Deadline to back pay U.K. state pension approaching

[kuma]

Good luck! Watch them like a hawk. I'd advise to keep records of any correspondence, including phone (take the name and job title of anyone you speak with and write down any key points from conversations).

I tried calling earlier this month and was repeatedly cut off after waiting on hold for 30 minutes. I understand that there's a better number to call, but is there any reason to call? What should I ask them if I get through? The site tells me that I'll get a reply in February next year.

I'm astonished at the backlog ... but if I call, will I be able to get anything from them other than "wait until February?"

I’ve never called them. Many others on this forum have.

I agree with your assessment; little to be gained by calling, especially if you’ve already been given an estimate of a (distant) response time. Confirmation that your application has been received and logged is something some people on the HMRC forum seem to spend lots of phone time chasing.

Having said that, since you’ve sent two applications in quick succession, with the second superseding the first, in your shoes some people might want to talk to an operative with the hope of them logging that info (or even fishing the forms out of the in-tray, binning the old one, and returning the new one to its place in the queue).

[Gareth]

The deadline has been extended again to April 2025

https://www.gov.uk/government/news/dead ... april-2025

[mc_spanner]

Thanks to all of you who commented so far. Here's an update on my situation - I appreciate any advice that you may have:

I received a letter about the voluntary NICs from HMRC, several months sooner than expected. It says that I can make the following voluntary NICs:

2006 to 2007 52 weeks @ £15.85/week = £824.20
2007 to 2008 52 weeks @ £15.85/week = £824.20
2008 to 2009 52 weeks @ £15.85/week = £824.20
2020 to 2021 52 weeks @ £3.15/week = £163.80
2021 to 2022 52 weeks @ £3.05/week = £158.60
2022 to 2023 52 weeks @ £3.15/week = £163.80

It appears that HMRC assessed my case and determined that I can pay Class 3 contributions for the first three years, and Class 2 contributions for the most recent three years. I'm not sure why the weekly contribution is discounted by 10p in 2021-2022, but I'll take it.

First question - Is HMRC's assessment correct?
I'm wondering why I can't make Class 2 contributions in the years from 2006 to 2009. Might it be because of insufficient work history or gaps in work history prior to those years? I worked in the UK at various temp jobs from mid-1992 to mid-1993, and full time from mid-1998 to September 2000.
I've got a feeling that HMRC must be right, but perhaps I should call to confirm?

Second question - Should I pay six years? Or three? Or another number?
If I pay for all six years now, I can reach the 35-year target after 9 more years of Class 2 contributions, aged 63
If I just pay the last three years, I can reach the 35-year target in 12 years, aged 66

I feel like paying all six years straight away to get them "under my belt" but that's probably not the most efficient way to hit the target.
Would it be better to pay only the last three years and continue paying Class 2 contributions for another 12 years?
Or should I pay, say, five years now? That would allow me to hit my target before I reach 65 years old.

It's impossible to say what might happen in the next 12 years, but I assume first that I will not move back to the UK (although it's not totally out of the question), and second that I will have no difficulties paying Class 2 contributions, and finally that I will still be around to collect the state pension.

Thoughts?

[RetireJapan]

Second question - Should I pay six years? Or three? Or another number?
If I pay for all six years now, I can reach the 35-year target after 9 more years of Class 2 contributions, aged 63
If I just pay the last three years, I can reach the 35-year target in 12 years, aged 66

If you can pay class 2 contributions in the future, that might save you a lot of money compared to paying those 3 years of class 3.

On the other hand, there is a non-zero risk of the UK government changing the rules and not allowing people to make (class 2) voluntary payments from overseas in the future.

[Beaglehound]

Where were you and what was your employment status during 2006-08? If employed abroad they may not accept that you were employed in the UK immediately prior to moving overseas?

Payment choice is not clear cut IMO. Tempting to just pay the class 2 years and keep doing that until you hit 35. Should save you north of £2000. On the other hand it would be comforting to have more years in the bank due to the risk of future changes in qualifying years or payment rules. Comes down to personal choice.

