Edo

I am planning to move to Canada in the next couple of years. At the moment I’m full time employed in the UK and paying Tax and National Insurance at the usual rate. But because I have firmly decided to leave UK (if everything goes according to the plan), therefore I don’t see much point paying NI to the govt: as I won’t be here to claim the pension or benefits when I get to that age. I have heard that there’s numerous pension schemes offered by private companies where people can invest in rather than paying into govt’s NI, and it’s also possible for your employer to redirect your monthly contributions into that private pension scheme. I did some research but given my weak knowledge of the financial world and the current risky scenario with the banks, I am sacred I will sign up for something that I may later regret.

Those of you who have done it, please could you recommend a secure private pension scheme so I can opt out of the NI and pay into that scheme; and then move it with me wherever I want.

chumley

I wish sorry you cant opt out of NI dont forget in the UK you also are required to financailly support the feckless etc the great feather bed of the welfare state will not let you off the hook

we cant have all those vikky pollards and the workshy etc going without their widescreen teles now can we

one of many many reasons I am so glad to have got out of the UK

JamesM

You can pay money into a Private Pension scheme that is income tax exempt. My advise there is to speak to an Independant Financial Advisor who I am sure will have several options for you.

Everybody has to pay National Insurance, even people who are only working in the UK short term.

Wearsider

I think what you are on about sounds like contracting out of SERPS, if such things still exist.Yo still pay NI though, and you will still get a UK state pension based on if you have enough qualifying years, when you are living in Canada.

You will get no benefit from paying in to a private pension scheme for a couple of years prior to moving to Canada, you'd be better off paying in to a Post Office account and taking the funds to Canada with you when you move!

Edo

Thanks for your replies folks. May be its these two website that misguided me.

http://www.hmrc.gov.uk/nic/nispi-faq.htm

Theres a question on the page which says "How do I go about Contracting-out of the State Second Pension?"



Another website is:

http://www.direct.gov.uk/en/MoneyTax...ons/DG_4017726

If you scroll down you'll see: "Opting out of the additional State Pension"



I'm scratching my head thinking of the possibilities...

JamesM

The first link doesn't misguide you- it refers you to speak to an Independant Financial Advisor several times if you need further advice - I think this is definately your best way forward.

Edo

ok, thats an idea. so do I have to open a new account with the Post Office and pay into it from my pocket (and at the same time I'll be paying into govt: NI as well?)

Wearsider

No, I was merely trying to say that rather than paying in to a Personal Pension for the sake of a couple of years, you would be better off putting the money in to a savings account.

No doubt some financial advisers will say start a PP off now, but they are hardly likely to say anything else.

I was mis-sold a PP in the early 90's, but lucky enough I was re-instated in to my old scheme and the PP provider had to pay the extra on my behalf.

Sleeping_Beauty45

Nearly spat my coffee all over the computer on that one!

Excellent post.

Tangram

Employees pay EI and CPP here, so I don't see the difference.

chumley

yes but on a personal level Im not working here plus im not surrounded by the great unwashed at every turn so its much more paletable

macadian

Suppose it depends on where you live in Canada...I sure you the 'feckless etc are alive and well here too....

Tangram

I forgot there wasn't any unemployed in Nova Scotia.

chumley

well im not working so there is one

ireland2canada

It was my understanding that you could opt to continue with your NI payments after leaving the UK. This is so you can claim your old age pension when you are, well, old. Regardless of the fact that you don't live in the UK anymore. I realise that the payments are frozen at the time of your departure which carries it's own controversy.

So I suppose it depends how many years of contributions you have made already, and if you deem it worthwhile to continue.

If I'm totally wrong on this then I'm happy to be corrected as I intended to keep paying NI for this reason.