UK state pension in Spain: How to ensure you're receiving your full entitlement
Retirees in Spain can now top-up their UK pensions and enjoy thousands more per year
If you’re a UK expat living in Spain and claiming a state pension from Britain, you may be missing out on your full entitlement due to gaps in your National Insurance (NI) record. The good news is that you can still top up your state pension by paying voluntary NI contributions, but you need to act quickly as the deadline to do so is looming.
The UK government has announced that individuals can pay voluntary NI contributions to fill gaps in their state pension record between 2006 and 2018. This can be done online or by requesting a call back from the Department for Work and Pensions (DWP).
The deadline to do this is April 5, but HMRC has recently relaxed the cut-off date by allowing individuals to request a call-back online, which will enable them to pay voluntary NI contributions after the deadline has passed.
Topping up your state pension can be a very worthwhile investment, especially if you have gaps in your NI record. By paying voluntary NI contributions, you can increase your state pension entitlement, which can result in a significant increase in your retirement income.
For example, someone with 10 years to make up could pay just over £8,000 to receive an estimated additional £55,000 in pension income over a 20-year retirement.
That could go a very long way for people retiring to Spain.
Commenting on HMRC “softening the 5 April deadline”, Steve Webb, a former pensions minister, explained: “After the chaos in the run-up to previous deadlines, it is good the government has planned ahead to make sure that people do not miss out simply because they cannot get through on official phone lines to discuss state pension top-ups.”
He added that for many people a state pension top-up will be “excellent value, but it is useful to be able to discuss your options with someone who can see your NI record and in particular highlight if topping up some years would be of little or no value”.
At the moment, it’s a little difficult to get through as thousands of pensioners are phoning to sort out their contributions before the deadline. However, once you request a call-back on the government website before April 5, the clock will stop ticking.
HMRC explained: “People who submit a request to DWP by the 5 April 2025 deadline will still be able to pay voluntary National Insurance contributions back to 6 April 2006, after the deadline has passed.
“When a person submits a request, a message will appear on their screen to confirm that their request has been sent to the DWP Pension Centre. We’d recommend saving a screenshot of the confirmation message.”
You need a minimum of 35 years of NI contributions to qualify for the full new state pension payment, but paying for NI credits can “buy extra years”.
How to top up your UK state pension
To top up your state pension, you can use HMRC's state pension forecast tool to see how much you are due based on your age and if there are any NI gaps you can fill.
You can also check your National Insurance record through your Personal Tax Account or on the HMRC app. If you're unsure about how to proceed, you can request a call-back from the DWP or seek expert advice from a financial advisor like Blacktower Financial Management.
The deadline to top up your state pension is approaching fast and it's essential to act now to avoid missing out on this opportunity. With the full new state pension worth £221.20 a week (£11,502 a year) and set to rise to £230.30 a week (£11,975 a year) in April, it's crucial to ensure you're receiving your full entitlement.
If you're a UK expat living in Spain and need expert advice on how to top up your state pension, contact Blacktower, a leading provider of financial services, to discuss your options and ensure you're making the most of your retirement income.
Their team of experts can provide personalised guidance and help you navigate the complex process of topping up your state pension.
Visit www.BlacktowerFM.com to learn more about bespoke financial solutions and how they can help you take control of your future.
The local Blacktower address is:
120 Avenida Dr. Artero Guirao 2C. San Pedro Del Pinatar, 30740, Murcia, Spain.
If you want more information or wish to make an appointment to discuss your own situation then call 0034 657 684 094 or email keith.littlewood@blacktowerfm.com
Blacktower Insurance Agents and Advisors Limited is authorised and regulated by the Cyprus Insurance Companies Control Service (ICCS) under Licence number 5101. Blacktower Financial Management (Cyprus) Limited is licensed and regulated by the Cyprus Securities &Exchange Commission (“CySEC”) with Licence number 386/20.
Address
120 Avenida Dr. Artero Guirao 2C. San Pedro Del Pinatar, 30740, Murcia, Spain.Tel: +34 657 684 094
Financial Advice Issues for Expats in Spain
I have been a Qualified Financial Adviser for almost 35 years now. 25 years in the UK for major institutions such as Natwest, RBS and Royal London. I have been in Spain giving expats financial advice now for 10 years and it is quite remarkable the different approaches as well as advice that is required for an expat now living in Spain. Blacktower is a company that has specialised in providing the best solutions for its clients living outside the UK for 30 years also.
The currency issue is always high on the agenda and a discussion for the long term future has to be taken onto account. Questions like What will happen if one partner dies? Will the other remain in Spain? What about other family members? What Inheritance tax provisions do you have in place? The list goes on and on.
Existing portfolio’s and investments that were the mainstay of portfolios in the UK may now be obsolete. An example of this is quite often tax efficient products in the UK like ISA’s and previously held TESSA’s PEP’s actually have low growth rates and provide no tax advantage to a Spanish fiscal resident.
Existing Pension holdings either paid by the state or private pensions built up through working lifetimes are topics that have to be covered. Many expats have lots of small pensions from many ex employers and can be confused by the communications and administration in dealing with them. At Blacktower we specialise in advising on how to consolidate and bring all these pensions together in one place.
Bank accounts and investments in Spain always bring up lots of questions too. Quite often the small print associated with financial products in Spain is in Spanish this can make it very difficult even if you have a good grasp of the language. Understanding Jargon in English is sometime difficult enough. I provide clear easy to understand letters and documents in English so that you fully understand any terms and conditions before making a decision.
Advice on tax efficiency is just as important and offering good returns. There are products available exclusively for Spanish expats that can provide invaluable benefits. Having a good base knowledge of the tax implications both now and in the future is an essential ingredient to making a sound decision.
I will complete a thorough factfind, ask you the right questions, establish your individual needs, attitude to risk and capacity for loss and desired returns before providing you with a full written report of advice and my recommendations in plain English. You will then have time to read and consider all the information before contacting me with how you wish to proceed.
Click for more information about Keith Littlewood.
The above information was correct at the time of preparation and does not constitute investment advice and you should seek advice from a professional adviser before embarking on any financial planning activity.
Blacktower Financial Management (Int) Ltd is licensed in Gibraltar by the Financial Services Commission (FSC) and is registered with both the DGS and CNMV in Spain
