Many UK expats live in different places around the world, such as Canada, South Africa, other European nations, Australia, and the like, but it can be said that a majority of UK expats live and work in the United States. Living and working in the US definitely has its perks, as you may already know if you are an expat in the country. But whilst it's one thing to enjoy your life in the US, it's another to be sure about your UK pension even whilst you are residing in another country. So what exactly can you expect when it comes to your UK pension if you are an expat in the USA? Here are the most critical facts you should know about your pension (and other important matters, like taxation) if you are a UK expat in the USA.

·Your UK pension

First of all, here’s one essential fact you should know: any pension which originates from the UK will be subject to taxation in either the UK or the US, whichever country has the higher tax rate due. But here’s another fact to keep in mind: if you are living in the US and you don’t spend much time in the UK, you can receive your UK pension without any deductions when it comes to taxes from the UK. This is due to the current treaty between the US and the UK, called the double taxation treaty, which benefits a lot of expats living in the United States and drawing a UK pension.

·Taxes in the US

Here’s another key point you should know when it comes to taxes in the US if you are a UK expat. The United States will only recognise investment providers, investments, and various insurance products if they are duly registered in the United States as well. If you have investments which are not regulated in the US, this will definitely come with taxes, so it’s best for you to seek help from an accountant regarding how to handle it.

The top factors you should consider

If you want to be very sure about your pension and investments as well as taxes in the United States, it would be a good idea to seek advice from qualified advisers – such as those who are regulated in the United States as well. It's also essential to do as much research as you can about tailor made pensions and investments if you are interested in such. One of the best and most effective things you can do for yourself is to acquire as much information as you can and get expert help from those who are knowledgeable and have ample experience about pension and investment regulations for expats in the USA. 

In addition to all these, you should think carefully not only about tax and efficiency, but also the costs related to these. If you are speaking with an adviser, make sure as well that they have an investment licence, and ask them if they work on a commission basis, as this makes a difference. You want an adviser to provide you with a solution that’s really the right fit for you, and not just a solution for the general populace. This is why it’s better to trust those who do not work on commission – rather, trust those who are duly licensed and have enough relevant experience who can get to know you and give you exactly what you require.

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