DWP pressing ‘kind by April 5’ state pension warning issued to hundreds of Brits

A warning has been issued over a five-week window to claim backdated voluntary National Insurance contributions or risk losing out on thousands over the course of their retirement

Time is ticking for thousands of Brits who have been warned they’ve got just over a month to claim backdated voluntary National Insurance (NI) contributions. If not, they risk missing out on a large sum for their retirement.

The deadline is April 5 to get those National Insurance contributions backdated. The warning is crucial for expats who’ve missed out on NI years due to working overseas.

For people unsure about their UK state pension entitlement while living it up abroad, experts at William Russell have described everything British retirees abroad need to know. William Cooper, Marketing Director at William Russell, said: “Expats are eligible to claim a UK State Pension, provided they have accumulated sufficient qualifying years of National Insurance contributions. This varies depending on when you first started working, but a good rule of thumb for a full state pension means at least 35 years of paying National Insurance in the UK.”

READ MORE: Claudia Winkleman opens up on chronic health condition as she admits ‘I can’t read anymore’READ MORE: Lighthouse fog horn sounds 24 hours a day – and locals are fuming

He added: “The pension can be paid to you regardless of where you live, but it’s crucial to understand how living abroad may affect the amount and any potential increases. If you reside in certain countries, typically those with a reciprocal social security agreement with the UK, your State Pension may still increase each year as it would if you were in the UK. However, in other countries, the pension may be ‘frozen’ at the rate it was first paid.

“For those considering transferring their pension abroad, it’s essential to explore options like a Qualifying Recognised Overseas Pension Scheme (QROPS), which may offer tax advantages or more flexibility. Always seek guidance from a financial advisor with international expertise to navigate currency fluctuations, tax implications, and local pension regulations.”

To check your state pension eligibility, start by logging in to the UK government’s online service to view your National Insurance record. This will show how many qualifying years you have accumulated, Plymouth Live

Generally, you need at least 10 qualifying years for a minimum State Pension, and 35 years for the full amount. You can use the State Pension Forecast service to see how much you might get, and when you can start claiming. This service provides an estimate of your State Pension based on your current National Insurance contributions.

If there are gaps in your contributions, you may be able to make voluntary National Insurance contributions to increase your pension entitlement. This can be particularly useful for expats who may have missed years while living abroad.

Verify whether the country you live in has a reciprocal social security agreement with the UK. This can affect whether your pension will increase annually.

How to Apply for a QROPS:

Research QROPS Providers: Seek out trustworthy financial institutions that offer QROPS in your country of residence. Ensure the scheme is recognised by HM Revenue and Customs (HMRC).

Consult a Financial Advisor: It’s recommended to consult with a financial advisor who specialises in expat pensions and international retirement planning. They can provide guidance on tax implications, costs, and benefits of transferring your pension.

Request a Transfer Value from Your Existing Pension Scheme: Reach out to your current pension provider for a transfer value quote. This will be the amount you can move to the QROPS.

READ MORE: Nestle issues ‘do not eat’ warning for popular Shreddies cereal – check this codeREAD MORE: This Morning favourite forced to write emergency will after health scare

Submit the Application to the QROPS Provider: Fill out the necessary paperwork to apply for the transfer, including forms from your existing pension scheme and the QROPS provider.

Transfer the Funds: Once approved, the funds will be moved from your current pension scheme to the QROPS.

Bear in mind that transfer fees and tax charges may apply, particularly if the transfer exceeds the lifetime allowance.