Many Australians who spent time working in the UK aren’t aware they could be eligible for a significant boost to their retirement income — and the window to take advantage of it is closing fast.

Thanks to a unique provision in UK law, Australians who worked in the UK for as little as three years may be entitled to receive a UK State Pension. For those who act quickly, this could mean up to $24,000 per year, indexed and paid for life from age 67 — potentially adding $480,000 to retirement income over a 20-year period.

The key is buying back missing years of UK National Insurance contributions — and the opportunity to buy up to 18 years of backdated contributions will end on 5 April 2025. After this date, you’ll only be able to purchase six past years.

The cost? Surprisingly affordable.

For around $350 per year, eligible individuals can buy missing years of contributions directly from the UK’s HMRC (the UK’s equivalent of the ATO). For many Australians, this could mean securing tens — if not hundreds — of thousands of dollars in lifetime retirement income for a modest upfront investment.

How it works:

• You need 10 years of National Insurance contributions to receive any UK state pension.
• To get the full pension, you’ll need 35 years of contributions.
• Time spent working in Australia may also count toward the 10-year minimum under the UK-Australia social security agreement.
• If you have gaps, you can make voluntary contributions to fill them.

For example, if you worked in the UK for three years and then moved back to Australia in the early 2000s, you may be eligible to buy up to 18 years now and top up in future years to reach the 35-year mark. That could mean spending around $11,200 over time to secure $24,000 a year in retirement income for life.

Is it right for you?

Not everyone will need to buy the full 18 years. You may already have several qualifying years from your time working in the UK — or even through eligible employment in Australia. The final cost will depend on how many years you need and your work history.

It’s also important to note:

• UK pension income is taxable in Australia, like any other foreign pension.
• It may reduce your Centrelink Age Pension, depending on your assets and income.
• You must have been born after 5 April 1951 (men) or 5 April 1953 (women) to be eligible to buy back years.

What should you do next?

If you, your partner, or a family member worked in the UK, even briefly, it’s worth checking your eligibility. This opportunity can make a material difference to your financial future — but the deadline to act is fast approaching.

Please reach out to Cadre Capital Partners to find out whether you qualify and how we can guide you through the process — before the 5 April 2025 deadline passes.