[Bubblegun]

Well, I fully back paid my UK pension and reached the 35-year mark so we stopped contributing to that. with 12 years to go before retirement.
Then we used the money saved, to back pay the 10-year Japanese pension and then joined the fukanenkin.(I won't get a full Japanese pension for sure but I'll take the 25 years)
But with the full UK, half a japanese pension, the wifes full pensions and a few others. we should be OK
As you rightly pointed out, we don't know what will happen between now and visiting the pearly white gates. If I died early...I couldn't be in a worse situation, cause I'd be dead, while of working age. So that could be seen as the cheapest and longest retirement ever. LOL. So I took the option to pay and see it as an insurance policy to stop me working as hard say 62 or 63 or at least ease off a bit. We won't be living the life or Riley, Rishi Sunak, or Barmy Boris Johnson , but I won't be working 35 hours a week.

It was easier for me to think at 62, maybe i can work 15 hours a week, draw down from savings, then get my UK pension,and japanese pension then ease of on the draw down further to 4% 5% 6%. I have no idea if its as cunning as a fox who's just been appointed Professor of Cunning at Oxford University?, but that is the cunning plan.
As the saying goes, we're long time dead.

[Wales4rugbyWC23]

Well, I fully back paid my UK pension and reached the 35-year mark so we stopped contributing to that. with 12 years to go before retirement.
Then we used the money saved, to back pay the 10-year Japanese pension and then joined the fukanenkin.(I won't get a full Japanese pension for sure but I'll take the 25 years)
But with the full UK, half a japanese pension, the wifes full pensions and a few others. we should be OK
As you rightly pointed out, we don't know what will happen between now and visiting the pearly white gates. If I died early...I couldn't be in a worse situation, cause I'd be dead, while of working age. So that could be seen as the cheapest and longest retirement ever. LOL. So I took the option to pay and see it as an insurance policy to stop me working as hard say 62 or 63 or at least ease off a bit. We won't be living the life or Riley, Rishi Sunak, or Barmy Boris Johnson , but I won't be working 35 hours a week.

It was easier for me to think at 62, maybe i can work 15 hours a week, draw down from savings, then get my UK pension,and japanese pension then ease of on the draw down further to 4% 5% 6%. I have no idea if its as cunning as a fox who's just been appointed Professor of Cunning at Oxford University?, but that is the cunning plan.
As the saying goes, we're long time dead.

I saw the ten-year option to pay back pension payments for the Japanese state pension. When did you do this, and is it still available?

[AreTheyTheLemmings?]

I saw the ten-year option to pay back pension payments for the Japanese state pension. When did you do this, and is it still available?

The what now? Where can I find out about this?!

[RetireJapan]

I saw the ten-year option to pay back pension payments for the Japanese state pension. When did you do this, and is it still available?

The what now? Where can I find out about this?!

While nenkin has had temporary campaigns that allow people to backpay more in the past, the standard (and current) policy is to only allow people to pay two years of past payments. If you have partial payments due to low income, you may be able to make them up to full payments even if they are older than two years.

[mc_spanner]

Where were you and what was your employment status during 2006-08? If employed abroad they may not accept that you were employed in the UK immediately prior to moving overseas?

I was living in Japan at that time. (Actually living in Japan from 2001-2009 - but I guess that 2001-2005 are too far back).
Immediately prior to my move to Japan, I was employed in the UK.
I just spoke to HMRC now and got through to an agent who told me that "Class 2 is only for people who were self employed prior to moving abroad." That doesn't match the information that I have read online.

If I felt that I had to pay those three years, I might try to persuade HMRC to review this and allow me to pay Class 2, but ...

Payment choice is not clear cut IMO. Tempting to just pay the class 2 years and keep doing that until you hit 35. Should save you north of £2000. On the other hand it would be comforting to have more years in the bank due to the risk of future changes in qualifying years or payment rules. Comes down to personal choice.

I agree. I think I will pay the class 2 years, and keep up payments until I reach the max. As you say, it will be around £2000 cheaper, unless UK Gov changes the rules in the future.