IRISH RESIDENTS WHO HAVE WORKED IN THE UK – PROTECT AND MAXIMISE YOUR UK STATE PENSION BENEFITS

Over 400,000 Irish residents have worked or lived in the UK. While in the UK, most have paid National Insurance and therefore contributed to the UK state pension system. Therefore, they have built up benefits which may give them a UK state pension which is independent of and in addition to their Irish State pension.

The UK State pension benefit is a valuable benefit. The basic UK State Pension is now risen to ￡159.55 per week, equivalent to €188 p.w. approximately or almost €9,800 p.a.

HOW MUCH UK PENSION WILL YOU GET?

Each year of eligible National Insurance contributions generates a 1/35th entitlement to a UK State Pension, so if you have 15 years contributions, then you would qualify for 15/35th which would be a pension of ￡68.37 or about €76pw or €3964 per year.

Each year you have worked in the UK is worth 1/35th of ￡159.55 per week, subject to a minimum of 10 years national insurance contributions. What happens if you have less than 10 years when you reach UK state pension retirement age? You will not be eligible to claim the UK state pension!

But do not panic, you are still able to purchase additional years of national insurance contributions and get over the 10-year line. This is the good news, but the bad news is that this option may not be available for a long time according to a recent article in the Telegraph Money click here.

If you live and work in UK, you can buy an additional UK State Pension Benefit Year at Stg.￡741, and that qualifies you for an additional pension of Stg.￡237 p.a., over 25 years of retirement, that amounts to Stg￡5925 return on your ￡741 investment. The business paper Telegraph Money column thinks it’s a no brainer.

“Steve Webb, a director at Royal London, the pension firm, said: "The price of topping up your state pension continues to be heavily subsidised. As a result, there is a risk that a cash-strapped government will pull the plug on this scheme at short notice.”

HOW TO TOP-UP YOUR UK STATE PENSION IF YOU LIVE IN IRELAND?

The Royal London Guide to topping up is available here: IPSFA site link

The quick guide part is on page 6, but it is still quite complex.

TALK TO US?

The great news, is that IPS has been securing those same pension benefits of an additional Stg.￡237 per annum or ￡5925 over 25 years for our clients for the past 4 years.

The even better news is that we may be able to give you the same UK State Pension benefits at a lower price than the Stg.￡741price being charged to UK residents and tax payers.

How do we do it? That’s our magic, contact us to find out more.

How long will it last? – our way of securing these super benefits AT A HUGELY DISCOUNTED PRICE will disappear early in 2018. 

If you would like more information, call 061 469884 or email [email protected]

This article has been provided by Eamon Lynch, Managing Director, IPS Financial Advice.