UK State Pensions For Expats
We know that one of the questions that often pops up while you’re miles away from the UK is, “What happens to my State Pension?” No worries, we’ve got you covered. We’ll walk you through what the State Pension is currently worth, who can claim it, and how you can still have a piece of this pie even if you’re living abroad. Let’s get started, shall we?
Eligibility
First things first, are you eligible for the State Pension? If you’re a man born on or after 6 April 1951 or a woman born on or after 6 April 1953, you’re in the running for the new State Pension. However, if you reached State Pension age before 6 April 2016, these rules won’t apply to you, and you’ll get the basic State Pension instead. Check your State Pension age here.
National Insurance Record
You’ll generally need at least 10 qualifying years on your National Insurance record to get any State Pension. They don’t have to be 10 consecutive years. During these 10 years, you must have:
- Worked and paid National Insurance contributions
- Received National Insurance credits (for example, if you were unemployed, ill, or caring for someone)
- Paid voluntary National Insurance contributions
Don’t count yourself out if you’ve lived or worked abroad; you might still qualify. The same goes if you’ve paid married women’s or widow’s reduced rate contributions. The number of qualifying years you have will directly impact the amount you get.
Still with us? Good. Now that we’ve cleared up eligibility, let’s move on to some other essential bits.
What You'll Get: The Current State Pension Value
Wondering how much you’ll actually pocket with the State Pension? Let’s break it down. Your State Pension amount is based on your National Insurance record, which we just discussed – so no two pensions are identical. But for a ballpark figure, the full new State Pension stands at £203.85 per week.
- Ways to Boost Your Pension
There are two cases where you could get more than the full State Pension:
- You’ve racked up a certain amount of Additional State Pension.
- You defer (hold off on) taking your State Pension.
- What If You're On The Basic State Pension?
If you hit State Pension age before 6 April 2016, you’ll get a different amount, governed by the basic State Pension rules.
- Got Other Income?
No problem. Your State Pension won’t be affected if you have other income streams like a personal or workplace pension. Just keep in mind, you may have to pay tax on your State Pension.
- Low Income? There's Help
If you’re on a low-income post-State Pension age, you could qualify for Pension Credit – even if you’ve saved for retirement.
- How It’s Paid
Once you’ve made a claim, you’ll get a letter detailing your payment schedule. The new State Pension is typically paid every 4 weeks into an account of your choice. Payments are made in arrears, which means you’re paid for the last 4 weeks, not the upcoming ones. And if you’re living abroad, different rules will apply (see below for more on this!)
- When's the Money Coming?
Your first payment should hit your account within 5 weeks of reaching State Pension age. From there, it’s a full payment every 4 weeks. You might get a part-payment before your first full one. Your payment day? Well, that depends on the last two digits of your National Insurance number.
So, now that we’ve got the numbers and timelines clear, you can better plan your days under the sun, inside an iglu – or wherever you choose to spend your expat days…
