Any bonanza beneficiaries out there?

[Kev1964]

What I mean is has anyone who is living in Ireland ……and paying PRSI here …..and has paid NICS for past years gaps …..and has then subsequently drawn down a New UK state pension?

I understand that when applying for the Irish state pension (in some cases a year earlier than the UK version) one is asked about foreign state pensions which are then factored in to one’s Irish state pension calculations.

From what I’ve learned social security contributions paid abroad may only help you qualify for an Irish state pension without actually enhancing it. Some posters on here have said they are not going to tell the Irish system that they have a foreign entitlement.

So I’m interested in hearing about some experiences from people living in Ireland who have successfully claimed both state pensions and whether they disclosed both entitlements with their Irish application and any consequences to that (in Ireland).

The second and bigger question is has anyone back paid NICS at class 2 rates and then what checks were carried out (if any) by the UK authorities that class 2 actually was appropriate and not class 3 for example?

In other words did they ask to check or verify your Irish employment history and or your PRSI statement before establishing your UK pension entitlement?

 

[Astoy5]

Sorry to be a joykill but can I suggest that we stop using the word “bonanza” about this scheme (including in the forum title)?

When you google about paying NI contributions abroad, this is one of the first websites to come up. Can you imagine if a British tabloid misinterpreted all of this stuff about foreigners receiving a bonanza at expense of UK tax payer? You could see a policy change pretty quickly.

I worked many years in the UK and haven’t ruled out going back. So while I really welcome this scheme, I also see it as something necessary, not a “bonanza”! I’m sure I’m not alone.

 

[thedaddyman]

Your understanding is incorrect. A UK pension has no impact on what you get for an Irish contributory pension which is not means tested. The impact is on your potential overall tax liability since you have an increased income.

In terms of paying NICS 2, in my case I got asked for a CV which I provided and that covered it

 

[DannyBoyD]

You could see a policy change

Whilst it may well be closed to future entrants; I do not believe that anyone currently paying voluntary NICs will be removed.

I'm personally delighted this site comes up in a google search; the more people that avail of it the better.

Its one of the best value investments in your future retirement that you could make.

I'll give you one guess as to how much I care about the Daily Mail & their ilk.

And I'll try not to take offence at the 'foreigners' comment, given how many Irish passports have been issued to UK residents in recent years.

 

[Astoy5]

Hi DannyBoyD. I’m not personally making the point about “foreigners”. I’m saying some newspaper like the Daily Mail could make that point and that could lead to pressure on UK politicians and a policy change.

Apologies if my email was unclear and if I caused offence. I’d just be worried about how the word “bonanza” could be misinterpreted in the UK.

 

[Dr Strangelove]

When you google about paying NI contributions abroad,

Well yes. You are googling from an Irish IP address so Google prioritises Irish sites

Sorry to be a joykill but can I suggest that we stop using the word “bonanza” about this scheme

It is an absolute bonanza! I worked ten months in the UK, got magically credited for two years when I was a teenager and had never even lived there, and can now pay £17.45 a week for 32 years to get a full UK state pension at 67.

 

[jpd]

I'd be very surprised if that works out

In 32 years time, the ratio of workers to pensioners will be so low that something will give - and it will not be possible to fund state pensions at the current levels

 

[Dr Strangelove]

What I mean is has anyone who is living in Ireland ……and paying PRSI here …..and has paid NICS for past years gaps …..and has then subsequently drawn down a New UK state pension?

Search old threads. I recall several examples of people saying they have done it.

In 32 years time, the ratio of workers to pensioners will be so low that something will give - and it will not be possible to fund state pensions at the current levels

It’s possible that the UK state pension will be 15% lower in inflation-adjusted terms than today for that reason.

It’s still a great deal at that level.

 

[Lisgoold]

Well yes. You are googling from an Irish IP address so Google prioritises Irish sites


It is an absolute bonanza! I worked ten months in the UK, got magically credited for two years when I was a teenager and had never even lived there, and can now pay £17.45 a week for 32 years to get a full UK state pension at 67.

Please post in this thread in 32 years time, and let us know if you get anything. On second thoughts, I'll probably have been dead about 20 years by then !

I'm sure it'll all work. Can't help thinking it's short term thinking by current government, seeing people offering to send them money today for something that will be someone else's headache to pay out way down the road.

 

[Dr Strangelove]

My guess is that the policy is mainly to benefit the one million or so UK citizens who live in the rest of Europe so that the UK is not seen to be abandoning them. The large share of Irish people with a UK work history is an unintended consequence.

The ability to make unlimited back payments was very generous and is being tightened as a result.

With my crystal ball on the very worst that could happen is some or all of:
1) closure to new entrants
2) raising the price of Class 2 and Class 3 voluntary NICs
3) fall in the rate of pension
4) increasing UK pension age

The rules would need to change a massive amount for voluntary Class 2 NICs not to be worth it.

 

[Allpartied]

I'd be very surprised if that works out

In 32 years time, the ratio of workers to pensioners will be so low that something will give - and it will not be possible to fund state pensions at the current levels

The ratio of workers to pensioners is not as important as the ratio of wealth production to total number of citizens.
With the advent of AI and other technological improvments the creation of wealth, may be significantly increased, with far fewer workers. All we need to do , is share it equitably.