Moving to Florida – pensions in Florida
If you plan on moving to Florida then you should begin the process of making the necessary changes to pension arrangements as soon as possible. You are still able to claim UK state pensions in Florida although there is much involved in effective pensions planning. Even if you are not retired or even approaching retirement age there are factors concerning pensions which you must think about when buying Florida real estate.
Pensions in Florida – drawing UK pensions after moving to Florida
Due to an agreement between the governments of the UK and US you are able to claim your UK state pensions in Florida. Also, if you buy Florida real estate and move there you will still receive annual increases to pensions in Florida. This is not the case in all countries and the pension is frozen at the level when you left Britain.
After buying Florida real estate and moving abroad you will still be able to make voluntary contributions to the UK NI system. This would entitle you to receive full UK state pensions in Florida when you retire.
Personal and company pensions can generally be paid anywhere but some firms will only pay into UK banks. This would mean paying to transfer the pension overseas into local money and exposing yourself to major currency risk. For this reason you should check the details of the scheme before moving to Florida.
What to do after buying Florida real estate
There are a few things you need to do regarding pensions before moving to Florida. Firstly, you should contact the Pensions Service to advise them you will be moving to Florida. You can write to them at:
DWP
International Pension Centre
Longbenton
Newcastle upon Tyne
NE98 1BA
Tel: 0191 218 7777
You should also check out the situation with regards to any personal or occupational pensions you might have after buying Florida real estate. You should then speak to a professional financial advisor before moving to Florida.
Other points regarding pensions in Florida
When you buy Florida real estate your worldwide income, including pensions, is subject to taxation. Even tax-free lump sums in the UK become taxable after moving to Florida but the situation is not as grave as it may appear and can often be avoided. UK state pensions are liable to tax overseas but not in the UK.
If you are still working after moving to Florida you may need to make contributions to the US social security system. There are ways to minimise the portion of pensions in Florida liable to tax. This requires careful planning and you should seek advice on this matter if buying Florida real estate.
