Help deciding how best to use pension options (international citizen)

stingingbee42

Bostonerimus1 said:

stingingbee42 said:

Oops, sorry for the double question on that post, I'm not sure how to edit posts!

Deferring tax in a DC pension when you are young is often a good idea because the more money and the longer it has to grow tax free the better. However, as you might be leaving the UK you also might want to use the ISA as it gives you more flexibility, but it might not be as good from a tax perspective if Germany doesn't recognise the ISA tax wrapper. Also having a cross border pension always requires a bit more effort when you go to draw it down. Definitely look into paying UK NI for as long as you can as you might well eventually get both UK and German state pensions.

Thanks so much, I really appreciate that perspective!

Brie

You may also want to consider transferring your private/work pensions to Germany at some point.  I knew someone who transferred her pensions to Switzerland as there was something there about using them while she was still relatively young as a down payment on a house.  Which of course means that she now doesn't have much in the way of pensions of course.  

To find out about it from a UK point of view google QROPS.  I used to deal with transfers out to other countries but expect that as always the rules may have changed so best you look things up that are current.

Bostonerimus1

Brie said:

You may also want to consider transferring your private/work pensions to Germany at some point.  I knew someone who transferred her pensions to Switzerland as there was something there about using them while she was still relatively young as a down payment on a house.  Which of course means that she now doesn't have much in the way of pensions of course.  

To find out about it from a UK point of view google QROPS.  I used to deal with transfers out to other countries but expect that as always the rules may have changed so best you look things up that are current.

I'd avoid QROPS, particularly when there are tax treaties in place between the UK and most countries. QROPS are usually expensive and the recent UK rules changes have made them less attractive. They were sold...I'd probably say mis-sold...to expats and high net worth individuals looking to game tax authorities. You often don't have much protection from regulatory agencies either.

Bostonerimus1

Bostonerimus1 said:

Brie said:

You may also want to consider transferring your private/work pensions to Germany at some point.  I knew someone who transferred her pensions to Switzerland as there was something there about using them while she was still relatively young as a down payment on a house.  Which of course means that she now doesn't have much in the way of pensions of course.  

To find out about it from a UK point of view google QROPS.  I used to deal with transfers out to other countries but expect that as always the rules may have changed so best you look things up that are current.

I'd avoid QROPS, particularly when there are tax treaties in place between the UK and most countries. QROPS are usually expensive and the recent UK rules changes have made them less attractive. They were sold...I'd probably say mis-sold...to expats and high net worth individuals looking to game tax authorities. You often don't have much protection from regulatory agencies either.

Call me paranoid. A couple of hours after posting about QROPS I got a Facebook ad from Hoxton Wealth trying to sell me a QROPS. I've never had such an ad before....Hmmm?