UK State Pension newbie

[beanhead]

Class 2 is an unbelievably good deal so I will try again. Maybe it's too good so HMRC try to find any excuse not to allow it.

I hope not! My application is at HMRC castle now. I got a confirmation on the phone that I have 3 years of contributions, so I am hopeful. They may find a way to weasel out of it, however
Let's see...

[Roger Van Zant]

I was not able to get approved for Class 2 contributions (I might have been able to by applying over and over again like some others have) but for me even the more expensive Class 3 are very much worth it.

The UK state pension will give you a much better return than nenkin or a private annuity, and provides good diversification.

I would recommend trying to find a way to make it worth if you can (sending in the application for Class 2 again might be worth trying too).

Good luck!

Yeah, you're right I think. I have 13 years of contributions already (before I left) so I guess it does make sense to continue. I missed 12 years so that's ~£9600 I need to pay to catch up and then another ~£8000 to get the 35 years. I'm finally planning to buy a house/apartment this coming year and need to build a big enough down payment for that so considering the options and priorities.

I will try one time to clarify with them regarding Class 2 just in case I did make a mistake, otherwise will settle for Class 3.

Thank you!

9600 quid?! It only cost me 1300 quid to back pay, I think, eight years!

[goodandbadjapan]

I was not able to get approved for Class 2 contributions (I might have been able to by applying over and over again like some others have) but for me even the more expensive Class 3 are very much worth it.

The UK state pension will give you a much better return than nenkin or a private annuity, and provides good diversification.

I would recommend trying to find a way to make it worth if you can (sending in the application for Class 2 again might be worth trying too).

Good luck!

Yeah, you're right I think. I have 13 years of contributions already (before I left) so I guess it does make sense to continue. I missed 12 years so that's ~£9600 I need to pay to catch up and then another ~£8000 to get the 35 years. I'm finally planning to buy a house/apartment this coming year and need to build a big enough down payment for that so considering the options and priorities.

I will try one time to clarify with them regarding Class 2 just in case I did make a mistake, otherwise will settle for Class 3.

Thank you!

9600 quid?! It only cost me 1300 quid to back pay, I think, eight years!

Yes - that seems very high! I was 1790 pounds for 2006 - 2018

[Beaglehound]

He’s talking about the class 3 rate.

[goodandbadjapan]

He’s talking about the class 3 rate.

Ah ok - must read more carefully! Are class 3s that much more?

[RetireJapan]

Ah ok - must read more carefully! Are class 3s that much more?

Class 2 = 3GBP/week or so
Class 3 = 15GBP/week or so

[Onobori1980]

Hi everyone, I’m another newbie so please forgive me hijacking this thread!

A few years back a British colleague of mine suggested I look into making voluntary contributions and I’m finally getting around to thinking seriously about it.

I’ve read through this thread and found it very useful indeed. I have been in Japan since 2007, working full time the whole time. I was employed in the UK immediately prior to coming to Japan, and according to the portal it seems I have 6 years of contributions already in the system.

So although I might have a lengthy fight on my hands, I believe I should be eligible for the Class 2 NICs.

I’m just getting the CF83 form ready and have a couple of very basic questions which I’d really appreciate advice on.

-Question 11: How long do you intend to stay abroad
I have no idea how long I’ll be in Japan, but will writing ‘unknown at current time’ harm my application?

-Question 12: Are you ordinarily resident in the UK?
Page 6 of the guidelines states ‘When you tell us your ‘ordinarily resident’ status you must base this on your circumstances at the time you left the UK’.

Taken at face value then this makes me ‘ordinarily resident’. But again, is this something that will adversely effect my application?

Sorry again for what I think are probably silly questions!

Could be wrong but my guess is answers to these questions are used to push people towards Class 3 payments, which I want to avoid if possible!

[adamu]

-Question 12: Are you ordinarily resident in the UK?
Page 6 of the guidelines states ‘When you tell us your ‘ordinarily resident’ status you must base this on your circumstances at the time you left the UK’.

Taken at face value then this makes me ‘ordinarily resident’. But again, is this something that will adversely effect my application?

Sorry again for what I think are probably silly questions!

Not silly questions, there's a whole thread about the 2nd one:

viewtopic.php?f=9&t=363

[Onobori1980]

Thanks so much, will give this thread a good read!

[kuma]

A few years back a British colleague of mine suggested I look into making voluntary contributions and I’m finally getting around to thinking seriously about it.

I’ve read through this thread and found it very useful indeed. I have been in Japan since 2007, working full time the whole time. I was employed in the UK immediately prior to coming to Japan, and according to the portal it seems I have 6 years of contributions already in the system.

So although I might have a lengthy fight on my hands, I believe I should be eligible for the Class 2 NICs.

Excellent news. Good luck on your application. n your circumstances, sounds like voluntary NICs (including backpaying) could take your pension entitlement from 0 to about 1/3 of the full pension overnight (well, once accepted, and backpaid...). Persevere!

-Question 11: How long do you intend to stay abroad
I have no idea how long I’ll be in Japan, but will writing ‘unknown at current time’ harm my application?

Sounds fine. My answer was 'Indefinitely'. You've been here long term, so I don't think an answer here would affect your eligibility for voluntary NICs in any case; I think this question is to weed out people who have just moved abroad but only intend to stay short term, in which case they may retain 'ordinarily resident' status, and not qualify for voluntary NICs and instead be liable for Class 1 NICs.

-Question 12: Are you ordinarily resident in the UK?
Page 6 of the guidelines states ‘When you tell us your ‘ordinarily resident’ status you must base this on your circumstances at the time you left the UK’.

Taken at face value then this makes me ‘ordinarily resident’. But again, is this something that will adversely effect my application?

The form and guidance have some horribly worded portions. 'At the time you left the UK'... do they mean your status just before leaving, or immediately after leaving the UK? What were your circumstances in Japan immediately after leaving the UK? One-year contract, or longer? In any case, the proof seems to be in the pudding -- you've stayed and worked in Japan long term. I took the question to mean what were my circumstances immediately after leaving the UK... did I intend to continue to use the UK as a base for residency, and was my work abroad temporary, etc etc? A 'yes' here could steer an applicant towards Class 1 liabilities for the first year abroad (but only if the employer has a place of business in the UK... so such a poorly worded question for such a specific circumstance.)

Whatever your take on it, it can't hurt to state your reasoning briefly in a covering letter. It seems from the other thread that both people who have answered Yes and No to this question have been granted Class 2 eligibility. Though some people seem to get rejected for Class 2 in the first instance despite appearing to be eligible...