National Insurance Contributions.
New rules increasing the amount of NI payment years needed to be eligible for a UK pension may prompt expats to top up their contributions.
The changes come into effect on April 6th 2016 and affect anyone retiring after that date.
Rather than needing 30yrs of NI payments to qualify for a full state pension, as is currently the case, retirees under the new regime will need 35. This means that anyone who has missed out on paying NI due to being abroad may wish to consider paying top up contributions.
The idea of the new pension arrangements is to offer a flat rate pension expected to be worth around £155 a week and do away with the other elements that currently make up the State Pension,, such as the additional State Pension and savings credit.
The current State Pension is £113:10 a week.
Fewer qualifying years of NI contributions reduce the weekly amount accordingly.
To qualify for any amount of the new pension in the future, you will need to have at least 10yrs of qualifying NI contributions. The current rules require just 1yrs payment to be eligible for some State Pension payments.
Experts have recommended that expats seek advice on whether they should make voluntary contributions to plug any gaps in their NI contributions. The decision will depend on personal circumstances and it may be more prudent to put money into a separate investment.
For more information;-
https://www.gov.uk/government/organisations/hm-revenue-customs
(HM Revenue &.Customs-Gov.UK site and click on National Insurance)
It may be worth checking whether or not you are entitled to a full State Pension by contacting the National Insurance Office, Tel: +44 (0) 300200350
Mon-Fri, 8am-5pm (best time to call, after 1pm)
HMRC cannot give you an estimate of your State Pension over the phone but you can get a State Pension Statement by post.
