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By Peter Brooke
This article is published on: 12th March 2026
I hope this newsletter finds you well; So, pensions are back in the spotlight as governments in the UK and Ireland introduce meaningful changes that could affect how individuals and business owners save for retirement. In this edition, we break down what’s changing, why it matters, and what you should be thinking about next.
As you may have seen in the recent UK budget from April 2026, most expatriates will no longer be eligible to pay Class 2 National Insurance Contributions (NICs) and will instead need to use Class 3 contributions which cost more — but this still may offer an excellent return on investment.
The ruling states:
“From 6 April 2026, individuals will no longer be able to pay voluntary Class 2 NICs for periods abroad. Only voluntary Class 3 contributions will be available for tax years 2026 to 2027 onwards.
This change does not affect any voluntary contributions that can be paid for periods abroad before 6 April 2026 – there is more detail here
If you’d like help interpreting your forecast or reviewing your eligibility for Class 2 vs Class 3 contributions, feel free to share the summary or screenshots — I’ll walk you through the options.
The ruling also states that “New applications to pay voluntary Class 3 NICs will need to have either”
What remains unclear is whether contributions paid for whilst abroad will count towards the 10 year rule and whether it is therefore sensible to pay for missing years before April 2026 to ensure you have 10 qualifying years so that you will be eligible to pay future years.
It certainly appears that long term non-UK residents, without 10 years of NICs, could be “locked out” of the system from April.
Based on current UK State Pension levels, even at Class 3 NIC rates (around £900 per year), each extra qualifying year typically adds about £330 per year to your State Pension for life (though this will depend on future government policy).
This means most people recover the cost in less than three years of receiving their pension — and every year after that is a financial gain.
You generally need 35 qualifying years of National Insurance contributions to receive the full UK State Pension. That’s why it’s important to know three things:
Once you understand these three numbers, you can work out exactly how many additional years you might need. And remember: you may not have to pay for every remaining year at the higher Class 3 rate after April 2026.
Many expatriates will reach the 35-year mark using a combination of existing contributions, cheaper buy-back years, and only a small number of future payments.
Government Gateway tip:
To log in, you need to receive a security code by text message. If you change your mobile number, make sure you update it with HMRC before you lose access to the old phone number. Otherwise, you may be locked out of your Government Gateway account and unable to view your State Pension record.
Ireland is restructuring older Executive Pension Plans (EPPs), and by April 2026 the IORP II regulations (see details here) will require EPP schemes to either:
…or risk becoming frozen or facing significantly higher running costs.
For clients living outside Ireland, the decision between these options is particularly important.
If you expect to remain an EU resident during retirement, there are often strong long-term reasons to transfer your pension out of Ireland; (I cant cover this in this newsletter but contact me if you want more information).
Because of this, it is crucial that whatever happens to your pension today does not restrict your ability to make that transfer in the future.
To protect your future options, we strongly recommend:
✔ Before agreeing to a Master Trust transfer, obtain written confirmation that the scheme allows transfers to foreign pension arrangements in the future.
✔ Do not sign any PRSA transfer paperwork without a full review of the long-term implications.
✔ Forward any pension documents or transfer requests to us — we will assess them for you and advise on your position.
We help clients:
If you hold — or think you may hold — an Irish Executive Pension, reply to this email or click here to schedule a consultation.
We’ll ensure the restructuring supports your long-term financial interests, rather than simply following administrative defaults.
Since Brexit, many expatriates are discovering that once they are no longer UK-resident, it is often not possible to receive ongoing regulated advice on their UK pensions from either UK-based advisers or overseas firms like Spectrum.
We regularly see clients being contacted by their UK adviser or pension provider and told that the relationship must end — leaving them unadvised and unable to manage their pensions effectively.
At the same time, changes to pension regulation mean that QROPS transfers are now far less common and often no longer suitable. This leaves many expatriates unsure how to handle their UK pension schemes as they approach or move through retirement.
Your UK pensions can still be actively and professionally managed by a local adviser by transferring them to an International SIPP. This can also allow you to consolidate multiple pension pots into one, making your retirement planning far simpler.
An International SIPP can provide:
✔ Access to regulated advice
✔ Better consolidation and control, including currency options
✔ Potentially lower fees
✔ A flexible investment approach aligned to your residency and long-term goals
We can help you:
You don’t need to leave your pension un-managed. Send us your pension information and we’ll assess whether an International SIPP could allow us to advise you properly and optimise your retirement planning.
Important pension changes are now underway across the UK and Ireland and for many expatriates and business owners these changes create both risk and opportunity.
Across all three areas, the key message is the same: early decisions have long-term consequences. A short review today can protect flexibility, reduce future costs, and strengthen your retirement position.
If any of these changes affect you, we encourage you to get in touch. We’re here to help you navigate the complexity and ensure your pension remains aligned with your long-term plans.
If you have any questions please send them via the channels below, or the booking system – always drop me a quick message if you need a time slot outside of those available.
If you have missed any previous emails, click here to access the Archive.
For now, have a great day, speak soon…
Best regards
Peter Brooke
Mobile & Whatsapp: +33 6 87 13 68 71
Email: peter.brooke@spectrum-ifa.com
Calendly booking system: https://calendly.com/peterbrooke/30min
