Retirement fund options in the UK

Old Jan 5th 2017, 7:25 pm
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Default Retirement fund options in the UK

I am getting rental income in the UK, and the exchange rate is not good. Has anyone found a worthwhile option for adding to a retirement fund. I believe you can only add to a personal pension if you are resident and may have tax implications.

Just wondering what other people have done
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Old Jan 6th 2017, 12:03 pm
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Default Re: Retirement fund options in the UK

Thinking it through:

I guess that your UK rental income is taxable in the USA where you are resident, not the UK. (This was the case for my UK rental income when I was resident in Canada). I think this means that if you pay the money into a UK pension fund you will not get tax relief, so there isn't much point in doing so.

But there is nothing to stop you investing the money in other UK funds, bearing in mind that you will still have to pay tax in the USA on the rental income itself and any interest earned.
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Old Jan 6th 2017, 1:33 pm
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Default Re: Retirement fund options in the UK

Originally Posted by Editha View Post
Thinking it through:

I guess that your UK rental income is taxable in the USA where you are resident, not the UK. (This was the case for my UK rental income when I was resident in Canada). I think this means that if you pay the money into a UK pension fund you will not get tax relief, so there isn't much point in doing so.

But there is nothing to stop you investing the money in other UK funds, bearing in mind that you will still have to pay tax in the USA on the rental income itself and any interest earned.
Yes, I am paying US taxes on the income. I could increase 401k contributions, but I was trying to find a way of getting around the low value of the pound

I haven't found many UK fund options in the US. Buying UK stocks in the UK is a US tax headache.

Maybe buy some lotto tickets , not sure if that's an option being a non resident.

Last edited by mrken30; Jan 6th 2017 at 2:16 pm.
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Old Jan 6th 2017, 3:04 pm
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Default Re: Retirement fund options in the UK

Ha Ha.

Presumably you have a UK bank account. Look into what they offer in the way of savings accounts, or even interest bearing current accounts.
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Old Jan 6th 2017, 3:15 pm
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Default Re: Retirement fund options in the UK

yes, they recently reduced the rates to 0.05% and I thought US interest rates were low. It wasn't so bad when it was 0.5%.
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Old Jan 6th 2017, 6:37 pm
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Default Re: Retirement fund options in the UK

Spreading your cash across different accounts and keeping below the threshold will get you between 3 - 5%:
Savings accounts: 5% easy access or up to 2.01% fixed
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Old Jan 6th 2017, 6:46 pm
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Default Re: Retirement fund options in the UK

Originally Posted by vikingsail View Post
Spreading your cash across different accounts and keeping below the threshold will get you between 3 - 5%:
Savings accounts: 5% easy access or up to 2.01% fixed
It's very difficult to or impossible to open new accounts as a non resident.
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Old Jan 7th 2017, 2:14 pm
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Default Re: Retirement fund options in the UK

Originally Posted by vikingsail View Post
Spreading your cash across different accounts and keeping below the threshold will get you between 3 - 5%:
Savings accounts: 5% easy access or up to 2.01% fixed
That's what I do. OH and I have savings spread across 15 different interest earning current accounts and a dozen monthly savers. But it would be impossible to do from abroad. Plus you damage your credit rating by opening so many accounts. That doesn't matter to oldies like us, because we have no mortgage or need to borrow, but it isn't a good idea if you might need a mortgage or a loan.
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Old Jan 7th 2017, 7:21 pm
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Default Re: Retirement fund options in the UK

It is awkward.
MrBEVS has a bit of UK sterling in the UK after his Mum passed away last year but the exchange rate is so poor we are loathe to bring it over. Yet he has no way to put it anywhere where it might earn a little interest so it just sits in a band a/c doing nothing.
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Old Jan 7th 2017, 9:12 pm
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Default Re: Retirement fund options in the UK

Premium bonds? I don't think there is any bar on holding them if you are outside the UK.
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Old Jan 8th 2017, 1:40 am
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Default Re: Retirement fund options in the UK

Originally Posted by Editha View Post
Premium bonds? I don't think there is any bar on holding them if you are outside the UK.
The US does not allow people to hold premium bonds. I did however find this list of UK ETFs, now I just need to find if any US IRAs hold any of these ETFs

United Kingdom ETF List, Screener & News | ETF.com

My Fidelity IRA lets me buy EWU funds. I am thinking this will at least keep inline ish with the UK pound. Similar to investing in a UK pension fund.

Last edited by mrken30; Jan 8th 2017 at 2:05 am.
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Old Jan 8th 2017, 2:05 am
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Default Re: Retirement fund options in the UK

I don't understand how the US could stop people holding UK premium bonds. How does it enforce this?
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Old Jan 8th 2017, 4:58 am
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Default Re: Retirement fund options in the UK

Originally Posted by Editha View Post
I don't understand how the US could stop people holding UK premium bonds. How does it enforce this?
If you inform NS&I you are living or moving to the US, they will request that you close your account.
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Old Jan 8th 2017, 3:34 pm
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Default Re: Retirement fund options in the UK

Originally Posted by mrken30 View Post
If you inform NS&I you are living or moving to the US, they will request that you close your account.
FYI

https://www.nsandi.com/i-live-outsid...nvest-with-nsi
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Old Jan 8th 2017, 3:35 pm
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Default Re: Retirement fund options in the UK

Originally Posted by Editha View Post
I don't understand how the US could stop people holding UK premium bonds. How does it enforce this?c
When I moved to US in 1992 I already had Premium Bonds and changed my address to US one.
The first mailing that came to US from NS&I had a US Postal sticker attached saying that it is illegal to have gambling materials sent through US Post.
I dont recall if the envelope had anything on it to indicate source or contents and if not how they could otherwise know, but they did.

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