Join our community of smart investors

'How will my UK DC pension be treated when I move to the US?'

The US/UK Income Tax Treaty can relieve UK pensions from some US tax provisions
September 11, 2023

At the end of the year, I will relocate to the United States, where I plan to spend the rest of my working career. I'm a US citizen and have worked in the UK for the past 15 years under my Irish passport. I've been contributing to a workplace defined-contribution (DC) pension scheme for 11 of those years.

What will happen to my UK pension when I move? If I retire in the US, will I have access to it and what will the tax implications be? Also, how can I maximise the value of this pension pot in the meantime and when I reach retirement? KC

Carol Hipwell, partner at EY Frank Hirth, says:

When you relocate to the US, your UK pension will not be lost or inaccessible. You will have the option of leaving your UK pension where it is, allowing it to continue growing until you reach retirement age. We are not aware of any option for transferring your UK pension to a qualified retirement account in the US, but you are likely to be able to transfer your pension to an alternative UK qualified pension plan with the assistance of a UK financial adviser.

This is subscriber only content
Start your trial to keep reading
PRINT AND DIGITAL trial

Get 12 weeks for £12
  • Essential access to the website and app
  • Magazine delivered every week
  • Investment ideas, tools and analysis
Have an account? Sign in