pensions advice.
Discussion
Up until I left the UK to go and work abroad in June this year I have always paid into pension schemes run by my employer. My current employer does not offer a company pension scheme. What options are available for private pension schemes and what are the pro’s and cons to be aware of? I do intend to return to the UK after my work abroad comes to an end in around 2 years.
Thanks and all the best.
Martin.
Thanks and all the best.
Martin.
If you have no company pension or are self employed you can take out a Stakeholder Pension
http://www.thepensionservice.gov.uk/atoz/atozdetai...
Alternatively you can open a SIPP (self investment personal pension)
http://www.sippsguide.com/
Both offer tax incentives and you need to look seriously at these if you want to make the best of your income.
If you are not paying tax or are paying at the basic rate, then it may be better to invest outside a pension in ISA's to the max every year £7200. This investment will stay tax free for the rest of your life and any income you take when you retire will be tax free. Income from a personal pension is taxable when you retire.
If you are paying higher rate tax, 40%, then the tax incentives pension bring are very favourable.
Do lots of research before you put your hard earned into a pension, remember once the money is invested you can't get at it until you retire.
BTW I am no expert, this is just info I have found over the last few years. I do have a Personal Pension however I concentrate now on other investments and just trickle any spare cash into my pension.
http://www.thepensionservice.gov.uk/atoz/atozdetai...
Alternatively you can open a SIPP (self investment personal pension)
http://www.sippsguide.com/
Both offer tax incentives and you need to look seriously at these if you want to make the best of your income.
If you are not paying tax or are paying at the basic rate, then it may be better to invest outside a pension in ISA's to the max every year £7200. This investment will stay tax free for the rest of your life and any income you take when you retire will be tax free. Income from a personal pension is taxable when you retire.
If you are paying higher rate tax, 40%, then the tax incentives pension bring are very favourable.
Do lots of research before you put your hard earned into a pension, remember once the money is invested you can't get at it until you retire.
BTW I am no expert, this is just info I have found over the last few years. I do have a Personal Pension however I concentrate now on other investments and just trickle any spare cash into my pension.
I may well be wrong and you should definitely talk to an IFA rather than just PH but I don't think you can apply for either an ISA or a pension when you are not paying UK tax or living in the UK.
I worked abroad and my IFA explicitly said it would be wrong of me to apply for an ISA that year.
I guess if you are still being paid in the UK and paying UK tax then you are OK. IMHO go for an ISA first then a SIPP or stakeholder simply because you can access the ISA ££ if you desperately need it.
I worked abroad and my IFA explicitly said it would be wrong of me to apply for an ISA that year.
I guess if you are still being paid in the UK and paying UK tax then you are OK. IMHO go for an ISA first then a SIPP or stakeholder simply because you can access the ISA ££ if you desperately need it.
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