After years of contributing to the National Insurance Fund, you can decide what to do with your pension upon retirement. For most UK pensioners, the next step is often to find other places they would like to visit and eventually live in. The USA proves to be a popular option for a lot of British retirees, but there are a few things that you would have to know before making the decision to transfer:
• The IRS does not allow pension transfers to any of their available pension schemes. This means that you may not be allowed to transfer your pension directly to them. However, this does not mean that you will not be allowed to retire in the US. You can consult a financial adviser that specializes in UK pension transfers to find out what your options are.
• There are additional taxes to be paid should you choose to retire in the US. This is something that you would have to research about before making the decision to migrate, as the rates may differ depending on the case.
• Choosing to move from the UK to the US as a pensioner also means that there may be a few benefits that you would have to give up. Again, this would be a case-to-case basis. Weigh your options and find out if the move is still worth it or if the benefits you are about to give up are just too valuable for you to lose.
• There will always be a need for you to take on a pension transfer specialist to assist you with the entire process. This will help you understand everything that has to do with the transfer. It will also help you prepare everything you need for the big move.
Moving to the USA, whether to experience a new environment or to move closer to family, could be a good option for you. Just make sure that you fully understand everything involved in the process to help you avoid unnecessary problems in the process.