International cases and the new State PensionPosted on: 25 May 2016 by James Hester
The State Pension is an important income that you could be eligible to receive when you reach State Pension age.
How working abroad affects your State Pension
From 6 April 2016 to get any new State Pension, you’ll need to have at least ten qualifying years on your National Insurance (NI) record when you reach State Pension age.
For most people in the UK, this means paying NI contributions which are deducted from your salary by your employer. However, if you have gained qualifying years in the European Economic Area (EEA) or a country which has a social security agreement with the UK, these can be counted towards the required 10 qualifying years. But in these cases your new State Pension amount will be based on your UK qualifying years only.
If you are working in a country outside the EEA, which does not have a reciprocal social security agreement or a Double Contributions Convention with the UK you will continue to pay UK NI contributions for the first 52 weeks you are working abroad, so long as:
- Your employer has a business address in the UK
- You usually live in the UK
- You were living in the UK immediately before working abroad
- You are earning above a certain amount
Working for the UK government or armed forces
You will usually continue to pay UK NI contributions while working abroad if you are:
- A UK Civil Servant or other Government worker
- Working in an embassy, consular post or diplomatic mission
- A member of the armed forces
Payment of UK State Pension
The UK State Pension is paid on the basis of National Insurance contributions, not on the basis of nationality or citizenship, and it is paid worldwide to those who meet the entitlement conditions.
The UK is a member of the European Economic Area (EEA), so if you live in any of the other member countries and are entitled to a UK State Pension it will be increased each year. There are 32 member countries of the EEA, including for example Germany, France, and Ireland. The full list can be found here.
As well as the EEA there are countries with which the UK has a bilateral agreement that allows for annual uprating. These include for example the USA, Bermuda and Turkey. The full list can be found at: here..
How much will I get?
Remember, your total income in retirement could be made up of your State Pension, as well as your workplace pension and any private savings you may have built up.
The quickest way to find your State Pension is to check your State Pension online.
Check your State Pension is a new online service where you can find out what State Pension you may get, the earliest you can get it and if you can improve it. Once you have signed in, the service forecasts how much State Pension you may get at your State Pension age. It will also show your National Insurance record, if there are any gaps on your record and how to fill the gaps. If you are unable to access the online service, you can get a State Pension statement through the post instead. More information is available at: www.gov.uk/check-state-pension.
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