UK STATE PENSION INFORMATION
Unlike the Australian Age Pension, the UK State Pension is a credit-based system and is not means-tested. Therefore, if you have ever worked in the UK and paid National Insurance contributions, you will have an entitlement to the UK State Pension, even if you are not a UK national. The amount of pension you receive depends on the number of National Insurance years you have been credited with.
Depending on your eligibility, for a small contribution of approximately £158 you are able to purchase one National Insurance credit which would result in an annual pension increase of £260 per year for life!
AM I ELIGIBLE?
As long as you have lived and worked in the UK for 3 full continuous years, you would be eligible to pay additional contributions to increase your entitlement. The rate you pay is dependent on your employment history and you will either be eligible to make Class 2 or Class 3 contributions. We will assist your claim to pay Class 2 contributions where possible as the difference in rate of contribution is approximately £637.
We have assisted many UK expats living in Australia as well as Australian residents that have worked in the UK to increase and claim their UK State Pension entitlement.
HOW DO I TOP UP?
We apply to HMRC on your behalf and once your application is accepted, they will confirm your gap years and rates to pay to increase your entitlement. This payment can be sent as a lump sum amount to HMRC and this will then be allocated to your National Insurance record as additional qualifying years.
CLAIMING YOUR UK STATE PENSION IN AUSTRALIA
We have assisted numerous clients in claiming their UK State Pension. Provided you have 10 or more qualifying years on your National Insurance record, you will be eligible to claim the pension. The number of years required for the full pension is 35 years and this would currently provide you with an annual pension income of £9,110 per annum.
It is possible to defer claiming your UK State Pension and claiming a lump sum plus interest for the time you defer your claim. Speak to one of our advisers today about how best to claim your UK State Pension.