How anyone who has worked in the UK can boost their pension

For many people who previously worked in the UK but then left, the idea of enjoying a reasonable UK State Pension may seem a distant and unrealistic dream. 

Most may not realise they’re entitled to a UK state pension in the first place, particularly if they only lived and worked there for a few years, despite contributing to the UK system via National Insurance payments. Fewer still know that, thanks to a law passed in 2001, they could be entitled to much more than a token amount.

Check if you’re eligible for a UK state pension

Some six million people now living outside the UK may not know that they could top up their UK state pension via the scheme and enjoy a more comfortable life in retirement, even decades after they left the country.

They may have heard, for example, that they needed to accrue ‘10 qualifying years’ to be eligible, which is true. But that doesn’t mean 10 years’ working in the UK. 

The 10-year rule

Qualifying years can also be accrued from time worked in European countries or the USA. This means many people who worked for as brief a period as just one year in the UK may be eligible to receive a UK state pension.

More importantly, they can also top up their UK state pension voluntarily by simply ‘buying’ extra years contributions to supercharge the amount they receive when they reach the UK pension age of 67.

“We meet people all the time who simply don’t realise they’re eligible,” John Ring, Operations Director at UK State Pension specialists XtraPension, said. “Some are getting a small UK state pension already but can get much more. 

“Most have never considered they might be eligible for anything, having left the UK decades ago in many cases. Our role is to make sure they understand their rights and maximise their retirement income.”

To receive any UK State Pension, an individual needs at least 10 qualifying years. To receive the full pension, they need 35.

But, anyone who left the UK after working there for a few years can pay voluntary National Insurance contributions to “top up” their pension pot.

Get your instant free, no obligation, UK state pension top-up estimate here

Here’s a typical scenario. A 50-year-old person who worked in the UK for two years after leaving school in the 1990s before moving to France can buy back six top-up years now and then a future 17 years of contributions up until UK state pension age of 67.

That would equate to a total 25  years of contributions out of the maximum possible 35 – or around €10,000 per year from the age of 67. Across 20 years of retirement that’s €200,000.

It would cost, approximately, €4,600 spread over 17 years.

Depending on one’s age and years of UK work, many people are able to reach the maximum of €14,000 annually which is worth €280,000 over a 20 year retirement.

Equally, and importantly, this would not affect that same person’s French pension rights or payments. One’s nationality is irrelevant

The good news is that the rules across Europe are the same and Brexit has had no tangible impact in this area.

Boost your UK state pension or get your money back

John Ring, Operations Director at UK State Pension specialists XtraPension

 

Simple to set-up

XtraPension charges a fixed fee to clients to assess their eligibility, clear up confusion, and provide clients with the exact steps they need to follow, turning what can feel like an intimidating and insurmountable administrative process into something that is clear, simple and understandable.

“We don’t handle clients’ contributions payments, and we don’t overcomplicate things,” Ring said. “What we do is explain eligibility in plain English, show people exactly how to act, and ultimately give them peace of mind about their retirement.”

Risk free 

What’s more, XtraPension offers a 100% money-back guarantee: if HMRC rejects an application which XtraPension has made on a client’s behalf, to pay voluntary national insurance contributions, they pay a full, immediate refund. 

A straightforward process

XtraPension, which has more than 10,000 clients in 49  countries, charges a fixed fee to clients to assess eligibility, clear up confusion, and provide clients with the exact steps they need to follow. The company prides itself on turning what often feels like an intimidating or bureaucratic process into something clear and manageable.

Boost your UK state pension now