This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Should I opt out of State Second Pension?

kiwi
Posts:1
Joined:Wed Aug 06, 2008 3:38 pm

Postby kiwi » Mon Jul 03, 2006 7:24 am

I am a 28yr New Zealander and have just arrived in London where I will be living and working for the next 2-5 years. I am about to start employment at a major bank, who kindly offer to contribute 20% of my salary into their pension scheme if I contribute 3% myself.

The problem is that I do not intend living in the UK for more than 5 years, so will not benefit from a retirement scheme. I have been advised to contract out of the S2P which redirects that portion of my NICs into a private pension fund, the benefit being that I can then transfer that amount to NZ after leaving the UK, and access the cash immediately.

Is this sound advice? Or am I better to stick with the bank's pension scheme while I am here, seeing as they contribute a substantial amount? My understanding is that if I stay with the bank pension scheme I will not be able to access the funds until retirement, or is there a way around this?

Any help would be much appreciated!! Thanks.

mkp
Posts:65
Joined:Wed Aug 06, 2008 3:36 pm

Postby mkp » Mon Sep 25, 2006 12:29 pm

Hi Kiwi,
You should be able to transfer your employer pension scheme back to NZ.
You should be able to transfer your personal pension based on re-directed NI contributions back to NZ.
One of the important things you need to consider is how you complete your P86 - the "arrival in the UK form."
Hope this helps

Rgds

mkp


Return to “PAYE and Payroll Taxes, National Insurance, NICs”