Can I start a pension for my adult child who is working abroad (china)?

06 June 2021

Question by Keith

Can I start a pension for my adult child who is working abroad (china)?

Answered by Boring Money

Hi Keith

In theory, yes, you can, but this may not be easy in reality, and it depends on how long they have lived abroad. For the first five tax years, after the tax year in which they leave the UK, individuals with no relevant UK earnings can pay up to £2,880 into a personal pension scheme and receive 20% tax relief (£720 if they pay in the maximum). What would make this difficult would be to find a provider that would accept non-UK residents. Personal pension contracts are between the provider and the individual. Because of their regulatory requirements, many providers won't accept pension business for overseas residents - even if they have relevant UK earnings and, as a result, are relevant UK individuals and able to get tax relief on their contributions. If they already have an existing pension, it may be worth checking whether the provider would accept the contributions as a starting point. Otherwise, you can contact personal pension providers to find out if they will accept it (you can use the Boring Money comparisons to help you find personal pension providers).

I hope this helps


Answered by

Boring Money