Pension Query
Posted by Grand-Sun-6375@reddit | expats | View on Reddit | 5 comments
Hello, I'm from the UK and will be working abroad in Korea for at least 12 months but potentially a lot longer. I therefore wanted to be smart and set up a private pension before I left (I'm currently on a workplace one).
However I'm getting very overwhelmed by how complicated finding a pension scheme that is expat friendly is - as all of the ones I've found so far will not let you invest the minute you move abroad. I did find MyExpatSIPP however their withdrawal fees look very high.
I was therefore wondering if I could get some recommendations from Pensions anyone else uses / has used.
GZHotwater@reddit
As a Brit, once you leave the UK, you’re very limited to how much you can invest in a private pension.
What you need is a SIPP but once no longer tax resident. Good article here on what happens to a SIPP once you move abroad.
https://www.aviva.co.uk/retirement/aviva-pension/knowledge-centre/what-happens-to-sipp-when-leaving-uk/
If you’ve no knowledge then head over to /r/UKpersonalfinance and start reading.
Grand-Sun-6375@reddit (OP)
A lot of these sites (including the one attached) explain the rules with HMCR are that I can keep investing £3,600 (including tax relief) for up to 5 years after becoming a non UK resident. However I have yet to find a single company that honours that which is the stressful part.
GZHotwater@reddit
I think that’s your main problem. UK providers don’t want the headache of managing your account to make sure you and they stay in compliance of UK tax laws.
I’ve just added an edit to my first reply. You might want to consider offshore brokerage accounts to invest in ETFs, etc.
Grand-Sun-6375@reddit (OP)
I think that's exactly the problem. Because there's a specific time limit and income allowance, I imagine most account think it's more hassle than it's worth to ensure they stay compliant.
I'll give that a look - thank you
GZHotwater@reddit
I see you’ve now also posted in the UKpersonalfinance sub. Hopefully you also get some advice there.