What Happens to National Insurance Credits When I Move Overseas?
Published / Last Updated on 03/04/2025
Can I transfer national insurance contributions overseas?
Do I lose my national insurance contributions?
Can I top up national insurance contributions?
In this article, we answer all of the above questions in connection with moving overseas.
What Are National Insurance Contributions (NIC)?
NIC pays for State Pensions, unemployment benefits and the National Health Service.
When working in the UK, whether self employed or an employee, you pay NIC once you hit certain thresholds. In addition, if you are an employee, your employer is liable to NIC if your earnings are above £5,000 pa. Some smaller employers may get 'Employment Allowance' meaning no employers NIC is payable by them, but you still get credits. If you are not working and in receipt of child benefit or carers allowance, you also get NIC credits called Home Responsibilities Protection. You can also pay voluntary NIC (class 2 or 3) if you have a shortfall to make up credits to build a bigger state pension.
- Full UK State Pension – 35 years NIC required. If you are likely to achieve lower than this, you can pay voluntary NIC to boost your number of years credits.
- More than 10 Years NIC = some entitlement to state pension but reduced in proportion. Again, you can pay voluntary NIC to boost your number of years credits
- No UK State Pension entitlement if you have less than 10 years NIC credits. This happens frequently if you have lived and worked overseas for periods or plan to move abroad. Consider paying voluntary NIC if you are now back in the UK or if you plan to stay overseas but:
- What Happens to National Insurance Credits When I Move Overseas?
- You cannot transfer the monetary amount paid in NIC to your new country but there may be ways that you can get credits in the state system where you live.
International Social Security Agreements
- The UK has signed social security agreements with the European Union (EU). All EU member nations are included.
- The UK has signed social security agreements with the European Economic Area (EEA), meaning Iceland, Liechtenstein and Norway. In addition, this agreement also applies to Switzerland (not a member of EU or EEA) but Swiss nationals do have similar rights to nationals of EEA countries.
- The UK has also signed social security agreements with the USA, Canada, Australia, and New Zealand as well as:
- Japan
- Turkey
- Philippines
- South Korea
- Jamaica
- Barbados
Have Enough Credits: If you have enough social security credits in two or more countries to be entitled to some state pension, even if not a full state pension, you will usually then be paid a state pension from both countries.
Do Not Have Enough Credits: If you do not have enough social security credits in either the UK or one of the reciprocal agreement countries to be entitled to a state pension, the number of credits in any of these countries will be combined to top up credits where you are meaning you may then be entitled to a State Pension or an increased state pension where you live. Please note, no social security/NIC funds are transferred between ‘treaty countries’, the agreement simply means that your NIC credits are used to calculate the number of qualifying years you have worked, which can then be considered when determining your pension eligibility in both countries.
See: Voluntary NIC
What Happens If You Move to a Country Without an Agreement?
- Your National Insurance contributions will remain in the UK.
- You cannot transfer your qualifying credits to that country’s pension system.
- If you have 10 years or more UK credits, you keep those credits and will be allowed to claim a UK State Pension.
- If you are short of 10 years credits (i.e., no entitlement to a UK State Pension) and you were working immediately before you left the UK and immediately continue working in your new country, you will be entitled to pay UK Voluntary NIC to top up your UK State Pension entitlement this securing a valuable, inflation protected retirement income.
Options If You Move Abroad
- Continue Paying Voluntary National Insurance Contributions - This can help you continue building up UK qualifying years even if you are no longer living or working in the UK.
- Claiming UK State Pension Abroad - but be careful as you may not receive annual pension increases if you live outside the EU, EEA, or countries with reciprocal agreements.
Contact the Department for Work and Pensions - Future Pension Centre Helpline
Complete their call back request form to ask DWP to call you back to discuss paying voluntary National Insurance contributions.
Telephone: 0800 731 0175
Telephone from outside the UK: +44 (0)191 218 3600
Welsh language telephone: 0800 731 0175
Textphone: 0800 731 0176
Textphone from outside the UK: +44 (0)191 218 2051
Welsh language textphone: 0800 731 0456
