Workplace pensions after leaving a job, and the country

Bostonerimus1

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 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?

Basically no. Your UK pension tax wrapper will be recognized under the UK/Swiss double tax treaty and so it can grow tax free while you are a Swiss resident. Look at your tax efficient saving options and pensions in Switzerland. Remember your ISA gains will be taxable in Switzerland.

DRS1

splinters said:

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.

I thought the Swiss state pension was like the UK - ie you get an annual rate of pension but it depends on the years you contribute.  I did not think you built up a pot of money.  

DRS1

PropertyGuru_Wannabe said:

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!

That is an interesting point.  It seems you could be allowed to contribute at the low rate for 5 years after leaving the UK.  But how that works when you have no UK taxable earnings I am not sure.  The following article did not help me to understand but you might follow it
Contributions to registered schemes for overseas individuals - Royal London for advisers
Still it must be worth asking your pension provider - even if it is theoretically possible doesn't necessarily mean you will be allowed to do it in practice.

Bostonerimus1

DRS1 said:

PropertyGuru_Wannabe said:

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!

That is an interesting point.  It seems you could be allowed to contribute at the low rate for 5 years after leaving the UK.  But how that works when you have no UK taxable earnings I am not sure.  The following article did not help me to understand but you might follow it
Contributions to registered schemes for overseas individuals - Royal London for advisers
Still it must be worth asking your pension provider - even if it is theoretically possible doesn't necessarily mean you will be allowed to do it in practice.

If allowed to make contributions by the UK pension administrator it would be an silly thing to do if you earn your income in Switzerland. Cross-border pension contributions will get taxed going in and coming out, far better to use the pensions available in Switzerland.

QrizB

Bostonerimus1 said:

If allowed to make contributions by the UK pension administrator it would be an silly thing to do if you earn your income in Switzerland. Cross-border pension contributions will get taxed going in and coming out, far better to use the pensions available in Switzerland.

OP is planning to retire in the UK, though?

dont_use_vistaprint

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 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?

When I left the uk I was advised to max out isa and pension that year then don’t pay any more in. As an non tax resident there’s much better options to save , get a relationship with HSBC, global money & HSBC Jersey dollar account.

Bostonerimus1

QrizB said:

Bostonerimus1 said:

If allowed to make contributions by the UK pension administrator it would be an silly thing to do if you earn your income in Switzerland. Cross-border pension contributions will get taxed going in and coming out, far better to use the pensions available in Switzerland.

OP is planning to retire in the UK, though?

Yes. He won't receive any tax relief on contributions he makes to the UK pension while working in Switzerland and when the OP retires in the UK the withdrawals will be taxed. He will get the 25% tax free lump sum though. The OP's ISA will also be liable to Swiss tax on it's growth while he is a Swiss resident as that tax wrapper is not recognized under the double tax treaty. There are plenty of expat forums where the OP can as these questions and get replies from people who have practical experience of the issues.

QrizB

Bostonerimus1 said:

QrizB said:

Bostonerimus1 said:

If allowed to make contributions by the UK pension administrator it would be an silly thing to do if you earn your income in Switzerland. Cross-border pension contributions will get taxed going in and coming out, far better to use the pensions available in Switzerland.

OP is planning to retire in the UK, though?

Yes. He won't receive any tax relief on contributions he makes to the UK pension while working in Switzerland ...

He will, though, on £2880/£3600 a year, for five years after moving abroad. That's per DRS1's post a couple of items upthread.

Bostonerimus1

QrizB said:

Bostonerimus1 said:

QrizB said:

Bostonerimus1 said:

If allowed to make contributions by the UK pension administrator it would be an silly thing to do if you earn your income in Switzerland. Cross-border pension contributions will get taxed going in and coming out, far better to use the pensions available in Switzerland.

OP is planning to retire in the UK, though?

Yes. He won't receive any tax relief on contributions he makes to the UK pension while working in Switzerland ...

He will, though, on £2880/£3600 a year, for five years after moving abroad. That's per DRS1's post a couple of items upthread.

Ah yes there is the 3600 for 5 years if the OP's pension administrator will allow it, but using the Swiss system will probably be far easy and efficient, the relative tax rates in UK and Switzerland are also a factor. The OP should talk to their UK pension administrator I suppose.