Job Discussion Forums

[fladude]

[Dedicated]

Particularly for nickpellatt,

Don't rely on the UK state pension predicted to be �155 by 2015. They are currently saying this will depend on 30 years of contributions and residence in the UK.

[naturegirl321]

[nickpellatt]

[Hod]

I wouldn't rely on a UK state pension either, but the new flat-rate �155 version is still under discussion. As for 30 years and UK residency, I've not seen that written anywhere.

But just to speculate, I don't see any benefits for a future government to deny a pension to those who have paid in just because they are no longer UK residents. It's not a small number of people who choose to live overseas. We're talking hundreds of thousands, and all of these people can still vote in general elections. It would be a daft government to introduce such a radical and unpopular step. Also, people with any business acumen, i.e. those important for the economy, with any thoughts of retiring abroad, would just stop paying NI. They would all leave the UK in their thirties.

The current state pension requirements already say 30 years of payments are required for full benefits. However, if you�ve paid in for less than 30 years, you still get a proportional amount of benefits.

And to change topic slightly, because of the proportional benefit entitlement and the new flat-rate idea, I�m not going to pay any more voluntary NI contributions (�626 in 2010) until the new pension details are released.

[mozzar]

[nickpellatt]

http://www.dailymail.co.uk/money/article-1375237/We-answer-key-questions-universal-plan-How-State-pension-revamp-affects-you.html

What if I don't have 30 years of NI contributions by retirement?

A safety net in the form of the guaranteed part of the pension credit will still apply for those who have not built up the required NI record. This will ensure a minimum weekly income for all, but you will have to claim, as happens now.



Just searched this for you hod. I read the paper version on Sunday. This suggests the 30 year contributions still applies, BUT, people who HAVENT made the full 30 year contribution can apply for a top-up (which is pretty much the same system now). From what I have read, it would appear that in reality, very little is really changing.

I also get the NI requests each year. I have ignored their offer to make a contribution so far. I earned about �8k in the UK in the last tax year though, so I dont know if that is likely to be enough to earn a full year NI contributions. I will wait and see if the usual yearly demand arrives.

It might not be a bad idea to hang on to your years contributions though. If one can claim state pension according to the years you have accrued, and then claim a top up benefit for the balance, there doesnt seem to be much point in paying contributions each year.

[Hod]

Thanks.

You can request a forecast via HMRC�s website telling you how many qualifying years you've paid. For example, I�ve paid 15 years (and have around 25 years to retirement). Those figures already made me hesitant to pay voluntary NI, because if I worked in the UK again*, I would have no choice but to pay NI. Now this flat-rate proposal comes along, until it�s finalised I�ll definitely spend the ₤600+ a year elsewhere.

Not that I�m encouraging pension plan procrastination, of course.

---

* Stranger things have happened. In 2004, someone with his 2011 feet now well and truly on British/Scottish soil said:

[fladude]

[Zero]

[Teacher in Rome]

[Perilla]

[dmocha]

[/quote] It is not nearly so simple. Education is an investment. I do not know about other nationalities, but as an American, I can count on paying sticker price for any additional education I get, and it will not be cheap.

If you are pursuing education for non-financial reasons, such as personal enrichment, that is fine. In that case education is a product. As with any product, the question is, "Can you afford it?" [/quote]

Two masters is one too many! Zero is right on the mark. And remember this, you will reach a point in your life when you will be 'over-qualified' Do not be so naive as to think overqualified has anything to do with your degrees, credentials or CV. It is code for 'you are too old'. By then it will be too late: you should have invested in a house, a pension plan, something, anything other than a degree exactly costed and targeted to maximizing your employment possibilities and income for the longest possible time before your shelf life expires.

Money spent on a carefully targeted first masters degree is very likely money well invested. Above and beyond that, it�s guns or butter: do you get another degree because you like getting more letters after your name, or do you spend the same money to fully recondition a �59 Chevy? Cost in terms of money (measured in 10�s of thousands) and hours (measured in 100�s of hours) will be about the same. Just don�t delude yourself that either is really an investment.

Right now I�d happily exchange the money I spent on my Ivy League second masters for a down payment on an investment home. Twenty years too late for that.

[naturegirl321]

[dmocha]

Good for you Nature Girl! Sadly, you are the exception that proves the rule. Not eveyone can avail themselves of low-cost options in higher education. Have some pity for people who have to pay unsubsidized tuition.

"...if you plan carefully, you can do well." I think the point of this thread is that those who have suddenly woken up and realized they had not planned carefully can share their experiences with others in TEFL who, like me years ago, never gave it a moment's thought because we were having the time of our lives.