# UK Pension. News



## Cobra (25 Mar 2010)

Sorry i think i put the other post on the wrong thread:
Just wondering what if anyone can figure this one out more clearly.

Want to give your pension income a massive boost without it costing you a fortune? 
The Government is offering thousands of people a terrific chance to boost their incomes in retirement. The returns available are as high as 27% a year – more than five times the best savings rates at the moment, and almost ten times the inflation rate. 
*What is happening?* 
This offer is on the table because of changes ministers are making to the UK’s state pension system. 
Basically, it involves giving people who have spent several years out of the workforce – bringing up a family, for example, or caring for older relatives – the chance to boost the amount of state pension they receive by making up some of their missing National Insurance contributions (NICs). 
When people reach the state retirement age – 65 for men and, currently, 60 for women – the amount of state pension they get is based on how many full years’ NICs they have made. 
The full state pension at the moment is £95.25 a week per individual, rising to £97.65 from next month. But not everyone gets this much. 
To qualify for this full weekly payment, men have until now been required to accrue 44 years of NICs and women 39 years by the time they reach retirement age. From 6 April this will be cut to 30 years for both men and women. 
*What’s the deal?* 
Anyone is allowed to buy a year’s worth of missed NICs for the most recent six years, provided they have already accrued at least 20 years’ worth of NICs. 
This means paying a lump sum now in return for larger state pension payments from the time you retire until you die. You can do this even if you have already reached the state retirement age. 
Using current figures, buying a year’s NICs costs £626.60, and for someone retiring in the 2010-11 tax year (beginning 6 April) this would generate an additional 1/30th of the full basic state pension. This is £169.26 a year, based on the 2010-11 weekly pension of £97.65. 
That’s the same as buying an annuity for £626.60 which paid out £169.26 a year for the rest of your life. This is a fantastic return of 27%. In today’s depressed annuity market, you would be lucky to get more than £30 a year (a return of 4.7%) for the same initial sum. 
• Join our Get ready to retire goal *Extra opportunity*


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## dandy (25 Mar 2010)

Cobra,
              Are you sure about having to have 20 yrs accrued before being able to make voluntary contributions ?


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## Cobra (25 Mar 2010)

It says you must have at least 20 years accruid.[broken link removed]


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## Gervan (25 Mar 2010)

I make voluntary UK NI contributions, and had only 7 years when I was offered this chance. You are normally allowed to (back) pay for up to six years from when the contributions were due.
Even without making extra contributions, anyone with a qualifying year or two should apply for the UK state pension when they get to their UK retirement age ( differs according to date of birth). From April 2010, anyone with one qualifying year will get one thirtieth of the state pension.


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## Cobra (25 Mar 2010)

Does it mean if i have 4 years left to retirement with 20 years contributions , if i pay one years contributions ,i will get 1/30 of my total pension. This pension business drives me mad!!!!!!!!


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## Geraldine2 (25 Mar 2010)

Cobra,
What were the last tax years that you paid for?


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## Gervan (25 Mar 2010)

Cobra, if you have 20 years UK NI contributions, you will be entitled to 2/3 of the full State pension. 
If you pay the voluntary contributions for the next 4, you will get 24/30 UK state pension.
If you can pay voluntary contributions for past 6 years too, you will be up to full pension. Much less than the Irish one, at €95 per week, but still a good return on your money.
You cannot pay voluntary contributions in more than one EU country.


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## Cobra (25 Mar 2010)

Had 20 years contributions in UK. Last year i paid contributions was 1990.


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## Geraldine2 (25 Mar 2010)

Cobra,

I believe that 

Having 20 years of paid contributions you only need another ten years to qualify for a full pension.

You can make up those ten years by paying:

2003-2004 (final time limit: 5 April 2010); 2004-2005; 2005-2006; 2006-2007; 2007-2008 (payment date without penalty 5 April 2010, but final time limit: 5 April 2014); 2008-2009; 2009-2010; 2010-2011; 2011-2012 and 2013-2014. 

Write to the address below, quoting your national insurance no. and asking them for a pension forecast.

HM Revenue & Customs 
Charity Assets and Residence
Residency
BP1301
Benton Park View
Longbenton
Newcastle upon Tyne
NE98 1ZZ
U.K.

The time limits are important because they give you dates within which to pay without penalty as well the dates of the final time limit for some of the years.


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## RugbyBoy (16 Apr 2010)

How does the receipt of a UK pension effect your Irish pension?

Scenario where you have worked and topped up contributions in the UK and now live and work in Ireland. Can you receive an UK and Irish state pension?

TIA
RB


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## Jano (18 Apr 2010)

You can receive both but you can not make voluntary contributions into both at the same time. So for example you could be working in Ireland this year and paying PRSI and at the same time pay vol cont for the UK or vice versa. Obviously if you are on a means-tested pension in Ireland, any UK pension payments will be assessed against you.


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