If you are eventually planning to retire in the US, it is important to find out as early as now what benefits you will be able to enjoy abroad, especially when it comes to your pension. Has your employer automatically signed you up for a workplace pension scheme? This is something that you would have to check, as it would be a big factor in UK pension transfers.
What does automatic enrollment mean? In the entire period from October 2012 to April 2017, employers would have to enroll their eligible employees into any form of workplace pension. You are considered eligible if you are:
• Enrolled to no other workplace pension
• 22 years old or older
• Still under the State Pension age
• Earning more than £9,440 per annum
• Working in the UK
Of course, some guidelines would also have to be followed in determining when your employer will be able to enroll you in a specific scheme. Sometimes, it also depends on how many people the company you work for employs.
You may also have the option not to take the offer of being enrolled in an occupational pension scheme. However, you would also have to consider the following benefits that go with it:
• Aside from your own contributions, your employer will also be paying their half of the contribution, which makes the total value of your pension bigger.
• You can use your contributions for tax relief.
Of course, you would also have to check how your pension scheme will affect your eventual move to the US. For these situations, it is best to consult an expert on UK pension transfers who would be able to tell you what processes are involved should you wish to enjoy or continue your pension abroad. This would also help you avoid any problems that you may encounter in the future.