Employer Pensions in the UK -- Advice, please....

[uluvbs]

Hi, all.

I am a US citizen working in the UK.

My employer contributes a % of my income to a pension here, and I am also able to contribute an additional (and sizable) chunk of my income to the pension scheme if I choose to do so. Can anyone please give advice as to whether this is a smart idea?

I realize pre-tax retirement savings accounts are in general a good idea, but I am wondering whether I can still retire safely in the United States (many years from now) and keep my account here in the UK without it being a painful process? Will I have to pay UK income tax on the withdrawals once I hit retirement age?

Thank you!

[Brian Clarke]

I have only just come across your post. The question of whether contributing to a pension in the UK is a smart idea is a complex one, and to get the full picture you would need to consult an Independent Financial Adviser. I would recommend one who charges an hourly fee but rebates any commission to you. That way you should get a more objective opinion.

The basic tax position is that there is relief at your top rate (subject to certain limits) on your contributions, and the pension is taxable when you take it out (generally you can get a tax free lump sum as well).

Your questions really need a complex answer (which is I suspect why no one has answered before). A couple of hours with an IFA will be value for money, I think, because it will get the issues clear in your head.