John Ring,
Operations Director,
XTraPension
For many people who previously worked in the UK but then left, the idea of receiving a UK State Pension (SP) feels like a distant dream. Some are thrilled to get anything, but what most don’t realise is that they could, in fact, be entitled to a lot more..
Based in Galway, XtraPension is a company dedicated to helping people who once worked in the UK to maximise their UK State Pension (SP) entitlement.
CLEARING UP CONFUSION
One of the biggest barriers XtraPension encounters is misinformation. People often hear from friends that they need “10 qualifying years” to get a UK SP and assume this means 10 years of work in the UK. That isn’t the case.
Qualifying years can also come from time worked in other countries. In practice, this means many people who worked for as little as just one year in the UK can get a UK SP. The much bigger opportunity is that the same person can “top up” their UK SP by voluntarily buying extra years now to boost their entitlement.
“We meet people all the time who simply don’t realise they’re eligible,” says John Ring, Operations Director at XtraPension. “Some are getting a small UK pension already but can get much more. Most have never even considered they might be eligible for anything. Our role is to make sure they understand their rights and maximise their retirement income.”
HOW IT WORKS
To receive any UK State Pension (SP), an individual needs at least 10 qualifying years. To receive the full pension, they need 35. Those who have left the UK with only a few years of work there can “top up” by paying voluntary National Insurance contributions. These contributions typically cost around 20% of what UK residents pay for the same thing – a little-known fact that makes the scheme particularly attractive for those outside the UK.
Here’s a typical scenario. A 50-year-old who worked in the UK for just four years in the 1990s before returning to Ireland can buy their way now to a substantial UK SP, which doesn’t impact their Irish SP. By buying six past years now and then making future contributions for 17 years up until the UK SP age of 67, they would end up with 27 years of contributions out of the maximum 35.
Assuming they have been working anywhere in recent years and will continue to work until 67, the total cost would be approximately €4,600 once-off, but spread over the next 17 years. This gives them a UK SP of around €10,800 every year for the rest of their life from age 67 – €216,000 over a typical 20-year retirement, which represents a 46:1 return.
GLOBAL REACH
XtraPension has clients in 38 countries, and the potential audience is estimated at more than six million people outside the UK who could be eligible to top up via the scheme, which became UK law in 2001.
A STRAIGHTFORWARD PROCESS
XtraPension charges a fixed fee to clients to assess eligibility, clear up confusion, and provide them with the exact steps they need to follow. The company prides itself on turning what often feels like an intimidating or bureaucratic process into something clear and manageable.
“We don’t handle clients’ contributions payments and we don’t overcomplicate things,” adds John Ring. “What we do is explain eligibility in plain English, show people exactly how to act and ultimately give them peace of mind about their retirement.”
WHY IT MATTERS
At its heart, XtraPension is about more than numbers. It’s about helping people unlock security and peace of mind in retirement. Many people spend years contributing to the UK system without realising those contributions can still work for them decades later and even be increased.
For XtraPension, spreading the word is as important as processing the paperwork. By raising awareness, the company hopes to reach as many people as possible globally who might otherwise miss out on a very secure retirement.
For more information, see XtraPension.com
