Have you topped up a UK pension to cover gaps?

[FlyingFiona]

I am definitely straying outside my air of confidence but if I understand you correctly the GBP825 was what you paid previously when you were in UK. The eligibility for class 2 for additional years shouldn't be affected by the class of NIC you've already paid

No, it's the amount the system tells me I must pay. However, the Future Pension agent I spoke to on the phone earlier confirmed that this is not necessarily the sum I will end up paying. I need to submit the CF83 (as mentioned above) to apply and then HMRC will contact me with an updated schedule of payable years and the cost which will depend on whether or not the approve the Class 2 rate.

I was only on hold for 15mins. The agent pretty much said there was nothing he could do to help (despite the system directing me to call him) and to just submit the application and see what happens!

 

[Duffa]

My issue is that currently my contributions are listed as being £825/year which isn't the Class 2 amount so I need to work out how to change that

Same for me.... When I logged in it said £825 per year to top up.
But when I called them (I got through pretty easily) and told them I was here in Australia, I was advised by a Geordie lad that I could buy the Class 2 which is much cheaper. He even emailed me the forms.

 

[FlyingFiona]

Same for me.... When I logged in it said £825 per year to top up.
But when I called them (I got through pretty easily) and told them I was here in Australia, I was advised by a Geordie lad that I could buy the Class 2 which is much cheaper. He even emailed me the forms.

Oh how helpful! Was it easy enough to get the Class 2 after that? I'll have to wait until next week to sit and do the online version.

(The financial adviser websites all say how difficult it is...but then I suppose they would, wouldn't they?!)

 

[Duffa]

Oh how helpful! Was it easy enough to get the Class 2 after that? I'll have to wait until next week to sit and do the online version.

(The financial adviser websites all say how difficult it is...but then I suppose they would, wouldn't they?!)

TBH, I haven't filled them in yet.
I have until next year.

 

[Cynicor]

Did this for dad years ago. Crazy good investment decision. As others say, if it wasn’t gov it would be a scam.

 

[Amanad78]

We have used this company in Sydney, they are UK / AUS pension specialists.

UK state pension in Australia worth £9,627.80 p.a | Jason O'Connell

How to get a UK state pension in Australia worth £9,627.80 p.a. Your step by step guide to review, apply and get your UK state pension %

jasonoconnell.com.au

At the end of the day, you have to make the application to HMRC yourself but they will help draft a letter that you can send with the application form, and advise what to put in the form.

My husband and I have been trying to apply for about the last 12 months, everything takes a long time as all forms have to go by post.
Good luck

 

[andye]

Has anyone done the sums on the interaction with Aus pension eligibility?
It's not going to be relevant for me but might be for others reading
Presumably you could end up with less from Aus offsetting some of the benefit

 

[SydneySwan]

British Pensions in Australia - Home - British Pensions in Australia

have some very helpful factsheets. They are a lobby group whose sole purpose is to get the UK government to unfreeze the pensions paid to UK pensioners resident in Australia. Membership to BPIA is $20 - $30 per annum and I recommend everyone entitled to a UK pension but resident in Australia should become a member.

In my case I successfully applied to pay class 2 contributions in 2019 and was able to retrospectively pay them for 13 years (2007-19) and then by direct debit semi-annually for 2020 and 2021. Applying for Class 2 was a slow process as It was done by mail (had to send in evidence of my entitlement to class 2) and the DHSS was very slow to respond. I now draw my 'frozen' UK pension.

In my view there is no need to seek the assistance of a financial advisor in Australia to deal with the DHSS and I have never met one here who is very knowledgeable in this area despite claims to the contrary.

Unless you live in the following countries your UK pension will be fixed at the rate you become entitled to it in perpetuity; Austria, Barbados, Belgium, Bermuda, Bosnia Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Eire (Republic of Ireland), Estonia, Finland, France, Germany, Greece, Guernsey, Hungary, Iceland, Israel, Italy, Jamaica, Jersey, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Mauritius, Montenegro, The Netherlands, North Macedonia, Norway, Philippines, Poland, Portugal, Romania, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, USA and the United Kingdom. Note the omission of the main countries where expat UK pensioners reside - Australia, NZ, Canada, South Africa. This is an outrageous scandal as the pension scheme is contributory, not welfare.

If you travel to any of those countries listed above (except Bermuda and the USA) when you are a UK pensioner the DHSS will temporarily increase your payments to what they would have been if your pension had never been frozen but, of course, only if you inform them.

Taxation wise, your UK pension is taxed in Australia less a UPP 8% deduction. Any claims for an Australian pension will have your UK pension payments taken into account just like any other income (wages, dividends, etc.).

