Pension at the age of 33?

findashu

Hello!

We are currently working in London on a 'Work Permit' visa.
Which means we are allowed to work as employees and are subjected to UK Taxes. Also, we are not allowed access to any Public Funds (benefits, etc).

My husband has been working as an employee from Nov 2006 [in 30% Tax bracket], but did not know that he is entitled to Pension Contributions from the company, just like any other employee.
My husband wants to be a part of the pension scheme, but there are some doubts and we'll greatly appreciate any help from this fabulous forum:

1. If my husband decides to quit the job and leave the country in 2009, will he get anything from the pension fund?

2. Since we do not intend to settle here, and wish to leave the country in 2009, what kind of pension investment should he go in for? 'Annuity' or 'Income Drawdown'?

3. Since he will be putting in his application for pension in the month of Nov 2007, has he lost company contributions from April 2007 onwards? Or is there something he can do about it?

Thanks a ton in advance!
Ashu

EdInvestor

I assume you are talking about a "group personal pension" are you?

If so you should know that once the money goes in, you can't get any of it out until you are aged 55.At that point you can get 25% cash out, but the rest must provide an income (it's at this stage that you choose an annuity or income drawdown, not now).

It might be worth checking if you could transfer a pension like this to your home country if you leave later on.Otherwise you might be better to save in an ISA, where you can take the money out any time.

findashu

Thanks!

Can you please also let me know from where I can find out if this kind of pension can be transferred to our home country or not? If yes, then how?

Also, can the NI contributions be transferred as well?

Thanks once again!
Ashu

olly300

I suggest your husband asks for details of the pension scheme advisor and asks them these questions. Some of my previous employers actually had a pension scheme advisor you could email or speak to on the telephone. He should look on his company intranet for information or ask in the HR department. Pension scheme advisors are all use to these type of questions.

Most employers group schemes have a period of 1-6 months before you are legible to join the scheme and you are not entitled to back payments only payments from when you requested to join the scheme.

ScarletBea

It's never lost money, even if you leave the country, it just mean you'll be receiving pensions from different countries once he reaches retirement age.

I have worked in Portugal for 9 years, Switzerland for 3 years and am now in England (where I plan on staying for a long time), and this means that once I reach 65 (or whatever age it is by then), I'll be receiving some money from all these countries
In Portugal I'll just have the normal state pension.
In Switzerland I'll have the state pension plus the company pension (because when I left they could only return half the money invested) -- or something like this, I just know I have some money in a special bank account that I can only touch when I'm 60.
In here, I assume I'll have the state pension and then also my company pension.

I'm not sure what the rules are here when you leave the country, but try googling it, I got all my swiss info from there (and ask the company too )

jonathon_hart

Whether you can transfer overseas depends a lot on the pension regime in the country you are transferring to. Where will you be looking to go to?

On point 2 you should be able to make that decision at retirement

On point 3 then this is up to the company as to whether or not they will backdate his membership - they are not obliged to.

jonathon_hart

See here for a list of overseas schemes that are already eligible to be transferred to. If the country you are going to has a scheme on here then you should be able to transfer there: http://www.hmrc.gov.uk/pensionschemes/qrops.pdf