Pensions

[lynne]

For those on an E2 visa, what have you done about your pensions from the UK. I understand you can still contribute to your UK pension whilst overseas but you wont receive tax relief, is this correct?
Alternatively I have read that you can save in an offshore account then transfer this into your pension when/if you return to the uk and receive tax relief. Has anyone done this?
Lynne

[Susie]

Hi

I am a LPR and although too young to draw a pension I do have a frozen private one from when I used to be self employed.

If you are non resident in the UK think you should be able to draw you pension tax free but need to declare as an income in the USA.

Perhaps Peter Gold may know?

[traveller]

Hi

I am a LPR and although too young to draw a pension I do have a frozen private one from when I used to be self employed.

If you are non resident in the UK think you should be able to draw you pension tax free but need to declare as an income in the USA.

Perhaps Peter Gold may know?

If you are in the USA on any visa, or even a LPR, as long as you continue to pay your NIS [National Ins Stamp}you can claim your pension.
If you move over and you stop paying into your pension you can claim part pension.
All pensions paid are index linked and raise each year, typically 3%, America is one of the few countries were the UK pension is not frozen

[peter gold]

The rules on the amount of pension you can claim and how you can make up missing payments whilst overseas have or are about to change
Here is the web site to review
http://www.thepensionservice.gov.uk/atoz/atozdetailed/livingoverseas.asp.
It all depends on how long you are over here for as to whether it is worth making voluntary make up payments.
Also different for an LPR than an E2 visa holder
After 10 quarters of payments into the US system you become eligible to limited benefits.
Your UK pension will freeze with the amount of units you have paid up, or made up and as long as you tell them where you are a yearly statement will be mailed to you .

[lynne]

Thanks for the link Peter

[InnVic]

I didn't think anyone here earned enough to save for a pension :rofl:

[Dustin]

I could do with some advice on what to do with mine now? such a mine field and options?

Dustin

[OberonSH]

We simply haven't bothered with a private pension, and as for a state one - well, we'll be alright if we want a bag of crisps once a year!!

[ianm]

Hi Lynne, the info on state pension is correct. You refer to tax relief which means you may be talking about your personal pension. After leaving you can contribute up to 100% of net relevant earnings if you have any - rental income counts. You will get tax relief on this. You cannot transfer a UK personal pension to the US as this is not allowed despite what you may hear and read. You can contribute in the US through an emplyer scheme (401K), an IRA or Roth IRA (earnings related but more attractive).
In the UK, you can however, consider consolidating your funds/s and converting it into funds denominated in dollars - very attractive right now if you are staying in the US but even if you don't you could convert it back if the dollar strengthens and you leave the US.
It is fairly complicated and can take some time, to take this area seriously, as doing nothing can be just as bad!

[Picto]

You cannot transfer a UK personal pension to the US as this is not allowed despite what you may hear and read.

Just an important point of clarification: Whilst this is true in many cases (particularly in relation to private pensions or transfers of company pension schemes into private plans in the US) there are exceptions. I have just completed a 401k "roll-over" transferring my UK company pension benefits into my 401k. I am an L1-A intra-company transferee.

[Sharon]

I didn't think anyone here earned enough to save for a pension :rofl:

too right ;)

[Kriz1]

By the time we get to retire...I think most people will be living in cardboard boxes under bridges....I can't see how a family can save anymore...day to day living takes everything....

[Carl]

By the time we get to retire...I think most people will be living in cardboard boxes under bridges....I can't see how a family can save anymore...day to day living takes everything....

With you on that one!!

[Grumpy]

So, what happens if we go back to the uk and not paid enough into a pension would we get any social security money instead or would we have given up any rights to this by leaving the UK