resident and working in the UK for over 3 years) be able to continue to make NI contributions to build up a UK pension? I can't find anything on HMRC website that suggests she couldn't. We may or may not come back to the UK in the future but this appears to be a very cheap way to build up a good fixed income stream for retirement (albeit non-escalating in payment under current rules.) We'll also both be maxing our £3,600 allowance to UK pensions for the first five years while away. Seems a good use of the rental income from our UK home. Quote Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted September 19, 2017 Share Posted September 19, 2017 On 3/08/2017 at 18:05, Kathss56 said: @Andrew from Vista FinancialWould you know is there a minimum number of hours/Dollars etc you would have to work for. i.e. 5yrs out of 10 in the new Oz pension ruling. (15yrs for pension now) Thank you! Hello Sorry I over looked this. Here are the eligibility requirements for Age Pension: https://www.humanservices.gov.au/individuals/services/centrelink/age-pension#group-125 There is no hours/dollars requirement as it is a non contributory system. On 3/08/2017 at 18:26, Kathss56 said: What level /balance of super do you have to have to qualify please? The amount you receive once eligible is based on an income and assets test. The assets test is here: https://www.humanservices.gov.au/individuals/enablers/assets The income test is here: https://www.humanservices.gov.au/individuals/enablers/income-test-pensions The maximum in assets (exc the home) for a couple before they can get nothing under the assets test is $827,000. KR Andy Quote Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted September 19, 2017 Share Posted September 19, 2017 On 15/09/2017 at 18:41, MTut said: I did a little bit more research on this yesterday. I should be able to pay Class 2 contributions as I'm leaving having been in a Class 1 paying job here. As Andrew says, £145 outlay is worth it - assuming you live to whatever pension age it'll be when I retire. More so when you factor in the triple lock for as long as it lasts. Looking at the options, it states: Class 2 - if you worked in the UK immediately before leaving, and you’ve previously lived in the UK for 3 years in a row or paid 3 years’ National Insurance @Andrew from Vista Financial - maybe you know, but as I read that, would my Wife (Australian National but resident and working in the UK for over 3 years) be able to continue to make NI contributions to build up a UK pension? I can't find anything on HMRC website that suggests she couldn't. We may or may not come back to the UK in the future but this appears to be a very cheap way to build up a good fixed income stream for retirement (albeit non-escalating in payment under current rules.) We'll also both be maxing our £3,600 allowance to UK pensions for the first five years while away. Seems a good use of the rental income from our UK home. Hi MTut I'm pretty sure that we have had clients accepted for class 2 under similar circumstances as your Wife. Andy Quote Link to comment Share on other sites More sharing options...
Keith and Linda Posted September 19, 2017 Share Posted September 19, 2017 On 15/09/2017 at 19:11, MTut said: I did a little bit more research on this yesterday. I should be able to pay Class 2 contributions as I'm leaving having been in a Class 1 paying job here. As Andrew says, £145 outlay is worth it - assuming you live to whatever pension age it'll be when I retire. More so when you factor in the triple lock for as long as it lasts. Looking at the options, it states: Class 2 - if you worked in the UK immediately before leaving, and you’ve previously lived in the UK for 3 years in a row or paid 3 years’ National Insurance @Andrew from Vista Financial - maybe you know, but as I read that, would my Wife (Australian National but resident and working in the UK for over 3 years) be able to continue to make NI contributions to build up a UK pension? I can't find anything on HMRC website that suggests she couldn't. We may or may not come back to the UK in the future but this appears to be a very cheap way to build up a good fixed income stream for retirement (albeit non-escalating in payment under current rules.) We'll also both be maxing our £3,600 allowance to UK pensions for the first five years while away. Seems a good use of the rental income from our UK home. I logged into my UK gov portal and found I need 4 years of contributions to get full pension however the cost was just under 400 quid per year for past years more than 4 years rising each year upto last year of over 470 quid, Where did the 145 Pound come from? Quote Link to comment Share on other sites More sharing options...
mxh Posted September 19, 2017 Share Posted September 19, 2017 2 hours ago, Keith and Linda said: I logged into my UK gov portal and found I need 4 years of contributions to get full pension however the cost was just under 400 quid per year for past years more than 4 years rising each year upto last year of over 470 quid, Where did the 145 Pound come from? I'm in the same boat (well similar) - I'm showing as having 29 years of full contributions, but the 'gap' years are showing a cost of over £600 to top up. And what's the number of years that we need - I've read both 30 and 35 to get the full pension - which is correct? Quote Link to comment Share on other sites More sharing options...
Keith and Linda Posted September 19, 2017 Share Posted September 19, 2017 2 hours ago, mxh said: I'm in the same boat (well similar) - I'm showing as having 29 years of full contributions, but the 'gap' years are showing a cost of over £600 to top up. And what's the number of years that we need - I've read both 30 and 35 to get the full pension - which is correct? Yep you are correct just checked ( the other figures I mentioned was something else I was sorting at the same time) and it is 689 pounds and rising upto over 750 pounds for last year. You need 31 full qualifying years and I have 27. It works out that if I pay the four years I will start to get a return If I live 4 years beyond retirement date, quids in if I live 24 years. I am going to buy a couple of years this week and a couple more next year and have a drink to good health! Quote Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted September 19, 2017 Share Posted September 19, 2017 Class 2 may be available to certain people meeting certain conditions and if successful the cost is around 145GBP for each missing year where class 2 has been granted. However it has started to become more confusing since the changes came in to move it from 30 years to effectively 35 years and in some cases paying for years prior to the changes does not always add any more or only add very little benefit. Quote Link to comment Share on other sites More sharing options...
