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Former taxpayers in the UK who may have lived only in the country for three years that they can qualify for a state pension, in accordance with the arrangement that should end up in April first week.
The noise of social media posts and news around the world warned people on the opportunity to get a pension in the UK.
“The opportunity for $ 480,000 for Australians who have managed in London,” the title from Australian Financial Review reports. The post on Instagram by TheausSiecorporarate, announces: “Wild Hole for Emigrants”. Irish Times claims that “hundreds of thousands of Irish … are eligible for supplementation”.
Anyone who works in the UK may be able to request a state pension up to £ 12,000 per year for three or more years if they have 35 qualifying years of contributions to national insurance. Since 2016, the employees, according to a temporary scheme, have been able to fill in the gaps in their or record, paying voluntary contributions, returning back in 2006 – but that arrangement will end on April 5 this year.
In the last few days, the news has attracted the attention of expatriates and foreigners who have worked in the UK for at least three years and could make up for their contributions or that can cost up to £ 907 a year – to qualify for a state pension. People need at least 10 qualifying years of contributions to or to receive any pension, and for many years equates with greater payment.
After April 5, people will be allowed to fill in the gaps in the last six years, reducing the scope to qualify for a pension or increase the payment.
“Intention [behind the voluntary contribution scheme] It is that you have people who work in the UK, are moving abroad and returning – you want them to fill in the gaps in their record, “said Sir Steve Webb, a former minister for pensions and a partner at LCP, in pension consultation.” What is strange is this job of returning for so long. “
A new state pension, introduced in 2016, demanded that people have about 35 qualified years of payment or get the maximum payment. The government, therefore, introduced a transitional arrangement to allow those who did not meet the requirements for collecting any defects by paying voluntary contributions or returning back in 2006.
The arrangement was originally due to end in 2023, but was extended twice after the invasion of interest near Rok.
Those who think about voluntary payments even before the deadline should consider where they intend to live in retirement and their current age.
Tom McPhail, a pension expert in Consultancy Lang Cat, says “most adult adults in the UK today are likely to reach the maximum number of qualifying years during their working life, so that you question the value of additional payments.”
Younger people in their 20s and 30s will also be subject to the whim of future governments, who can make changes to a state pension. “The longer there is until retirement, the higher the risk exposed to political changes,” McPhail says.
He adds that even though the pension is connected today, it may not be in the future. “By its nature, it is like the purchase of delayed anuitet – you lose control of your capital. You should check that the investment profile is attractive to you in terms of capital obligation and loss of capital in exchange for the future flow of revenue.”
UK state retirees get an increase every year because of “Triple Lock” schemeaccording to which the government obliged to increase payments with the highest inflation, earnings or 2.5 percent.
However, beyond the UK, only those living in the European economic area, Switzerland or a country that has “reciprocal agreements” with the UK will benefit from a triple lock. Retirees sunbathing or Jamaica, for example, would be entitled to annual increases in payment, but the same is not true for those in St Lucia.
Due to all the excitement in the Australian press, people living in the country – the popular destination for dissatisfied younger doctors in the UK – would not see that the pension payments in the UK are increasing in accordance with inflation. Neither those who live in Canada or New Zealand.
