Pension

[LesleyA]

Is my friend being unreasonable in thinking they can move to the UK, he’s 56, get a job with salary equivalent to that of a teachers, contribute to a British pension until retirement age and then expect he and his family to receive enough from his pension to live out their days

If this is the first pension he is going to contribute to, then yes he IBU, I can't see how he could support a family based on pension contributions made over 10 or so years. Presumably he won't be entitled to state pension if he hasn't been working in the UK til now.

I imagine if he was able to complete the pension forecast he’d be disappointed.

Forgot the link!

www.gov.uk/check-state-pension

If they pay NI for 10 years entitled just like anyone else? Why would that be unreasonable? Although certainly not much to live on with 10 year contribs.

Also depends on their home country whether the HC contribute too.

Needs 10 years NI contributions to qualify but 30 year to get full state pension

www.gov.uk/new-state-pension/how-its-calculated

Quoting website

You did not make National Insurance contributions or get National Insurance credits before 6 April 2016

Your State Pension will be calculated entirely under the new State Pension rules.

You’ll usually need at least 10 qualifying years on yourNational Insurance recordto get any State Pension.

You’ll need 35 qualifying years to get the full new State Pension.

You’ll get a proportion of the new State Pension if you have between 10 and 35 qualifying years.

Example

You have 20 qualifying years on your National Insurance record after 5 April 2016.

You divide £175.20 by 35 and then multiply by 20.

Your new State Pension will be about £100.11 per week.

Your new State Pension is more likely to be calculated in this way if you were born after the year 2000 or became a resident of the UK after 2015.

He won’t get a full state pension without 30 years of contributions...

He may BU, he will only get a fraction of full U.K. state pension. U.K. state pension is lower than the average state pensions of most OECD countries despite U.K. being high cost of living country. So he can’t depend on U.K. state pension alone. Presumably his home country has a state pension of some kind that he’s been paying into for decades?

Some countries have treaties where whatever years he worked towards his home country state pension can be transferred and credited towards a U.K. state pension OR he may be allowed to claim the foreign state pension while living in U.K.. He’d have to do some research into that.

Well, he would get about 50 quid a week in pension. But he would prob qualify for other benefits to pay rent etc.

It could work if they plough lots of money into their workplace pension or a private one and work till 70yo.

And what do you mean by salary like a teacher’s?

They’ll also be entitled to a pension from their country, won’t they?

He is being unreasonable.

Unless he is bringing a shed load of cash with him, no chance. He'll have to work till he dies.

He’s being unreasonable and naive.

To get a UK full state pension you need 35 years of paying NICs or claiming child benefit etc which covers your NICs - no time for that if he’s 56.

If he’s working in the private sector he could of course open a defined contribution pension with his job, but it’s unlikely to build a big pot before he retires at, say, 67. Unless he’s paid a bomb.

If he’s a public sector worker he’ll be eligible to join whichever pension it is, but it’ll be career average now, but final salary, and again won’t be loads if he only works about 10 years.

Please set your friend’s expectations before he moves here expecting generous benefits.

NOT final salary, I meant to say

Depends on whether there are reciprocal arrangements with his home country