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UK State Pension Top Up Opportunity.
Library of Knowledge No. 78
To qualify for a full UK state pension, you must have paid National Insurance Contributions (NICs) for at least 35 years.
You could qualify for a partial UK state pension, if you paid National Insurance Contribution for less than 35 years but more than 10 years.
If you have gaps in your National Insurance Record (NIR) you can buy back these years to be eligible for a full or partial UK state pension.
It is important to note that this is a once off opportunity which will expire after the 5th April 2025. (After this date the buyback contributions will be restricted from April 2016 only).
‘Buy Back’ refers to making a voluntary contribution for any years that you were not working in the UK.
Voluntary NCIs can be paid to make up for any gaps identified, with the weekly rates being maintained at £ 15.85/£ 824.30 per annum for class 3 (most likely option for employees) or a weekly rate of £ 3.15/£163.80 per annum for class 2 NICs (the class 2 rate is only available to employees if their NIC gap relates to working overseas).
Whilst this opportunity appears to be good value for money, we recommend you review your National Insurance Record and current State Pension forecast with HMRC on www.gov.uk first to see if you are eligible to buy back years or if you are already forecast to receive a full State Pension.
Kindly note: The UK Pension from April ’24 is £ 221.20 per week (full).
How do I apply to buy back years?
In order to avail of the option to buy back years, you will need to complete the Application to pay National Insurance Contributions abroad form: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1102905/CF83.pdf and return this to HMRC directly. All details are available on http://www.gov.uk/ and the return address is outlined on the application form.
Take Care
