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Moving UK pension

Discussion in 'Teaching overseas' started by happygreenfrog, Mar 10, 2012.

  1. happygreenfrog

    happygreenfrog Occasional commenter

    In a former life I worked in the pensions industry, doing the unseen type of calcualtions needed to work out the value of your pension funds, rather than at the higher profile selling end.
    As a member of a scheme you may annually request a quote of your prospective pension benefits (those to be given at retirement) AND the present value of those benefits, that you could take as a transfer sum elsewhere.
    Request those statements and then forward them to a prospective new provider. They will provide a quote on what that transfer payment will buy in their scheme. You then simply compare the two quotes.
     
  2. nemo.

    nemo. Occasional commenter

    It is part of the mythology of pension saving that you need a special scheme! Apart from some tax considerations - and actually for base rate taxpayers in the UK the tax advantages re really in effect nil and are the opportunity cost can easily be negative (you get taxed on exit and opportunity cost = cost of being stuck with an annuity)

    Just use dirt cheap tracker funds lime hsbc - I pay 0.25% a year fees all included. "managed" funds are a waste of time and statistically you beat them using a fund - I spent 10 years in finance including fund management and believe me the whole industry is one big consumer fraud.
     
  3. johnio

    johnio New commenter

    Hi Cindy

    I posted on such an issue a few weeks ago - I'll re-post here:

    In the present crisis, which may be with us for the majority of the first half of this century, I think it is wise to put money into physical assets with repository value as opposed to investment funds. I certainly don't regard pensions as a 'security blanket'! In the current crisis anything is possible, and I would't rule out economic martial law, which is already being hinted at in America - not surprising with a 15 trillion $ debt!

    http://www.businessweek.com/magazine/content/11_19/b4227004622477.htm

    http://www.forbes.com/sites/rickungar/2011/04/16/gov-scott-walker-reportedly-planning-financial-martial-law-in-wisconsin/


    _________________Worth reading is http://sacred-economics.com/ _____________________Author: Charles Eisenstein

    Regards

    Johnio
     
  4. stopwatch

    stopwatch Established commenter

    I would get a job in a well paying country (Middle East). Put away enough to either buy you a 1 bed flat on retirement to rent out in a cheap area of town (£350 - 450 pcm income) or to instal a separate self contained granny flat you can rent out (less outlay but similar amount income with no CGT issues) in whichever house you own.
    In addition, ensure you pay off any mortgage you have on your own property.
    Regards DHSS they are unlikely to pay you anything if you have any more than £16,000 in the bank.
    Don't move the TPS for the reasons people have already stated.
     
  5. Thanks all. This is giving me a clearer picture regarding my options.
     
  6. You really should get Financial Advice. I am not sure if everyone is aware but there is a new charging structure coming into force in December, which means that you have to pay for all Financial Advice you seek, so now is a good time to just review even if you don't go ahead with any of their recommendations
    I met with these guys the other day and they really know there stuff !!
    http://www.reidscottross.co.uk/
     
  7. happygreenfrog

    happygreenfrog Occasional commenter

    Property is the answer.
    I've got a decent and well managed share portfolio and seen it fall over the last 9 years to be worth 75% of what I actually invested.
    As above, I've zero faith in the pensions industry and . . . I worked in it for 4 years so have a smidgeon of understandingof how it is all built on sand.
     

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