Pension plans

[anasjamil2]

Hi Experts, please can you provide some guidance on pension.

I am an Indian on Tier1 visa, will be applying for PR in 2015.

My employer has automatically enrolled me for pension. I know pension is good but I am not sure of spending my old age in UK.

May I know what happens if somebody leaves UK? does he gets contribution refunded on leaving UK? Shall I apply continue pension contribution even if I am not certain to live in UK for next 10 years?

Thanks,
Anas

[kannit]

Pension is personal choice however you may find online pros and cons.

However my reply is on a different aspect of pension. When you sacrifice your salary for pension your gross taxable salary is reduced by that sacrificed amount. UKBA at the time of extension or ILR will consider your gross taxable salary for awarding points.

e.g.
Salary = £ X pm
Pension Sacrifice = £ Y pm
Taxable Salary = £ (X-Y) pm

So Total Gross => £Z = £(X-Y) x 12 (i.e. for a year)

£ Z will be used for awarding earning points.

I think Car Allowance and Childcare Vouchers also pull down your taxable salary and hence gross.

Cheers!

[mulderpf]

Firstly, to answer your question, generally you cannot legally cash out your pension until you are 55. The point of a pension is to look after you when you retire, so regardless of where you are, the money will just sit there waiting for you until then. You would then be able to draw that from wherever you are in the world - just don't forget about it.

Secondly, I'm not sure about other companies, but my company gave me the option of using salary sacrifice to save on tax (by reducing my gross salary as kannit pointed out), so just make sure that you will either be okay with the reduced gross salary or ask your company to opt out.

[anasjamil2]

Thank you both for detailed description. I think best option for me is to opt out from pension, because presently I am not sure where I end up 10years later.

Pension will be available to me after 55 no matter where i am in the world but I am sure there will be plenty legal implications. So better save money myself. Thanks again friends.

[Saga]

^^ I reckon more than any legal complications, there will be tax both on drawing the pension amount and most probably transferring it to some other part of the world. The way UK tax its legal ordinary citizens (not Starbucks), there won't be much left after that !!

On the plus side, when you contribute a pension amount , the company contributes either the same or more. Thats puts in an extra saving. Considering UK is not the best place to save money, pension is a good option.

Just my 2 cents..

[layman]

So Total Gross => £Z = £(X-Y) x 12 (i.e. for a year)

£ Z will be used for awarding earning points.

Cheers!

I am not sure about this. My view is that (employee)Pension contributions through salary sacrifice can be included in your gross salary. There have been cases on this forum where applicants have included the pension contributions and were awarded points. On the contrary, haven't come across a case where it has been rejected from gross salary.

For example, click here

[manojk005]

So Total Gross => £Z = £(X-Y) x 12 (i.e. for a year)

£ Z will be used for awarding earning points.

Cheers!

I am not sure about this. My view is that (employee)Pension contributions through salary sacrifice can be included in your gross salary. There have been cases on this forum where applicants have included the pension contributions and were awarded points. On the contrary, haven't come across a case where it has been rejected from gross salary.

For example, click here

Salary sacrifice for pension is considered as your salary and count towards earning point. My pension salary sacrifice was considered for awarding earning point during my initial application in 2010. If pension contribution is declared in your pay slip then you can include that in your earning. Though, you want to take a letter from employer saying that pension contribution is from you salary.

[clariajoseph]

Hi first we should know about the full details of pension. When the government will give you pension and why the government staffs only get pension for this all information see this site will give you a solution
Pension

[clariajoseph]

Hi first we should know about the full details of pension. When the government will give you pension and why the government staffs only get pension for this all information see this site will give you a solution
Pension

[ukswus]

Salary sacrifice for pension is considered as your salary and count towards earning point. My pension salary sacrifice was considered for awarding earning point during my initial application in 2010. If pension contribution is declared in your pay slip then you can include that in your earning. Though, you want to take a letter from employer saying that pension contribution is from you salary.

Agree. My gross salary at the time of the recent extension was also NOT reduced by pension sacrifice. And why should it? That's the money I earned, which I decided to put into my pension pot.

[layman]

Did your pension sacrifice appear in your payslips? Or did you get a letter from employer about the gross salary with pension sacrifice details?