What you have to know about UK pensions
If you are an expat especially a British expat, anywhere in the world this is for you:
For anyone anywhere with a UK Pension:
If you have a UK pension; either a Private pension or a company funded arrangement, then you may be able to access all of your pension pot from the 6th April 2015.
However if you leave it in the UK any excess over and above your normal tax free allowance will be subject to UK Income tax of up to 45% so you face losing an significant amount of your pension to UK taxation
BUT THERE IS A SOLUTION
If the money is transferred before you take the benefits, then it’s possible to access your accrued retirement benefits FREE OF ALL TAX
This benefit is only available via New Zealand as this is the only jurisdiction which does not deduct tax of pensions paid to expats in certain countries.
Please note it is still possible to help anyone even if you have previously moved your pension to another Jurisdiction.
Did we say that loud enough for you lol!
This is part of a massive overhaul of the entire pensions policy and it affects everyone even those closer to home and who have not thought that much about it.
“This Budget should provide a massive wake-up call for Britons,” we are told by experts “The message is loud and clear: you are on your own and have to make your own provision if you want to avoid retirement poverty.
“For too long, people have been sleepwalking towards thinking their employer, the Government or £50 a month into a private pension will provide, but it won’t,”
Our experts message for what to do is pretty straightforward: “You have no option but to save more. Look at your expenditure and divide it between what is necessary and what is discretionary. Then you need an emergency fund and to look at using the remaining money to build up your assets and potential future income.”