Canadian Expats Can Now Repatriate Their Pensions

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NCFA Guest Post | April 16, 2018

If you are in your 30’s or 40’s, you are probably not too concerned as yet about your retirement; you still have a few years work ahead of you. It is surprising how quickly those years will disappear though, and if you have not prepared for it, you could find yourself much worse off financially once you stop working.

You may be contributing to a pension scheme of some sort, either through your employer or by making personal payments. There is also the possibility that you have built a pension pot while working in another country, and if that is the case, you need advice about the option of moving it to your pension fund. For instances, Canadian expats can now repatriate their pensions, if they have contributed to the UK state scheme.

Have You Worked In The UK?

If you have been employed in the UK, you will have had national insurance and tax deducted from your pay under the PAYE scheme. Part of the national insurance is put towards your state pension, but if you then go to live in another country, that money just sits there in a pension pot.

The money can be transferred into a SIPP or a ROPS if you live in a country outside of the EU. The process is drawn out and complicated, and you will definitely need UK pension help to achieve this successfully.  Chatting with an organisation such as UKPensionGuru is the thing to do, as they have the experience, knowledge, and expertise you need to help you.

There Are Taxes To Consider

There is more than one way to get your pension pot transferred, but if it is not done in the right way, the taxman will want a cut. It could be that your total income takes you above tax limits anyway, but you at least want to know that the amount you have to pay has been minimised as much as possible.

Then, of course, there are the tax laws in your new country of residence to consider. The more you look into it, the more complicated it gets, which is why it is vital to seek the best UK pension help available for expats and people who have worked in the UK.

Let Your Pension Pot Make More Money

If you leave your money sitting in the UK pension scheme, it will not grow and make you any more money. Transferring it to a SIPP or ROPS is a different matter. Then your money will grow and over the number of years you have left to retirement, the difference can be quite amazing.

The amount of your pension when you retire will mean the difference between being able to do what you have planned or scraping by on a low income. The sooner you put matters in order, the better your pension will be. Don’t let yourself lose out just because retirement seems such a long way off - start looking for the UK pension advice you need now.

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The National Crowdfunding & Fintech Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with both social and investment crowdfunding, alternative finance, fintech, P2P, ICO, and online investing stakeholders across the country. NCFA Canada provides education, research, industry stewardship, and networking opportunities to over 1600+ members and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding and fintech industry in Canada.  For more information, please visit:  www.ncfacanada.org

 

 

 

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