UK state pension

greengirl1968

Hi there

I have worked in the UK 15 years and have the opportunity to buy pension contributions for some of the years I have missed. Is this a good idea? It will cost me £20,000 approx.

I have also worked in Ireland for 10 years approx. Can I receive both pensions at age 66 and will I be taxed on them

Thanks

mct1

It's almost always worth buying voluntary contributions. But check with UK Pensions whether you would qualify for Class 2 rather than Class 3 contributions. Class 2 are much cheaper - that's what myself and husband both paid - and if you qualify it would cost you considerably less than £20,000.

If they want Class 3 then you'd have to do your sums. Uk Pensions office originally sent us separate quotes for Class 3 but corrected them when we queried.

You can receive both state pensions at pension age - currently 66 in both countries. And once you are resident here you pay tax in Ireland on all your pensions and income, including that from the UK.

Hope this helps.

greengirl1968

Thanks so much mct1

I hadn't heard of class 2 / class 3 - I will look at my letter from them again - I presume Class 2 would give you your proper pension amount but is dependent on how many NI contributions you made etc

mct1

Have you seen this?

https://www.gov.uk/voluntary-national-insurance-contributions/who-can-pay-voluntary-contributions

According to the table entry "Living and working abroad" if you worked in the UK "immediately before leaving" (as we both did) you should be eligible for Class 2.

greengirl1968

Thanks so much - I'll have a read. It's great to be informed on these things - its good to make sure you have some sort of decent income when retirement comes 😀

FernandoTorres

To qualify for the full UK pension you need 30 years contributions and it's about 40 for Ireland. So unless you worked for over 70 years you wouldn't be getting the full pension from both. Sounds like in your position you'd be best getting the max possible UK pension then getting a reduced Irish one.

Calahonda52

I understand Clare Byrne today on radio 1 has segment on UK pensions so maybe check to see it there are any material adverse changes mooted by the descendants of Cromwell.

I get c.70 euros month, they do the exchange rate conversion each time so it varies a little

JoChervil

OP, it all depends on your age. If you are close to retirement age, so very likely you will get Irish pension, if you worked full time for minimum 10 years here. So try to up it to that amount, if you did not.

greengirl1968

Thanks for that - I got a pension forecast which says I would get £149.10 per week of UK pension, I presume this is a partial rate

greengirl1968

Thanks for that - I'll give it a listen 😊

greengirl1968

Thanks, yes, I've worked in UK about 15 years, and here about the same amount- and counting.. I'm hoping that topping up my UK NI contributions I might get a half decent amount when I retire

mct1

https://www.boards.ie/discussion/comment/120103651#Comment_120103651

That's not the full 'new' pension rate of £185=but it's virtually the same as I get on the full old 'basic' (pre 2016) UK pension, so not bad at all, and regular increases too.. Mine started when I was 61 so can't complain.

I also topped up my Irish State contributory pension to a full one with voluntary contributions. You should look into that too if you stop PRSI payments before pension age.

onrail

Pardon my ignorance here, but I thought on moving back to Ireland, UK national insurance contributions were simply recognised under a recipriocal agreement, and then you would simply claim a full Irish pension (the greater of the 2) assuming you worked until normal retirement age?

I've 12 years of NI contributions and recently moved back to Ireland - unfortunately, I think I only qualify for Class 3 contributions.

Edit: Not sure whether Class 2 or Class 3. I worked for an Irish based company while residing in the UK for a year before I left...

mct1

https://www.boards.ie/discussion/comment/120104907#Comment_120104907

You can definitely claim both according to your level of NI/PRSA contributions in each country. I have mine a few years now and it's still the case. I believe if your contribution years don't entitle you to a state pension in one or both countries it's possible to combine them for an Irish contributory pension so you don't lose out. It's worth making early enquiries and doing your calculations because UK voluntary contributions have a deadline.

Berberis

Have a few years worked there in the 80's and sent an enquiry from this link given out on the Claire Byrne radio show from last week.

https://secure.dwp.gov.uk/ipc/personal-details

Be great if the process of be eligible for it can be done before the closing date of April this year.

Wife has a few years also, so she put in an enquiry too.

RCSATELLITES

https://www.boards.ie/discussion/comment/120101968#Comment_120101968

Hi I seen that you got your pension contributions changed from Class 3 to Class 2. How did you go about doing that? I am on gov.uk and its Class 3 about £5000 for the past 6 years. But could be so much less if it was Class 2. What is the criteria for class 2, I did read it but it's a bit confusing as the class 3 has the same criteria. If you could shed some light on your process, that would be great.

mct1

Criteria are here on the gov.uk website https://www.gov.uk/voluntary-national-insurance-contributions/who-can-pay-voluntary-contributions under the heading "Living and working abroad"

"You can pay Class 2 or Class 3 voluntary contributions if you had either:

• previously lived in the UK for 3 years in a row
• paid at least 3 years of contributions

To pay Class 2 voluntary contributions you must also have worked in the UK immediately before leaving."

If you qualify just phone or write to them, say you should be Class 2. They can easily check that from your past work NI payments. If it turns out you've overpaid and you applied correctly you could be due a refund..

