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Are you entitled to a UK State Pension?

If you worked in the UK for at least 3 years, you have the opportunity to set yourself up for a state pension from the UK Government. But time is running out. The process can take up to 9 months and the deadline is the 5th April 2025 so if you haven't already started the process you should get the ball rolling now.


The cost of doing so is minimal in comparison to the potential benefits at retirement age so it is not something to be ignored. To be entitled to a partial UK state pension you have to have at least 10 years of contributions, you can buy back years from as little as £163.80 if you are a Class 2 contributor or £824.20 for a Class 3.


Class 2 contributions apply to anyone living and working abroad, but only if you worked in the UK immediately before leaving, and you’ve previously lived in the UK for at least 3 years in a row or paid at least 3 years of contributions.


Class 3 contributions apply to anyone living abroad and not working, but only if at some point you’ve lived in the UK for at least 3 years in a row or paid at least 3 years of contributions.


This could end up being really good value because in return for making voluntary contributions, you could boost your UK State Pension up to the maximum of £185.15 per week (£9,627.8 pa).


Putting this into perspective, in order to generate that income from a private pension you would need a pot of approximately €300,000 assuming an annuity rate of 4%. The great news is that if you are entitled to the Irish State Pension you can claim this at the same time so you could put yourself in a great position for future retirement planning.


You have until April 2025 to pay voluntary contributions to make up for gaps between 2006 and 2016. After this deadline, you will only be able to pay contributions to cover the previous six years.


To get started you will need to request your National Insurance record from the UK government which will include a State Pension forecast. You can use the following link: https://www.tax.service.gov.uk/check-your-state-pension/account to create sign in details using your National Insurance number.


If you paid into a private pension in the UK you should also consider transferring this to Ireland; if you need our help we can help assist with this process, you can book in using the following link: https://calendly.com/oneplanfinancial/pension-consultation.

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