Moving abroad has become more popular in the past years. This is mainly because of how much easier it has become. Nowadays, it is much simpler to leave a country where you were born for almost any reason.
Obviously, a move, even within a country, is never a stress-free process. For one, it always includes a certain amount of paperwork and lots of planning. This can be even more laborious if you move abroad. There are some things you will always need to take into account if you are planning to move to another country. For example, even if you are moving all by yourself, you will still need to think about what you will do about your pension.
Are you planning to move abroad?
As we mentioned, moving abroad has become increasingly popular. More and more people are moving away, for studies, for work, or simply because they want to. Moving abroad is not only possible if you are young, but it is a bit easier. This is because the younger you are, the less time you have had to work, and therefore to build up your pension.
Still, this shouldn’t mean that you can not move if you want to, regardless of your age. It simply means that the move will require some extra work. Thankfully, as we mentioned earlier, this has become much easier. Now you can even get special expat pension advice, which was not possible before. With the help of professionals, you can figure out what the best solution will be for you. Below we will introduce some options that will help you out, and make it easier for you when you are speaking to the experts.
Why is moving your pension advisable?
Of course, moving your pension to another country with you is one option, but it is not the only one. Ultimately, this is a very big decision to make, so you should really consider it very carefully before you make any arrangements. The best option for you does not only depend on your finances, but also on your personal profile.
Thankfully, the expat pension advice program we mentioned before can help you with figuring all this out. Then you can see if it is a fitting solution for your needs. The advantage of moving your pension with you is that you can keep on collecting the same pension in the new country you live in. You should take into consideration though, that this is not always possible. But once again, worry not, you can get help with figuring all of this out.
One disadvantage to moving your pension abroad is that it can be quite pricey depending on the country you are moving into. For example, you might have to pay more taxes in your new country, which can have quite a big impact on your pension pot. You should always check if this will affect your already existing pension.
Some firms let you freeze your pension
As we mentioned above, moving your pension is not the only option. Some firms let you freeze the pension you have been collecting. This means that the pension does not keep on getting bigger, but it simply stays the same.
This depends very much on the company which runs your pension. In other words, you should always check what policies the company you work with has. Freezing can be a great option if you are moving into a country where the taxation would take a big piece of your pension. Still, you should be sure that the company will freeze your pension until you are ready to take it out, without any sizable fees. Otherwise, your pension will slowly run out.
Take tax into account
As we have mentioned many times, taxation is crucial when it comes to your pension planning. This includes both British taxation and also the taxation rules of the country where you are going to move to. An aspect that is especially important to take into consideration is that many companies will impose a hefty tax if you take your pension out before its time.
In other words, it is often advisable not to take your pension out early. It is always better to either move it or freeze it, if possible. This way you don’t have to worry about the extra payments, and can enjoy your pension, when it is the time for it.
What does pension transfer mean?
Lastly, we need to clarify what transferring a pension with you actually means. Very simply, it means moving a pension from one structure to another. This can be from one country to another, or even inside one country if there is a reason for doing so. Now you know everything there is to know about transferring your pension, so you are ready to arrange a meeting about it with the pension professionals.
