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State pension, healthcare and personal pension could also be affected by becoming an expat | Personal Finance | Finance


Annually, greater than 300,000 individuals leave Britain to start out a latest life overseas, in line with the Organisation for Economic Co-operation and Development (OECD). The explanations for these are varied, and will involve moving for a latest job, to be closer to family, or spending one’s later years in a latest country.

Whatever the motivating aspects, these expats could see key entitlements affected as result.

Express.co.uk spoke to 2 experts about a few of the changes expats can have to cope with. 

Finn Houlihan, Managing Director of Arlo Group and ATC Tax, warned people could miss out on paying in useful National Insurance contributions – which could cause a state pension shortfall.

He said: “A person will need to have paid 35 years’ value of NI contributions to qualify for the brand new UK state pension. Consequently, expats will often proceed to make class 2 voluntary NI contributions to make sure they’ll still receive this profit.

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Mr Houlihan added: “If an individual moves abroad at retirement age, their state pension won’t be index linked and stays frozen on the time they left the UK. 

“Clearly, this might be more significant for people which have made a move recently with inflation standing at greater than 10 percent.”

One other key entitlement which is a staple of British life is access to the National Health Service (NHS).

Free healthcare is significant to hundreds of thousands of individuals, nevertheless it might be affected by a move abroad. 

Ema Boccagni, Business Director EMEA at ECA International, warned Express.co.uk readers their entitlements may change.

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That is the case even for pensioners, so it will be important to concentrate on the matter. 

She said: “Opting to maneuver abroad permanently can have a negative impact in your retirement income and as well as you’ll lose your entitlement to most NHS services within the UK, even in case you are a UK citizen. 

“It’s because the UK has a residence-based healthcare system.”

While presenting a difficulty for pensioners, those moving abroad for work might be somewhat assisted in certain circumstances.

Ms Boccagni added: “You want to have an open conversation together with your employer to grasp if they are going to give you the option to enrol in the brand new country’s schemes and if not, how they are going to support with profit packages.”

On the subject of a personal pension, expats can even must listen to key rules.

Mr Houlihan highlighted moving abroad means individuals are typically not entitled to contribute right into a UK-based pension pot.

Ms Boccagni also raised this issue, explaining: “As pensions paid right into a UK checking account are UK income there might be UK tax liability on the pension income, and the country where someone has retired to can even look to tax this income. 

“Nevertheless, if the 2 countries have concluded a double-taxation agreement an expat can claim tax relief within the UK to avoid being taxed twice.”

After all, there might be quite a few advantages of moving abroad, whatever the motivation for doing so.

Consequently, the experts suggest undertaking research, and potential enlisting the support of an independent financial adviser to assist with specific circumstances. 

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