RetireJapan

RetireJapan wrote: ↑Tue Aug 10, 2021 12:41 am

halfmanhalfsenbei wrote: ↑Tue Aug 10, 2021 12:37 am

Oh, in that case I recommend you give this some attention. The current system is a bit of a loophole, but one that is very lucrative for expats paying in.

You could start here: https://www.retirejapan.com/?s=uk+state+pension
There are also some threads here on the forum (in the pension section).

Good luck!

just about the loophole-why does it exist?is it because class 2 (self employed ) are meant to pay class 4(on profits ) as well?
if so why are overseas residents lumped in here?is it because there are many self employed (builders etc) working abroad?or are they just trying to
get as many people paying into the pension to keep it afloat?

if that wasnt enough questions,I have another-i was reading Bens old blogs on this(great resource) -someone said that foreign wives who had never worked in the uk were also eligible for 60% of the standard pension?how did that work?

bryanc wrote: ↑Thu Nov 04, 2021 11:57 pm just about the loophole-why does it exist?is it because class 2 (self employed ) are meant to pay class 4(on profits ) as well?
if so why are overseas residents lumped in here?is it because there are many self employed (builders etc) working abroad?or are they just trying to
get as many people paying into the pension to keep it afloat?

If you find the answer to that, let us know. I've tried to read the law to understand how HMRC deduced that Class 2 applies to people employed abroad, but it's too much legalese and references to subsection 12 of section 2B for me. Class 2 is for those who are self-employed, I don't know why full time employees abroad fall under this category. One guess is that self-employed means "any type of work that isn't Class 1". As you mentioned, it's the fact that Class 4 does not apply that makes it a bargain. Maybe we shouldn't be discussing it publicly

There have been plans to reform this and bring everyone under Class 3, but they keep getting dropped.

Obligatory wiki link (explains the pension system, but doesn't explain *why* class 2 works... yet). https://retirewiki.jp/wiki/United_Kingd ... te_Pension

adamu wrote: ↑Fri Nov 05, 2021 3:51 am
There have been plans to reform this and bring everyone under Class 3, but they keep getting dropped.

I am working on the assumption that this will happen at some point. Until then, pay Class 2, and then probably pay Class 3 if they decide to change things.