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Old 30.11.2014, 18:39
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UK to CH: what about my 4 years of NI contributions and state pension?

Hi all

I have been reading on all the threads about this, mainly this one as it is very relevant:

UK National Insurance Contributions

But I am still puzzled on what to do.

My questions: I'm 28 and I've worked in the UK between 2010-2014 (EU-17 citizenship, non UK) and have now moved permanently to CH, on a full-time role. For 4.5 years I have been paying NI contributions which I want to make sure count towards my pension and started now to see what actions need to be taken. I don't plan to ever go back to the UK or have any property/family there.

1) I have been reading here that I can keep contributing to Class 2 NI in the UK (160/year) and I can get an additional pension to the Swiss one when I retire. In principle it's not a bad idea but does it really make sense for me with so few years in the UK System?

2) If I don't do that, do these 4 years count towards my Swiss pension here or do I need to top up? The amounts would be very different. I read that they are merged into my AVS if I have less than 10 years of NI credits but is this something that I need to initiate myself somehow?

3) As a personal belief, I don't believe the UK will be in any position to either maintain or support its weight in 35 years when I retire. The debt will be huge. The way they have been meddling with pensions now that things are good provides a few hints on what to expect if things actually go bad. Under that light, is anyone else concerned about their UK pension? In CH things to be stable for decades in the pensions area.

4) Considering #3, the Swiss system doesn't seem to let you save too much anyway. Only 6% of my salary goes to 2nd pillar and another 6.5k in Pillar 3. That's not much, in the UK I could save a considerably bigger portion of my salary. Am I missing something if I want to maximize my pension savings in CH?


Sorry for the long post, any questions answered is greatly appreciated.
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Old 30.11.2014, 19:04
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Re: UK to CH: what about my 4 years of NI contributions and state pension?

Does your new pension fund in Switzerland happen to be a QROPS recognised scheme?
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Old 30.11.2014, 19:07
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Re: UK to CH: what about my 4 years of NI contributions and state pension?

No it's not unfortunately but I assume that's the company pension scheme you are talking about? I meant the contributions to NI that would give me a state pension in the UK.

For transferring my company scheme I posted here but doesn't seem to be a way to do what I wanted:

UK pension savings -> CH -> buy house
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Old 01.12.2014, 17:26
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Re: UK to CH: what about my 4 years of NI contributions and state pension?

NI contributions are not transferable, just like Swiss first pillar contributions.

However, you will get 4 years credit from the UK system towards some UK state pension when you retire.

Even though it is only 4 years, your total years contributing to EU plus Swiss state schemes are taken into account when looking at total years contributions for entitlement purposes. So say you contribute for the required 30 years in total to such schemes, very very roughly you would get 4/30th of a UK state pension and so on from EU member state.

At least for now, who knows what it will be in 30 years time...
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Last edited by dannyt986; 01.12.2014 at 17:33. Reason: Clarity..
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Old 09.06.2016, 20:35
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Re: UK to CH: what about my 4 years of NI contributions and state pension?

So if I have 25 years of UK NI state contributions and I have 20 years of Swiss contributions, I can expect to receive the worth of the 25 years of the UK contributions and the 20 years amount of the Swiss contributions as my pension. Is that correct?
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Old 09.06.2016, 20:44
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Re: UK to CH: what about my 4 years of NI contributions and state pension?

Yes. Despite the fact pensions are just a gamble with debt passed on to a future generation, I still think government pensions aren't a bad way to invest. So I plan to max out both the UK and Swiss basic pensions as much as possible.
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Old 09.06.2016, 20:50
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Re: UK to CH: what about my 4 years of NI contributions and state pension?

Quote:
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Yes. Despite the fact pensions are just a gamble with debt passed on to a future generation, I still think government pensions aren't a bad way to invest. So I plan to max out both the UK and Swiss basic pensions as much as possible.
The UK state pension is an absolute gift for any expat who just pays class 2. 22 years ago you had to pay class 3, I was never informed when the rules changed but even so a great deal.
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So if I have 25 years of UK NI state contributions and I have 20 years of Swiss contributions, I can expect to receive the worth of the 25 years of the UK contributions and the 20 years amount of the Swiss contributions as my pension. Is that correct?
Yes thats correct., it's worth you paying class 2 for an additional 10 years they you will get a full UK pension.
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Old 09.06.2016, 20:54
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Re: UK to CH: what about my 4 years of NI contributions and state pension?

I personally would pay into any pension system that would have me!


And it keeps your options open. You may be here forever, you may not. For the price of Class 2 contributions, I'd just do it.
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