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UK State Pension Voluntary Contributions

  • 23-03-2009 4:27pm
    #1
    Yorky
    Registered Users, Registered Users 2 Posts: 1,485 ✭✭✭


    Does anyone have any views on the sustainability of receiving one earned state pension from the UK and also one from Ireland? Could it eventually be the case that only one pension is payable regardless of the number of EU states social insurance was paid in?

    Has anyone who previously worked in the UK chosen not to make UK voluntary national insurance contributions in the event of this?

    Also, has anyone who contracted out of SERPS ( now called Pension 2), contracted back in due to falling private pension returns?


    Re: UK State Pension Contributions

    The only potential 'problem' with it is that it would greatly reduce the likelihood of any entitlement to means tested benefit.


Comments

  • #2
    Yorky
    Registered Users, Registered Users 2 Posts: 1,485 ✭✭✭Yorky


    Have received a statement of the arrears to be paid from 1996 to present. The arrears from '96 to 2001 inclusive are payable at the higher class 3 rate and thereafter payable at the lower class 2 rate. There is an almost threefold cost differential between the class 2(circa.£120 pa) and class 3 (circa. £330 pa).

    Seeing the rules now allow full pension entitlement with 30 years contributions, I am tempted to just pay for the cheaper class 2 arrears (2002 - present) and continue voluntary payments on an annual basis until I have paid the full 30 years contributions.

    My concern with this is the chancellor may decide to significantly increase the future cost of class 2 contributions as has happened with class 3-currently £12.05 per week- or even change the rules again for voluntary non-resident contributions as happened from 2002 onwards(prior to 2002 voluntary contributions were payable at the higher class 3 rate.

    I'm tempted to just pay all of the arrears and be done with it to have certainty but if class 2 contributions remain low I will have wasted money paying for class 3 contributions which are no more beneficial than class 2.

    Any advice would be appreciated of the anticipated cost of future class 2 contributions.


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