Robyn, highlights urgent action that former UK residents can take to increase their UK state pension benefits.

Have you previously worked in the UK and contributed to the UK State Pension scheme?

If the answer is yes, you could have an opportunity to increase your UK State Pension benefits, but importantly some of these potential benefits could be lost if not secured before 5 April 2025!

UK State Pension Entitlement

To get the full UK State Pension (“Pension”), which is currently £221.20 per week or £11,502.40 p.a. you need to have made 35 years of UK National Insurance Contributions (“NICs”). If you have between 10 and 35 years of NICs, you will get a reduced ‘pro-rata’ pension amount; if you have less than 10, you won’t be eligible for any pension.

The good news is that, if you’ve got a minimum of 3 years but less than 35 years of NICs, the UK government will allow you to make voluntary NICs to top up your UK State Pension to the full amount. This ability to top up can be available to Guernsey or Alderney residents who have previously worked in the UK.

The rules are changing – act quickly!

Importantly, for persons over 45, NIC top-up contributions can currently go back as far as the 2006/07 tax year, i.e. 16 years.  However, after 5 April 2025,you will only be able to go back six years, reducing the number of years you can claim and ultimately the state pension you will be able to claim at retirement.

How to check your UK State Pension Status

If you have accrued UK State Pension benefits, you can obtain details on your current pension status on the UK government website GOV.UK. In addition to showing you how much your pension will be and when you will receive it, the website also identifies any gaps you might have in your NIC record.

Is it a good idea to pay voluntary NICs?

While everyone's situation is unique, in most cases, we believe it is in a person's best interest to top up their UK State Pension if they are eligible to do so.

If you have any queries or questions, on the UK State pension or UK private/personal pensions, please contact Robyn at [email protected] / 01481 732221 or visit our website www.gower.gg.