Non-State Pension When Working Abroad

If you decide to work abroad, you will need to consider the effects of your move on your pension. You will not usually continue to pay National Insurance contributions if you are no longer paying taxes in the UK, so your State Pension entitlement may be affected. For more details, see State Pension when working abroad. If you are a member of a personal pension scheme, you should be able to continue paying contributions whilst working abroad. The amount of tax relief you can claim will be reduced if you are no longer a UK taxpayer however; see Tax relief limits for pension savings. You should ask your pension scheme provider if you will incur any additional charges, such as money transfer fees, for making contributions from abroad. If you will be leaving your current job in order to work abroad, your pension scheme membership may not be able to continue as normal. Your exact options, including pension transfer and contribution refund are detailed in Leaving a Pension Scheme Early.

If you are a member of an occupational defined benefit scheme (see Occupational Defined Benefit Schemes) and you are going to be working abroad for your company your membership should continue as normal. Since your benefit on retirement is based on your earnings and the number of years you have been a scheme member it is important to ensure that your membership is not suspended whilst you are working abroad: if so the benefit you are entitled to on retirement may be affected. Similarly, occupational defined contribution schemes (see Occupational Defined Contribution Schemes) may continue to take your contributions automatically from your earnings whilst you are abroad, and your employer should continue to contribute to your scheme as normal. Different pension schemes will have different rules and regulations however, and you should take the time to calculate the effect of your move abroad on your pension, even if retirement currently seems a low priority. Your pension scheme administrator should be able to give you the necessary information, as well as keep you informed of any relevant administration you are expected to complete.