'Insanely generous' loophole means millions of foreign residents can claim full UK state pension
Millions of foreign residents who worked in Britain for as little as three years have just days left to take advantage of a generous pension loophole.Former British taxpayers have until April 5 to top up 19 years' worth of National Insurance contributions dating back to 2006.The scheme allows those who worked in Britain to make voluntary contributions to fill gaps in their National Insurance record.For a payment of at least £3,400, former taxpayers can potentially qualify for thousands in annual pension benefits for life.For a payment of at least £3,400, former taxpayers can potentially qualify for thousands in annual pension benefits for lifeGETTYPensioners need 35 years of contributions for the full state pension of £230.20 weekly, or £11,973 annually.A minimum of 10 years' contributions is required to receive any state pension.The arrangement was originally set to end in 2023 but has been extended twice by the Department for Work and Pensions after being overwhelmed by requests.The scheme has received significant international attention. One Australian broadcaster remarked "it almost sounds like a scam, too good to be true".MORE LIKE THIS:Irish financial adviser Eoin McGee called it "uniquely and insanely generous".In Ireland alone, an estimated 250,000 people could qualify.When the Government changed the state pension in 2016, it introduced a temporary scheme allowing people to fill gaps by making voluntary contributions.Standard voluntary contributions cost £907.40 per year. Someone missing 10 years could boost their pension by £3,286 annually for a one-time payment of £9,074.Some qualify for cheaper class 2 contributions at just £179.40 per year, meaning 19 years would cost only £3,408.60.After April 5, everyone will only be able to pay voluntary contributions for the past six years.Currently, men born after April 5 1951 and women born after April 5 1953 can fill any gaps between 2006 and 2018.This means they could potentially fill up to 19 consecutive years in total.Currently, men born after April 5 1951 and women born after April 5 1953 can fill any gaps between 2006 and 2018PAThe deadline this Saturday represents the final chance to take advantage of this extended period.Thanks to the triple-lock, the Government increases the state pension each year by the highest of inflation, earnings growth or 2.5 per cent.This means thousands of foreign residents will benefit from a rising pension annually.However, this triple-lock commitment only applies to foreign residents living in the European Economic Area or countries with "reciprocal agreements" with Britain.Patrick Edwards, president of British Pensions in Australia, described the opportunity as "a once in a lifetime opportunity to fill gaps in your contribution record".
