If you have previously worked in the UK, it’s likely you paid into a UK pension. If you then leave the UK and live overseas, the pension is ‘Frozen’, and should grow each year.
Good financial advice is to review the pension on an annual basis, and make sure your money is working as hard as possible, as well as keeping in touch with them so they know where you live, and also so your beneficiaries know what to do should something happen to you.
Broadly speaking, there are two types of pensions in the UK; Company Pensions and Private Pensions.
Company pension schemes give you a pension based on how many years you worked for them and your salary. They will often refund a members’ contributions if they were employed for less than 2 years, but anything over 2 years, the pension will normally remain in the hands of the pension administrator until the normal retirement date. Normal Retirement Date for most pension schemes is 65 years old, however, there are ways in which you can access a pension at age 55.
Private Pension schemes are much more simple, and they are simply worth whatever you and/or your employer contributed, plus any growth of the underlying investments. The disadvantage to these types of pensions is choice, you are limited to what they offer.
If you are looking at taking your Company or Private Pension early, then one of the most popular ways to do this is to move it in to a SIPP, which is a Self Invested Personal Pension. This will then allow you to take a 25% tax-free lump sum right away, and then access your pension flexibly.
If you would like to know how to access your pension or need help finding out exactly where your pension is, speak to a qualified UK financial advisor and click the below link;