Workplace pensions after leaving a job, and the country

splinters

A little background. I am 55 and, until 6 years ago I was a teacher. I moved around and worked overseas so my teachers pension isnt great but would get me through the bills each year. 
For the last three years I have paid into a workplace pension (Royal London) but I am leaving at the end of July 2025 to move to Switzerland.
There is around £55k in there and I would like to keep paying in. Is this something you can normally do and still get the 20% top up from the government? Will working overseas be a problem to doing that?
As for the final plan with all this, I have around £350K in savings/ISAs, kids grown up and moved out, house paid for, and no debt at all. The job in Switzerland pays six figures and the plan is to save another £300k or so to get a nest egg I can live off with the interest, teachers pension and then at 67 state pension as well. Plan is to return to the UK in 5 years or so. The teachers pension starts paying out in just under 5 years along with the lump sum which will be around £40k.
I have also been told that the money paid into the Swiss equivalent of the state pension can be transferred to the UK due to some arrangement between the two countries, when I return. This should be worth around £60k after 5 years....I may stay longer to top it up if I am enjoying the lifestyle.

So, given the bigger picture, what should I do with this workplace pension started in the UK? Also, any further advice based on the plan I have and my geographical location is much appreciated.

NoMore

Its not a top up from the government its tax relief based on your relevant UK earnings, as you don't appear to have any relevant UK earnings once in Switzerland, so no you can't pay in anymore than your UK relevant earnings to the pension and get Tax relief

Marcon

splinters said:

A little background. I am 55 and, until 6 years ago I was a teacher. I moved around and worked overseas so my teachers pension isnt great but would get me through the bills each year. 
For the last three years I have paid into a workplace pension (Royal London) but I am leaving at the end of July 2025 to move to Switzerland.
There is around £55k in there and I would like to keep paying in. Is this something you can normally do and still get the 20% top up from the government? Will working overseas be a problem to doing that?

https://adviser.royallondon.com/technical-central/pensions/contributions-and-tax-relief/contributions-to-registered-schemes-for-overseas-individuals/#The_five_year_rule3

DRS1

I have also been told that the money paid into the Swiss equivalent of the state pension can be transferred to the UK due to some arrangement between the two countries, when I return. This should be worth around £60k after 5 years....I may stay longer to top it up if I am enjoying the lifestyle.

I ask this question in complete ignorance but where does the £60K figure come from?
If that amount and the related benefits are transferred from the Swiss state scheme to the UK state scheme what do you think that will do to your UK state pension?
If you leave Switzerland having paid into their state pension will you receive a Swiss state pension?  Or do they reserve it for pensioners who live in Switzerland?
Could you make no transfer and get the Swiss pension for the years you live there as well as the UK state pension?  Could you make voluntary contributions to get credits under the UK state pension for the years you spend in Switzerland?
Could you end up with both a UK and a Swiss state pension for the years you are in Switzerland?

splinters

DRS1 said:

I have also been told that the money paid into the Swiss equivalent of the state pension can be transferred to the UK due to some arrangement between the two countries, when I return. This should be worth around £60k after 5 years....I may stay longer to top it up if I am enjoying the lifestyle.

I ask this question in complete ignorance but where does the £60K figure come from?
If that amount and the related benefits are transferred from the Swiss state scheme to the UK state scheme what do you think that will do to your UK state pension?
If you leave Switzerland having paid into their state pension will you receive a Swiss state pension?  Or do they reserve it for pensioners who live in Switzerland?
Could you make no transfer and get the Swiss pension for the years you live there as well as the UK state pension?  Could you make voluntary contributions to get credits under the UK state pension for the years you spend in Switzerland?
Could you end up with both a UK and a Swiss state pension for the years you are in Switzerland?

This is something I will be looking into in more detail over the next few months before I actually move there. The £60k was a figure suggested when the job was proposed based on the payments into their system based on the salary offered.

DRS1

5 years of UK state pension would not cost £60k - voluntary Class 3 contributions are running at £900 and something pa at the moment.

I suspect you won't be seeing that £60k 

Does the Swiss job come with a pension (other than the state one)?

Bostonerimus1

splinters said:

DRS1 said:

I have also been told that the money paid into the Swiss equivalent of the state pension can be transferred to the UK due to some arrangement between the two countries, when I return. This should be worth around £60k after 5 years....I may stay longer to top it up if I am enjoying the lifestyle.

I ask this question in complete ignorance but where does the £60K figure come from?
If that amount and the related benefits are transferred from the Swiss state scheme to the UK state scheme what do you think that will do to your UK state pension?
If you leave Switzerland having paid into their state pension will you receive a Swiss state pension?  Or do they reserve it for pensioners who live in Switzerland?
Could you make no transfer and get the Swiss pension for the years you live there as well as the UK state pension?  Could you make voluntary contributions to get credits under the UK state pension for the years you spend in Switzerland?
Could you end up with both a UK and a Swiss state pension for the years you are in Switzerland?

This is something I will be looking into in more detail over the next few months before I actually move there. The £60k was a figure suggested when the job was proposed based on the payments into their system based on the salary offered.

You need to distinguish between the various types of Swiss retirement pensions and accounts. For the social security/state pension component you should look at the reciprocal social security agreement. Also depending on your current NI record and how long you intend to work in Switzerland it might be a good idea to pay voluntary Class 2 NI while you are working for a foreign employer as you might end up qualifying for both UK and Swiss state pensions.

You won't be able to contribute to UK pensions as a Swiss resident without UK earned income, but the double tax treaty will protect their tax free wrapper until you start making withdrawals. However, your ISAs will be taxed by Switzerland when you become a Swiss tax resident.

splinters

DRS1 said:

5 years of UK state pension would not cost £60k - voluntary Class 3 contributions are running at £900 and something pa at the moment.

I suspect you won't be seeing that £60k 

Does the Swiss job come with a pension (other than the state one)?

This is what would be in the Swiss system after 5 years, not UK. Again, what I was told when they were outlining the job salary/benfits etc. Its mandatory to pay into, but not lost money as they put it.
As for the NI record, I have one, maybe two more years of contributions left to get the full UK state pension. If I return at 60, I would like to keep working in some capacity so should make that up in the seven years before pension age.

splinters

Coming back to one of the original questions, can I continue to pay in to my workplace pension to grow it for when I return to the UK? I understand I can't get the tax relief on it, but Im still looking for ways of getting income when I retire. If not, what is the best thing to do with the £55k that will be in there when I leave?

PropertyGuru_Wannabe

Of course you can.  It seems to me that you can pay up to your relevant earnings in the financial year you leave (July 2025) and £3600 in each subsequent year until April 2030.  When you come back you can continue paying in if you show you are resident in the UK.  The £55k can stay invested in whatever low cost global fund you prefer, you don't need to touch it.

There are similar funds in Switzerland if you wish to invest your earned money there.  Just do some proper research and consult a local expert if necessary.  That's what I would call the best of both worlds!

bolwin1

splinters said:

Coming back to one of the original questions, can I continue to pay in to my workplace pension to grow it for when I return to the UK? I understand I can't get the tax relief on it, but I'm still looking for ways of getting income when I retire. If not, what is the best thing to do with the £55k that will be in there when I leave?

A lot of providers won't accept payments from non-UK residents. More importantly, it's not a good idea to pay taxed money into a pension that will get taxed when you take it out. I'd suggest looking into what tax free savings / investment options you'd have in Switzerland & using them. Re the £55K, make sure it's invested in funds you are happy with and leave it where it is for the next 5 years.