UK Pension Drama: What Expats Need to Know Before It's Too Late

Moving Abroad Resources:

👉 Moving Abroad Relocation Roadmap Guidebook that walks you through the five phases of moving abroad ($27): https://www.entrepreneurexpat.com/relocate

👉 Moving Abroad Relocation Blueprint Course which offers step by step guidance on everything from choosing the right country to immigration to taxes and everything in between: https://www.entrepreneurexpat.com/blueprint

👉 Want us to handle the details of your move abroad? Apply for our white-glove relocation services here: https://www.entrepreneurexpat.com/consult

👉 Free Moving to Mexico Guide: https://www.entrepreneurexpat.com/mexico

👉 Free Moving Abroad Checklist: https://www.entrepreneurexpat.com/abroad 

Remote Work and Online Income Resources:

👉 Expat Income Accelerator course which shows you the multiple ways you can make money globally based on our 15+ years of experience in online business, investing internationally and living in multiple countries: https://www.entrepreneurexpat.com/income

👉 Get Your First High Paying Client Online Bootcamp which walks you through the first four foundational steps of creating and monetizing an online business based on 15+ years of experience in online business: https://www.entrepreneurexpat.com/firstclient-yt

👉 YouTube Mastery Workshop which shows you how we’ve built two YouTube channels that bring clients and passive income from digital course sales (including turning Entrepreneur Expat into a six-figure business in six months): https://www.YouTubeMasteryWorkshop.com

👉LinkedIn Mastery Workshop which shows you how to use LinkedIn to find remote work, clients and connect with recruiters based on Justin’s experience building a six-figure business and finding remote work on LinkedIn: https://www.entrepreneurexpat.com/linkedin

👉 Free Make Money From Anywhere Guide: https://www.entrepreneurexpat.com/money-guide 

V I D E O S    T O    W A T C H    N E X T :


Online Business Tips to Working and Traveling In Mexico: https://www.youtube.com/watch?v=9zGH0voCyOc&list=PLh3xKhkMgH_IA6s3KvB_g9Cc9Ze1eji8j&index=2

Moving to Mexico: 10 Reasons Why We Chose to Live in Guadalajara https://www.youtube.com/watch?v=dK23vD8_xjc&list=PLh3xKhkMgH_LAY7UV78YMgms-f2e1UcwN&index=23

Tips for Moving Overseas: Top 5 Remote Work Skills That Make Money: https://www.youtube.com/watch?v=bFzjCrlNAL8&list=PLh3xKhkMgH_IA6s3KvB_g9Cc9Ze1eji8j


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Disclaimer: The information in this video should not be considered tax, financial, investment, or any kind of professional advice. Only a professional diagnosis of your specific situation can determine which strategies are appropriate for your needs. Entrepreneur Expat can and does not provide advice unless/until engaged by you.  

