Pensions and NI Contributions for 20 something

[RaTBoX 1]

As much as it pains me to say it, I'll admit it. I don't really know anything about pensions, specifically company pensions

I know that my NI contributions attribute to my state pension at retirement, but other than that it's a blank area to me.

I don't know how they work, I don't know what happens to my money that I am paying in, and I don't know how it impacts any state pension.

Also, since I am leaving, I don't know what I should really be doing about the money I have in a fund at the moment or the NI contributions I have made.

In the past, when I have looked into the subject, I've seen posts by people saying that continuing the NI contributions from abroad is only worth while if you're coming up to retirement age.

I'm almost 25. I have been working full time since I was 18, and paying NI contributions. Since I was 18, I have also being paying into a company pension fund. To date, that fund has in it just over £5,300.

I enquired with the company who manages the pension if it was possible to take the money out of the fund, and was told this was not possible.

My questions I have, to try and get some better understanding of this whole area, is what should I be aiming to do with the pension fund I have in the UK?

Should I leave it where it is? If I do this, will it ever increase in value? (I'll not be working for that company any more). What happens when I come to retire? (assuming I am still living in USA) Is it possible to transfer into a fund in USA with the new employer? Is this wise?

What happens when I retire in terms of my UK state pension? Going by current rules, would I still be entitled to one being a British citizen? Does dual nationality have any impact on my eligibility for it?

Does the USA have a form of state pension? Do you have to be a citizen to be awarded this if it does exist?

What options are there for my NI contributions? Should I keep paying them, given my age and the long time I have before I reach retirement age.

Sorry it's a whole lump of questions, but I am having trouble mapping the information I am finding on this forum and others to my own circumstances given my age and that I've been paying into a fund since the age of 18.

Any help, or points in the right direction are truly appreciated.

[elmcitymaven 9,712]

As much as it pains me to say it, I'll admit it. I don't really know anything about pensions, specifically company pensions

I know that my NI contributions attribute to my state pension at retirement, but other than that it's a blank area to me.

I don't know how they work, I don't know what happens to my money that I am paying in, and I don't know how it impacts any state pension.

Also, since I am leaving, I don't know what I should really be doing about the money I have in a fund at the moment or the NI contributions I have made.

In the past, when I have looked into the subject, I've seen posts by people saying that continuing the NI contributions from abroad is only worth while if you're coming up to retirement age.

I'm almost 25. I have been working full time since I was 18, and paying NI contributions. Since I was 18, I have also being paying into a company pension fund. To date, that fund has in it just over £5,300.

I enquired with the company who manages the pension if it was possible to take the money out of the fund, and was told this was not possible.

My questions I have, to try and get some better understanding of this whole area, is what should I be aiming to do with the pension fund I have in the UK?

Should I leave it where it is? If I do this, will it ever increase in value? (I'll not be working for that company any more). What happens when I come to retire? (assuming I am still living in USA) Is it possible to transfer into a fund in USA with the new employer? Is this wise?

What happens when I retire in terms of my UK state pension? Going by current rules, would I still be entitled to one being a British citizen? Does dual nationality have any impact on my eligibility for it?

Does the USA have a form of state pension? Do you have to be a citizen to be awarded this if it does exist?

What options are there for my NI contributions? Should I keep paying them, given my age and the long time I have before I reach retirement age.

Sorry it's a whole lump of questions, but I am having trouble mapping the information I am finding on this forum and others to my own circumstances given my age and that I've been paying into a fund since the age of 18.

Any help, or points in the right direction are truly appreciated.

I work for a large pension fund -- I'll ask on Monday if that helps with the private aspect. I know that after a certain period of time (depends on the company) you can't draw down the funds in a lump sum. But if your HR department can't tell you the full info they are just being lazy. They should be able to put you in touch with someone who can tell you -- think of all those people in your company who moved to Spain or France. There is an easy answer, but as you're 25 they can't be bothered. Be persistent!

[RaTBoX 1]

I work for a large pension fund -- I'll ask on Monday if that helps with the private aspect. I know that after a certain period of time (depends on the company) you can't draw down the funds in a lump sum. But if your HR department can't tell you the full info they are just being lazy. They should be able to put you in touch with someone who can tell you -- think of all those people in your company who moved to Spain or France. There is an easy answer, but as you're 25 they can't be bothered. Be persistent!

When I spoke to the company who manages my pension on behalf of my employer, I was told it was not possible to draw the money out before retirement age as a lump sum, which is all I asked them about. They said I had to leave it in the fund, or transfer it to one in the USA. However, due to legal reasons, they were not able to advise on the best course of action.

[Mark&Steph 0]

to receive the full state pension, you have to (or used to have to a couple of years ago) have 44 years (for a guy) worth of NI contributions. Any less than that, you'll get a percentage, and below a certain amount, nothing. In the UK, that'd be fine as you'd get pension credit (like income support) but not living in the country, you'd not be entitled to that.

Anything more detailed than that, I'm hazy. I think I can remember, but I don't want to tell you what might be bad advice.

The best thing to do regarding your state pension entitlement/ni contributions is contact the pension service. I know they have some kind of social security link with other countries, and I think the US is one of them.

http://www.thepensionservice.gov.uk/home.asp

[Lansbury 19]

The NI Pension is quite complicated as you are moving to the USA. That is because like tax there is a reciprocal agreement. I am not too sure on the details as I am now retired myself and while not old enough to draw my UK State pension I have paid into it for long enough to qualify for the full amount I will just be drawing from the UK one.

Very basically and you will need to research this on the NI web site it should be possible for you to link the UK and US social security entitlements together and receive your "pension" in the US. I assume that as you are 25 you will work in the US and pay into that system.

Sorry I can't give more details but as it was something which didn't effect me I didn't research it very far.

[wannabe_texan 0]

There's more info on this page including a leaflet (scroll down the page) Social Security Agreements. At least it gives the contact details etc of where to get in touch

[RaTBoX 1]

There's more info on this page including a leaflet (scroll down the page) Social Security Agreements. At least it gives the contact details etc of where to get in touch

Heh, I work on the Longbenton government site, maybe I'll stroll across to the NI Contributions office and have a chat with them.