pension in Qatar
Jul 18th 2016, 8:54 pm
#1
Just Joined
Thread Starter
Joined: Feb 2016
Posts: 23
pension in Qatar
Hello expat community,
My question is simple,
I'm taking a job in DOHA, and currently paying for a pension scheme with my company in the UK (10% of salary)
I know in DOHA there is no pension scheme for expat. I still want to subscribe to a private pension. Do you have any recommendations?
Your advice is much appreciated
My question is simple,
I'm taking a job in DOHA, and currently paying for a pension scheme with my company in the UK (10% of salary)
I know in DOHA there is no pension scheme for expat. I still want to subscribe to a private pension. Do you have any recommendations?
Your advice is much appreciated
Jul 19th 2016, 4:00 am
#2
Onwards and Upwards!
Joined: Sep 2010
Posts: 884
Re: pension in Qatar
Hello expat community,
My question is simple,
I'm taking a job in DOHA, and currently paying for a pension scheme with my company in the UK (10% of salary)
I know in DOHA there is no pension scheme for expat. I still want to subscribe to a private pension. Do you have any recommendations?
Your advice is much appreciated
My question is simple,
I'm taking a job in DOHA, and currently paying for a pension scheme with my company in the UK (10% of salary)
I know in DOHA there is no pension scheme for expat. I still want to subscribe to a private pension. Do you have any recommendations?
Your advice is much appreciated
You must be a UK tax payer to pay into a UK pension and receive tax relief. The only exception is that you can pay £2,880 into an existing private pension in the tax year you leave the UK and for the following 5 tax years (You'll get a free basic rate tax rebate (£720) from HMRC directly into your private pension scheme each time. Free money, which is nice). Open an online SIPP before you leave the UK, which you can access from Qatar.
You might want to look at saving into an investment fund of some sort in your SIPP. Be extremely careful of any advice you may be offered in the Middle East. The market is unregulated and there are many unscrupulous advisors operating here and looking to part you from your hard earned cash. Be particularly wary of any offers to transfer your existing pension fund. I opened an online SIPP (Hargreaves Lansdown) and save mainly into equity funds each month. Best get professional advice to suit your own needs and attitude to investment risk.
Also consider the status of your UK State Pension entitlement. You might want to consider paying either Class 2 of 3 voluntary National Insurance contributions to ensure you have the required 35 years of contributions for full entitlement when you retire.
You will be entitled to an end-of-term gratuity in Qatar, which typically works out at about 3-4% of your basic salary (not allowances). Not enough for your pension and not guaranteed in certain circumstances. Make sure you set aside enough each month into your investment fund, say 15-20% of your gross pay (Some recommend saving a percentage of your gross salary equal to half your age when you start your pension e.g. 15% if you started at age 30).
The jobs market is very volatile in Qatar with an endemic hire and fire mentality and little job security. So make sure you understand your UK tax residency status and set aside enough money to cover any unexpected UK tax liability or a period out of work. It will be 6th April 2018 before you are confirmed as UK non-resident for tax purposes, at the earliest, but your status can be backdated to the day after you left the UK.
Hope this helps.
Last edited by Johnnyboy11; Jul 19th 2016 at 4:03 am.
Jul 19th 2016, 12:09 pm
#3
Just Joined
Thread Starter
Joined: Feb 2016
Posts: 23
Re: pension in Qatar
Some suggestions from me (not advice)...
You must be a UK tax payer to pay into a UK pension and receive tax relief. The only exception is that you can pay £2,880 into an existing private pension in the tax year you leave the UK and for the following 5 tax years (You'll get a free basic rate tax rebate (£720) from HMRC directly into your private pension scheme each time. Free money, which is nice). Open an online SIPP before you leave the UK, which you can access from Qatar.
You might want to look at saving into an investment fund of some sort in your SIPP. Be extremely careful of any advice you may be offered in the Middle East. The market is unregulated and there are many unscrupulous advisors operating here and looking to part you from your hard earned cash. Be particularly wary of any offers to transfer your existing pension fund. I opened an online SIPP (Hargreaves Lansdown) and save mainly into equity funds each month. Best get professional advice to suit your own needs and attitude to investment risk.
Also consider the status of your UK State Pension entitlement. You might want to consider paying either Class 2 of 3 voluntary National Insurance contributions to ensure you have the required 35 years of contributions for full entitlement when you retire.
You will be entitled to an end-of-term gratuity in Qatar, which typically works out at about 3-4% of your basic salary (not allowances). Not enough for your pension and not guaranteed in certain circumstances. Make sure you set aside enough each month into your investment fund, say 15-20% of your gross pay (Some recommend saving a percentage of your gross salary equal to half your age when you start your pension e.g. 15% if you started at age 30).
The jobs market is very volatile in Qatar with an endemic hire and fire mentality and little job security. So make sure you understand your UK tax residency status and set aside enough money to cover any unexpected UK tax liability or a period out of work. It will be 6th April 2018 before you are confirmed as UK non-resident for tax purposes, at the earliest, but your status can be backdated to the day after you left the UK.
Hope this helps.
