Lived for three years in Uk- need advice on pension entitlement

JenJen

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I lived in the UK from 1987-1990 and just checked my national insurance record and I have 6 years paid. I am now 62 and living in France. Can I claim 4 years class 2 and if so, what would I get pension wise. TIA.
 
You can claim Class 2 if when you left the UK you did so to take up employment elsewhere.

Perhaps you need to read the thread linked above a few more times to digest it?
It could be very much to your advantage.

Many questions that have arisen, including yours above, have been very well answered by DannyBoyD and others.
 
You can claim Class 2 if when you left the UK you did so to take up employment elsewhere.

Perhaps you need to read the thread linked above a few more times to digest it?
It could be very much to your advantage.

Many questions that have arisen, including yours above, have been very well answered by DannyBoyD and others.
Thank you. I have read the thread again a few times and I think I can apply.
 
Hi JenJen
My understanding is based on the info provided.

You can buy back 16 years at Class 2 rate (assuming they decide you're eligible for this which I believe you should be as non-resident)

Then, look to pay annually for 5 more years at the Class 2 rate until age 67.

At that point, you should have 6+16+5 = 27 years of contributions meaning eligible for 27/35ths of £10,600 annually from age 67.

Total cost if Class 2 = 16+5 × £163 = £3,423 (Likely)

Or Total cost if Class 3 = 16+5 x £824 = £17,304

Either way, your UK state pension would then be 27/35ths × £10,600pa = £8,177 pa.

At very worst (Class 3), you'd break even if you lived to 69.5 yrs

***I'm not a financial advisor.
JohnRing.ie
 
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If I similarly have 6 eligible years on record.

If I only wish to pay for 4 more years at Class 3 to reach the minimum 10 years, then I get a percentage of the UK pension which will be £54 per week risng to £58.

£824 x 4 = £3296

3296 ÷ 54 = 61

After 61 weeks of receiving that UK pension I'd have recovered the cost of making those extra payments.

And would thereafter receive £54 a week until my death.

Have I got that right?
 
If I similarly have 6 eligible years on record.

If I only wish to pay for 4 more years at Class 3 to reach the minimum 10 years, then I get a percentage of the UK pension which will be £54 per week risng to £58.

£824 x 4 = £3296

3296 ÷ 54 = 61

After 61 weeks of receiving that UK pension I'd have recovered the cost of making those extra payments.

And would thereafter receive £54 a week until my death.

Have I got that right?
When you say rising to £58 do you mean in April 2024 when the next increase kicks in?

Otherwise your numbers look right on a gross basis. If there any deductions eg income tax, USC, etc you need to factor that into the payback period. (ie it will be longer but still great value)

Why stop at 10 years though?
 
To pay 10 years x £824 class 3 payments to reach the 16 years is a hefty upfront investment of almost €10k.

And you can't pay as you go, so to speak.
 
To pay 10 years x £824 class 3 payments to reach the 16 years is a hefty upfront investment of almost €10k.

And you can't pay as you go, so to speak.
Yes I agree but the benefits are hefty too. It all correlates...you just scale up. Payback is in the same period assuming no deductions - A higher pension amount will be more likely to tip you into paying tax if you have other income too.
 
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The income tax is a consideration I never thought of.
The UK pension is declared on the Form 11?

If you are a PAYE worker and never do your own tax returns, how does the UK pension income get reported to Revenue?
 
The income tax is a consideration I never thought of.
The UK pension is declared on the Form 11?

If you are a PAYE worker and never do your own tax returns, how does the UK pension income get reported to Revenue?
You'll have to start doing some returns once you begin drawing a foreign income! That's how they know! :)
I haven't done it yet but from some navigating around Revenue on line it doesn't seem that difficult.

I would urge you to scale up your contributions if you think you have good longevity after age 66/67.
Payback calculations don't take into account the index linked nature of the UK state pension (much better than what we have in Ireland - google Triple Lock). Annual increases in the benefit reduce the payback period further.
 
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