Mary34

Hi all, my husband worked in the UK in late 80s early 90s, we have rang the UK Pensions department and they advised us to ring the number for him to see how many national insurance contributions he has made we have been ringing but a wait time of 40mins plus so we give up each time, has anyone got a more direct contact or do we just keep trying?

Colm Cummins

Hi Mary,

In the same boat myself. My wife is on the case and managed to get through after waiting a long time, 0044 191 2037010 is the National Insurance helpline number. Keep trying, they are accommodating when you do eventually get through.

You can also write to the following address,

PT Operations North East England,

HM Revenue and Customs,

BX9 1AN,

United Kingdom.

RCSATELLITES

https://www.boards.ie/discussion/comment/120192123#Comment_120192123

The class 2 criteria is a little confusing. I worked for 3.5 years in a row and have 4 years of full contributions. So that's covered.

Has anybody been able to find out what they clarify as immediately before leaving. I finished my job and left a week after packing and sorting out the removal van and bills etc.

Also is there another criteria about having to work when I came back to Ireland?

Can someone paying class 2 explain their situation and if it was similar to mine.

Thanks in advance.

Geuze

https://www.boards.ie/discussion/comment/120103068#Comment_120103068

Note that it is possible to buy voluntary NIC to enhance a UK state Pension, and so get a full UK, and a full IE state pension.

Geuze

https://www.boards.ie/discussion/comment/120417389#Comment_120417389

Class 2 = left UK and now working abroad

Class 3 = left UK and not working abroad

Geuze

Read this:

https://www.askaboutmoney.com/threads/uk-state-pension-am-i-class-2-or-class-3.230656/

How much does it cost to make a voluntary contribution?

Most common is either Class 2 or Class 3 contributions: Class 2 will be cheaper, but even if you are assessed as Class 3 it's still worth doing.

Class 2 Annually: £163.80 (GBP) - £3.15 per week

Class 3 Annually: £824.20 (GBP) - £15.85 per week

Which will I pay: Class 2 or Class 3?

Living and working abroad: Class 2 - but only if you worked in the UK immediately before leaving, and you’ve previously lived in the UK for at least 3 years in a row or paid at least 3 years of contributions

Living abroad but not working: Class 3 - but only if at some point you’ve lived in the UK for at least 3 years in a row or paid at least 3 years of contributions

RCSATELLITES

https://www.boards.ie/discussion/comment/120417881#Comment_120417881

Ok brilliant, thank you for the link and information.

Henry Ford III

https://www.boards.ie/discussion/comment/120103068#Comment_120103068

You sure about that?

RCSATELLITES

https://www.boards.ie/discussion/comment/120424196#Comment_120424196

You can have max on both as you can be working in Ireland and paying voluntary contributions for UK pension or vice versa, dependent on age and when you started contributing. Or you could be paying both country's voluntary contributions and sitting at home taking it easy. That's once you paid enough prsi and NI in order to be eligible for voluntary contributions. :)

FernandoTorres

My original comment was about the OPs situation, not a generic comment. Yes it's possible to qualify fully for both through voluntary contributions but you'd need to have been planning a lot earlier than the OP who is at least in their 50s given the info provided.

Saudades

https://www.boards.ie/discussion/comment/120424228#Comment_120424228

I'm not sure if Ireland' DSP would let you pay voluntary contributions if you're already paying UK VC's.

One of the conditions are [quote]Are no longer covered by PRSI on a compulsory or voluntary basis in another EU country[/quote].

Of course that rule has been in place since before Brexit....

RCSATELLITES

https://www.boards.ie/discussion/comment/120428521#Comment_120428521

That's an interesting one, so technically if the UK had this as a condition we would not be having this conversation. As in most people are paying compulsory Prsi in ireland so we wouldn't be able to pay the voluntary NI for the UK (if this condition was on the UK side of things).

I find this strange that UK wouldn't have this condition. I have a feeling it could be wrong on the Irish side.

Maybe someone could clarify??

Brenny123

Hey all, great thread. I worked in the UK 2023-2011 before moved back to Ireland. Not sure if anyone saw the recent article in the Irish Times but posting here in case anyone is in the same situation. Its worth a read. https://www.irishtimes.com/your-money/2023/07/04/worked-in-the-uk-top-up-your-pension-and-benefit-by-as-much-as-180000/.

I have 7-8 years contributions (I think I need a min of 10 years contributions) so I am going to complete and post off the CF83 form with a cover letter and see what the next steps should be. However the CF83 form also request bank details etc. Has anyone completed it and if so what did you do. ATM I just want to see what "Class" I should be entitled to and find out the next steps. Appreciate any info on experiences etc.

RCSATELLITES

https://www.boards.ie/discussion/comment/120825782#Comment_120825782

Hi,

I ticked the annual payment option so didn't provide bank details. The bank details are for a direct debit option. I would rather find out which class I am entitled to pay and then provide bank details. Also I wrote the cover letter and the filled the application form to request that I wanted to pay class 2, as I fulfill the requirements. So if you feel you fulfill the requirements request class 2.