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Pension/saving money while teaching abroad

Discussion in 'Teaching abroad' started by Mrs_St, Nov 13, 2018.

  1. nemo.

    nemo. Occasional commenter

    You can only contribute to a personal pension plan for 5 years and maximum 3,600 pounds per year for tax relief. You have to tell the provider you have moved overseas.

    Whether Class 2 NI are worth it does depend. If you are going overseas for a few years then prob not. If forever - like me then also not worth it. Also Brexit - if it ends up in a crash Brexit the pound will dive and inflation will rise asnd the economy tank. The UK government may even eventually not be able to pay pensions unless inflation takes care of the issue. Personally I just invest my money mostly in shares. Do note most UK brokers won't allow expats to deal in shares. You need an offshore account. Same with bank accounts and credit cards really. Some vanks are more flexible - by turning a blind eye. Don't forget you cant use tax free account products anymore.

    Buy to let is better imho if you plan to return. As that reduces the risk of runaway house prices - even if they dive you don't really lose out vs having stayed in UK. Also profits are likely to be low if starting now. I have property in my wife's country as that is where I will retire. And a farm. So I wont starve!
  2. 576

    576 Established commenter

    Why not?
    You can claim it from overseas.
    towncryer likes this.
  3. TexanTeacher2013

    TexanTeacher2013 New commenter

  4. the hippo

    the hippo Lead commenter Community helper

    Perhaps he sponsors this TES forum.
    kemevez likes this.
  5. clovispoint

    clovispoint Occasional commenter

    You just couldn't let it go, could you? ;) That's the longest you've gone without a grumble about Andrew Hallam being praised for writing a useful book! (197 days for reference).
  6. blitz18qb

    blitz18qb New commenter

    As somone who is about to move overseas..... Has anyone got any updated thoughts/advice/experiences? ?

    Will look to set up Class 2 NI contributions. Will contact student loan company to repay (minimum) contributions.

    Have 2 properties currently, one with/one without mortage. I am just in the process of remortgaging for 5 years to a B2L. That should give us time to decide where the future lies. Can't see myself returning anytime soon....no matter how bad it is overseas,

    On the mortgage front I know my wife got a mortgage through HSBC 9-10 years ago. She was working in the USA at the time. Not sure if rules have changed or not, but worth speaking to direct as I think they don't go through brokers etc....

    Is there anything else I should be doing......Chances are I won't live long enough anyway!
  7. shazzamac

    shazzamac New commenter

    Just remember if you rent out your properties you will need to submit tax forms each year to HMRC.
    Find out about the overseas landlord scheme. You can receive rent without tax taken off. Then you pay a tax bill dependent on your self assessment. You don't pay anything if you make profits of less than 11k.
  8. kemevez

    kemevez Occasional commenter

    I knew a teacher who read and re-read Andrew Hallam's book at every opportunity. Banging on about it every break time to everyone who wasn't interested (mostly well travelled and experienced teachers who had made sensible financial choices and maybe got a bit lucky along the way, right time right place and all). He was potless and almost certainly still is. I haven't read the book but doubt it is any more revolutionary than others written by people who made a buck and want to make a few more (otherwise it would be FREE and sent to every staffroom). Buy properties and rent them out, rob a bank but don't hurt anyone, marry a rich man, swoon a rich local woman and her family, work at an elite high paying school (as Mr Hallam did) and stay in your free digs while not spending any money - whatever, there's tons of ways to do it. The age old "spend a bit, save a bit" is probably fairly solid advice.
    TeacherMan19 likes this.
  9. the hippo

    the hippo Lead commenter Community helper

    kemevez, what a sensible chap you are!
    TeacherMan19 likes this.
  10. TeacherMan19

    TeacherMan19 Occasional commenter

    Also after reading the first 4 chapters, it just said the same thing over and over again using slightly different phrasing. Good job I borrowed the book.
  11. the hippo

    the hippo Lead commenter Community helper

    Watch out, TeacherMan19, clovispoint will be after you too!
  12. TeacherMan19

    TeacherMan19 Occasional commenter

    Thanks for the warning hippo. I'll whip out a fake low yield stock portfolio I'll design on Publisher as a way to deflect.
  13. clovispoint

    clovispoint Occasional commenter

    Sage words.

    A free resource that covers more or less the same ground as Andrew Hallam is "If you can." by William J Bernstein. It is US centred but the core advice is the similar to yours.

    Only if he develops an irrational grudge.

    The book is for beginners not people, such as yourself, who know it all already.
    Helen-Back likes this.
  14. Helen-Back

    Helen-Back Occasional commenter

    Then he is/was doing it wrong.
  15. Mitochondria1

    Mitochondria1 Occasional commenter

    I've not read his book, but he seems to have three books with slightly different titles with similar synopsis.
    Would I be correct in saying that his 'strategy' is essentially saving money each month and sticking it in an Index Fund, with plenty of reference to 'if you invested $1000 in 1981 it would be worth $23452 today' style writing?
    'Financial gurus' make their money, advising other people on how to make money...
  16. TeacherMan19

    TeacherMan19 Occasional commenter

    You got it
  17. frodo_magic

    frodo_magic New commenter

    Given the current situation, I am so glad not to be a landlord anymore. Many people have lost jobs / reduced income. Some renters are using current emergency legislation to stop paying, and in the UK, you currently cannot evict anyone for anything, and can't insist that the person you are potentially renting to is actually in a stable job. I wouldn't invest in property these days unless I was using it regularly for a holiday home (assuming I can travel to it) - so expensive in the UK compared to average salaries now.

    On NI, you currently need 35 years for a full pension, and it is probably the best value pension in existence. It's worth keeping payments up to date, or paying for back years if you can, to keep on track.

    Saving / pensions aren't hard. The difficulty is that people are generally lazy, delegate to others but don't understand what the 'others' are really doing or charging for their services, and don't save regularly. Save 20% a month of your net income without fail. Invest in a range of things, not one. In the UK, that means start a SIPP, use ISAs, use Premium Bonds, buy shares, etc all depending on what the rules are for each thing whilst working abroad.
    motorhomer likes this.
  18. kemevez

    kemevez Occasional commenter

    Indeed he is/was. Likewise, a lot of folk who haven't read the book is/were doing it right.
  19. makhnovite

    makhnovite Established commenter

    'his 'strategy' is essentially saving money each month'

    Yes, but he is also selling a whole lifestyle, in one of the early chapters he bangs on about buying his first car, which of course is an old but reliable Japanese model that he keeps for ages. He also talks at various points about cheap living - food, accommodation etc. And of course then there are the index tracking funds. Its all very well, but one can do quite nicely, owning a decent car, eating well and having two or three holidays a year.

    It all depends on your priorities!!!
  20. the hippo

    the hippo Lead commenter Community helper

    Dear makhnovite, I thought that I was the only one!

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