Moving abroad- pension transfer after loosing uk residency

misscic

Hi,
I am Italian but I have been living and working in London for the past 10 years. Aside from the basic state pension contributions, I have also been contributing to two UK pension providers over the last five years which were offered by my former employer and my current one as part of the employee benefits package. I will be relocating to Dubai in 3 months time and would like to know what will be the best option for me in terms of contributing to the pension from Dubai but also where and how should I transfer my UK pension? Ideally I would like to come back to the UK in two years, but considering I will no longer be a UK resident after 90 days of leaving the country I am not sure how I should approach my pension transfer and contributions going forward. Your advise would be much appreciated. Thanks, Sara

xylophone

Why should you have to contemplate a pension transfer?

http://www.pruadviser.co.uk/content/nav/about/26674/pghome/49880/52677/52680/52701/52713/

Have you contacted your pension providers to check on your situation?

In regard to state pension, check your options - see below.

https://www.gov.uk/future-pension-centre

https://www.gov.uk/national-insurance-if-you-go-abroad

atush

I would probably keep it where it is for now, and save/invest some other way while in dubai. Esp if you plan to come back.

sandsy

Just leave the existing pensions invested while you're in Dubai. Have a fresh look if/when you return to the UK.

You're not eligible for tax relief on new contributions once you're no longer resident.

p00hsticks

misscic wrote: »

I am Italian but I have been living and working in London for the past 10 years. Aside from the basic state pension contributions...

Note that under the new State Pension rules you have to have 10 full years NI contributions to qualify for a (partial) UK state pension - so it'll be worth you checking your NI record or getting a State Pension statement to make sure you have ten full years.

You should have the option to make good any short years, but I don't know the impact of moving abroad and/or losing residency

atush

I would, put as much as you can into your UK pension before you leave though. Even using savings to do so.

nb0825

keep your pension where it is.

Save the money you earn in Dubai and once you return to the UK add additional contributions (assuming you don't already contribute £40k) and supplement your income with the money you saved.

JasonPr

misscic wrote: »

I will no longer be a UK resident after 90 days of leaving the country

I'm not sure that's correct. I strongly recommend you read about the Statutory Residence Test to establish whether you'll actually become non-resident.

https://www.gov.uk/government/publications/rdr3-statutory-residence-test-srt

FatherAbraham

atush wrote: »

I would, put as much as you can into your UK pension before you leave though. Even using savings to do so.

Why?

What's your reasoning for this advice?

Warmest regards,
FA

atush

To make up for not contributing for 2 years going forwards.

And stop with the warmest regards. Very insulting when it isnt meant

FatherAbraham

atush wrote: »

To make up for not contributing for 2 years going forwards.

This isn't really an explanation for why the OP should save into a pension specifically. I'd expected a mention of why the tax-relief perspective is beneficial in the case, for example.

Were you focused on the "replace missed savings" aspect, or the "accept liquidity restrictions for tax efficiency" perspective?

Warmest regards,
FA