Worked in the UK? Act now to claim your entitlements before the concession ends.
Deadline to take action is April 2023.
If you have previously worked in the United Kingdom, you may be eligible to boost your pension entitlements before 5 April 2023.
To qualify for a UK State pension, you need to have a minimum of ten years accrued on your National Insurance record.
If you have less than this, and you have lived and worked in the UK for three consecutive years, you could qualify to make voluntary contributions to reach the ten-year threshold.
Typically under HM Revenue and Customs rules, individuals can pay towards six years that are missing from their National Insurance Record.
For a limited time however until 5 April 2023, people can pay up to a total of 16 years, as far back as the 2006/7 tax year.
From 5 April, the system will revert to an allowance for people to pay for just six years, from the 2017/18 tax year, which is why it is so important to act now.
Your pro-rata UK State pension entitlement is increased for every year added to your National Insurance Record. If you qualify for the 16-year period, you have the option to pay for just some of them, rather than them pay for them all.
If you are unsure whether you have any gaps in your National Insurance Record you can find out at the UK government website –
You can apply to make voluntary contributions from Ireland via the UK government website – gov.uk. You can also opt to receive notices about any gaps in your National Insurance contributions at this website, and then decide whether you wish to pay them.
Voluntary contributions fall under two rates known as Class 3 and Class 2.
Class 3 is relevant to people who have resided and worked in the UK for three consecutive years, have at least three qualifying tax years on your National Insurance Record and no longer living in the UK. The rate is approximately €940 – or £824.20 – for each year added to your record.
Class 2 applies to people who meet the same criteria as those in Class 3, plus were employed in the UK up until immediately before they left the UK, and are in insurable employment in Ireland (i.e., paying PRSI). Class 2 rates are calculated at approximately 20% of the Class 3 rate but are considered equally for the UK State pension.
Voluntary contributions to your UK State pension can be made right up to the age of 66 which is the current retirement age in the UK.
You don’t have to pay for each year if you don’t want to; you can pause your voluntary contributions and make payments again later when it suits you.
To take advantage of this concession before 5 April 2023, visit gov.uk to find out more. To keep your retirement foals on track, be sure to get in touch with a member of our team.
