If you are a U.K. citizen by birth but are retiring in a foreign country, there are certain things you must know before you actually move. From having a will to the state pension, and taxation to other benefits that you may be entitled to in the foreign or home country – there are many things that you should know if you are retiring aboard or have considered doing so in the future.
List of Benefits You Are Entitled To In The U.K.
1- Personal and workplace pensions
If you have a personal or workplace pension scheme, moving and retiring abroad should not affect your ongoing pension scheme as it is paid in full. You will also be entitled to any increases irrespective of your working location. However, you must check the following things with your provider about the schemes before moving abroad –
- Check if your scheme will be paying you the required amount in the overseas banks since some schemes only pay into a U.K. bank. Ensure that you check the banks available in the foreign country you are moving to.
- Check if your annuity company will transfer your money free of any international or transfer costs since some schemes charge you for each transaction. To avoid any uninformed losses, make sure to clear it with your pension provider beforehand.
2- U.K. state pension
You are entitled to your U.K. state pension in full even if you move and retire abroad. If you live in a European Economic Area, you also get the pension increase every year. Any country with a social security agreement with the U.K. is entitled to receive your U.K. state pension in full. You can learn more about the U.K. state pension schemes for people retiring aboard from living or working overseas and the State Pension page created by the government of the United Kingdom.
3- Taxation
When retiring abroad, you may or may not have to pay U.K. taxes which depends on a number of other things. However, you are required to pay U.K. taxes if you are classified as a U.K. resident and if you earn any income in the U.K.
What Benefits Do You Earn When Retiring Abroad?
You earn different benefits by working in different countries. You can still receive and claim U.K. benefits if you are still in a European Economic Area country or any country having social security agreements with the U.K. You can ask the social security authorities of the new country you are moving to and going to work in if you are eligible to claim any benefits there in your tenure. Some countries do offer benefits after you complete a certain time period working in the country, so asking the security provider of that area is the first thing you should do before moving. As soon as you leave, you are eligible to ask the security officers of the foreign land about all benefits to which you are entitled. You can claim all these benefits without having to worry about any dispute between your home country (the U.K.) and the new country that you are going to work in and retire from.
You should inform the Jobs and Benefits office that you are moving aboard if you are claiming benefits at home. They will tell you in detail how your benefits will actually get impacted and the additional ones that you will be entitled to.
Final words
You earn retirement benefits in all countries you work in. However, it becomes a little tricky if the country you are retiring from/working in is different from your actual home country, where you own a resident card or citizenship. If you are a U.K. citizen, you can ask the foreign security officers about the benefits you are eligible for in the U.K. and in a foreign land. If you leave your U.K. resident-ship and earn a residency in another country after working there for the number of years required, you can again check with both U.K. and the foreign country’s officers about all claims you can make.
Sometimes you are eligible to claim from both countries, whereas sometimes, you only get claims from a single country. It is mandatory for you to check all these things before you move out because there can also be a situation which ends you getting no benefits from either of the places.
To learn more about the effect on your finances when retiring abroad, request an introduction to an expert by clicking the link below.
