UK State Pension newbie

[goodandbadjapan]

Very happy to update that I received a letter last week informing me that a direct debit had been set up for Class 3 contributions, and they had collected a first payment of £657.90 for the period 12/04/2020 to 06/02/2021.

Checked my UK bank and confirmed that the direct debit had gone through - so it looks like I am now set! Thanks to everyone in thsi thread for the support and encouragement, and thanks to Ben and the site for inspiring me to keep at it!

I also received a separate letter informing me I have the option to make voluntary NICs shortfall payments. It turns out I currently have 3 qualifying years from when I was in sixth form. In total I seem to be able to back-pay 14 years' worth of contributions (I'm turning 34 this year). I'd be interested to know what others in this situation have done - how many years have you paid back?

My understanding is that to receive the full state pension you are required to have paid 35 qualifying years. My state pension age according to the calculator on gov.uk is 68 years old, and I would reach that in 2055. If I simply continue paying now, I would reach the full 35 years in 2052 (as I already have 3 qualifying years). While living abroad, I understand I can choose to stop paying contributions whenever I like, but if I move back the UK I assume I have to pay NICs no matter what. Therefore, so long as I continue to make contributions from now on, and if I plan to move back in a few years time, is there any reason for me to back pay any of my missing 14 years, beyond a change in the law/system?

I backpaid 12 years but it was class 2 so it was cheap and I needed those years as I am closer to retirement age than you! I will reach 35 years at about 64 or 65 I think. If I was in your situation and was going to reach the 35 years anyway, I probably wouldn't bother back paying.

[Chris]

Very happy to update that I received a letter last week informing me that a direct debit had been set up for Class 3 contributions, and they had collected a first payment of £657.90 for the period 12/04/2020 to 06/02/2021.

Checked my UK bank and confirmed that the direct debit had gone through - so it looks like I am now set! Thanks to everyone in thsi thread for the support and encouragement, and thanks to Ben and the site for inspiring me to keep at it!

I also received a separate letter informing me I have the option to make voluntary NICs shortfall payments. It turns out I currently have 3 qualifying years from when I was in sixth form. In total I seem to be able to back-pay 14 years' worth of contributions (I'm turning 34 this year). I'd be interested to know what others in this situation have done - how many years have you paid back?

My understanding is that to receive the full state pension you are required to have paid 35 qualifying years. My state pension age according to the calculator on gov.uk is 68 years old, and I would reach that in 2055. If I simply continue paying now, I would reach the full 35 years in 2052 (as I already have 3 qualifying years). While living abroad, I understand I can choose to stop paying contributions whenever I like, but if I move back the UK I assume I have to pay NICs no matter what. Therefore, so long as I continue to make contributions from now on, and if I plan to move back in a few years time, is there any reason for me to back pay any of my missing 14 years, beyond a change in the law/system?

My contact just got back to me and she confirmed it's ok to give you her E-mail address so I just PMed you.

However, I think you have now got it set up

[RetireJapan]

I also received a separate letter informing me I have the option to make voluntary NICs shortfall payments. It turns out I currently have 3 qualifying years from when I was in sixth form. In total I seem to be able to back-pay 14 years' worth of contributions (I'm turning 34 this year). I'd be interested to know what others in this situation have done - how many years have you paid back?

I think there is a case for backpaying:
-if you are not 100% sure that you will return to the UK
-if you can pay class 2 contributions

After all, previous years were cheaper than current or future ones, so it will be cheaper to backpay 14 years than pay them from now on (assuming you have the lump sum to do so). Also the government may well change the rules and no longer allow voluntary contributions from abroad/raise the price of contributions.

If you are 100% sure you will move back and work in the UK then backpaying would be 'wasting' money in a way, but if you are not sure it's a relatively cheap insurance policy

[Spa06Jc]

Good thoughts, all - thanks. As I'm class 3 and still quite keen to return in the mid-term, I will hold off on repaying for now. According to the letter, the final cut-off for repayments will be April 2023, although they cannot guarantee the amount required to complete the year beyond April this year.

[Mogame]

My contact just got back to me and she confirmed it's ok to give you her E-mail address so I just PMed you.

However, I think you have now got it set up

If your contact is ok could I also get her email address?
I got accepted into class 2 a few months ago but back payments are 80% class 3 fees even though I fit the criteria for class 2. A 45min call to HMRC with "Julie" left me with more questions than answers... Julie gave me some great UK customer service nostalgia though

[adamu]

I got accepted into class 2 a few months ago but back payments are 80% class 3 fees even though I fit the criteria for class 2

I think they do this when you fulfil the requirement for class 2 (working in the UK immediately before moving abroad), but you had some periods of unemployment after moving here. Class 2 is only for people who are working, so the Class 3 payments cover the period where you were not employed.

[Mogame]

I think they do this when you fulfil the requirement for class 2 (working in the UK immediately before moving abroad), but you had some periods of unemployment after moving here. Class 2 is only for people who are working, so the Class 3 payments cover the period where you were not employed.

I explained to her I had 3 years of UK state pension paid before I left for a job in Japan and have been employed overseas ever since. Julie didn't seem to understand this and kept repeating some variation of "well it depends on your circumstances". Repeating my circumstances didn't lead to any coherent course of action

[Chris]

My contact just got back to me and she confirmed it's ok to give you her E-mail address so I just PMed you.

However, I think you have now got it set up

If your contact is ok could I also get her email address?
I got accepted into class 2 a few months ago but back payments are 80% class 3 fees even though I fit the criteria for class 2. A 45min call to HMRC with "Julie" left me with more questions than answers... Julie gave me some great UK customer service nostalgia though

Sorry, have not logged in on here for a while so only just saw this.

Just sent you a PM with her E-mail address. Check your inbox

[Mogame]

Just sent you a PM with her E-mail address. Check your inbox

Thank you so much! Have shot her an email, fingers crossed!

[KCLenny]

My friend recently said that it’s impossible to claim 2 pensions living in Japan (Japanese and foreign). Is that true? Or is he talking out of his…