 

[FlyingFiona]

We have used this company in Sydney, they are UK / AUS pension specialists.

UK state pension in Australia worth £9,627.80 p.a | Jason O'Connell

How to get a UK state pension in Australia worth £9,627.80 p.a. Your step by step guide to review, apply and get your UK state pension %

jasonoconnell.com.au

At the end of the day, you have to make the application to HMRC yourself but they will help draft a letter that you can send with the application form, and advise what to put in the form.

My husband and I have been trying to apply for about the last 12 months, everything takes a long time as all forms have to go by post.
Good luck

To clarify, what have you been trying to apply for?

 

[andye]

British Pensions in Australia - Home - British Pensions in Australia

have some very helpful factsheets. They are a lobby group whose sole purpose is to get the UK government to unfreeze the pensions paid to UK pensioners resident in Australia. Membership to BPIA is $20 - $30 per annum and I recommend everyone entitled to a UK pension but resident in Australia should become a member.

In my case I successfully applied to pay class 2 contributions in 2019 and was able to retrospectively pay them for 13 years (2007-19) and then by direct debit semi-annually for 2020 and 2021. Applying for Class 2 was a slow process as It was done by mail (had to send in evidence of my entitlement to class 2) and the DHSS was very slow to respond. I now draw my 'frozen' UK pension.

In my view there is no need to seek the assistance of a financial advisor in Australia to deal with the DHSS and I have never met one here who is very knowledgeable in this area despite claims to the contrary.

Unless you live in the following countries your UK pension will be fixed at the rate you become entitled to it in perpetuity; Austria, Barbados, Belgium, Bermuda, Bosnia Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Eire (Republic of Ireland), Estonia, Finland, France, Germany, Greece, Guernsey, Hungary, Iceland, Israel, Italy, Jamaica, Jersey, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Mauritius, Montenegro, The Netherlands, North Macedonia, Norway, Philippines, Poland, Portugal, Romania, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, USA and the United Kingdom. Note the omission of the main countries where expat UK pensioners reside - Australia, NZ, Canada, South Africa. This is an outrageous scandal as the pension scheme is contributory, not welfare.

If you travel to any of those countries listed above (except Bermuda and the USA) when you are a UK pensioner the DHSS will temporarily increase your payments to what they would have been if your pension had never been frozen but, of course, only if you inform them.

Taxation wise, your UK pension is taxed in Australia less a UPP 8% deduction. Any claims for an Australian pension will have your UK pension payments taken into account just like any other income (wages, dividends, etc.).

Agree the UK pension uplift freeze in some countries lacks any degree of fairness. It must be awful for migrants with no Australian pension eligibility, who see their effective income falling every year for what could be 30+ years.

The UK politicians seem pretty intransigent and the country's mood and finances aren't likely to make it something they'd be rushing to fix. Haven't kept across what legal avenues have been explored

 

[mel-world]

This document is 2 years old - it maybe valuable if you are considering claiming.

We both worked in the UK for 5 years in the early 90s so applied for a Class 2 extension. We did it all privately. While it took a while and we did have to send original documents to the UK (they were returned very promptly), we managed it all quite easily without paying any agents.

As earlier pointed out, the payments are not indexed so the hundreds of dollars my partner receives each month and the thousands of dollars I get every quarter will buy less over time but are much more that the top up we paid a few years ago so we are quite satisfied with the outcome.

 

[FlyingFiona]

He even emailed me the forms.

Would you mind posting the forms here?

 

[Amanad78]

To clarify, what have you been trying to apply for?

To back pay at class 2 rates and pay class 2 rates going forward. My husband already has minimum years required to receive a small pension but wants to increase it to receive full pension. I need to reach minimum years but will never reach full pension.

 

[MEL_Traveller]

Thanks for this thread! I would never have known about this except for AFF!!

So… appreciate all the disclaimers about this not being financial advice. But would really appreciate some thoughts to help me!

so I logged in via the gateway.

There’s a large green box which shows estimated entitlements… but those entitlements assume i’m going to be working and paying contributions for the next 15 years! (which I won’t!)

It then says I have made contributions for 9 years. But the first and last year are only ‘part years’.

It then says I need 10 years to qualify.

So… it then shows me all the years I can top up. Which under the revised rules I can now go back 10 or 12 years or whatever it is.

Each year is going to cost me £825.

Am I right in thinking that if I have 9 years, I just need to buy one more, at £825, to give me my 10? And then I’ll get some sort of pro-rata pension?

The current green box estimate says £147 a week. But that assumes I’ll top another 15 years? But if i don’t do that… and if I only have 10 years of 40… it’s not going to be much! But.. I suppose for a one off £825 it would be better than nothing?

