Everybody works to prepare for something big. Some may be preparing for their retirement, while some may be planning to eventually move abroad to experience something new. For some, it could also be both. No matter what the case may be, it is important to find out as much as you can about your occupational pension scheme to make it easier to process the UK pension transfers when the right time comes.
Here are a few things that you would have to check to help you decide whether you are being given the right pension:
- Eligibility. Are you eligible to be automatically enrolled to a workplace pension scheme? Eligibility would depend on your age, your annual salary, and whether you have an existing workplace pension or not.
- Kind of Workplace Pension. Workplace pension can either be occupational or personal. Occupational pensions are set up by your employers, while a personal pension works the same way as a pension fund that you are setting up yourself where you have an individual contract with the provider. The only difference is that your employer chooses the pension provider for you.
- Contributions. Will you be able to afford the contributions? Will your employer pay their share of your contributions as well? If your pension scheme falls under automatic enrollment, then your provider would have to pay their share of contribution as well.
- Investment. How will your money be used? In some cases, such as in the Money Purchase Scheme (a form of occupational pension), your money will be invested somewhere and the money you get when you retire will depend on the growth of that investment.
- Pension Transfer. If you join this pension scheme now, will you be able to transfer it out to a different scheme abroad once you have decided to leave the country? This is most important if you already have plans on moving out of the country as early as now.
Find out everything that you can about your workplace pension. Remember that it is your hard-earned money that you are investing, so find out from a qualified UK pension transfers expert how you will be able to maximize this benefit should you decide to retire somewhere else.