UK State Pension

[ozni]

Hi Guys,

Would any body be able to offer any help with the following? We've lived in OZ for 20 years and the kids have grown up here and gone to college. They are looking at moving to UK in the future for career and job (this may be long term or medium term) . We want to be flexible in our retirement in the next 5 years ie maybe relocate back to UK for a while or longer. We have the opportunity to buy additional years in our UK state pension but the cost significantly increases next year. I know its frozen here after we draw it but its more portable. The OZ pension is good if we stay but gets reduced greatly if we became non resident (6 weeks  and then 26 weeks based on the number of years you have worked in Oz. Also they take into account the UK pension. Not an issue but we have to be in OZ to draw it and also remain in OZ for 2 years after. On the other hand we may end up staying here and paying the additional UK contributions and getting less OZ pension. Any thoughts would be appreciated.

[Marisawright]

When you say "additional years", do you mean starting to pay annually from now on, or paying for the years you've already missed?

I decided to pay for the years I had missed - I think you can back-pay up to six years.   You just write to the pensions centre and they'll send you a letter telling you exactly what you have to pay.

I decided it was worth it.  Although it won't increase my British pension by much, I'm hoping to live long enough to collect it for many years to come.  So even if it's only a few quid a week, I'll get back far more than I invested!  And do bear in mind, every time you go to the UK, even for a holiday, it will get unfrozen.

[ozni]

I mean additional ni contributions for past 6 years. Its more about portability and having the flexibility to go back to the UK with Oz super plus a part pension from either the UK or Oz gov. But we might not go?

[Patphillips47]

Hard call really but I know IF you go back to the UK and don't get a full Centrelink pension the UK will give you credits for work done in Oz but not sure if that was only up until 2001 when the reciprocal agreement ended We get full Centrelink pensions and part UK around 100 GBP  a week as we emigrated in 1982 and we don't loose a lot from the Centrelink pension The criteria for keeping full Centrelink pensions in the UK is 35 years working life in Oz between the age of 16 and retirement 

 

[Marisawright]

1 hour ago, ozni said:

I mean additional ni contributions for past 6 years. Its more about portability and having the flexibility to go back to the UK with Oz super plus a part pension from either the UK or Oz gov. But we might not go?

Well, even if you don't go, you'll get the extra pension from the extra contributions you made.  And like I said, every time you go back for holidays, you'll get the full amount unfrozen.

[Marisawright]

18 minutes ago, Patphillips47 said:

Hard call really but I know IF you go back to the UK and don't get a full Centrelink pension the UK will give you credits for work done in Oz but not sure if that was only up until 2001 

 

Yes, it is only up until 2001

[ramot]

6 hours ago, Marisawright said:

When you say "additional years", do you mean starting to pay annually from now on, or paying for the years you've already missed?

I decided to pay for the years I had missed - I think you can back-pay up to six years.   You just write to the pensions centre and they'll send you a letter telling you exactly what you have to pay.

I decided it was worth it.  Although it won't increase my British pension by much, I'm hoping to live long enough to collect it for many years to come.  So even if it's only a few quid a week, I'll get back far more than I invested!  And do bear in mind, every time you go to the UK, even for a holiday, it will get unfrozen.

I was lucky enough to get the UK state pension age 60, and had the option to pay extra to increase my pension.

We worked out that I would have to live till 62 before I was ahead of the extra paid. Luckily I am still here now in my 70’s so well ahead.

So well worth it in my case, but you have to wait till much older nowadays till you are eligible, so don’t know if it’s still worth it now?

We go to UK every year and claim the extra, then of course it reverts back when we leave, what a nonsense it is.