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Opening a private pension in a country you are not a citizen of?

EmployeeAnon
Posts: 2 Newbie
Is it possible to open a private pension in a different country to that I am a resident of?
Also which country has the lowest private pension age?
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Comments
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I think this will depend on the regulations for that country. I know that as a Canadian citizen resident in the UK I am not allowed to have certain investments and retirement accounts in Canada. Whether I would have been allowed to keep an account I had opened while resident there when I moved to the UK is unclear.
As for which countries have the lowest age - I think that also might depend on what industry you work. Just as the UK has raised the pension age from 50 to 55 and soon to be 57 I believe they also equalised some of the industry pension ages a while back. As I recall certain physical professions like sports (so jockeys and footballers) used to have a very low age, something like 35 or similar. Based on the fact that they would normally not be working in that field once they get that old.I’m a Forum Ambassador and I support the Forum Team on Debt Free Wannabe and Old Style Money Saving boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
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Things like tax deferral make cross border pension payments problematic, even if a country allowed it. Actually I think the UK allows you to pay in small amounts to an existing SIPP for a few years after you leave the UK. The UK has a well developed DC pension landscape so use that and when you include ISAs it's really hard to see a better place for the average person to invest moneyAnd so we beat on, boats against the current, borne back ceaselessly into the past.0
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What are you trying to achieve? A private pension is essentially an investment vehicle with certain tax advantages to it, either on inputs or outputs.
As regards inputs, even if the country in question gives a tax credit or some other form of tax advantage on contributions, you will still be liable to tax in your country of residence anyway so whatever tax advantage the destination country gives on inputs will be lost and irrelevant for you.
As regards outputs, you will need to consider the whole package of taxation + tax advantages on pension income. Some countries have very low taxation on various types of investment income even where the investment is outside any retirement tax wrapper, which may be fiscally more advantageous than some of the tax advantages given on investments in tax wrappers in some other countries.
Also, some countries give substantial tax advantages to new residents, which may beat any tax advantage there may be inside a retirement investment taxwrapper.0
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