Have you topped up a UK pension to cover gaps?

[Duffa]

the UK government could move the goalposts at any point and stop allowing ex-pats to pay at a discounted rate......

Never thought of that! Good point.

 

[andye]

Never thought of that! Good point.

There is always the possibility that the whole pension payment will "enhanced".(the most concerning would be some form of means-testing)
It's probably not a huge risk as it would be pretty vulnerable to legal challenge but the UK financial position is not hunky-dory and it's classed as a benefit rather than a guarantee.
I still think it's too good a punt to miss but will pay the last few years prospectively

 

[MattA]

Yep. I think “enhancements” over the 20 years before I become eligible are inevitable.

That said, I think this discussion has convinced me to hedge my bets by backpaying a few more years now than I had initially been thinking. Thanks all for the insights.

 

[SydneySwan]

A data point, even though it is an old one. I paid my catch-up years back in 2019. My letter approving class 2 was dated 4/6/19 and arrived 16/7/19. I paid immediately and then received a 'payment received' letter dated 7/8/19 on 2/9/19. It took a few months though for that payment to be allocated to the various years on my NI record.

There is definitely legislative risk regarding rule enhancements. In 2016 the number of qualifying years required for a full pension was increased from 30 to 35. Those deciding not to pay for some years in case they have an early meeting with their maker might like to reflect as the number of qualifying years is only likely to go up. You may not have the opportunity to buy those unpaid years in the future if you need them. £180 per annum seems a small price to pay.

The logistics of paying future years is simpler if you have a UK bank account and set up a direct debit. The DWP will send you a letter each year advising how much they are going to debit you.

The best bit is the massive ad on the back of the envelope promoting their app. “Go paperless” it says. Maybe HMRC could take their own advice and communicate in a way that doesn’t take over a month to reach us out here…

The reference to paperless should be posted in the 'A bit of humour' thread. There is nothing remotely paperless or modern when it comes to dealing with the DWP bureaucracy.

 

[dvt]

I made around 15 years of payments just before the April deadline. I checked my account today and all of the years have been allocated. Extremely surprised as I've heard that it can take months to have anything recognised and allocated.

 

[Rebus]

I made around 15 years of payments just before the April deadline. I checked my account today and all of the years have been allocated. Extremely surprised as I've heard that it can take months to have anything recognised and allocated.

I made my back payment in January and it was allocated by April which was a pleasant surprise. To have yours turned around in less than a month is astounding.

 

[Duffa]

I made around 15 years of payments just before the April deadline. I checked my account today and all of the years have been allocated. Extremely surprised as I've heard that it can take months to have anything recognised and allocated.

Did you pay by direct transfer from UK bank account using the made up code from your NI number and name?

 

[dvt]

Did you pay by direct transfer from UK bank account using the made up code from your NI number and name?

Yes, from my UK bank account using the NI reference and name.

 

[Rebus]

Yes, from my UK bank account using the NI reference and name.

I did the same.

 

[MEL_Traveller]

I had to contact them last night. My application is apparently ‘in limbo’. I called up about a form they sent me and the officer said he’d send an email clarifying the information and not to worry about sending the form back.

Unfortunately the email never got actioned and the system still thinks i have to send them something.

They’ve now manually intervened. Said no issues with not having made the April deadline. As long as you contacted them by April you’re fine. However long it takes. Which sounds like it could be months.

 

[MattA]

Called up HMRC this evening. After about 30 minutes on hold I got through to a helpful Geordie who put a note on my file allowing me to pay late for the pre 2019 years despite missing the 31 day deadline in the letter that arrived last week, and also took details of which years I was planning to pay. Sent the payment from my UK account after the call. We’ll see how long it takes for them to be allocated… (she quoted 8 weeks)

Something else that may be of interest to those on here: I was confused why my estimate on the State Pension Forecast checker tells me I need 21 more years on top of the 12 I already have. Clearly that is only 33 years, not 35. In addition my estimate based on making no further contributions is showing £94.17/week, which is *not* 12/35s of the current full £230.25/week.

Some Googling tells me that the requirement for exactly 35 years only applies to those born after 2000, whose entire working lives will therefore be under the new rules that came in in 2016. For everyone born earlier a calculation was done in 2016 based on your contributions to date to determine a starting amount. Each year of post 2016 contributions increases this by 1/35 until you reach the max amount.

The end result of that is that you may need more or less than 35 years. Someone on the MSE forum reports achieving the full pension entitlement with only 26 qualifying years: State pension forecast and missing years – Should I pay the shortfall?

This thread has more details on the transitional calculations: State Pension

As I understand it, once you get to the stage where the forecast says:

£230.25 is the most you can get
You cannot improve your forecast any more.

(Or whatever the current max weekly payment is in whatever future tax year you reach this stage) then there is no reason to contribute any further years, even if you don’t have 35 qualifying years of contributions.

I feel like this is not well explained by any of the official guidance, but at least you can use the forecast to see exactly how many years you personally need to get to the maximum.

 

[kelvedon]

Paid my 24/25 NI contribution on 1 June this year. 10 days later this payment is showing in my account. Last year it took 10 months to be reflected in my pension estimate.

 

[SydneySwan]

Paid my 24/25 NI contribution on 1 June this year. 10 days later this payment is showing in my account. Last year it took 10 months to be reflected in my pension estimate.

Next year 10 minutes?