UK State Pension

I apologize if this has been brought up before, but couldn't find anything. As per the UK new laws, my company is auto enrolling us into a pension scheme.

Is this a good idea, or should I ask to be removed? What are others doing in this situation?

I am worried about tax implications and not getting the money if I move away from the UK. I have no idea where I will be at age of retirement.

Thanks

Hi,

I think you need to speak to an independent financial advisor at least to find out what your options are and could be. You might also want to look for a tax lawyer as well to determine your current and future status and the best way to go about things.

The UK state pension is covered here

https://www.gov.uk/state-pension/what-youll-get

Many people are of the view it's not enough to live on after retirement age, so those who can, save, invest whilst working to 'top up' whatever funds they'll be entitled to after retiring. Due to the economic issues of the UK as a whole, the pension pot people have put into and held by the government is under threat/risk as it were and the basis for a huge political level row about it all.

Depending on your circumstances and from talking with specialists mentioned above, you can evaluate if you want to be a part of the national state pension or not.

Cheers, DtM! West London & Slough UK!

Are you suggesting that the OP can opt out of National Insurance contributions? Or the pension that now has to be offered by employers?

I would have thought that opting out of both would be impossible?

Hi,

Sorry, perhaps that wasn't quite the way to word it!

I think you can opt out of the scheme provided by an employer and go for a private pension of your own choosing.

I think everyone is entitled to a state pension and it's amount depends on your NI contributions throughout your working life. I don't think it's possible to opt out of NI contributions though.

Apologies for being a bit vague, however as per my initial post, some talking with an independent advisor and a tax lawyer will be the best way to progress.

Cheers, DtM! West London & Slough UK!

I apologize if this has been brought up before, but couldn't find anything. As per the UK new laws, my company is auto enrolling us into a pension scheme.

Is this a good idea, or should I ask to be removed? What are others doing in this situation?

I am worried about tax implications and not getting the money if I move away from the UK. I have no idea where I will be at age of retirement.

Thanks

I expect that your employer is enrolling you in a private workplace pension scheme.

https://www.gov.uk/workplace-pensions

I would check with your employer about this, and find out how much extra is being contributed to the scheme.  Pulling out of the scheme probably means that you are leaving money on the table.

You certainly won't lose it if you leave the country.  I stopped contributing to an employer sponsored pension scheme in the UK in 1985 when I changed companies, and contributed to a 2nd company plan until 1992.  I have been in the USA since then but kept in touch with the pension fund systems and am now getting payments from one, and the 2nd one I'll start getting payments from in 3 years.

As suggested above it may well be worth consulting with a financial adviser.

It is indeed for a workplace pension where the company would be contributing to it as well, but I will do as suggested and consult a finical adviser.

Thanks for the insights.

It is indeed for a workplace pension where the company would be contributing to it as well, but I will do as suggested and consult a finical adviser.

Thanks for the insights.

Good move, let us know how you get on.

There are plenty of threads about the tax implications of foreign pensions over on the Taxation forum.

The situation is basically this. The IRS will consider your and your employer's contributions to your pension as income. You can either declare then and pay tax on them or use the tax treaty to exclude them from current US taxation. The treaty will also allow you to defer tax on any gains until you start taking income. There is a lot of discussion about which approach is best and/or valid depending on the exact nature of the UK pension plan so if you are at all uncertain I would get some advice. I'd start by calling the US Embassy tax help line, they must be getting lots of questions about this, or getting some specialized professional advice. A UK financial advisor will not be appropriate, you need someone who knows about US/UK taxation and their interaction through the treaty.