MTut Posted September 19, 2017 Share Posted September 19, 2017 6 hours ago, Andrew from Vista Financial said: Hi MTut I'm pretty sure that we have had clients accepted for class 2 under similar circumstances as your Wife. Andy Cheers Andy, I guess it doesn't hurt to put in the application, even if we can't claim it for another 30 years and who knows what it'll be worth then! Quote Link to comment Share on other sites More sharing options...
Kathss56 Posted September 19, 2017 Share Posted September 19, 2017 7 hours ago, Andrew from Vista Financial said: Hello Sorry I over looked this. Here are the eligibility requirements for Age Pension: https://www.humanservices.gov.au/individuals/services/centrelink/age-pension#group-125 There is no hours/dollars requirement as it is a non contributory system. The amount you receive once eligible is based on an income and assets test. The assets test is here: https://www.humanservices.gov.au/individuals/enablers/assets The income test is here: https://www.humanservices.gov.au/individuals/enablers/income-test-pensions The maximum in assets (exc the home) for a couple before they can get nothing under the assets test is $827,000. KR Andy Thanks very much Andy. Your advice is invaluable! Quote Link to comment Share on other sites More sharing options...
mxh Posted September 20, 2017 Share Posted September 20, 2017 (edited) On 8/3/2017 at 14:54, SandBlasted said: Thanks for all the helpful replies, sending off my applications today! Was that the CF83 form you filled out and sent? And did you hear anything back? Was it all straightforward or are you currently drowning in red tape? Edited September 20, 2017 by mxh Quote Link to comment Share on other sites More sharing options...
Keith and Linda Posted September 20, 2017 Share Posted September 20, 2017 On 19/09/2017 at 16:35, Andrew from Vista Financial said: Class 2 may be available to certain people meeting certain conditions and if successful the cost is around 145GBP for each missing year where class 2 has been granted. However it has started to become more confusing since the changes came in to move it from 30 years to effectively 35 years and in some cases paying for years prior to the changes does not always add any more or only add very little benefit. Yep I Andrew it was starting to get confusing however I just registered into the Government gateway and on there you get how you personally stand at present, your full years of entitlement is listed year by year, how many years you have and what your pension will be for those years, how many years you need for full pension, what years you can still pay including how much for each year, It was surprisingly simple (considering I class myself as a crash test dummy for IT stuff) and informative. Not sure if it is an age related thing but I needed 31 full qualifying years to get the full pension so only 4 years of back stamps for me so I believe it would be beneficial for me to pay the 4 years this would cost me around 2750 pounds to give me 15 pound per week extra so four years gives me some 3120 pounds if I live past 70 the better return. Others will have to do their own sums I suppose. But getting onto the 'Government Gateway' seems to be the key. Quote Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted September 20, 2017 Share Posted September 20, 2017 Yes the online system is very good however you must have an up to date UK passport to set up an account and unfortunately not everyone has renewed them since expiry we are finding with our clients. You are right though in that it gives a very comprehensive list of what years are on record as having been fully paid, partially paid, or not paid, how much you are entitled to and how many years are left to get the maximum you may be entitled to at your retirement age HOWEVER for some people that are/were near the old 30 years back paying beyond 2015/16 may not give the benefit that it would have prior to the changes even though the system states it does. Previously it was very general with regards to the Basic State Pension entitlements and what needed to be paid to get additional benefits and more importantly what those additional payments meant in pound terms of extra benefits, now we have found it's become quite individual in terms of the maximum people may get (if they are near retirement or were near the old full basic pension) and what topping up may get them. For clients in those situations we have taken to writing in and requesting a precise cost benefit analysis. Andy 1 Quote Link to comment Share on other sites More sharing options...
Keith and Linda Posted September 26, 2017 Share Posted September 26, 2017 Yes Andy, each is an individual case with some obviously needing more detailed financial advice from the likes of yourself. Just an update on my situation, I called the UK pensions place last night it appears as though I may have been incorrectly assessed as having to pay Class 3 NI instead of Class 2, with class 2 being the 145 pounds that matches with the amount stated in previous posts. The pensions people have booked me in on a "call back" from a different department (5th Oct between 12 & 1pm UK time) supposed to be some sort of financial pensions expert and they will advise on my Class of contributions and if it is a financially viable option to back pay for my situation. Stay tuned. 2 Quote Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted September 27, 2017 Share Posted September 27, 2017 Thanks for the update. We've lots of clients with outcomes that are very different to others even though the system seemed to suggest the same proposal so it is definitely not as black and white now as it used to be. We and some of our clients have had a conversation with the "Pensions Expert" they do seem to have a very good grasp and they have provided us with an email address for future questions (they do seem to come back very quickly as well (so far anyway)). 2 Quote Link to comment Share on other sites More sharing options...
Paul1Perth Posted September 27, 2017 Share Posted September 27, 2017 If you qualify for a UK pension does that offset any pension you would get from Aus? I can't see that you would be able to get both. Quote Link to comment Share on other sites More sharing options...
Nemesis Posted September 27, 2017 Share Posted September 27, 2017 3 hours ago, Paul1Perth said: If you qualify for a UK pension does that offset any pension you would get from Aus? I can't see that you would be able to get both. Yes. The oz state pension is means tested, so getting a full UK pension usually means you qualify for nothing from the Australian state pension. Quote Link to comment Share on other sites More sharing options...
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