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QUESTIONS & ANSWERS
AM I ELIGIBLE FOR A UK STATE PENSION?
Legally, any person ever having been resident in the UK for a continuous period of 3 years is eligible to a UK State Pension, irrespective of his or her nationality.
WHAT IS THE CURRENT AMOUNT OF A UK STATE PENSION?
A single person’s annual pension is currently at a little over £4,000 and a married couple’s pension in excess of £6,500 per year.
WHAT IS THE MINIMUM NUMBER OF YEARS I NEED TO CONTRIBUTE TO OBTAIN A STATE PENSION?
The minimum number of years is 11 and this would give right to a weekly pension of just under £20 for a single person or £31 for a married couple.
WHAT IS THE MAXIMUM NUMBER OF YEARS I NEED TO CONTRIBUTE TO OBTAIN A FULL STATE PENSION?
The maximum number of years is 44 for a man and 39 for a woman although the latter will change to 44 years by a gradual process between 2010 and 2020.
I HAVE NOT CONTRIBUTED MUCH IN THE PAST, IS IT STILL WORTH MY WHILE TO CATCH UP?
Yes, although you may consider that you have contributed very little during your years in the UK, it should be borne in mind that with effect from the age of 16 you receive credits while in full time education and also for periods of unemployment. As a general rule people are pleasantly surprised at the number of years contributions they have accumulated upon receiving their pension forecast.
It is always worth one’s while to catch up as many years contributions as is possible. Normally it is possible to catch up with 6 years but currently, due to the fact that the Inland Revenue has failed to inform people of gaps in their contribution record, it is possible to catch up with 7 years.
I AM SHORT OF CASH AT THE MOMENT AND CANNOT AFFORD 7 YEARS CONTRIBUTIONS, WHAT OPTIONS DO I HAVE?
In the worst case you can always pay just one or two of the 7 years that you are eligible to catch up in order to avoid losing the right to contribute in respect of those years. Imagine a train with 7 carriages, each carriage representing a tax year’s pension contribution. On April 5th a new carriage appears on the front while the oldest carriage drops off. In order to preserve the contribution in respect of the last year (or oldest carriage) this must be paid first.
IS THERE ANY URGENCY FOR UPDATING MY STATE PENSION NOW RATHER THAN LATER?
The only urgency there is with regard to updating your pension is the fact that on April 5th a new tax year becomes part of the equation and a new year’s contribution becomes payable while the last year (as mentioned above) is lost if not paid.
CAN I CLAIM A UK STATE PENSION AT THE SAME TIME AS CLAIMING A STATE PENSION IN ANOTHER EUROPEAN UNION COUNTRY?
Yes, this is possible.
CAN THE YEARS I HAVE CONTRIBUTED IN ONE EU COUNTRY HELP ME TO ENHANCE MY STATE PENSION IN ANOTHER EU COUNTRY?
Yes, but only if you do not reach the minimum years contributions in any of the countries.
MY WIFE AND I HAVE BOTH CONTRIBUTED THE SAME NUMBER OF YEARS; DO WE JUST APPLY FOR A MARRIED COUPLE’S PENSION?
No, you can both apply for a single person’s pension (maximum £4,000 each). Having both contributed the same number of years, the alternative for the wife of claiming 60% of her husband’s pension is obviously not as interesting because she is eligible in her own right to the same amount of pension as her husband since she has contributed the same number of years.
MY WIFE IS CHINESE; CAN SHE CLAIM ON MY PENSION?
Yes, she can. As a married man and having paid your contributions, your wife (whatever her origin) can claim 60% of your single person’s pension bearing in mind that you have both reached the age to be eligible for a pension.
MY WIFE IS ELIGIBLE BUT I AM NOT, CAN I CLAIM ON HER PENSION?
No, not at this point in time but with effect from April 5th, 2010 a husband will be able to claim 60% of his wife’s single person’s pension.
WHY WOULD I NEED YOUR HELP TO UPDATE MY STATE PENSION?
It has to be admitted that, while the Government set payments at extremely attractive rates, they are not always quick at coming forward with the required information. It is always incumbent upon the taxpayer to find out the current state of his or her state pension and while it would not be fair to say that the Government misrepresents or conceals the facts, it is true to say that the information, documentation and paperwork that they make available is extensive and often difficult to focus upon. It is is not easy for the ordinary person to appreciate the important facts and figures among the official jargon set out in these documents. A simple example of this is the fact that the reduced contribution rates for those employed in the Social Security system of another EU country was not widely publicised and many people are currently paying at the higher rate when they should be paying at the lower rate. It is also worth pointing out that the Government had given instructions that all expatriates who had gaps in their contribution record should be informed of their current situation. Unfortunately this proved to be so slow or almost impossible to carry out and therefore, it was decided that instead of catching up with 6 years contributions it is now possible to pay in respect of the years from 1996 onwards.
Our aim is to simplify the information that is available and to concentrate on the important points set out in the literature provided by the authorities. We will be available for advice and consultations at all stages of the procedure.
HOW MUCH WILL YOUR SERVICE COST ME?
We charge an amount of £200 (€300) to assist you to update your State Pension. This includes advice on anything to do with UK State Pensions, help on how to fill in the form and advice on the forecast once it is received. For more information on what we offer please click on ‘Update my Pension’.
Recent articles written by Peter which have appeared in the local press:
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