UK State Pension TopUp and IE Retirement

chrisjcbt

Hi there,

I am hoping people here can help me. I’m a UK born person who worked in the UK, paying National Insurance over 27 years. In 2017, we moved to Ireland and I’ve paid PRSI since then.

I’ve seen chatter on Irish news and Finance sites about people topping up their UK NI contributions. And I'm trying to work out if I should do this?!?

My understanding is I can combine NI and PRSI to get my full IE pension. I also understand it is possible to get both UK and IE pensions, but you cannot combine NI and PRSI contributions in that case. I moved here in 2017, at the age of 40. So I think my shortfall would be on the Ireland side.

Is this all correct? Why would topping up my UK NI help me in Ireland at retirement?

Many thanks.

coylemj

If you moved here in 2017 at the age of 40, how did you manage to clock up 27 years of National Insurance (NI) contributions in the UK?

chrisjcbt

sorry getting my maths wrong! I had worked from 17. But the question still stands. Any reason why?

Geuze

Yes, you can make voluntary NIC.

You need to act now.

Please read this:

https://www.askaboutmoney.com/forums/qualifying-for-the-uk-state-pension-bonanza.169/

Electric Nitwit

https://www.boards.ie/discussion/comment/122239758#Comment_122239758

Thanks so much for that, just gone through it all and it seems like a no-brainer

Once you qualify it's basically ~£185 for each missing year and each year paid should increase your UK pension by ~£325pa (up to a limit)

Also good to note you can just register to pay annually going forward

jj880

Wow! The luck of coming across this. Ive 8 years UK payments up to 2011. Didn't even know you could do this. Must get setup and see what I can get.

edit: just got logged in to gov.uk. I already have the minimum 10 years somehow. And can add another year for £240 so I'll pay for that year. Im on the upper rate for the rest (£824) which is fair enough as I was not living in the UK for the last few years before my contributions stop. Im not sure it would be worth it for me to pay the £824 rate now (Im 43) to get the increases in 2049. I'll have a think on that. Thanks for posting details of this as now I know what Im entitled to 👍️.

Geuze

@jj880 I suggest you carefully clarify the distinction between class 2 and class 3. Maybe post a query on AAM. It may be worth your while.

There are posters on AAM who have tried to get their class changed.

At the lower class 2 rate, this is the best investment you'll ever make.

At the class 3 rate, it's still good.

jj880

https://www.boards.ie/discussion/comment/122240986#Comment_122240986

When I tried to pay the extra year online they told me I have to contact the "future pension centre" as I could be eligible for class 2 and gave me a +44 number. I'll ring them later in the week and see what they say. Thanks.

coylemj

https://www.boards.ie/discussion/comment/122239737#Comment_122239737

If you have sufficient NI and PRSI contributions to get a pension from both countries, it might not be a good idea to merge your entitlements. Because I suspect that, if you claim just one pension, you won't be able to get more than 100% of the maximum pension in either country. Whereas if you clam the two pensions separately and possibly upgrade your UK entitlements as advised above, you could easily end up with a gross pension which is more than the maximum individual pension you'd get from either system.

I wasn't nit-picking when I asked you to clarify your age and service because you will need to state these in order to get the best advice.

1. How many years NI contributions have you?
2. How many years contributions will have you here when you retire or reach 66?

You will get the maximum pension here if you have 40 years contributions. That's 2,080 weekly contributions. If you have less than that when you claim the pension here, you get a proportion of the max based on what % of 2,080 you have clocked up.

Jim2007

https://www.boards.ie/discussion/comment/122242804#Comment_122242804

Pay great attention to this!!! I have seen this a twice now here in Switzerland with people entitled to UK pensions - you only get one bite at the cherry and if you get it wrong nobody wants to know.

The two I'm talking about could have gotten 50% - 75% Swiss pension and 100% UK and they just ended up with 100% UK only and when they realised their mistake they were told once made the decision is final.