Paying into a pension as an expat

dgbritt18

Good Afternoon,

I've come into £100k and I will be shortly moving overseas to work in Asia. I am intending on using the £100k for my pension, and my time frame is 32 years of investment. Do you think it would be worth paying into a state pension as well? My retirement age will probably be 68 - 70. Any advice would be appreciated.

Thanks

Brynsam

dgbritt18 said:

Good Afternoon,

I've come into £100k and I will be shortly moving overseas to work in Asia. I am intending on using the £100k for my pension, and my time frame is 32 years of investment. Do you think it would be worth paying into a state pension as well? My retirement age will probably be 68 - 70. Any advice would be appreciated.

Thanks

You might want to check what you can do before deciding if you want to do it, particularly in respect of tax relief on private pension contributions, and whether or not you can pay into the UK state pension system once you have moved overseas. Useful info here: https://www.pensionsadvisoryservice.org.uk/about-pensions/when-things-change/moving-abroad

Johnnyboy11

You can...

- Pay into a UK Pension this tax year, within the usual limits

- Pay £2,880 nett into an existing UK Private Pension in each of the following five tax years and get 20% BR tax relief automatically.

- Pay Voluntary NI contributions which is very worthwhile, especially Class 2 NICs if you meet the rules (See HMRC NI38). You need at least 10 years to qualify for a UK State Pension, and 35 or more years to qualify for the full amount.

Best get professional advice on the above, and also on your UK Residency status whilst working overseas. It's complicated and depends on both the individual (See HMRC RDR3) and on any taxation agreement that the UK may have with the country you are working in. You can let HMRC know you are leaving the UK by returning form R85. You won't be confirmed UK Non Resident until you complete a full tax year overseas (April 6th 2022 at the very earliest).

Hope this helps.