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  • FIRST POST
    • doberman100
    • By doberman100 12th Mar 17, 8:37 AM
    • 33Posts
    • 13Thanks
    doberman100
    What to do with my UK pension?
    • #1
    • 12th Mar 17, 8:37 AM
    What to do with my UK pension? 12th Mar 17 at 8:37 AM
    Hiya

    I have a pension which has about 20k fund value but I've not paid into it for a couple of years and have since moved to Hong Kong.

    Life has been totally crazy and I realise I should have done something about this long ago. However first I need to determine what to do. I guess I appreciate that I should get a financial advisor on the case and then decide, but broadly speaking does anyone have any advice from similar situations?

    In terms of other savings my wife and I have a house in the UK which we rent out, whilst we rent in HK (which has insane property prices).

    Yours questioningly.
Page 1
    • dean350
    • By dean350 12th Mar 17, 9:28 AM
    • 6 Posts
    • 2 Thanks
    dean350
    • #2
    • 12th Mar 17, 9:28 AM
    • #2
    • 12th Mar 17, 9:28 AM
    Firstly you need to be very wary of getting involved with financial advisors overseas. They tend to be unregulated and they push very expensive products which are great for their commissions but not great for you. They will detect straight away if you are inexperienced in matters financial and take you to the cleaners accordingly.

    To address your pension issue, you first need to work out your long term goals. This might typically be 'I want to retire at 55 with an annual income of 30,000 GBP in today's money'.

    You then then to find out how much that will be by the time you retire. If its in 20 years time it might require 50,000GBP pa to buy the lifestyle that 30,000GBP pa can buy today. You can find the answer by using inflation calculators on line.

    You then need to work out how to fund that lifestyle and for most people that means building up a healthy lump sum. As you are in HK, perhaps earning good money and not paying a lot of tax you now have a golden opportunity to start saving for that sum. A lot of people work by the well known rule that you can withdraw 4% of a lump sum every year and not have it run out. Accordingly, if you want to withdraw 50,000 GBP pa then you need a lump sum of 1,250,000 GBP.

    That can sound daunting but it can be funded by a mix of home equity if you downsize at retirement, the state pension and accumulating equities and bonds.

    You should Google 'Andrew Hallam millionaire teacher' and read up. He was a teacher in HK who like you realized his pension provision wasn't great. He boned up on savings and investments and 15 or so years of disciplined investing later was a millionaire.

    Also, check out paying voluntary NI contributions on line as they will protect your right to a UK state pension.

    In terms of your existing 20,000GBP pension pot this will now be deferred and the capital will sit and accumulate depending upon the vagaries of the stock market. When you turn 55 I believe you can access the cash and/or take a small pension from it.
    • sandsy
    • By sandsy 12th Mar 17, 9:55 AM
    • 1,133 Posts
    • 655 Thanks
    sandsy
    • #3
    • 12th Mar 17, 9:55 AM
    • #3
    • 12th Mar 17, 9:55 AM
    How old are you?
    Where do you think you will be living when you retire?
    • atush
    • By atush 12th Mar 17, 11:37 AM
    • 16,100 Posts
    • 9,806 Thanks
    atush
    • #4
    • 12th Mar 17, 11:37 AM
    • #4
    • 12th Mar 17, 11:37 AM
    Basically, you could just leave it where it is to continue to grow over time (it will rise and fall depending on the investments you chose). Make sure they have an address for you where you are or in the UK where they can send statements.
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