Safeguard future payments from UK private pension

I am in my 30s and worked for 10 years in the UK before moving to France, during which time I paid into a private pension scheme through my employer. Do I need to do anything to safeguard my future pension payments due from this contribution?  L.H.

30 May 2018
By Hugh MacDonald

It is not uncommon for some UK pension schemes to be set up with a charge for regular contributions. The issue here is that if you cease the regular contributions then the regular charge continues and so, evidently the value of your contract decreases over time.

So the first thing to do is to check with your pension provider to see whether these regular charges are being made despite the contract not receiving contributions.

If they are, it may be wise to look to change to another type of pension contract which is established more on the basis of single one-off premiums and which, therefore, does not have the inherent regular charge based on contributions being made.

However you would need to check that the costs of transferring to any new scheme would not be greater than those you would suffer on the current contract over its remaining life.

Reader's query answered by Hugh MacDonald

The Connexion welcomes queries and regularly publishes a selection with answers. However, please note that we cannot enter into individual correspondence on money topics. Queries may be edited for length and style. Due to the sensitive nature of topics we do not publish full names or addresses on these pages.

Send your financial query to news@connexionfrance.com 

The information here is of a general nature. You should not act or refrain from acting on it without taking professional advice on the specific facts of your case. No liability is accepted in respect of these articles. These articles are intended only as a general guide. Nothing herein constitutes actual financial advice.

 

 

Get news, views and information from France
You have 2 free subscriber articles left
Subscribe now to read unlimited articles and exclusive content
Already a subscriber? Log in now