I’m moving abroad – can I still get my payments?
Although retiring with the family is one option that many people take as a serious consideration, some people look further afield when it comes to retirement options. Some people like the idea of retiring overseas, perhaps in a warmer climate, or a country which offers them a range of new lifestyle opportunities.
If you have taken out an annuity or pension plan then one of the first questions that you might ask is whether or not you can take these payments overseas and in many situations you will find that your annuity or pension company will allow you to do this, but there could be hidden fees or additional tax charges that you may incur as a result.
What would I need to do?
If you are planning on retiring overseas then the first thing that you will need to do is discuss it with your existing pension or annuity company. They will then be able to explain any potential tax payments or additional costs that you may incur as a result. In many situations the company will continue to pay any benefits that you receive into your UK bank account. Alternately you may choose to receive your payments abroad but this will then incur additional bank charges and any cost of currency conversion.
In most situations you will remain eligible for your UK pension scheme if your independent scheme allows it –and this is something you will need to investigate if you are operating a private or company pension scheme.
Are there any additional charges?
In addition to any charges that you may be subjected to when receiving your payments – including any overseas bank charges or currency conversion rates – you may also find that you have to pay tax on some or all of your income. You may choose to transfer your pension into an overseas scheme and could avoid paying this tax if you transfer your pension into an approved overseas pension scheme.