Ex Pat pensions

Lammers

Hi everyone.

I am a little concerned by the pension issue. I am 27 and really think its time i started saving some money! However, i am currently planning to travel, im not sure for how long but i will work abroad, possibly in Asia. I may return to the UK but i was wondering how i go about saving for my pension? I have looked at a few ex pat pension sites, but it confuses me! Also, if i do return to the UK and have an ex pat pension will it still be vaild? Whats guarantees are there that my money is safe?

Thanks

Lammers

EdInvestor

A pension is a tax wrapper, there's no point in saving this way if you get no tax relief, which you won't if you are living overseas.It's probably easier if you open an account with an online broker, transfer in money regularly and buy shares or unit trusts with it.

If you eventually return to the UK you can put the money you've accumulated in this account into a pension wrapper (probably a SIPP) and get tax relief on it at that stage.

https://www.selftrade.co.uk will let you operate your account from abroad.
There is also an offshore broker for expats;

https://www.internaxx.lu

Debt_Free_Chick

If you are not resident for UK tax, the maximum you can put into a UK registered pension scheme is £2,880 pa. HMRC will top this up to £3,600 - you get this top-up even though you are not resident for tax, but that's the limit for tax relief.

There is really no such thing as an "expat pension". Anything marketed as that is simply some kind of tax-efficient savings plan. Even then, I use the term "tax efficient" with some sceptism, if you are not resident for tax. That said, some careful planning is necessary to avoid those types of savings scheme that are either not available to non-residents (e.g. ISAs) or which are penal to non residents.

So - treat any "expat pension" with some caution.

As EdInvestor says, a pension is simply a tax wrapper so think mainly in terms of saving for the future - either inside a pension wrapper or outside of it.