If two of the years were ‘part years’… and it’s too far back to complete those years… should I buy the three most recent years? At A£825 each?

 

[FlyingFiona]

Thanks for this thread! I would never have known about this except for AFF!!

So… appreciate all the disclaimers about this not being financial advice. But would really appreciate some thoughts to help me!

so I logged in via the gateway.

There’s a large green box which shows estimated entitlements… but those entitlements assume i’m going to be working and paying contributions for the next 15 years! (which I won’t!)

It then says I have made contributions for 9 years. But the first and last year are only ‘part years’.

It then says I need 10 years to qualify.

So… it then shows me all the years I can top up. Which under the revised rules I can now go back 10 or 12 years or whatever it is.

Each year is going to cost me £825.

Am I right in thinking that if I have 9 years, I just need to buy one more, at £825, to give me my 10? And then I’ll get some sort of pro-rata pension?

The current green box estimate says £147 a week. But that assumes I’ll top another 15 years? But if i don’t do that… and if I only have 10 years of 40… it’s not going to be much! But.. I suppose for a one off £825 it would be better than nothing?

If two of the years were ‘part years’… and it’s too far back to complete those years… should I buy the three most recent years? At A£825 each?

Do you qualify for the Class 2 payments? If so the amount you have to pay to top up will significantly decrease. That's what I'm in the process of applying for. (although I confess - I'd like to have all the questions up front before I start the application so that I can gather all my documents, so I'll just have to sit down one day and get through it all. Unless @Duffa can come up with the goods and post the PDF versions of the form here... )

 

[MEL_Traveller]

Do you qualify for the Class 2 payments? If so the amount you have to pay to top up will significantly decrease. That's what I'm in the process of applying for. (although I confess - I'd like to have all the questions up front before I start the application so that I can gather all my documents, so I'll just have to sit down one day and get through it all. Unless @Duffa can come up with the goods and post the PDF versions of the form here... )

Oh, class 2 is something I’d need to look in to!

edited…. oh! I get it now!

Makes sense I guess is being o/s we don’t need to pay the healthcare component?

But with a UK state pension, even tiny, coming in, I suppose that will offset the aussie pension?

 

[Brissy1]

Just found this thread, interesting.

Ms Brissy worked for the NSH in 1980s for a few years, less than 3 but was over there for more than 3 years (sometimes holidaying in Europe as you do). She has no idea if she/NHS contributed anything; if contributions were optional I think she would have said no.

Given <3 years possible contributions, any point in investigating this?

 

[FlyingFiona]

Just found this thread, interesting.

Ms Brissy worked for the NSH in 1980s for a few years, less than 3 but was over there for more than 3 years (sometimes holidaying in Europe as you do). She has no idea if she/NHS contributed anything; if contributions were optional I think she would have said no.

Given <3 years possible contributions, any point in investigating this?

Not when 3 years is the minimum period for working. But she can call up her record and take a look at what it says - you never know (mine says I contributed 9 years worth when I only lived in the UK as a working adult for 6 so go figure!). She'll need her social security number.

Post automatically merged: Jul 7, 2024

Oh, class 2 is something I’d need to look in to!

edited…. oh! I get it now!

Makes sense I guess is being o/s we don’t need to pay the healthcare component?

But with a UK state pension, even tiny, coming in, I suppose that will offset the aussie pension?

Any overseas pension will be deemed income when determining eligibility for the Aust. pension.

 

[SydneySwan]

Oh, class 2 is something I’d need to look in to!

edited…. oh! I get it now!

Makes sense I guess is being o/s we don’t need to pay the healthcare component?

But with a UK state pension, even tiny, coming in, I suppose that will offset the aussie pension?

If you get approved for class 2 contributions then they are a no-brainer to pay. When you check your account on the DWP website it assumes you are going to pay Class 3 as there are no special eligibility requirements. If you end up receiving a UK pension then Centrelink will take these payments into account when calculating your entitlement to an Aussie pension, i.e. they will reduce your Aussie pension. The 'sweet' spot is that if you don't qualify for an Aussie pension then the UK pension is not offset against any Aussie benefits although it is of course taxed.

 

[SydneySwan]

Just found this thread, interesting.

Ms Brissy worked for the NSH in 1980s for a few years, less than 3 but was over there for more than 3 years (sometimes holidaying in Europe as you do). She has no idea if she/NHS contributed anything; if contributions were optional I think she would have said no.

Given <3 years possible contributions, any point in investigating this?

Yes because Mrs Brissy stay may stretch across 3 or more UK tax years (UK tax year is April 6 to April 5). I received full credit for a tax year that I only worked in the UK for for 6 weeks. I think I must have paid enough NI in that short period to trigger a full credit.