Moving abroad later in life can be a strenuous process at the best of times. Although the day to day expenses in your life may be reduced by moving to a country where things are cheaper, you’ll want to safeguard your long-term financial future.
Many expats do exactly this by moving to countries where the property market is far more rewarding, such as Spain. The real worry, however, will be over the money you’ve worked hard to save your whole life – your pension.
If you’re worried about what will happen to your pension when you move abroad, here are some useful points to consider for your financial future.
You can keep your pension in the UK
You are now allowed to keep your pension in a UK provider or scheme. This can be achieved regardless of where you or your employer are based. When you are 55, you will be able to claim up to 25% of this as a lump sum. If you do not, you can simply claim your pension from the full pot from the age of 55. Depending on your provider, this could work out better or worse for you. It is useful to employ a financial adviser to help you figure out which is your best option.
You can transfer your pension to a provider in the country you’re moving abroad to
Under the ‘QROPS‘ scheme, certain countries and certain pension providers have signed up to make it possible to switch your pension to your new country. This depends on where you are moving abroad to. It can be hugely beneficial depending on the tax laws and your liabilities in the country you have chosen. Again, a financial adviser will be able to tell you the benefits and costs of this to help you decide.
You can still pay into your UK pension while working abroad
Even if you and your employer are based outside of the UK, you can still pay into your UK pension scheme without limits. This can be extremely useful for some people working or moving abroad. This may not always be the best way as it can often leave you ineligible for tax relief programmes. A financial adviser can instruct you on your best options available. Get in touch today with one of our financial advisers.