LHUK

Hi All, this is my first post so sorry if this is in the wrong place or if this has been discussed already please direct me in the right direction if so.

My question relates to starting a pension when living overseas.

Im 31 and I have recently moved to Bahrain (Jan 2015), I don't have a private pension, and I just make the voluntary NI contributions.

Fortunately though, I am now starting to be able to put a little away each month and would like to put the money in to some sort of private pension scheme or the like.

A lot of the advice I'm reading refers to people who already have a UK SIPP and are seeking to transfer it, but I'm wanting to start from scratch.

My salary is paid in to my UK bank a/c, so I would ideally like something that I can invest in in sterling. I believe that to start putting my money in to a UK SIPP while living abroad brings no advantages because I'm considered non resident for tax purposes anyway... Right?

To be honest I'm a little bewildered by all the websites and info on pensions so I thought it would be worth asking on here if anyone had any advice before I just went straight to a financial advisor.

Thanks in advance.

john in oz

You will need to speak with a Uk Adviser - I have sent a POC for Matthew in the UK who will be able to assist you in this regard.

There is a minimum number of years required before you can get a part pension. Check with the state pension area to find out exactly how many years qualification you have and how many more are required. From there onwards it is a personal choice as to how much you wish to continue contributing towards it to boost your state pension.

The other alternative as you have mentioned is to start a separate fund and make contributions into it. Speak to matthew about your options.

I hope that helps.

Pulaski

There are two advantages to saving into SIPP even if you aren't getting tax deduction, firstly the funds can grow without tax on the rolled-up income they generate, and secondly you get bankruptcy protection - the funds are safe until you retire.

Beware of pensions advisors, there are some honest ones but also some real sharks out there, and be ESPECIALLY cautious about any that purport to be specialists in expat investing. There is one group (name sounds vaguely French ) that regularly trawls through LinkedIn looking for potential victims to suck the blood out of investors who need help with pensions and off-shore investments. Don't touch them with a barge pole - if every in doubt, Google the name and look for an excessive number of complaints and any press exposés.

In most cases you will do well, saving a lot of costs and getting a good return, with investments in a handful of index and general investment funds, concentrated somewhat on where you expect to retire, so perhaps 50% UK, 20% Europe, 20% US, 10% global. At 31 you should probably be mostly invested in equities, though a more conventional argument is 100-your age % invested in bonds. Personally I think that is a bit too conservative, and given the interest rate environment, which can only go up from where we are, hitting the value of bonds, equities are IMO a better bet.

john in oz

Yes agree with comments on the sharks out there. Any adviser outside regulated countries (ie Uk & Australia etc) should be approached with caution! They are generally not licenced, sell you anything that makes them a buck and you never have any legal safeguards should things go wrong.

Always use a Licenced insured Adviser in the Country that you are dealing with.

:-)

LHUK

Thanks for the advice guys!

LHUK

John, can you please resend me that message, I couldn't view it because I needed to have at least 3 posts in the forum.... this is my 3rd post!

Pulaski, Do you know of any SIPP providers that are prepared to deal with British Expats?

... Oh, and maybe I'm dense but what French sounding firm are you referring too? To be honest most of the websites I've looked at look dodgy in one way or another!

john in oz

No worries I will PM and email to you then.. :-)