- If you pay in, your employer also pays in.
- No tax is taken on the contributions, so you receive all of the value paid into your pension account.
- Once you have left Guernsey and remain away from the island for more than 2 years, you can request a lump sum payment if the value is under £15,000.
- If you pass away, your pension funds are paid to your chosen beneficiaries – you do not lose what you have paid in.
Guernsey relies upon an international workforce that in some cases may be working here on a short term basis.
- Secondary Pensions still provides you with a fantastic opportunity and platform to help save for your future, even if it is for the short term.
- If you opt in, you get the benefit of your employer’s contributions, so you’re as good as doubling your money!
- It’s tax-efficient. So if you pay in £50 from your wages, £50 gets paid into your pension account. No tax is taken, unlike in most cases where your wages are paid to you directly and you will pay tax.
- You gain access to cost-effective managed investments that you wouldn’t be able to access directly.
So, it can still be worthwhile paying in to a Guernsey Secondary Pensions scheme, even if you’re only going to be working on the island for a short period of time. The good news is that there are options available should you leave the island and have a Member Account within YIP, including the option to transfer to another pension in your home country (if possible) and, in certain circumstances, to have the pension paid to you as a lump sum. In order to have the pension paid to you, you need to have been non-resident for two consecutive calendar years and have less than £15,000 in your Member Account. It may also be possible to have a return of the value of your employee contributions paid to you, if your account value is higher than £15,000 and you have been non-resident for two consecutive calendar years. Importantly, it is worth saving as you will get money back. So your time in Guernsey can potentially help provide you with a nice nest egg once you are home. For further information please visit yip.gg or contact yip@sovereigngroup.com.