Pensions question

[Collie 122]

Does anyone have any information regarding collecting UK pension while living in the US as a permanent resident/USC?

My parents are not at pension age just yet, but I want to make sure they will not lose their pension when they come to the US.

Also do they file a UK tax return while living in the US? I'm clueless as to how the UK works with regards to these issues.

Anyone have any info to offer?

[Kate52 5]

They will have to file a US tax return. They should check with their gov't regarding pension plan. I know when I leave Canada to move to the usa I will not receive as much from Canada (working under 40 years in Canada). USA social security does not pay as well as Canada. I have been told that if I come to Canada (visit etc for a few months) I should keep records as proof of my time in Canada - it will increase the amount I receive when I collect my pension.

[Owen_London 65]

To answer your questions: Yes, they can collect their UK pension(s) in the US. They will be liable for US tax on it, not UK tax, since they won't be tax resident in the UK.

You can collect the UK state pension in the US, providing you have contributed enough towards it. You can continue to contribute to it even after leaving the UK, and that's often a good idea.

There are all sorts of complications underlying that, such as the fact that the lump sum you are allowed to take at retirement is tax-free in the UK but taxable in the US, but that will do for the time being.