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UK state pension

  • 20-01-2012 12:41pm
    #1
    rmnrgn
    Registered Users Posts: 99 ✭✭


    Hoping for some advice here please!
    I have previously worked in the UK where I have 8 qualifying years for the UK state pension. I have the option of paying voluntary contributions and buying back 6 years and continuing to pay approx Stg£125 a year for the next 16 years to qualify. (30 in total, eligible age 67)

    I am a PAYE worker and I am paying superannuation and an AVC (to make up for time abroad, study etc). With the current poor returns on my AVC I am hoping to hedge my bets and am considering buying the extra years for the UK pension.

    My only worry is that when I retire I will be hammered for tax and find myself means tested for any Irish entitlements. Is it worth buying back the years in the UK? Does reciept of one EU state pension make you ineligible for a second EU state pension?:confused:

    Advice gratefully recieved.


Comments

  • #2
    Tow
    Registered Users, Registered Users 2 Posts: 7,811 ✭✭✭Tow


    rmnrgn wrote: »
    Is it worth buying back the years in the UK? Does reciept of one EU state pension make you ineligible for a second EU state pension?:confused:

    AFAIK. No. Also I believe a UK Pension may also entitle you to a medical card here and a medical card here entitles you to a reduction in your USC.

    When is the money (including lost growth) Michael Noonan took in the Pension Levy going to be paid back?



  • #3
    rmnrgn
    Registered Users Posts: 99 ✭✭rmnrgn


    I'm not going to wish my life away for a medical card :D but I'm not eligible for any pension for at least 20 years. I just want to make contingency plans now.


  • #4
    coylemj
    Registered Users, Registered Users 2 Posts: 25,476 ✭✭✭✭coylemj


    Tow wrote: »
    AFAIK. No. Also I believe a UK Pension may also entitle you to a medical card here and a medical card here entitles you to a reduction in your USC.

    He's clearly talking about a contributory pension from the UK DHSS, I seriously doubt if that would carry any automatic entitlements to an Irish medical card.

    OP, I doubt if you could buy that deal in the private sector. If you pay £125 p.a. for 16 years you will end up drawing at least that amount per week from age 67 for the rest of your life. It sounds like a good deal, I'd definitely go for it.


  • #5
    rmnrgn
    Registered Users Posts: 99 ✭✭rmnrgn


    Future changes to the law excepted, is there any drawback to having two state pensions eg higher tax demands, loss of entitlement etc?


  • #6
    Pablo Sanchez
    Closed Accounts Posts: 1,207 ✭✭✭Pablo Sanchez


    I cant comment on UK pensions but i do know someone who receives both the Irish state pension and a German pension. The German pension however is a lot less, maybe 300 a month. However this may be due to only working there for around ten years.


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