You must be a UK tax payer to pay into a UK pension and receive tax relief. The only exception is that you can pay £2,880 into an existing private pension in the tax year you leave the UK and for the following 5 tax years (You'll get a free basic rate tax rebate (£720) from HMRC directly into your private pension scheme each time. Free money, which is nice). Open an online SIPP before you leave the UK, which you can access from Qatar.
You might want to look at saving into an investment fund of some sort in your SIPP. Be extremely careful of any advice you may be offered in the Middle East. The market is unregulated and there are many unscrupulous advisors operating here and looking to part you from your hard earned cash. Be particularly wary of any offers to transfer your existing pension fund. I opened an online SIPP (Hargreaves Lansdown) and save mainly into equity funds each month. Best get professional advice to suit your own needs and attitude to investment risk.
Also consider the status of your UK State Pension entitlement. You might want to consider paying either Class 2 of 3 voluntary National Insurance contributions to ensure you have the required 35 years of contributions for full entitlement when you retire.
You will be entitled to an end-of-term gratuity in Qatar, which typically works out at about 3-4% of your basic salary (not allowances). Not enough for your pension and not guaranteed in certain circumstances. Make sure you set aside enough each month into your investment fund, say 15-20% of your gross pay (Some recommend saving a percentage of your gross salary equal to half your age when you start your pension e.g. 15% if you started at age 30).
The jobs market is very volatile in Qatar with an endemic hire and fire mentality and little job security. So make sure you understand your UK tax residency status and set aside enough money to cover any unexpected UK tax liability or a period out of work. It will be 6th April 2018 before you are confirmed as UK non-resident for tax purposes, at the earliest, but your status can be backdated to the day after you left the UK.
Hope this helps.
Thanks for your reply
What does SIPP stand for?
I'm actually a French citizen but have been working in the UK since 2014 thus paying taxes and National Insurance
I will look into that SIPP option
Jul 19th 2016, 3:45 pm
#4
Onwards and Upwards!
Joined: Sep 2010
Posts: 884
Re: pension in Qatar
Then ignore my earlier post, which applies to UK domiciled expats.
Jul 20th 2016, 10:45 am
#5
Bored liberal
Joined: Feb 2007
Location: Over there ----->
Posts: 13,713
Re: pension in Qatar
Comments from a qualified IFA...
You do not necessarily have to be UK resident to pay into a UK pension scheme.
If a personal pension (including a SIPP) is already in place and personal contributions are being made when you leave the UK you can pay into it, to a maximum of GBP 3,600 gross, per tax year, for up to five years.
If you are moving with a UK employer and will remain contracted to them your employer may continue to contribute to your UK pension scheme.
There are many unscrupulous "advisers" (I prefer to call them salespeople) in the ME but there are also decent, ethical, qualified and experienced advisers. Avoid any very long term saving plans as too many salespeople push 20 and 25 year plans for the crazy levels of commission they pay.
You do not necessarily have to be UK resident to pay into a UK pension scheme.
If a personal pension (including a SIPP) is already in place and personal contributions are being made when you leave the UK you can pay into it, to a maximum of GBP 3,600 gross, per tax year, for up to five years.
If you are moving with a UK employer and will remain contracted to them your employer may continue to contribute to your UK pension scheme.
There are many unscrupulous "advisers" (I prefer to call them salespeople) in the ME but there are also decent, ethical, qualified and experienced advisers. Avoid any very long term saving plans as too many salespeople push 20 and 25 year plans for the crazy levels of commission they pay.
Jul 20th 2016, 11:20 am
#6
Just Joined
Thread Starter
Joined: Feb 2016
Posts: 23
Re: pension in Qatar
Comments from a qualified IFA...
You do not necessarily have to be UK resident to pay into a UK pension scheme.
If a personal pension (including a SIPP) is already in place and personal contributions are being made when you leave the UK you can pay into it, to a maximum of GBP 3,600 gross, per tax year, for up to five years.
If you are moving with a UK employer and will remain contracted to them your employer may continue to contribute to your UK pension scheme.
There are many unscrupulous "advisers" (I prefer to call them salespeople) in the ME but there are also decent, ethical, qualified and experienced advisers. Avoid any very long term saving plans as too many salespeople push 20 and 25 year plans for the crazy levels of commission they pay.
You do not necessarily have to be UK resident to pay into a UK pension scheme.
If a personal pension (including a SIPP) is already in place and personal contributions are being made when you leave the UK you can pay into it, to a maximum of GBP 3,600 gross, per tax year, for up to five years.
If you are moving with a UK employer and will remain contracted to them your employer may continue to contribute to your UK pension scheme.
There are many unscrupulous "advisers" (I prefer to call them salespeople) in the ME but there are also decent, ethical, qualified and experienced advisers. Avoid any very long term saving plans as too many salespeople push 20 and 25 year plans for the crazy levels of commission they pay.
Many thanks for your point
May I ask why are the contributions leveled to 3600?
Jul 20th 2016, 11:24 am
#7
Bored liberal
Joined: Feb 2007
Location: Over there ----->
Posts: 13,713
Re: pension in Qatar
It is possible to pay more than GBP 3,600 but there would be no tax relief and the pension provider is not obliged to accept a higher payment.
