Advice needed - Pension for a contractor and UK to Ireland transfer

G

galgal5003

Registered User
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Hi,

I have two different but not totally independent queries. I am moving to Ireland from the UK after 3.5 years (I am 29 and Irish).

- My new job in Ireland is a 12 month agency contract with no pension scheme: can anyone offer advice about any suitable private pension I should look into? If I am made permanent/get a job with a pension scheme, could I transfer this private pension into that scheme?

- I have a pension from my UK job; should I look into transferring this into a private pension (if I open one) or am I best to leave it in the UK?

I realise I sound clueless about pensions so any advice would be welcome!

Thanks
 
Hi

If you envisage moving into a job with a pension plan, it's probably best to open a PRSA type plan as it is easily transferrable into the company plan.

It is always better to have control of your pensions. Having it in the UK for the next few decades may be difficult to keep track of, especially if the company you were in moves or merges. With 3.5 years service, it won't be a massive amount, so I'd look at bringing it back.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
Thanks Steven, I will look into some PRSA pension plans.
One last question: I am currently looking into whether my UK pension is a QROPS. I presume I will be able to transfer it into a PRSA, if I open one, without too much trouble?
 
It's not whether your UK pension is a QROPS, it's whether the Irish one is. There used to be loads of them but when the pension freedom rules were introduced with a 55 retirement age, a lot of the Irish QROPS approved pensions didn't qualify. There is still lots of choice though. You can find a list here

Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
Hi gal
I am in the same boat as you. I am leaving the UK next month to return to Ireland after 2.5 years (I am 28). I am almost cretin I will be transferring my private pension to Ireland when I move. The other thing I have being looking into is the possibility of continuing to pay UK voluntary national insurance. This may entitle you to a UK state pension when the day comes. Have you looked into this? I still have more digging to do.
Also have you started the process for claiming your tax back from HMRC? I am in two minds of getting a company to look after my affairs and let them have their cut. I can see a lot of paper work with HMRC or maybe i'm wrong?

oreilly
 
Thank you Steven, you have been very helpful.

oreillycavan said:
Hi gal
I am in the same boat as you. I am leaving the UK next month to return to Ireland after 2.5 years (I am 28). I am almost cretin I will be transferring my private pension to Ireland when I move. The other thing I have being looking into is the possibility of continuing to pay UK voluntary national insurance. This may entitle you to a UK state pension when the day comes. Have you looked into this? I still have more digging to do.
Also have you started the process for claiming your tax back from HMRC? I am in two minds of getting a company to look after my affairs and let them have their cut. I can see a lot of paper work with HMRC or maybe i'm wrong?
Click to expand...

Sorry for the delay oreillycavan. I have contacted HMRC but have been told to wait to submit the p85 form until I have my p45, which I don't have yet. I don't think you automatically get your tax back; it's only if you've overpaid. As per their website spiel 'Use the postal form to claim tax relief or any tax refund you're owed if you've left or are about to leave the UK.' - I presume this is the process you are referring to.

I haven't really looked into the possibility of continuing to pay UK voluntary national insurance but I am aware that you can do this. In my experience, there doesn't seem to be a huge amount of paperwork with HMRC but that may well highlight my lack of knowledge rather than anything else!
 
There are a few issues in this thread

One issue that is often overlooked is that you can continue to contribute to a UK Stakeholder pension for up to 5 years after ceasing to be UK tax resident. You continue to receive tax relief at source even if you have no UK earnings.

You would of course be eligible to join an Irish pension as well and also claim tax relief in Ireland.

I'm not suggesting that everyone can afford to do this, but it's certainly good tax planning.

I'm not so convinced that a QROPs is the right solution for many people and certainly without a comparative analysis of the current vs the proposed schemes.

The fact you no longer live in the UK isn't really a stong enough reason to transfer retirement benefits.
 
Thanks Marc; I would not really be in a position to contribute to a UK pension as well as an Irish one but thanks for the information. I would prefer to transfer the pension, just for ease of keeping track more than anything.

As the pension is only 3.5 years, I think a QROPs is probably the road I will go down but I do take your point about it may not be right for many people.
 
Do you know whether any voluntary contributions made to UK National Insurance (to be eligible for uk state pension) would be tax-deductible in Ireland ?
 
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