Worked in the UK?

With the outlook for Brexit still remaining unclear after the UK Prime Minister Boris Johnson suffered several new setbacks last week.  On Monday, Parliament’s rejected for the second time in a week his plan for a snap election. 

Bearing this in mind, now may be the time to look at maximining and topping up and securing your entitlement to a UK State Pension at the lower Class 2 rates currently £3.00 a week whilst this option is still available. 

People who have worked in the UK still can purchase back previous National Insurance credits towards their UK State pension to maximise and increase their current entitlement.  To be eligible the criteria needed is previously worked in the UK for 3 years in a row and paid 3 years’ worth of National Insurance contributions even if you are not a UK national. 

Living and working abroad

You can purchase previous years, or forward years National Insurance credits at the lower Class 2 rates currently £3.00 a week, but only if you worked in the UK immediately before leaving (which HMRC do not define immediately in term of number of weeks.). 

Living abroad but not working

As above, previously worked in the UK for 3 years in a row and paid 3 years’ worth of contributions but if you are presently not working, or you were not working prior to migrating then you can still purchase previous years, or forward years National Insurance credits but at the higher rate which is in the current tax year £15.00 a week.

The current full British UK State pension is £168.60 per week, dependant on the amount of NI credits purchased.  However, you may receive more pension, if you have built up any additional entitlements through the earnings-related schemes known as Graduated pension, SERPS or S2P.

If you would like take advantage of these lower rates while still available,  then call Colette or Nicola at Kensington Partners in Perth (08) 9427 1777 or email pensions@kensingtonfg.com.au