Class 2 was due to be scrapped this month. The date has now been moved to April 2019. Anyone topping up their UK state pension by paying voluntary class 2 contributions from overseas will be affected. You might wish to buy extra back years now whilst you can.

After this it looks like the option will be to pay the more expensive class 3 (these are around £12 per week whereas class 2 is around £2-£3 per week)

https://www.moneysavingexpert.com/ne...yed-until-2019

I still think it’s worth paying even after the change... ~£750 voluntary class 3 contributions per year for an extra ~£190 per year (probably) index-linked pension for life.

Surprised it took them so long to shut down the class 2 option for non residents. That was a true bargain.

Correcting above, I presume you mean £190 per week?

NOTE: if you go to your NI record on the Government Gateway, you can see the missing years and you can buy them. The offered rate is class 3 only.
(@700p/y)

I called HMRC, and the website only offers class 3 by default.
To pay class 2, you need to fill in form CF83 and send it to them.

You have until 2023 to buy back any years over 6 (but only back to 2006 anyway). From 2023, you can then only go back 6 years.
It looks like you have until 2019 to buy back the missing years at the lower rate (as highlighted by OP).

It's a bargain.

Nope...each year of class 2 or 3 contributions equates to 1 year of pension entitlement.

Therefore, based on current max pension benefit and needing 35 years’ contributions for a full pension, this is 1/35 * £125.96 * 52 = ~£190 per year, not per week.

Perhaps explain that another way because it doesn't make sense.

My take on this:

- A class 2 is currently 2.95 per week or 160 per year
- Full pension is 164.35 per week or 8550 per year or 244 for each year of contributions

So each 160 per missing year adds 244 per year

If you have 30 years, you get 7235.
It costs a one off 160*5 to add 244*5 per year for life

yes each 160 invested gives you an extra income of 244 per year for all of your retirement. it will be index linked in some form too. so if you live for 20 years after retirement your 160 will generate an extra income of 4880 plus.

i don't think abolishing class 2 is targetted at expats. it is to do with uk selfemployed who pay class 3.

Agree....thanks, forgot they changed the state pension from £125.96 to £164.35 per week. Even more reason to pay the higher class 3 contributions from next year.

I based my sums on the current class 3 rate (£14.75/week), meaning roughly £750 per year of contributions. At the new pension amount this equates to receiving £244/yr as you rightly say.

Where else can one get an index-linked annuity paying 33%/yr? For me that’s worth the risk considering the relatively small outlay.