Jump to content

Changes to UK pension for returning Expats


DanO

Recommended Posts

Oh dear, it looks like the Poms are about to close the minimal "loophole" for National Insurance contributions of those who worked in Australia prior to 2001...

The GOV.UK website confirms that from January 1, 2022, you will no longer be able to count periods living in Australia (before March 1, 2001), Canada or New Zealand, towards calculating your UK State Pension if both the following apply:

  • you are a UK national, EU or EEA citizen or Swiss national

  • you move to live in the EU, EEA or Switzerland on or after January 1, 2022, including if you move to live in another EU, EEA country or Switzerland on or after January 1, 2022

Link to comment
Share on other sites

5 minutes ago, DanO said:

Oh dear, it looks like the Poms are about to close the minimal "loophole" for National Insurance contributions of those who worked in Australia prior to 2001...

The GOV.UK website confirms that from January 1, 2022, you will no longer be able to count periods living in Australia (before March 1, 2001), Canada or New Zealand, towards calculating your UK State Pension if both the following apply:

  • you are a UK national, EU or EEA citizen or Swiss national

  • you move to live in the EU, EEA or Switzerland on or after January 1, 2022, including if you move to live in another EU, EEA country or Switzerland on or after January 1, 2022

But that won't impact on payment will it? Those years recognized are to get one over the line of ten years in order to qualify. That was my understanding anyway from talking to the NI people in Newcastle. (in my case in was the years  mostly in worked in EU but a little in Australia as well) 

Link to comment
Share on other sites

1 hour ago, DanO said:

Oh dear, it looks like the Poms are about to close the minimal "loophole" for National Insurance contributions of those who worked in Australia prior to 2001...

The GOV.UK website confirms that from January 1, 2022, you will no longer be able to count periods living in Australia (before March 1, 2001), Canada or New Zealand, towards calculating your UK State Pension if both the following apply:

  • you are a UK national, EU or EEA citizen or Swiss national

  • you move to live in the EU, EEA or Switzerland on or after January 1, 2022, including if you move to live in another EU, EEA country or Switzerland on or after January 1, 2022

Is the UK part of the EEA ? Or is moving back to the UK from Australia ok?

Sounds to me like moving to the UK in retirement is not impacted.

Link to comment
Share on other sites

3 hours ago, Blue Flu said:

But that won't impact on payment will it? Those years recognized are to get one over the line of ten years in order to qualify. 

No, they are credited to your account as if they had been earned in the UK, for the purposes of calculating your pension entitlement.  So for instance, you might have 12 years of NI contributions and then you worked another 10 years in Australia, you would be regarded as having 22 years' contributions.  

I know that you can't claim your Australian years unless you're actually residing in the UK, and if you then return to live in Australia, you lose them again.  

I had always thought you'd lose them if you moved to Europe, too, but the above post suggests that wasn't the case.

Link to comment
Share on other sites

9 minutes ago, Marisawright said:

No, they are credited to your account as if they had been earned in the UK, for the purposes of calculating your pension entitlement.  So for instance, you might have 12 years of NI contributions and then you worked another 10 years in Australia, you would be regarded as having 22 years' contributions.  

I know that you can't claim your Australian years unless you're actually residing in the UK, and if you then return to live in Australia, you lose them again.  

I had always thought you'd lose them if you moved to Europe, too, but the above post suggests that wasn't the case.

While Britain was in the EU they weren't allowed to discriminate against anyone living elsewhere in the EU, they had to be treated the same as anyone living in the UK. Now they can be treated the same as anyone living in Australia!

Link to comment
Share on other sites

  • 3 weeks later...
1 hour ago, Exnorthumbrian said:

Well I was intending to go to UK next year to claim my delayed pension ( I will be 71) and worked in Australia prior to 2001 - but I guess that’s not worth doing now. I mean , it’s still worth going to UK to see family but not worth trying to claim - now.

But you can still claim what has been paid into NI. The additional payment was only available, means tested, if were moving back to UK to live as I understand it. Once left UK, it would revert back to amount paid in. It appears from Jan 1, that one cannot get the top up, even if moving back to live. 

Link to comment
Share on other sites

1 hour ago, Exnorthumbrian said:

Well I was intending to go to UK next year to claim my delayed pension ( I will be 71) and worked in Australia prior to 2001 - but I guess that’s not worth doing now. I mean , it’s still worth going to UK to see family but not worth trying to claim - now.

Were you thinking of going back to the UK to live permanently?   If so, that's still worth doing. The change applies ONLY to Brits living in the EU.  If you're living in the UK, you can claim it.  

Link to comment
Share on other sites

  • 7 months later...

Thanks so much for your comments MarisaWright and BluFlu. Sorry for the delayed response. I dropped off after the change in plans.

But now New plans - hoping to get there in July 2022 after retiring finally at 72 1/2min June next year.
Plans were delayed due to the travel chaos everywhere  - hopefully will be more settled then as we would be bringing our 2 dogs across with us. And yes we will be re-settling in UK after getting last 2 20+ Year-old kids on their journey to a career (teaching and engineering apprenticeship) after the Covid years.

I don’t think we can put off going back any longer given my age and whilst it has been good financially to extend my working life , I feel it will be time to explore retirement ( a bit frightening) and plan more travel from a UK base. We both have our families in UK , all getting on and also friends there are slowly passing away. Time to move.

We moved last year to Tasmania (from Mornington Peninsula)  , south of Hobart to lovely house with an ocean view . We will miss that. And the 3 adult kids we will leave behind. But we we feel it is the beginning of “our” time now after long, hard careers, small businesses and bring up 3 kids.

Time to get planning!

  • Like 1
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
×
  • Create New...