Moving abroad - pension

Ben10101

Hi,

Recently offered a job abroad and considering my pension.

I have a defined contribution scheme in the UK with my current employer, but will not have this when I move abroad. Instead, the company in Asia will be paying me a small pension but directly in to my salary rather than in to a pension scheme.

My question is: What are my options to pay in and maintain a good pension in the UK? I would still like to save in to a pension monthly. I have looked at personal private pensions and SIPP, how do these compare to just having an ISA?

Thanks!

Ben

jaybeetoo

If you are living and working overseas you can’t contribute to an ISA or a SIPP. They are for UK residents and tax payers.

xylophone

Is the DC Scheme with an insurer?

Would the provider allow you to continue to contribute for the next five years as here?

https://www.aegon.co.uk/support/faq/pension-technical/pension-contributions-for-customers-who-move-overseas-faq.html

Brynsam

jaybeetoo wrote: »

If you are living and working overseas you can’t contribute to an ISA or a SIPP. They are for UK residents and tax payers.

Not quite (at least for pensions). See https://www.pensionsadvisoryservice.org.uk/about-pensions/when-things-change/moving-abroad

[Deleted User]

Reading the gov.uk carefully, does that mean you cannot change Pension Providers when you have moved abroad?

dean350

I would also ensure you pay voluntary NI from overseas to keep your State Pension qualifying years up to date.

Given the likelihood of you not be able to continue to enjoy tax relief, you may like to consider opening a share account with a broker who accepts non residents. Internaxx are one example. You would then invest in a diversified range of Investment Trusts, ETF's and bonds as you see fit. This can be daunting at first but there is now a whole world of internet information out there for expats about how to do this.

Doing this carries the advantage that you can access the cash at any time not just at 55 - although you would be wise to avoid this.

Remember to sell shares and rebuy them for CGT purposes when you come back permanently to UK.

Do not get involved with overseas investment advisors. Their lifestyles are funded by high commissions paid by you. Similarly avoid all insurance based savings bonds.

SmashedAvacado

Op - not sure if this is the basic advice you were looking for. This is waht i did when i was away for 10 years.

From a practical perspective you probably should leave your existing arrangements in place (and remember to update your address details etc) and use the money paid by your new employer to save into a savings account (dont sign up for one of those long term ones that they target expats with) and then when you get back to the uk and go back to work (if you do) then overpay your pension to the max possible using the moneys you have saved

nigelbb

dean350 wrote: »

I would also ensure you pay voluntary NI from overseas to keep your State Pension qualifying years up to date.

+1

It’s an absolute no-brainer to continue paying NI contributions while working overseas. You pay at the reduced Class 2 rate (currently £3/week) so for each full year of contributions of £156 you earn pension of about £4.80 per week. You only have to draw your pension for 33 weeks to get your contributions back. Taking an extreme example if you only work one year in the UK & never return but continue to pay your NI from abroad at the age of 67 you will be entitled to a full pension of £8767 per year (at current rates) at a cost of just £5304 over 34 years. There is no better pension bargain available.