Deadline for Irish workers to top up UK pension looms
Thousands of Irish people who worked in the UK and paid the equivalent of our social insurance, could be entitled to access a British pension.
More than 250,000 Irish people may be due to benefit from a significant pension boost, some of whom who have already applied could also be in a position to top it up to receive a higher amount.
The deadline for applying for top up for as many as 18 past years and paying to avail of the scheme is 5th April 2025.
In 2013, a rule was introduced which allowed top-ups to go back as far as 2006 but this is being removed and the lookback period will be six years from April 6th.
After this date, people from the Republic of Ireland can only claim six years qualifying years but, if you follow some simple steps before that date you could claim up to 18 years’ UK pension.
A qualifying year is one in which you were working and made National Insurance contributions to the UK government.
Speaking on RTÉ’s Morning Ireland Director and Financial Planner at Castle Capital Limited Jonathan McDonnell said it is easy to find out if they qualify and to apply.
“All the individual has to do is if they’ve worked and lived in, in the UK and paid National Insurance contributions for a period of three years effectively their name is in the hat and after that then they need to get their application in.
“The one key thing is that they will need to have 10 years qualifying contributions in total before they will actually qualify for any payment of a pension.”
An individual who has paid NI contributions in the UK can pay a top up for the remaining seven, which can be quite lucrative according to Mr McDonnell.
“That particular individual who has three years and wants to buy seven years for their full qualifying pension of 10 years National Insurance contributions, it would cost that person approximately €3,600 for that.
“But the return is is actually quite mighty for that individual, they would get a pension of €4,000 per year for the cost initially of €3,600.
“So the initial outlay for those seven years for a total of €4,000 per annum for your lifetime on just that basic 10 years is quite a good return.
“And individuals can buy up to 17 years dating back to 2006, so when you look at the amount of years that you can buy its very lucrative.”
From the age of 67, boosting a UK state pension can be worth up to €14,000 annually.
However applicants from Ireland may have to wait almost a year and a half to get approval from the HMRC due to a massive backlog.
Article Source – Deadline for Irish workers to top up UK pension looms – RTE
