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Leaving UK but want to contribute to National Insurance

Discussion in 'Teaching abroad' started by billcarson, Aug 4, 2015.

  1. billcarson

    billcarson New commenter

    Hi ya,

    myself and my wife are leaving the UK to teach in Qatar.

    Spoken to the TPS & can't continue to pay into that - which is what people have said here.

    My main questions are:

    Did people still contribute to the English National Insurance?

    I think it is a good idea but having trouble figuring what class contribution i should be opting for - I managed to speak to the HMRC but they said i should be a class 2 then a few minutes later said i should be a class 3?? She then said read the NI38 form.

    Does anyone pay into a private pension or international pension - or can you point me in a general direction as seem to be going round in circles.

    Any help or guidance would be much appreciated.

    Cheers

    James
     
  2. gafleecey

    gafleecey New commenter

    There is an an amazing invention called an internet search engine, from which you can generate all manner of information, such as: https://www.gov.uk/national-insurance-if-you-go-abroad
     
  3. Class 3. I am paying mine.
     
  4. WaylonWu

    WaylonWu Established commenter

    billcarson, the information you were given by HMRC is the same I was given when I taught abroad - that is class 2 nat insurance. There is a class 3 but that is not for ex pats abroad. It was a mistake to tell you that. Class 2 is the one you would pay. It is for contributions to the basic state pension.

    As for private pensions I couldn't give you info on that. I didn't take one out because I didn't expect to be abroad permanently. If I did though I would definitely consider it. As you would expect, there is a vast array of them out there. I guess it's a matter of getting some quotes, comparing them and deciding from there. You should also consider if it would be a long term move or a relatively temporary one. If the latter, ordinary class 2 might be the best bet, or unless the situation changes.
     
  5. mikemcdonald25

    mikemcdonald25 Occasional commenter

    Whilst agreeing with gafleecy 100%, the simple answer is Class C contributions a sum paid yearly until you are 60. entitles you to a full state pension at 65
     
  6. clovispoint

    clovispoint Occasional commenter

    You can pay either Class 3 or Class 2 depending on your circumstances, length of employment prior to leaving UK, time between leaving and application. You can pay back missed years up to a limit of five years (I think). I have been through this and I qualified to pay class 2 but my husband had to pay class 3. Both offer good value for money but the class 2 are much cheaper (around £12 per month; class 3 are are about £45 per month). Everyone is different as circumstances depend on employment history and age (and still gender!). There has been a recent alteration that means that payment of contributions for 30/35 years qualifies you for full state pension. Get in touch with the office in Newcastle, they are great and an actual person answers the phone call which is a little un-nerving.
     
  7. clovispoint

    clovispoint Occasional commenter

    Also, avoid financial advisors selling pension plans overseas, they are very poorly regulated and abuse the lack of oversight to rip off teachers (and others). Lots of people pay into them and have no idea how badly they are being fleeced. As an example, in many of these schemes, the first two years of contributions go to the financial advisor. The more you contribute, the bigger their commission, You are then tied into rigid structures that punish you for altering contributions, freezing contributions or making withdrawals. It is not unusual for people to come away which much less than they contributed purely down to fees and charges.

    Read this: andrewhallam.com/.../zurich-international-friends-provident

    And buy his book if you are planning to save /invest extra money. It will at the very least give you pause for thought before you sign up to anything.
     
  8. WaylonWu

    WaylonWu Established commenter

    Yes it's right that it now takes 35 years of contributions to get the full basic state pension. That is unless a person is due to retire in 2016 when it's still 30 years of contribs.
     
  9. IAMBOG

    IAMBOG New commenter

    Totally agree with Clovispoint. Plenty of dodgy pension sellers out there peddling to naive international teachers. Read Andrew Hallam's two books. He's basically regurgitating what many other people have said in the past, but it's done in such a way as to make it accessible and understandable. He's also a teacher, so it's easier to relate. I even get a mention in one of the books :)

    Also, I'm paying Class 2 National Insurance. It costs me about £12 a month. I've just applied for an updated pension statement, I included a detailed description of my circumstances (and my wife's, who is not from the UK).
     
  10. billcarson

    billcarson New commenter

    Excellent, thank you for this.
     
  11. billcarson

    billcarson New commenter

    Cheers will have a look at his book & all that.
     
  12. billcarson

    billcarson New commenter

    Hi ya,

    thank you for all your help be it sarcastic or helpful - will try to get in touch with the the Newcastle branch & go from there.

    Cheers
     
  13. happygreenfrog

    happygreenfrog Occasional commenter

    Paid about 3 grand myself a couple of years ago to buy a further 4 additional years. Another such payment would take me to a full pension. Even if you aren't an actuary, some simple calculations would reveal it is good value, assuming you are going to be claiming for a 'normal' number of years, living to 80.

    The downside is the uncertainty regarding future changes to UK retirement laws due to funding shortfalls. Wasn't impressed to see my pension delayed another two years, with the likelihood of more to come, but it is hardly surprising. A full pension however would easily fund my daily living costs in the part of the world where I am working, so not a bad bottom line. The challenge is funding that huge private health insurance premium ;-)
     
  14. clovispoint

    clovispoint Occasional commenter

    Not quite relevant to the OP question but this is useful to read if you are considering national insurance payments:

    www.nidirect.gov.uk/do-you-need-to-top-up-your-national-insurance-contributions

    There is some (I would say not much) uncertainty over future state pension provision but who would elect a government that will impoverish the people who have been paying in for the past 30, 40, 50 years? The government does seem to be moving more and more towards forcing people to make their own provisions for retirement but I think this system is too well established (and expected) to be significantly withdrawn for current payees of NI. The intention is that people should be in retirement for no more than a third of their adult life. As people are living longer they have been forced to move the retirement age up. It seems like to reach 70 in the future!
     
  15. I'm paying 3s. No idea what extras I get by paying more.
     
  16. 576

    576 Established commenter

    Unless you were born before '51 (if male) or '53 (if female) then you do not get anything extra.

    Class 2 is for those who are working overseas, however to qualify you need to have worked in UK immediately before leaving and lived in UK for 3 years.

    As already said the gov website is surprisingly clear on these things and the HMRC staff based in N'Castle are very good.
     

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