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UK National Insurance Contributions Thumbnail

UK National Insurance Contributions

David Henson DipPFS EFA

If you want to receive a full UK state pension when you retire, then you need to have made enough national insurance contributions to qualify. The pension is based on “qualifying years.” A qualifying year is 52 weeks of a paying a contribution into a “class.” You will need a minimum of 10 years to receive any pension and 35 years for the full pension. (A number in between is pro rata.)

 These contributions are accumulated through different “classes.”

· Class 1 for UK employees

· Class 2 & 4, for the self-employed

· Class 3 to make voluntary contributions

As an expat, you are unlikely to be making contributions to these classes as you will not be earning employed or self-employed income in the UK (property income does not count). To ensure that you achieve the 35 years of contributions and receive a full basic state pension, you can make voluntary contributions that add to the accrual of these years.

The UK basic state pension is intended to provide an individual with a basic level of income in retirement. It is funded on a pay-as-you-go basis. This means that there is no underlying fund from which to provide retirement benefits later, and the National Insurance Contributions (NICs) of the current working population are used to pay the state pensions of those who have reached state pension age.

The purpose of paying voluntary NICs is to secure entitlement to various UK National Insurance benefits like the basic state pension. It has agreements with Reciprocal Agreement Countries and the European Economic Area (EEA) regarding special benefits. If you continue paying UK National Insurance while living abroad, you may protect your entitlement to the following:

  • A full state pension
  • Particular state benefits in the EEA as well as some reciprocal agreement countries
  • Particular state benefits and stipends on your return to the UK

Today the full UK state pension stands at £230.25 per week (2025–2026) and increases each year with the “triple-lock” (i.e., the higher of inflation, average earnings, or 2.5%). Considering our increasing longevity, this can be beneficial as a secure, inflation-adjusted income stream during retirement. 

First Check Any Gaps

The first step in paying voluntary NICs is to check any gaps that you have in your record. You may find that you have fulfilled enough years already. To check any gaps you will need to login to your gov.uk account.

You can easily make up any gaps in your payment record of National Insurance contributions up to six tax years. (It is, at the moment possible to go back to 2006).

Making Voluntary National Insurance Contributions as an Expat

If you live abroad, you can continue paying UK voluntary National Insurance contributions to build up your qualifying years, provided specific conditions are satisfied. These payments contribute toward your state pension value/qualification. At the time of writing, pension payments can be paid out to a bank account overseas (Department for Work and Pensions). 

As mentioned above, there are different “classes” that build up part of your National Insurance record. There are 4 different classes,  but for an expat only classes 2 and 3 are relevant.

Currently any of the following conditions must be fulfilled in case you want to pay voluntary National Insurance Contributions while living abroad:

  • You must have spent a consistent three-year period in the UK prior to making your payments
  • Before going abroad, you paid National Insurance Contributions for a period of three or more years

The November 2025 budget has reset the eligibility criteria. The new rules applicable from April 2026 are as follows:

  • You cannot pay voluntary Class 2 National Insurance Contributions for time abroad.
  • You can only pay voluntary Class 3 National Insurance Contributions for time abroad.

This does not affect voluntary National Insurance Contributions for time abroad before April 6, 2026.

New applications to pay voluntary Class 3 National Insurance Contributions will need applicants to have either:

  • Lived in the UK for 10 years in a row
  • Paid at least 10 years of National Insurance contributions while in the UK

 Which Class of Contribution to Pay?

Class 2—Available until April 2026.   Following, this will be unavailable.

If you are either self-employed or employed overseas, then up until April 2026, you can pay voluntary class 2 National Insurance Contributions. For this class, you must meet either of the following conditions:

  • “Ordinarily” self-employed or employed right before going abroad.
  • “Ordinarily” self-employed/employed but became unemployed before going abroad. (Unemployed means that you are registered as an unemployed person who is searching for work at the Department for Work and Pensions.)

Extra benefits of class 2 contributions:

  • These payments make a contribution to your state pension
  • You enjoy entitlement to the Employment and Support Allowance (formerly known as Incapacity Benefit) and bereavement benefits when you return to the UK.

The current cost of class 2: £3.50 per week

Class 3

Class 3 contributions work for those who are either not entitled to class 2, have gaps in their payment record for a tax year, or are unemployed while living abroad.

Compared to class 2 National Insurance Contributions, class 3 contributions offer fewer benefits. For instance, you are not able to enjoy the Employment and Support Allowance or bereavement benefits upon your return to the UK.

The current cost of class 3: £17.45 a week

Paying Voluntary Contributions while Living Abroad

You can use any of the following ways to pay voluntary National Insurance Contributions:

  • Nominate an agent to make your payments
  • Make annual payments
  • Pay through direct debit every 4–5 weeks

If you intend to appoint an agent to make your payments, then you will be required to provide his/her detailed information while filing form CF83.

Conclusion

Meeting the minimum barrier of 10 qualifying years is a lot easier under the current rules, and adding additional years to fill any gaps also warrants discussion. 

For more information on topping up your National Insurance and filling gaps in your contribution history, please reach out to one of our wealth planners.


Sources:

https://www.gov.uk/government/publications/changes-to-voluntary-national-insurance-contributions-for-periods-spent-abroad/voluntary-national-insurance-contributions-for-periods-abroad-from-april-2026


This material is intended for educational and informational purposes only. It is not intended to provide specific advice or recommendations for any individual. Additionally, you should consult with your Financial Advisor, Tax Advisor, or Attorney on your specific situation. The views expressed in the material are that of the author and do not necessarily reflect those of any market, regulatory body, State or Federal Agency, or Association. All efforts have been made to report or share true and accurate information. However, the information may become materially outdated or otherwise rendered incorrect due to subsequent new research or other changes, without notice. The author nor the firm are able to always verify the content from third-party sources. For additional information about the firm, please visit the MAS Website at https://www.mas.gov.sg/  and the SEC Website at www.adviserinfo.sec.gov. For a copy of the firm's ADV Part 2 Brochure, please contact us at info@avriowealth.com.