Act now: UK state pension rules changing for expats

If you have worked in the UK and are eligible to claim a state pension, now is the time to act. Big changes are coming.

UK expats who once worked in Britain face a closing window of opportunity to secure affordable access to the state pension. The UK government has announced that from April 2026, voluntary National Insurance contributions for those living abroad will rise sharply, and eligibility rules will tighten.

At present, anyone who has lived and worked in the UK for at least three years can voluntarily pay £182 (around R4,000) per year to add extra qualifying years to their pension record. This has allowed many South Africans who previously worked in Britain to build up enough years to receive a pension when they retire. But from April 2026, the cost will jump to £910 (around R20,000) per year, and only those who have lived and worked in the UK continuously for ten years will qualify.

Chancellor Rachel Reeves made the announcement in her Budget speech, saying: “And taxpayers’ money should not be spent on pensions for people abroad…who only lived here for a couple of years and may never have paid a penny of tax. The Conservatives let thousands of people living abroad buy their way into the state pension for £3.50 a week…debasing the purpose of our pension system.”

John Ring, operations director at XtraPension, says that “you need 10 years of contributions in the UK to get ANY UK state pension.” He says that since 2001, South Africans who had worked in the UK for three years or more could voluntarily pay about R4,000 annually to HMRC (His Majesty's Revenue and Customs) to add extra years to their National Insurance record. “You could repeat this process multiple times if you wanted, in order to get as many years on your official UK ‘National Insurance record’ as you like,” he says.

HMRC is the UK government department that collects taxes, pays certain types of state support, oversees regulatory matters such as the national minimum wage, and issues national insurance numbers.

Ring says that 35 years on record could yield around R280,000 annually in pension payments, while 17 years would provide about R136,000. He says that until April 5, 2026, South Africans can still apply to buy up to six past years at R4,000 each. After that date, the option disappears entirely unless the applicant has lived in the UK for ten years. Future years can still be purchased, but only at the new higher rate of R20,000 per year.

“The deal has been incredible, and while it’s closing forever in April (if you have less than 10 years living in the UK), it remains open for all until then, assuming you have lived for three years in the UK,” he says.

For many South Africans, the ability to buy back years has already made a major difference. Robert Leibbrandt, 62, from Cape Town, worked 11 years in the UK before leaving in 1990. He was able to buy back 19 years and continues to pay about £170 annually until he reaches 67.

“I feel very lucky to have got in before the changes, and I emphasise to anyone going forward, thinking about it, to do it now before April. At the cost of paying back R20,000 at Class 3, it’s quite a lot of money. Yes, you will get the money back, but obviously you have to just live a little longer to get it back. It will be worth it in the long run,” he says.

Gerald O’Sullivan, 64, from Pretoria, worked 12 years in the UK before leaving in 1992. He paid £3,185 to secure 31 years of contributions, effectively buying back 19 years.

“The money will make a significant difference to our retirement plans. With so much uncertainty in the world, having this security and guaranteed income is incredibly reassuring,” he says.

He adds: “It still amazes me that the years of hard work in London would still have a financial reward after all these years. I’d absolutely recommend the process to others. We almost dismissed the idea, thinking it was too good to be true. I’m so glad we didn’t. XtraPension made it easy and completely worthwhile.”

O’Sullivan acknowledged that he still has to contribute for four more years to reach the full 35, but at the new higher rate. Even so, he believes it remains worthwhile. 

PERSONAL FINANCE