Experts are urging British expats to familiarise themselves with upcoming changes to claiming their state pension whilst overseas, and to act now.
Those living abroad can make voluntary National Insurance contributions, with the minimum being £3.50 a week, amounting to £182 a year, for Class 2, which is available for low-earning self-employed individuals. While, Class 3 contributions, at £17.75 per week, are made by those who would like to fill gaps in their state pension but are not eligible for Class 2 contributions.
However, from April 6, 2026, individuals will no longer be able to pay voluntary Class 2 National Insurance contributions for periods abroad. Only voluntary Class 3 contributions will be available for tax years 2026 to 2027 onwards, amounting to £923 per year.
Additionally, to pay the voluntary contributions, individuals would have had to live in the UK for 10 years in a row or at least pay 10 years’ worth of National Insurance.
While, the changes do not affect any voluntary contributions that can be paid for periods abroad before April 6, 2026, international health insurance experts at William Russell are urging Brits to be aware of the upcoming shift.
William Cooper, Marketing Director at William Russell, said: “Expats need to act urgently before April 5. Paying voluntary Class 2 contributions is far cheaper than the upcoming Class 3 rate, and many people don’t realise payments can be backdated, sometimes covering several missing years at the lower cost and significantly boosting future pension income.
“Nearly 450,000 UK expats risk missing out on the April 2026 State Pension increase under the Triple Lock if they don’t take action, leaving them behind pensioners in the UK.”
Mr Cooper says that expats should check their eligibility for Class 2 contributions as soon as possible.
You can contact HMRC’s International Pension Centre or submit form CF83 – which assesses eligibility for paying National Insurance from abroad – to check if you are eligible for the contributions.
He added: “Taking action now could save hundreds or even thousands of pounds and protect entitlement to future State Pension increases. After April, the same top-ups will cost significantly more, and some people may no longer be eligible at all.”
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