# UK state pension entitlement query



## FD Perth (22 Mar 2017)

Hi all,

I was born in the UK & worked and payed tax, NI contributions etc there from 1975 to 2004.
I will be 66 in the year 2025.
I then relocated to R.O.  Ireland & am now based in Australia, although it's likely I will return to Ireland to retire.

From scouring a few websites, my thoughts are I will be entitled to 29/30ths of the full UK pension, as things stand today. Is that correct?

My wife is Irish & has neither lived nor worked in the UK.  Am I correct in thinking that, based on current rules, she will be entitled to 60% of my OAP on my death?

Many thanks in advance


----------



## Gerry Canning (22 Mar 2017)

Welcome aboard.

1. Uk National insurance pension .
Go onto Gov.Uk website and you will be able to see your entitlements . UK pension people  are very good at properly answering queries.
From what I know you, with 29 years will get 29/35 of what is currently £155 per week .
So if you retired today you will get £128 .
But I am nearly sure you can (buy) the add on years and they are good value .
Strongly suggest look at buying (years) to get you to £155.
Don,t know about the 60% .
2. Also suggest check your ROI PRSI (pay related social insurance ) ,again you might have worked to get part contributory pension.
Or maybe your wife worked in ROI .
Again worth checking. Write to Dept Social Welfare , PRSI section , Mc Carters Rd , Buncrana Co Donegal ,if you can quote your PRSI numbers .
3. Australian pension . I assume you will get one there as well ?


----------



## FD Perth (23 Mar 2017)

Hi Gerry
thanks very much for that.
I was a member on here when I lived in Ireland & found it very useful for a variety of things. Had a few laughs in the social forums too.
Believe you're right on the buying back years & that's something I'm very likely to do.  I thought it was 30 years, but was going on memory.
My wife did indeed work all her life in Ireland until we came to Aus, and I worked there too for a few years.
Aus pension - I won't get any state pension, but am building up a fairly healthy superannuation account, which I can take home with me.

Thanks again


----------



## delfio (23 Mar 2017)

FD Perth said:


> My wife is Irish & has neither lived nor worked in the UK.  Am I correct in thinking that, based on current rules, she will be entitled to 60% of my OAP on my death?



Short answer is no.   Far reaching changes were introduced to the UK state pension in 2016 including you will now need 35 years rather than 30 contributions to qualify for the full UK State pension. . In many ways the changes individualized the system. There are no longer any inheritance of state pension rights for  spouses who have neither never lived in the UK or contributed to the UK NI system.

You best bet is to contact HMRC to get  copy of your own NI record and inquire about paying voluntary contributions for the missing years in your record. Please bear in mind if you were ever contracted out at any stage from the state second pension  this will also have an effect on the pension you will eventually receive. This will be outlined on the letter you will receive.   It is fairly bureaucratic and presently they are very slow in responding, you could be waiting up to three or more months before you hear from them. Alternatively you could sign up for the UK government Gateway service  online  https://www.gov.uk/government-gateway


----------



## FD Perth (24 Mar 2017)

Thanks Delfio
I'm sure the rules will change/ be tightened many more times before I retire, but it's interesting to know the state of play today.
Paying  contributions for missing years seems like a good deal at this point & is something I'll look to do.

Thanks again to you & Gerry for the info & advice


----------



## Carnmore (24 Mar 2017)

delfio said:


> you will now need 35 years rather than 30 contributions to qualify for the full UK State pension. .



Living in Ireland but having previously worked on the UK, I have 26 qualifying years and purchase Class 2 Voluntary NICs each year.

I previously contracted out of the second state pension (SERPS) so my pension forecast amount is lower than the new full rate of £155.65 per week , allowing for the lower NI contributions paid for the period contracted out. 

According to my UK online pension forecast, I am on course to receive the full rate if I make contributions for the next *11 *years rather than 9, which would mean 37 years being paid rather than 35. I assume the extra years are for the contracted-out shortfall.

I don't mind paying an extra two years contributions to get the full rate but my understanding is the state pension is based upon a maximum of 35 years. 

Can contribution years in excess of 35 be used to make up the shortfall?

Thanks in advance and hope you don't mind me jumping in on the post!


----------



## delfio (24 Mar 2017)

Yes you right its a maximum of 35 years. Apart from paying your voluntary contributions, have you checked to see if you can buy back years?
http://www.thisismoney.co.uk/money/...n-pay-extra-NI-state-pension-155-65-week.html

You could defer your pension for a year or two but since the changes the incentive for doing so have been cut by half.  Remember the contracted out element of your state pension would have gone into a private pension fund and the proceeds from that is intended to make up for the lower rate paid at the end of the 35 years.

You have a long way to go yet and they may well be further changes along the way.

Worth bearing in mind the UK government are considering abolishing class two NI contributions for the self -employed, this will also impact on individuals working abroad and paying voluntary class two contributions towards their UK pension. https://www.gov.uk/government/consu...ss-4-national-insurance-for-the-self-employed

Lets hope it doesn't happen for a few years yet otherwise we going to see huge increases on the cost of those voluntary contributions.


----------



## Carnmore (24 Mar 2017)

delfio said:


> Yes you right its a maximum of 35 years.



Why does the forecast say 11 years then?



delfio said:


> Apart from paying your voluntary contributions, have you checked to see if you can buy back years?



I did that initially. I also had the option of buying back pre-2001 years but they were at the more expensive Class 3 rate so I didn't - I had concerns at the time that Class 2 rates could rise and now Class 2 are being abolished! I could've paid c.£7/week against c.£14 for Class 3 now if I decide to continue voluntary contributions after 2018.



delfio said:


> Remember the contracted out element of your state pension would have gone into a private pension fund and the proceeds from that is intended to make up for the lower rate paid at the end of the 35 years.



No additional contributions were made though and the pension provider's projected weekly income is less than the COPE figure..


----------



## delfio (24 Mar 2017)

Another bit of digging and I see from 6th April 2018, class two contributions are going to be abolished. It will be the more expensive class three from then on. Still worth it, even at around £700 per year you wouldn't get anything like the benefits devived from it on the  open market. 

https://www.gov.uk/government/publi...n-of-class-2-national-insurance-contributions.


----------