Transcript

Speaker: 0:36

If you're a UK entrepreneur or other professional considering moving abroad, things are really starting to shake up, and in this video we're gonna talk about why you may want to consider moving your timeline up and even perhaps doing a little bit of better planning for your retirement. As of the middle of November, 2025, the government is signaling a major pension tax shakeup, and it really could change your relocation playbook and also your entire planning strategy, the UK pension incentives are becoming increasingly unpredictable. So your move abroad isn't just about lifestyle, it's about protecting your retirement and your tax base too. What we're gonna cover in this video are the key announcements with dates, why they matter before you become an expat, and what you can actually do now. For those of you that are new to this channel, my name is Justin Keltner, and this is Entrepreneur Expat. Here we talk about all of the different geopolitical issues around the world affecting expats and aspiring expats, including what a lot of countries are doing these days that are just pushing their citizens over the edge and getting them to say, Hey, maybe. There's a better place for me. Maybe there's a better country for me, and maybe you even end up relocating to somewhere like beautiful Mexico here where my wife and I currently live. There really is greener grass on the other side. If that's something that you're interested in learning more about, and especially if you're running. Business right now, or you're looking to run a business that can work from anywhere. Hit that subscribe button and that notification bell because we have multiple videos coming out and podcast episodes coming out every single week, and we can help you along that journey. In addition, if you're a high net worth individual with a million dollars or more in assets, you definitely wanna book a consultation with our team so that we can tell you the best countries to relocate to how that's gonna affect your tax and wealth planning, as well as help you throughout the entire process of getting a visa. If you're ready to make that step, you can find that consult@entrepreneurexpat.com. Slash consult One more favor, because it's really important. Please give this video a thumbs up because it helps us out a ton with our mission of reaching a million entrepreneur expats and aspiring expats. Now let's jump into what's been announced here and when. So on Monday, November 10th, 2025. At approximately 5:00 PM UK time, Rachel Reeves, the chancellor was reported by Sky News to be preparing to cap the tax free salary sacrifice pension contributions at 2000 pounds per year. Any amount beyond that would attract the standard national insurance contributions of 8% for income under 50,000 pounds or 2% for income above for that employee. Now, shortly thereafter, the Times published an analysis showing that if this cap is introduced, a 30 5-year-old earning a hundred thousand pounds today could see their pension pot be 49,682 pounds smaller by age 65 earlier. Speculation flagged other implications. For example, average earners could lose. 210 to 240 pounds annually through that extra ni under the proposed changes. The date to watch is coming very soon here, actually, which is the UK's autumn budget, which is due on November 26th, which may have already. We've gone through by the time you're watching this video and during that autumn budget, the there are going to be formal legislative proposals announced. So we're gonna hear if this actually materializes or not, and I certainly hope that it doesn't. I think what's going on in the UK right now is that there so many millionaires and billionaires, like I've talked about in my other videos on this channel that are leaving the UK in fact, that are leaving a lot of high tax. High regulation countries, including countries in the EU as well as the US and Canada, that now they're just starting to tighten down on everybody else that's left. And this could be. Affecting you very soon. An additional longer term change is that from April 6th, 2027, unused defined contribution pension funds may fall within inheritance tax or the IHT scope. Signaling further pension task risk. And here is why this matters. It's not just theoretical anymore, guys. These are proposed changes with dates now attached. They keep telling you that they want to take more and more of your money, and guess what? They keep doing it. So for those planning to go abroad. Their UK pension assumptions may now be a lot less stable, especially if you were thinking, you know what? I'm just gonna live abroad and rely on that Pension. Well, might not be as strong of a pension as you thought it was, and the timing of your, your relocation and your pension strategy now really matters more than ever, and here's why. So if you're planning to relocate, rather than you've already relocated, you still have options. But you must include the UK pension and tax risk in your decision. The cap at 2000 pounds per year means higher earners could face smaller employer pension contributions. Since employers might want to offset extra in I, which directly impacts your retirement pot, that 49,000 and some change pound loss figure means based on modeling if the salary sacrifice is capped at 2000 pounds and someone earning. A hundred thousand pounds today continues until retirement at 65. Their total pot compounded, like I mentioned, will be over 49,000 pounds less than under current rules. Of course, that's an estimate. It's not a guarantee. But for someone relocating your UK pension might have been a big pillar of your plan. Now it might be a weaker or less reliable pillar, And that creates a little bit of relocation risk. So you're really going to need to reassess things. You're gonna need to look at your diversification, your tax residency, and your business and investment structuring abroad, especially if you have a business. And if you make the move after the budget passes, which is around the 26th of November just coming up, the environment may be even less favorable. If you act before key legislative changes, you preserve a little bit more flexibility. You obviously want to consult with your. Tax advisor. We do also have professionals on our team that we work with that have experience in multi-country tax law and planning and visas and so much more. So if you are a high net worth individual with a million dollars or more in assets, definitely use the link below this video, which is entrepreneur expat.com/consult, and we can definitely. Take a look at your plan, see where the holes in it might be, and figure out what the next moves for you could be and how to perhaps improve what you're already planning on doing. So here are some pre-PA steps that you can take. So number one, you wanna audit your UK pension exposure. Now identify how much you have in UK employer or personal pensions, how much is via the salary sacrifice scheme and what tax relief you currently get. And then of course, estimate how these might change with this new cap. Step two, relocation timing and tax residency check. So decide when you'll relocate and how that intersects with, with the budget date, the 26th of November. Consider if you'll be a UK tax resident after the move, which country will you become a resident in, if not, and what are their tax and pension rules? Then step three, diversify your retirement savings. So don't just rely solely on UK pension vehicles. Look at offshore investment programs, real estate in Mexico or Latin America as an income stream, business income in favorable jurisdictions and tax efficient vehicles abroad. This obviously is not particular investment advice. I don't know you and, and we can't give specific investment advice, but what Amanda and I are doing here in Mexico is we've got money invested in all sorts of different types of funds and fintechs and things like that. And we're getting returns all the way from 10% up to close to 18% per year. Compare that with a measly few percent in the us for example, where we're from. You can see very obviously that there's a lot of really cool opportunities abroad for investment that perhaps are going to give you a lot more than the traditional. Vehicles or the pensions that you're currently involved in. Step four, you wanna look at your business structure and income strategy. So as an entrepreneur, expat, maybe you're generating business or freelance income, you wanna structure it so that you're not entirely dependent. On employer pensions if perhaps you're semi-retired or on UK tax reliefs, which kind of sounds like a joke. Tax reliefs. Yeah. That UK is not relieving anybody's taxes. Um, I hear y'all have to pay for a TV license there too. There's been some interesting stuff on, on, uh, Facebook and Instagram reels about, you know, people getting in trouble for not having a TV license. It's like, Jesus, man, you, you bought the damn tv. Like, why do you need to license it if you're using it? It, it's, it's, it's crazy. It's, they're really cracking down on people. Step five, monitor policy and act early. Because this is still a proposal, you may have a window to make changes to your plans. However, once changes are actually law options may, may shrink. So set alerts, speak with tax and pension advisors. Contact our team so that we can look at how your relocation strategy. The different countries you may be planning on moving to can potentially affect what's going on and how it relates to things going on with your UK taxes and pension, and of course, update your relocation plans based on good, new and current. Information, and a bonus tip is if you're moving to Mexico or Latin America especially, check different treaties if they exist, currency risk, and then other local pension and tax treatment and how those countries consider those payments. Often there are actually benefits if you do become a resident abroad, and if you structure it. Properly. So the UK is really eyeing reforms to pension tax relief, especially the salary sacrifice method that was announced in beginning to middle November, 2025. And your relocation future should really factor this in right now. Your plans should really factor these changes in if you are from. The UK now, if you would like help building a relocation and pension and tax strategy that uses this, this, and other policy shifts to your advantage, then apply for a free consult with us@entrepreneurexpat.com slash consult. And don't forget to subscribe for more content on expat business, relocation planning, tax strategy, and more, especially for life in Mexico and Latin America. Your future abroad is not just about where you're going to live, it's about how you will structure your financial freedom. Let's get ahead of what's coming. Thank you so much for being a part of our community, and we'll see you again very, very soon.