Whilst Spain continues to be a popular choice of residence amongst European pensioners, more and more British people are making the move earlier in life. The number of people who have worked and made social security contributions in both countries is therefore increasing. Living and working in Spain may be a dream come true for many. However, when it comes to the financial side of things, such as claiming pensions and benefits, the added factor of having lived and/or worked in another EEA country can seem like a headache most of us could do without!
But it doesn’t have to be. In terms of where you apply for your pension or benefit, the rules are relatively simple. You should make one application through the social security office of the country where you last worked and made contributions. So, if this is Spain, you should apply through the Instituto Nacional de la Seguridad Social (INSS). If your last place of work was the UK however, apply through the International Pension Centre.
After working in more than one EEA country, it is possible for your contributions from each one to be taken into account when calculating your pension or benefit. You must therefore give as much information as possible about your working life when you apply.
For example, when calculating your pension, the total number of qualifying years you have in the UK and Spain will contribute to your entitlement. If you have worked a combined total of 15 years, the minimum number of qualifying years for a pension in Spain, which is higher than the UK minimum, you may well be entitled to a pension from both countries.
It is also worth noting that state pension age in Spain is 65 for both men and women. However, a woman who has worked in both countries and who has a sufficient number of qualifying years, can apply for her UK State Pension at 60 and her Spanish entitlement at 65. If this does apply to you, you can continue to work in Spain until you are 65 whilst receiving your UK pension, but remember that you would need to make your application through Spain
You may also be thinking about paying voluntary contributions to top up your pension entitlement in either country. If you are currently working in Spain, but wish to voluntarily contribute to the UK, you can pay for any of the last 6 years where you have not contributed enough previously. In addition, anyone who reaches state pension age between April 2008 and April 2015 is entitled to pay voluntary contributions for any 6 years back to 1975, providing they already have 20 full qualifying years. If you are interested in paying UK voluntary contributions, contact HMRC.
But it doesn’t have to be. In terms of where you apply for your pension or benefit, the rules are relatively simple. You should make one application through the social security office of the country where you last worked and made contributions. So, if this is Spain, you should apply through the Instituto Nacional de la Seguridad Social (INSS). If your last place of work was the UK however, apply through the International Pension Centre.
After working in more than one EEA country, it is possible for your contributions from each one to be taken into account when calculating your pension or benefit. You must therefore give as much information as possible about your working life when you apply.
For example, when calculating your pension, the total number of qualifying years you have in the UK and Spain will contribute to your entitlement. If you have worked a combined total of 15 years, the minimum number of qualifying years for a pension in Spain, which is higher than the UK minimum, you may well be entitled to a pension from both countries.
It is also worth noting that state pension age in Spain is 65 for both men and women. However, a woman who has worked in both countries and who has a sufficient number of qualifying years, can apply for her UK State Pension at 60 and her Spanish entitlement at 65. If this does apply to you, you can continue to work in Spain until you are 65 whilst receiving your UK pension, but remember that you would need to make your application through Spain
You may also be thinking about paying voluntary contributions to top up your pension entitlement in either country. If you are currently working in Spain, but wish to voluntarily contribute to the UK, you can pay for any of the last 6 years where you have not contributed enough previously. In addition, anyone who reaches state pension age between April 2008 and April 2015 is entitled to pay voluntary contributions for any 6 years back to 1975, providing they already have 20 full qualifying years. If you are interested in paying UK voluntary contributions, contact HMRC.
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