Pensions When Emigrating

If you’re moving abroad you can continue to receive your UK pensions. When you emigrate, it doesn’t mean that all the years you’ve spent building up your pension was worthless. In some cases, emigrating can actually have a positive effect on your pension as other countries will allow you to withdraw a larger tax free lump sum.

Pensions When Moving Within the European Community

If you are retiring abroad or moving there permanently and you remain within the European Community you will still be eligible to receive your UK pension. Within the EEA (European Economic Area) or other countries that have an agreement with the UK, you will continue to receive your yearly increases. There is a list of these countries available on the UK Government website and you can also contact the department responsible for pensions in your new country. They are likely to vary, even when within the UK, so it’s always best to check with someone professional. Pensionable age may vary dependent on which country you move to, but it won’t really affect most people. Four months before pensionable age, you’ll receive a form from the UK pension authority to fill in. It will ask about any periods of time you’ve spent abroad, or whether you’re moving abroad. You should always tell the pension service that you’re moving so that they can keep track of where you are to send out further paperwork.

Pensions When Moving Outside of the EEA

When you’re moving to a country that doesn’t form part of the EEA, you will still be able to get your pension, however you won’t be entitled to your yearly increases. If the country has an agreement with the UK, you may still be able to get these yearly increases, but many popular retirement countries don’t have these agreements. Again, contact the UK pension’s authority for further advice on which countries will allow you to continue to be paid your pension.

Pension Forecasts

Before you move abroad, you should obtain a pension forecast from HM Revenue and Customs. You can ask for a pension forecast up to four months before retirement age and this will outline what you can expect to receive when you retire. If you are living abroad at this stage, you can contact HM Revenue and Customs Centre for Non-Residents in Newcastle and they can help you with a forecast.

Benefits of Transferring Your UK Pension Abroad

In certain countries, like Australia, you can actually benefit from transferring your pension abroad. In Australia, the entire fund that you have saved up can be taken as a tax free lump sum. In the UK, you normally will only be able to take a quarter of your pension fund tax free. If you have moved abroad, it is normally required that you have spent 5 years there before you can access your UK pension fund. When you do decide to transfer, you must ensure that you transfer to a Qualifying Recognised Overseas Pension Fund. This is simply an organisation that has been approved by HM Revenue and Customs.

Pensions and Emigration

The most important task you must undertake when you emigrate is to simply let HM Revenue and Customs know that you’ve moved. Also, obtain as much information as possible before you go, or if this isn’t possible, look online for as much extra knowledge as you can get. Many people don’t know what to do with their pension when they move and many years of continual payments are simply ignored when they could be used to aid retirement. Seek advice and enjoy what your UK pension can give you when you’re settled in your new home.