New Expat looking to save

IntriguedGirl

BeachNut wrote: »

You might want to recheck if that's the right thing to do if you plan to return to the UK in 5 or 6 years time...

Hi beachnut,

I can't seem to see much information regarding this, especially with regards to time frames. I have recently been hearing a lot of bad things about the company that is sorting out my pension and possibly putting it into a qrops, so I am now feeling a bit panicked about the whole pension situation, what to do for the moment and what the future holds for my pension.

Do you have any links or information you could direct me to?
Thanks

TCA

QROPS is normally used by UK residents who move abroad to live permanently. If you move back to the UK (with your pension), then there may be issues with the holdings in the pension being non-compliant under UK pension rules and you may need to change them. I'm not entirely sure, but I think if you return to the UK within 5 tax years, then you need to report your QROPS to HMRC and although it can remain offshore, it'll fall under UK pension rules and regulations. It's a complicated area.

Also, depending on the size of your pension pot, the benefits of QROPS might not be so great after the recent changes in UK pensions rules anyway:

http://www.telegraph.co.uk/finance/personalfinance/expat-money/10729256/QROPS-industry-nervous-after-Budget.html

http://www.international-adviser.com/news/retirement/qrops-industry-reels-from-budget-pension-changes

DonM

Firstly, to my knowledge you can't have an ISA as you are not a UK tax payer.
Secondly, as you've just finished paying off your bills then you should be considering building up a decent emergency fund before you consider investing. As you are saving £2,000pm this should happen relatively quickly. Investing may still be an option for part of your savings capacity. After all, saving £2,000pm over 5yrs will give you £120,000.
Thirdly, as mentioned, keep your UK account open.
Fourthly a QROPS may not be your best option. An international SIPP or leaving your pension where it is may be the better option especially as you intend to return to the UK. It really is dependent on your circumstances.
Full disclosure: I work in the QROPS industry. Further information on QROPS is available at...
http://www.liberty-wealth.com