People living outside the UK who previously worked there are being urged to act before an upcoming deadline that could significantly affect their UK State Pension entitlements.
Those with between one and ten years of work in the UK may still be able to secure or increase a UK State Pension, but an application deadline of April 5 is approaching. Many former UK workers who moved to Ireland or elsewhere remain unaware that they may be entitled to a pension, or that they can substantially increase their entitlement before the rules change.
Galway-based UK State Pension specialists XtraPension continue to assist individuals across Ireland in securing and maximising their UK State Pension through an execution-only service. However, the company has warned that changes taking effect from April 6, 2026 will make it more expensive for people living outside the UK to top up their pension if they do not act in time.
At present, individuals living outside the UK who worked there for between one and ten years can increase their pension entitlement by paying Voluntary National Insurance Contributions at the lower Class 2 rate, provided they meet the criteria. This option will be removed from April 2026.
From April 6, 2026, only people with ten or more years of work in the UK will be eligible to purchase any additional years to secure or top up a UK State Pension. The Class 2 rate will be abolished, and people who have not applied before that date will no longer be able to buy past years at the lower rate. All future top ups will be charged at the higher Class 3 rate, which has traditionally applied to UK residents.
John Ring, Operations Director of XtraPension, said many people underestimate the value of the UK State Pension.
“Former UK workers can secure a full UK State Pension that can be worth up to €14,000 per year from age 67, with no impact on their Irish or other private pensions. Yet many people who returned to Ireland after working in the UK forget the pension entitlements they left behind,” he said.
People who apply before April 6, 2026 can still purchase up to six past years at the lower Class 2 rate. After that date, new applicants will need at least ten qualifying years in the UK and will only be able to pay the higher Class 3 contributions. They will also be limited to buying up to six past years, along with future years up to UK State Pension age, or a maximum of 35 qualifying years.
While the Class 3 rate is higher, Mr Ring said it can still represent strong value.
“UK consumer finance expert Martin Lewis described Class 3 as ‘one of the best returns you’ll ever get’. Even at the Class 3 rate, you get around €8 back for every €1 paid in over a 20-year retirement, and that income is 100 percent guaranteed, compared to a private pension where the return is generally much less, and not guaranteed,” he said.
XtraPension noted that contributions do not need to be paid as a single lump sum, with many people choosing to spread payments over time, although this may reduce eventual pension income.
The company helps simplify what can be a complex HMRC process. Through its online tool, individuals can check if they qualify for a UK State Pension and receive a personalised estimate of costs and benefits. XtraPension then manages the paperwork required to obtain a Letter of Approval from HMRC, allowing clients to decide how much to pay directly to HMRC.
XtraPension offers a full money-back guarantee if HMRC determines that a client is ineligible. To date, the company has processed more than 10,000 applications across over 50 nationalities.
Further information and eligibility checks are available at www.xtrapension.com.
