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In the second instalment of our Pension Series we take a look at successfully balancing a UK pension and living abroad. What are your options? How do you go about paying into or drawing down your pension? When do you consider transferring it? Just because you live abroad does not mean that your pension is inaccessible. There are a few things you need to know and plan ahead for, and we focus on the main ones this month. Our team of independent financial advisers is always on hand for personalised help. Find us on www.plutuswealth.com for full details.
Everyone needs a pension to help plan for and pay for their future when the time comes to retire. The State Pension is available to all those who work and pay National Insurance contributions for at least 10 years. You can check the State Pension eligibility criteria for full details.
Many also take out a personal or stakeholder pension – also known as a defined contribution pension – either through their employer or independently. Take a look at our previous article for a reminder of the basics of pensions, why they are important and what the options are.
If you are of pensionable age and already living abroad or planning to move, you can have your State Pension paid while overseas. This applies worldwide, although there are a couple of caveats:
For those with a defined contribution pension, there are two options:
If you have more than one defined contribution pension pot, you can keep one in the UK and transfer the other.
Transferring a pension overseas can be a complex area to navigate. It is worth speaking to an independent financial adviser to be sure you have all the facts before making a decision.
Working abroad and your UK pension
If you are living abroad and/or still employed – for example, your employer has asked you to move overseas for a while – you can still pay into your pension. However, there is a downside: you may not qualify for tax relief, or it may be reduced. For your contributions to be eligible for tax relief, you must fulfil one of the following:
Not all pension providers operate schemes that allow you to pay in while living and working abroad. It’s important to check with your pension provider if you are considering an international move.
Pensions is just one of the things that we do well at Plutus Wealth. We have a team of fully qualified independent financial advisers who do this day in, day out. We’re here to help. Give us a call on 20 7871 5200 or write to us at firstname.lastname@example.org for impartial advice on making the most of your pension.