Working abroad

Promettwo

If I go to work abroad (Korea) for say 15/20 years and then decide to return to the UK permanently. what is the best way to secure a retirement pension. Can I make contributions to NI etc. or does it have to be privately financed.

I would be working for a Korean company

Marine_life

Being a long term employee in Korea you would pay into the local social security system and receive part of your retirement benefit from that scheme (you would also receive a partial benefit from your time in the UK social security system). Given that the Koren system is based on average earnings replacement it might, in any event, be more generous than the UK pension (most OECD pensions are).

https://www.oecd.org/unitedkingdom/PAG2017-GBR.pdf

Joey_Soap

Pay voluntary Class Two NICs if you intend to return to the UK to retire would be my #1 piece advice. You need 35 years to get a full UK state pension.

bostonerimus

Joey_Soap wrote: »

Pay voluntary Class Two NICs if you intend to return to the UK to retire would be my #1 piece advice. You need 35 years to get a full UK state pension.

Pay them even if you don't intend yo retire to the UK as they can be paid to most places in the world. It would be best to retire to a country where the UK will pay you index linked state pension.

Also look into Korean retirement schemes and how they are taxed in the UK/S.Korean tax treaty.

unforeseen

https://www.gov.uk/government/publications/social-security-abroad-ni38

Korea has a bilateral social security arrangement with the UK

bostonerimus

unforeseen wrote: »

https://www.gov.uk/government/publications/social-security-abroad-ni38

Korea has a bilateral social security arrangement with the UK

But what does that mean? It can mean that a UK company with a Korean subsidiary could employ a UK national and deduct UK NI rather than Korean payroll taxes for some time, or that Korean payroll taxes paid can be used to qualify for UK benefits, but not to calculate the amount of the benefit.

Class 2 NI is so inexpensive that it's a no brainer to pay it along with Korean taxes. If you do this for long enough you could get two state pensions.

I just paid my 35th year of NI with the vast majority of them being voluntary Class 2 and I calculate my lifetime contributions have been £6000. I also have 22 years of US social security payments and I will get both state pensions when I reach retirement age. If you are going to be in Korean for an extended period see what paying into both systems might get you.

ffacoffipawb

unforeseen wrote: »

https://www.gov.uk/government/publications/social-security-abroad-ni38

Korea has a bilateral social security arrangement with the UK

Assuming he is talking about South Korea and not the North.

Promettwo

Yes. South Korea. Thanks to everyone for the replies