If you are a
person who was employed in the UK in a position that warrants a pension since
the 1970s, then it is possible that your pension has been frozen by default in
the government until you explicitly get to it. Therefore, you are losing money
as long as you are not applying for your pension to be unfrozen.
Those of you who
are members of the occupational scheme of the United Kingdom, it is possible
that your overseas pension amount has not been increasing at par with the
consumer price index. It is possible that you are only being credited with less
than five per cent of the money that you are entitled to. This means that if
you do not watch out, it is possible that your previous employer is keeping the
amount that has been increasing steadily and that you are being given a bad
deal. Did you know that your pension funds might have increased by as much as
eight to twelve per cent in the last few years? You are losing out on
considerable amounts of money by not checking out on the necessary steps.
Dealing with
the problem
You can easily
deal with the problem of making sure you get the money entitled to you by
depending on a person who is approved to deal with overseas pension to take
care of the matter for you. The British pension Transfers would be under
your control only and you will be the only one to use the full money that you
get from the government. Also, if you use the money right and expatriate your
pension, then you also may not have to pay the UK tax on the pension that you
would normally have to pay. There are many ways to achieve this: one is that
you have the choice of leaving whatever pension you do not use in your lifetime
to your heirs who would then be able to be in possession of this money free of
tax obligations.
Other
Developments
Several other
amendments have been made to the UK pension law; for instance, the minimum age
required for a person to be eligible for pension has been raised to 55 years
from 50. However, if you are an expatriate, then it is possible that you get
the pension that you have been losing out on from age 50 onwards as well. It is
important that you understand that by getting your records straightened you
will actually get all the money that you were being denied in a single lump sum
amount. Usually, you are allowed to take this money out of the United Kingdom
without requiring paying any tax or other money to the government. The money,
which can well amount to well around 25 per cent of the total money, is a large
amount of money and therefore, it would be unwise to not get your British
pension transfer sorted.
