UK STATE PENSION SERVICE
WHAT IS A STATE PENSION?
If you have worked in the UK you will have paid National Insurance (NI) contributions from age 16 into the UK State Pension Service. For every year worked you will have earned 1/35th of the full State Pension, when you reach pensionable age, 62 for woman and 65 for men. This will increase to 68 for both men and woman by 2020. The UK State Pension unlike the Australian Pension is NOT MEANS TESTED.
How Can this Be Of Benefit To You?
Even living in Australia if you have worked in the UK (Can Be of Any Nationality) and paid NI contributions for at least one year you can still pay voluntary contributions (VCs) into the UK Aged Pension Scheme to increase on any entitlements you have already achieved before you left the UK. These voluntary contributions may only cost as little as $260 a year if you are still employed (even part time) and $1400 / a year if not working. Therefore you can increase your UK Pension to your desired income level simply and very cost effectively.
My own personal example:
I (Jim) moved to Australia in 1991 from the United Kingdom. I was really unsure how many years I had actually worked or how many National Insurance (NI) Contributions I had made. (I didn’t think that many) I didn’t hold out much hope of anything of value. I used our State Pension Forecast and top up Service. I was extremely pleased with the result: It turns out I have 15 years’ worth of NI stamps/contributions for my time working in the UK, which at today’s rates will pay me $140 a week but the good news is I can pay voluntary contributions going back 9 years at a cost of around $280.00 for each extra credit, (see panel below) plus 3 years forward to get me a pension of 27 years. I will need to invest approximately $3500.00 (which is less than $5.00 a week for each extra year) in voluntary contributions (one off) for a gain of approximately $5000.00 on top of the $7500.00 each year for the rest of my life. That (to me) is a fabulous outcome, plus I get to keep 50% of my Australian Pension when it kicks in plus approx. $100 a week free earnings. Everyone will have their own unique situation and strategy for moving forward but I hope this helps to give you an idea of yours could or might be.
Will Claiming the UK Pension Affect My Australian pension?
Marginally it may, but not losing $1 for $1, as Centrelink allows you a fee income without plenty of approx. + - $100 a week. After that you get to keep 50 cents of your Australian Pension for each extra $1 received from the UK. So basically you will have 1 & 1/2 Pensions Plus $100 per week. Not a bad outcome!
Is paying extra Voluntary Contributions a Worthwhile Investment.
Most likely it is worthwhile. For example: Having paid 10 years contributions will earn you at least a 29% pension of $3428, each additional year paid for by voluntary contributions increases a single persons pension by $338 every year for life (remember it can be as little as a one off payment of $250 for each additional year.) and 35 years of payment generates a 100% pension of approx, $12,000 per year = an excellent investment return!
Our UK State Pension Forecast Report Includes:
Search of UK pension system to ascertain your entitlements to a UK government pension.
Supply written report on the outcome of any search which will include the following:
The report will outline how much your pension will be. The time frame of when your pension will commence and how it's to be paid. Your options with regard to increasing the value of your UK pension. Update your personal details and required information to enable the UK Tax office to contact you on retirement. Once you are in possession of your report you have the option of being introduced to British Pensioners in Australia. BIPA is a not for profit, volunteer association of 11,000 + British State Pensioners established in 2003 to challenge the United Kingdom Governments unfair and discriminatory 'Frozen' pension policy. BPIA may also look over your report to ensure all is as it should be.
This process takes between 8 to 12 weeks to complete. All we require is your National Insurance number (NI) if known, some personal details and your last known address in the UK. If you do not know or cannot get access to your National Insurance number, we will obtain it for you. Give us a ring and let us take the guess work away from your UK.
How can I/We start the process to get the most out of our State Pension Entitlements?
UK State Pension Services will help you to discovery your State age pension contributions history and help to make voluntary contributions if you wish to achieve a 100% UK State Pension of $12,000 or even increase your entitlement to your desired level. We can also simply apply for a pension forecast which will give you a full personalised report as to how much you are entitled to, when you will receive it, and you options of increasing it. You can then make an informed decision as to your next move. Or if you already see the value we can go straight to organising your report as well as applying for your voluntary contributions to begin.
Get in Touch
DISCLAIMER: This information is necessarily general and has not been prepared with reference to your specific objectives, financial situation or needs. Superannuation Recall Consultants do not hold an Australian Financial Services Licence and recommend that you should seek professional advice from a trusted financial adviser before making any decision regarding the services offered by SRC or associated companies from this site.