I will be moving to Australia within the next year and was wondering what happens to my national insurance payments that I have been paying.
I am a British citizen from birth and am 23. I will be moving there indefinitely and will NOT be coming back. Do I get these payments back?
How National Insurance works as a system
National Insurance operates as a form of insurance rather than a savings account. The money you pay in does not sit in a pot with your name on it, waiting to be returned if you leave the country.
Think of it like home insurance. If you pay premiums for years and never make a claim, you would not expect a refund. The same principle applies here. Your contributions cover you against life events such as unemployment, illness and retirement during the time you are paying in.
This means that when you emigrate, you cannot request a lump sum repayment of everything you have contributed over the years. However, that does not mean your contributions were wasted.
What happens to your State Pension entitlement
If you have been working and paying National Insurance in the UK, you will have been building up entitlement to the State Pension. This entitlement does not disappear when you move abroad.
You can claim your UK State Pension from almost any country in the world, even if you become a permanent resident or citizen elsewhere. The pension is paid based on your National Insurance record, not on where you happen to live when you reach pension age.
The amount you receive depends on how many qualifying years you have built up. For a full new State Pension, you currently need 35 qualifying years. If you have fewer years on your record, you will receive a reduced amount in proportion to your contributions.
There is a minimum threshold to qualify for any State Pension at all. You will usually need at least 10 qualifying years on your record to receive anything. If you emigrate before reaching this minimum, you may want to consider whether voluntary contributions could help fill gaps in your record.
Your situation may be slightly different. ask a question below ↓ and our editorial team will reply with our advice.
Voluntary contributions from abroad
In some circumstances, you can continue making voluntary National Insurance contributions while living overseas. This can help you build up additional qualifying years towards your State Pension.
Whether you are eligible to pay voluntary contributions depends on factors including:
- How long you have previously lived or worked in the UK
- Whether you are working for a UK employer abroad
- The country you are moving to
There are time limits on how far back you can pay, and the rules can be complex. HMRC can advise on your specific situation.
Where to check your record
Before you leave the UK, it is worth checking your National Insurance record online through GOV.UK. This will show how many qualifying years you have and whether there are gaps you could fill.
For current State Pension rates, qualifying year requirements and rules on paying contributions from abroad, GOV.UK and HMRC are the reliable sources for up to date information.
I am an Italian citizen who has been working and paying tax in the UK for 31 years. In a few years I would like to go back to Italy permanently (note I never worked there so never paid NI in Italy).
Will it be possible to transfer my NI contributions to the Italian equivalent? While I already qualify for a British Pension I fear that by the time I retire my English language skills will have dissipated to be able to look after my interests in English and it would be easier to have one Italian pension as opposed to two one English and one Italian.
Furthermore given my lack of contributions in Italy, do you think I should continue to pay voluntary contribution to my English NI?
Also following Brexit things may change, but where do I stand now?Thank you so much for your help
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