Foreign pension fund - what should I do?

[Collie86]

Hi everyone,

I have a foreign pension fund with about 15K worth of savings because I worked overseas for many years (I'm a dual national, so this fund doesn't have anything to do with the UK so tax is not applicable). According to the laws of the country where the foreign fund is, I have 13.6 years of work until I can retire. I am 36 right now. I don't have a UK pension, but there is potential that I may start one soon.

I made a career change at 32 and it opened up new roles for me in the UK, so now I could earn more if I start working in the UK full time again.

The problem I'm facing right now is that it's difficult to get work where I am, it's a Middle Eastern country and they have a poor view of women in general, but other than that, I've found companies unstable here and I'm concerned that it will be difficult for me to complete those 13.6 years.

My question is should I continue adding to my current pension fund (try my best to find some work and trudge through the remaining years - it won't be easy given what I've seen already!) or should I leave the money where it is and start a UK pension fund and then take out the foreign pension money later on? I was thinking of putting it towards a house in future. Or maybe I can somehow add it to the UK fund? Not sure what to do.

My current savings are limited, so I also considered using the money to go back to the UK to start from scratch, but I feel like I will lose out by doing that if things ever change for whatever reason in future. For example, if I ever changed my mind and wanted to return.

Any advice is appreciated.

I think this is the sort of thing that needs expert (ie professional) help.

I worked abroad and have a foreign pension. I also have a UK pension.

My advice would be to start again in the UK as presumably you are young enough to get a decent pension by retirement age. I will be able to draw my overseas pension here to top up my UK pension when I retire but that may depend on where your foreign pension is based as I understand some countries have better reciprocal arrangements with the UK than others.

@Wildandwonderful Hi, thanks for the reply. I did look into the top up option and I think it's doable. I'm 36, is there still enough time to add enough to a UK pension? I've read that I'll require 35 years service - is this the general rule?

Thank you

I think the UK Pension rules are complicated, but I believe you can buy extra years if you need to down the line. You will get a pension even if you don't manage the full 35 years, it will just be a bit less and that's why I suggest you can top up with the foreign one.

Thank you @Wildandwonderful I'm looking into my options.

You can only buy years that you’re eligible. Working abroad won’t count.