Publication date: 30.04.2025
3 years at the Ministry of Justice. 2 years as a Company Director. 1 year as Chief Legal Counsel at a municipal enterprise. Galina Moldovanova is an experienced lawyer providing professional legal assistance to Ukrainians and foreigners in the United Kingdom. She specializes in civil law, immigration, property registration, university admission, and legal residency support.
The Pension System in the UK: How to Protect Your Future
Galina Moldovanova helped a client navigate the UK's pension system and make informed financial decisions
Moving to the UK is not only a change of country but also a complete transformation of lifestyle, which includes adapting to new rules, legal requirements, and social standards. For many immigrants, one of the least understood but most crucial aspects is the pension system. How are future payments formed? What obligations does the employer have? How should one act when changing jobs or returning to their home country? These are all questions that cause confusion and require professional clarification. This was the very request a client made when they recently started working in England. The lawyer provided a detailed explanation of how the British pension system functions, clarified the differences between state and private pensions, helped analyze the employer's terms, and made a smart decision regarding further steps. Thanks to professional support, the client was able to make an informed financial decision that protects their interests in the long term.
Galina also explained the key differences between state pension payments (State Pension) and private pension savings (Workplace Pension and Personal Pension), highlighting how factors such as work history, income level, and the duration of legal stay in the country affect the size of future pensions. She paid special attention to the automatic enrollment in workplace pension schemes, the possibility of opting out, and the tax advantages of participating in such schemes. Thanks to clear explanations, the client not only gained confidence in their financial future but also realized how to correctly build their pension plan, even if their stay in the UK is not permanent.
Key Steps Toward Financial Security:
- Analysis of the client's current situation: status, contract type, salary
- Explanation of the basics of the pension system (State Pension, Workplace Pension, Personal Pension)
- Calculation of potential pension payments based on different scenarios
- Comparison of saving options: participation in workplace pension vs. individual schemes
- Consultation on the benefits of additional savings through a saving account
- Studying the withdrawal terms when leaving the UK
- Assistance with registration in a workplace pension through the employer
- Support in opening an individual savings account
- Choosing the right bank or financial institution for long-term investments
- Recommendations for fixed and variable pension schemes
- Evaluation of risks when choosing a private pension plan
- Clarification of employees' rights regarding pension payments
- Checking for double taxation and its avoidance
- Studying international pension agreements between the UK and Ukraine
- Planning future contributions based on income and age
- Providing templates for contacting employers and pension funds
- Explaining the consequences of missing contributions
- Instructions for online access to the pension account
- Ongoing support throughout the registration and setup process
- Post-consultation support and answers to additional questions
Common Pension-related Questions Immigrants Have in the UK:
- Uncertainty about how the pension system works
- Unclear understanding of employer and employee contributions
- Not knowing if they need to save additionally and how to do so safely
- Worries about savings "disappearing" if they return to their home country
- Lack of understanding of the difference between state, workplace, and private pensions
- Not having access to their pension account
- Doubts about whether it's worth starting pension savings with a low income
- Looking for the best ways to invest long-term
Key Points:
Pension Scheme Overview: A detailed breakdown of state, corporate, and personal pension models.
Optimizing Contributions: Consultation on increasing contributions, tax benefits, and long-term advantages.
International Mobility: Explanation of how to preserve savings when returning to Ukraine or moving to another country.
Question
Is it mandatory to join a workplace pension?
Answer
Yes, for most employees, enrollment is automatic, but you can opt out. However, this will result in losing employer contributions
Question
What happens to pension savings if I return to Ukraine?
Answer
Your funds remain in the system and can be accessed once you reach pension age. There are ways to transfer or consolidate, but each case requires legal consultation.
The UK pension system is a multi-layered framework that works to the benefit of the employee, provided it is understood and used correctly. It is important not only to understand the features of state, corporate, and private pension schemes but also to understand how your participation in them can impact future payments. Without proper awareness, one can miss out on beneficial contributions, tax advantages, or make mistakes in choosing a savings scheme, which can lead to reduced future income and financial security.
Galina Moldovanova helps clients not only understand this complex process but also optimally use the system's opportunities to create a stable financial foundation. Thanks to her support, the client not only joined the workplace pension program but also opened additional savings accounts, selected the right savings scheme, and learned about tax benefits that could improve their financial position in the future.
A professional consultation with a lawyer experienced in UK law is not just an explanation of the complex nuances of legislation but a real tool that protects your rights, time, and money. It is especially important to understand how pension savings can be transferred or consolidated when moving to other countries, as well as the tax implications that may arise in such cases. Legal support and financial literacy are not just assistance in making the right decisions but an investment in your financial future, confidence, and stability. The earlier you start understanding pension matters, the fewer risks there will be for your well-being in the long run.
