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EmmaRoid

Social Security Contributions

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For anyone who has made the jump, how does it work? What does a British citizen do? Just leave X years NI contribution? Can it be ported elsewhere in Europe? What about EU citizens living/2workingg in the UK? How do they take their home? What are your rights?

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For anyone who has made the jump, how does it work? What does a British citizen do? Just leave X years NI contribution? Can it be ported elsewhere in Europe? What about EU citizens living/2workingg in the UK? How do they take their home? What are your rights?

Perhaps you could be a bit more specific in your question?

Most EU countries run contributions based systems so you have to pay in before you can pay out. To enable free movement of Labour you can rely on your UK social security for health/benefits for a limited time.

For pensions your UK contributions are transferable to your country of residence providing you work at least 5 years in that country prior to retirement. That includes EEA countries such as Switzerland.

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Perhaps you could be a bit more specific in your question?

Most EU countries run contributions based systems so you have to pay in before you can pay out. To enable free movement of Labour you can rely on your UK social security for health/benefits for a limited time.

For pensions your UK contributions are transferable to your country of residence providing you work at least 5 years in that country prior to retirement. That includes EEA countries such as Switzerland.

What do you have to do to get your contributions transferred over, contact HMRC? And what happens if you return to the UK having paid into a Swiss pension? Thanks.

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Perhaps you could be a bit more specific in your question?

Most EU countries run contributions based systems so you have to pay in before you can pay out. To enable free movement of Labour you can rely on your UK social security for health/benefits for a limited time.

For pensions your UK contributions are transferable to your country of residence providing you work at least 5 years in that country prior to retirement. That includes EEA countries such as Switzerland.

Well, for example, I'm about a third of the way through my required contributions to get a full UK state pension and its a little late to start from scratch elsewhere.

If I were to move abroad, what are my options? If I thought that long term, I'm better off keeping it in the UK, How do I go about maintaining contributions? Can I contribute in another EU country and then transfer those years back to the UK at a later date? What is the 'cost' of keeping the UK contributions ticking over?

(leaving aside arguments about what a state pension will be worth in 35 years time, its not like I can get away with not paying NI whilst I'm on PAYE)

I'm just thinking out loud as I've no idea what goes on.

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I'm sure they sent me something about it when I left, but the idea of giving money to the British government for a promise that they'll give it back in twenty-five years seemed insane. Particularly as they apparently won't index-link the pension if you're living in Canada; not sure about the rest of the EU.

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The EU had a conundrum in that it wanted to allow people to work and therefore pay social security in different EU countries, but in order to qualify for the state pensions in many EU countries people need to contribute for several years. E.g. in Spain you need to contribute 15 years social security to qualify for a state pension, so anybody spending less time than that working in Spain ended up paying into the system but with no pension in return. Also there's the issue of different retirement ages in different countries.

To get round this the EU came up with a system whereby you claim your pension in the last country you work in before retirement, you send them the details of the other EU countries you have worked in, and each country will work out the equivalent pension if you had paid everything into their system. That amount is then adjusted to reflect the actual time you were covered in that country and you are given whichever amount is higher. I don't quite understand how they do that but it is described here:

http://europa.eu/youreurope/citizens/work/retire/state-pension-claims-and-calculation/index_en.htm

So it seems the EU basically underwrites your state pension if you work in different EU countries.

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I believe the EU has recently addressed an anomaly concerning social security contributions made in different countries. Sorry, I dont have a link for this, but you might like to research it for yourself.

Basically, because each country has different qualifying periods for pension rights, it was possible to make contributions over a long period which did not count towards a state pension. Here's an example.

Country A requires 15 years national insurance contributions before qualifying for a pension, and country B requires 10 years.

Joe is living in country B, but works just over the border in country A. He has worked in country A for 14 years, so is a member of that countries social security system.

Then he moves to country A and gets a job in country B, again just over the border, where he works for 9 years.

Having had enough of commuting, he goes to England, shall we call it country C?(probably to sign on!!)

Poor old Joe. He has worked for 23 years, paid his contributions, and is entitled to nothing. He didnt qualify in either country where he worked.

As far as I know, EU law now requires that all those years must be counted towards a persons pension entitlement, although I dont know how they make the calculation.

It might also be worth mentioning that providing you are not working and paying into another countries social security system, you can make voluntary contributions into the UK system which count towards your state pension.

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Well, for example, I'm about a third of the way through my required contributions to get a full UK state pension and its a little late to start from scratch elsewhere.

If I were to move abroad, what are my options? If I thought that long term, I'm better off keeping it in the UK, How do I go about maintaining contributions? Can I contribute in another EUhad country and then transfer those years back to the UK at a later date? What is the 'cost' of keeping the UK contributions ticking over?

(leaving aside arguments about what a state pension will be worth in 35 years time, its not like I can get away with not paying NI whilst I'm on PAYE)

I'm just thinking out loud as I've no idea what goes on.

I came back to this country after 15 years abroad and had about 7 years contributions at the age of 44. Have now built that up to around 17 years so should have around 30 years contributions when I`m 66. Not enough of course but not too bad.

If I can get away with it I`ll pay self employed contributions (£3 per week) for the next 12 or so years.

I tried to wing it and have almost got away with it.

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I came back to this country after 15 years abroad and had about 7 years contributions at the age of 44. Have now built that up to around 17 years so should have around 30 years contributions when I`m 66. Not enough of course but not too bad.

If I can get away with it I`ll pay self employed contributions (£3 per week) for the next 12 or so years.

I tried to wing it and have almost got away with it.

I'm guessing they will be looking at closing this loophole. I've got 34 years now, so I shouldn't be too effected even if my self employed earnings took a dive.. Also I had some contracted out years during those 34 (a slightly lower credit), so I might need to do about 37 years to get the new full universal pension. I gather the new pension forecasts don't come in until 2016, so I wont know until then how much longer I have got to pay in.

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I'm guessing they will be looking at closing this loophole. I've got 34 years now, so I shouldn't be too effected even if my self employed earnings took a dive.. Also I had some contracted out years during those 34 (a slightly lower credit), so I might need to do about 37 years to get the new full universal pension. I gather the new pension forecasts don't come in until 2016, so I wont know until then how much longer I have got to pay in.

Yep, we`ll see what happens.

....but I`m sure you have investments and savings put away, so no worries.

I can only just spend my industrial injuries benefit!!

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