What if I leave the UK?

mellowdrifter

I've recently finished my 6 month probation so now I'm eligable to join the company pension plan. I really don't know whether to go for it or not. I'm 26, South African and I've lived in the UK for 4 years. I expect to stay in the UK for at least another 6 years, possibly longer, possibly shorter.

If I had to back back to South Africa, what would happen to the pension? Would it be a waste to go for the plan? There are advantages to the plan of course, tax relief and the fact that my employer will match my contributions. If I would lose all of this if I left the UK though, this would not be what I want.

Anyone have any advice?

Thanks.

everythingblogcast

If there is a chance of you going back to South Africa then dont pay anything into pension and just set that money into a bank account, this way you dont loss it.

Debt_Free_Chick

mellowdrifter wrote: »

If I would lose all of this if I left the UK though, this would not be what I wany.

You won't lose it, but you will find that you'll have a pension to claim in 40-odd years time. Whilst it seems a shame to refuse free money from your employer, you have to consider the "hassle" factor of claiming 6 years worth of pension in the future.

On the other hand, if you do end up staying longer, you could build up a tidy pension .... which is money you'll receive when you retire.

You won't lose it just by leaving the country, so some careful thought needed.

purch

What if I leave the UK?

If you're the last person :eek: .....please make sure you switch off the lights !!!

plonkee

You can switch UK pensions into qualified overseas plans. I don't know how this works out in practice, or whether it would be worth doing but you might want to investigate it.

One thing to consider especially is whether there is any employer contribution. If so, it might be worth taking even for a few years. Or it might not.

Cook_County

You can transfer the fund to a QROPS in SA. Details are here:


http://www.hmrc.gov.uk/PENSIONSCHEMES/qrops-list.htm

mellowdrifter

Excellent. Thanks everyone. I didn't want to miss the chance for my employer to match my payments so I'll go ahead with it. At least I know I won't 'lose' anything whatever I decide in the future.