Korean Job Discussion Forums

[Woden]

Just spoke to UK Inland Revenue and they said that national insurance contributions can only be reclaimed on retirement and this is for all countries with reciprocal agreements, such as UK - ROK.

On retirement you are sent a form asking you to detail any time spent abroad and then the UK government applies on your behalf for the contributions you made during this time if there is an agreement between the countries. Now, this is a bit worrying because I have my doubts that the state of ROK will exist in 50 years time let alone have a reciprocal agreement with the UK, but there is some good news...

...there is a motion being put through Parliament this summer that proposes that UK residents will only have had to have made 30 years National Insurance contributions to receive a full UK pension. It is presently 44 years. If it is put down to 30 years then it is good news for those of us intending to only spend a few years abroad and then go home because we don't have to worry about keeping up with payments. The fact they are looking to lower the threshold probably means by the time most of us get to retirement age our pension will be sound as a Won.

[Whistleblower]

Thank you for the news about NI Contributions with the Revenue. I know that your Korean pension is sent to the UK and then it is paid once you reach retirement, but I have been thinking about making voluntary NI payments whilst I live abroad. I am thinking of living in Korea for a minimum of 20 years so I am a rarity with the British Government.

[Woden]

If I were you I would definitely make voluntary contributions. The bloke on the phone agreed that there is no guarantee that in 40/50 years time there will be any kind of agreement between the two countries as things are always changing, in both countries.

You would be taking a hell of a gamble if you banked on being able to reclaim all your contributions from ROK. It is likely that it rarely happens anyway if you look at the average age of English teachers and how long foreign workers have been in ROK, and then from when the agreement was enacted, etc. Probably no one has actually reached retirement age to find out if the agreement is worth the paper it is written on.

The key point is, nothing is given to the UK Government when you leave Korea. It is only once you reach retirement that the UK contacts ROK to pursue the money. How strong is your trust in Korean or UK bereaucracy over a timespan of half a century? How many potential incompetent interns are entrusted with your files in 50 years?!

You are doing the right thing with making voluntary payments, just to be safe.

[mrsquirrel]

Do you believe there will be a state pension in 30 years time?

[Woden]

[rhinocharge64]

It will be means tested, and unless you can prove you are the modern day Oliver Twist, then no, you won't see a penny of your contributions. I've personally opted for a private pension, and property in a country that recently joined the E.U.

Regards -The Charge