National Insurance Contributions

[Irene Entwistle]

Hi, my husband and I are looking to move to France in the summer, could someone please tell me how  we go about maintaining our NI contributions to safeguard our English pension and how much it is likely to cost?

If someone could give us some information on the subject I would be very grateful.

Regards, 38IME[*-)] 

[Opalienne]

Ask your local NI office?   I think this is possible but they will know much more than I do.   I don't think the cost for voluntary contributiions is very high.

[Ron Avery]

What you need to find out is how much you will need to pay in NI to get a full pension, against what you would lose should you not pay NI anymore.  A lot depends on your age and how long you have worked, but when I left work an Independant Financial Advisor at a pre retirement seminar told us that if you have worked over 35 years and generally have less than 10 years to go to pensionable age you will pay a lot, lot,  more in NI than you will lose in your pension and he was talking hundreds of pounds against pence here.  I hope he was right!! 

[Quillan]

You can ask the Department of Works and Pensions for a forecast which is free of charge.You can then ask the price of a annual Class 3 stamp which you pay for just your pension, mine costs just under £400 per year. Don't forget if you are living in France you will pay tax and social tax's here so will be paying in for a French pension.

[Coco]

When we first came here we were paying voluntary contributions, which as Quillan has said, was around £400 a year each.  We then discovered that this will only give us basic minimum pension (not surprising) but that self-employed contributions would give us the same cover.  All we had to do was send one of our business cards to show that we run a B&B in France and are therefore self-employed, we now pay fractionally over £100 each a year.  I'll still believe it when I see it as to whether we actually get anything at all at retirement age!!!

[Ron Avery]

[quote user="Quillan"]You can ask the Department of Works and Pensions for a forecast which is free of charge........ Don't forget if you are living in France you will pay tax and social tax's here so will be paying in for a French pension.[/quote]

You may well be paying social charges and tax here but that does not entitle you to a French pension, where did that assumption come from?    If you do not work here you willl get NOT get a pension from the French, why would/should you?[:^)]

[Quillan]

Sorry Ron I have done what I tell others not to do, made an assumption. I did that  on a guess that the original posters were under retirement age and will be working in France legally and will be paying tax and social charges. Of course if they are so rich as not to have to work or are going to work on the black (which I think not) then they won't pay in so won't get anything out.

[Miki]

[quote user="Quillan"]Sorry Ron I have done what I tell others not to

do, made an assumption. I did that  on a guess that the original

posters were under retirement age and will be working in France legally

and will be paying tax and social charges. Of course if they are so

rich as not to have to work or are going to work on the black (which I

think not) then they won't pay in so won't get anything out.[/quote]

Chris,

Still a bit of a grey explanation. What I am sure you meant to

say is,  those of us who pay our cotisations towards retraite, (plus

health etc) will get some form of French pension once retired. Paying

tax and social charges alone, as many semi retired or even rich early

retired will be paying, will give one nothing back in pension rights!

[Val_2]

You have got to pay into a french pension for a very long time and mount up a certain number of value points to get a decent payout when you finally retire, hence why the older you get, the more you pay in with french workers paying double or treble during the last ten years of employment to rack up their points. Many farmers have never paid into any system or one that was cheap and now find they have nearly nothing to live on and continue to work the land for as long as they can walk.

[LesLauriers]

[quote user="Ron Avery"]What you need to find out is how much you will need to pay in NI to get a full pension, against what you would lose should you not pay NI anymore.  A lot depends on your age and how long you have worked, but when I left work an Independant Financial Advisor at a pre retirement seminar told us that if you have worked over 35 years and generally have less than 10 years to go to pensionable age you will pay a lot, lot,  more in NI than you will lose in your pension and he was talking hundreds of pounds against pence here.  I hope he was right!!  [/quote]

Ron, on arriving in France I had 36 qualifying years, based on the pension forecast received I need a further 8 years of contribution for a full pension. Using the NI rates for 2003 and 2004 and increasing the amount paid pro rata over 8 years I will have to pay £3182 to achieve an extra £14.77 a week.

Therefore the calculation shows that if I survive past 69 years and 2 months I win! Following my death my wife will receive 60% of my pension and will gain an extra £8.86 a week for the duration of her life.

So will I live to be 70? Will my wife live to be 72 if I die before 65?

If we both live to 80 then I will have paid out  £3182 for a return of £22270 not allowing for inflation.

It all depends upon circumstances, however your IFA may not have done you any favours.

[LesLauriers]

[quote user="Irene Entwistle"]

Hi, my husband and I are looking to move to France in the summer, could someone please tell me how  we go about maintaining our NI contributions to safeguard our English pension and how much it is likely to cost?

If someone could give us some information on the subject I would be very grateful.

Regards, 38IME[*-)] 

[/quote]

The information is all here;

www.hmrc.gov.uk/cnr/onc.htm#5

[andyh4]

Another point to consider is that if your wife pays NI contributions to safegaurd her pension and retires at 60, here E121 entitles you to piggyback on her CV - so saving you some payments into the French sytsem.