{"id":10601,"date":"2022-07-08T12:53:08","date_gmt":"2022-07-08T04:53:08","guid":{"rendered":"https:\/\/www.infinitysolutions.com\/?p=10601"},"modified":"2024-11-06T08:09:16","modified_gmt":"2024-11-06T00:09:16","slug":"uk-expats-act-now-to-make-up-national-insurance-gaps-and-secure-the-full-uk-state-pension","status":"publish","type":"post","link":"https:\/\/www.infinitysolutions.com\/blog\/uk-expats-act-now-to-make-up-national-insurance-gaps-and-secure-the-full-uk-state-pension\/","title":{"rendered":"Uk Expats \u2013 Act Now To Make Up National Insurance Gaps And Secure The Full Uk State Pension"},"content":{"rendered":"

Many UK expatriates are unaware that they remain eligible for a full UK state pension, even after they move overseas. But <\/em>for some of you <\/strong>time is running out to backpay certain gaps in your National Insurance contributions. You may need to take action now to lock in your eligibility. Trevor Keidan explains. <\/em><\/p>\n

The UK state pension is currently \u00a3185.15 a week which equates to \u00a39,628.50 per year. While it isn\u2019t going to afford you a life of luxury in retirement, it is still a benefit worth securing as part of a wider retirement plan, if you are eligible.<\/p>\n

All UK expats should check their National Insurance record and assess whether it is worth plugging any gaps, but this is particularly important for men born after 5th<\/sup> April 1951 and women born after 5th<\/sup> April 1953<\/strong>.<\/span><\/p>\n

Individuals in this demographic are currently able to make payments dating back to 6th<\/sup> April 2006, subject to eligibility. But you\u2019ll need to get your skates on. This incredible opportunity to backpay up to 16 years only applies until 5th<\/sup> April 2025. After that, you will be limited to six years of back payments.<\/p>\n

Regardless of whether this applies to you or not, if you are a UK expat who has made National Insurance contributions at some point you will find useful information on securing a full UK state pension in this article.<\/p><\/blockquote>\n

How expats can secure a full UK state pension<\/strong><\/h4>\n

British citizens who have worked and made National Insurance contributions in the UK are eligible for some form of state pension as long as they have at least 10 qualifying years. This will be a pro-rata payment for anyone who has contributed for between 10 and 35 years. Once you have 35 qualifying years you will receive the full amount upon reaching state pension age.<\/p>\n

This age is rising. Older individuals may receive their pension at 66 but for most Brits it will be at 67 or 68 (for those born after 1978). You\u2019ll find a detailed timetable here<\/a> which lists birthdates and pension ages.<\/p>\n

What many expatriates don\u2019t know is that you can continue to pay voluntary contributions when you move abroad in order to attain your 35 qualifying years. In addition, it is possible to back pay a certain number of years.<\/p>\n

That means that, even if you were unaware of voluntary contributions and have been living abroad for some time, you could still be able to secure the full UK state pension by catching up on years you have missed. But time is running out for certain individuals.<\/p>\n

How to check your UK National Insurance record<\/strong><\/h4>\n

If you are unsure how many years of NI contributions you have, it\u2019s very easy to check. You\u2019ll need to register for Government Gateway<\/a> in order to prove your identity (if you haven\u2019t already) and then you can access your NI record and state pension forecast<\/a> online at this link. You\u2019ll find a detailed yearly breakdown showing exactly how many qualifying years you have accumulated and the years where there are payment gaps.<\/p>\n

Making UK National Insurance contributions when you live overseas<\/strong><\/h4>\n

To top up your UK state pension you can carry on paying voluntary class 2 or class 3 contributions while you live overseas. Class 2 contributions are just \u00a33.15 per week (2022-23 tax year) while class 3 contributions are \u00a315.85 per week. Certain criteria apply \u2013 I\u2019ve summarised the basics below but you\u2019ll find full information in the government guidelines here<\/a>.<\/p>\n

To be eligible for class 2 contributions, expats living and working overseas need to have paid national insurance for at least three years. If this is not the case, they must have lived and worked in the UK immediately before leaving and have lived in the UK for three years in a row. In most cases, if you are eligible for class 2 contributions, topping up is a worthwhile investment.<\/p>\n

Expats not working overseas, including those who have retired and wish to improve their state pension payout, will be eligible to pay Class 3 contributions. You will need to weigh up the pros and cons of paying over \u00a3800 per year to secure the UK state pension. It may be better to invest elsewhere. If you are unsure, a financial adviser can help.<\/p>\n

Back paying UK National Insurance contributions<\/strong><\/h4>\n

In most cases, if you want to pay voluntary contributions you must do so within six years of the year in question. The deadline each year is 5th<\/sup> April, so you currently have until 5th<\/sup> April 2025 to make up any gap for the tax year 2016-17.<\/p>\n

However, there are also exceptions to this .<\/p>\n

Specifically, men born after 5th<\/sup> April 1951 and women born after 5th<\/sup> April 1953 can make up gaps that date back to 6th<\/sup> April 2006, subject to eligibility. But take note, this only applies until 5th<\/sup> April 2025.<\/p><\/blockquote>\n

If you fall into that group and have an incomplete National Insurance record you should definitely act quickly to secure a full UK state pension. Once you\u2019ve checked your record and assessed that it is in your interest to plug payment gaps you should:<\/p>\n