Many people who come to the UK to settle eventually set up a home, pension and private insurance policies such as health here. What these people fail to realise is that if they have intentions to relocate to their country of origin, what happens to all these policies? In most cases if you have a private pension, you shouldn’t have too much trouble transferring the pension to the country you wish to retire in. All policies and banks have their own rules, as does HMRC so be sure to check about any tax that you may have to pay upon retirement in another country.
Can you transfer NHS pension to another country?
There are many health professionals who have relocated to the UK due to a better salary and because the NHS pension scheme is one of the best and sought after, they opt in for financial security when retiring. There are as many more foreign nationals in the NHS today than there were 20 years ago but many of them are now of retiring age.
A NHS pension can be paid to certain overseas countries and when the pension is transferred, the money paid is shown in the foreign currency of the country. There is usually no charge for this but with some banks they may levy a small handling fee and if you do decide to relocate to another country, you should contact the Pension Officer to discuss this. For those who cannot have their NHS pension paid directly to their bank account abroad, it is advisable to leave an account open in the UK and transfer the money through internet banking. You must be a UK citizen and pay taxes even if you are not really residing in the UK but with pension policies and fraud on the rise pension providers are tightening the rules.
If you are moving to an EU country, then the chances of receiving your NHS pension is more likely to be available. If not, there are a few options available. You could have a Nationwide account that the pension is paid into and withdraw it for free. This is very handy for many people as there are no penalties or transferring fees involved.