For International Expats
UK Pension Transfers & Consolidation
Are you an expat with one or more UK pensions? Consolidating these into one place could reduce costs, increase growth, and make them easy to manage.
✓ Complimentary Initial Consultation
UK pensions are designed to be the main retirement asset for life-long savers in the UK. Once you move overseas and accumulate wider savings and investments, the UK’s default pension options are rarely optimal.
I often speak with expats who moved abroad, and forgot to ensure their UK pensions remained in best place to support their futures. The longer unsuitable investments are ignored, the larger problem will become.
Common Problems
UK Workplace Pensions & Personal Pensions
These pensions are often invested in ‘lifestyle strategies’ which default your assets into low growth investments as you age.
However with average life expectancy around 85, many people need to plan for a multi-decade retirement. So your assets need to keep growing.
Because of tax efficiencies it may make sense to access these pensions later in retirement, making high growth a priority for the long-term.
If you don’t understand how your pension is being invested for you, it’s crucial to have this reviewed.
UK Defined Benefit/Final Salary Schemes
Designed to provide a guaranteed income for life, final salary pensions are extremely valuable.
However they don’t offer the flexibility to choose how and when you spend your money. Making it harder to enjoy your wealth, whilst you’re still in the best health.
If something happens to you, it’s common that your spouse will only receive 50% of your final salary pension (compared to 100% in a private pension). Posing real risks to their standard of living.
If your final salary pension has a transfer value over £500,000, it’s worth investigating your alternatives.
Structuring your wealth for retirement, needs a co-ordinated approach.
The investment and saving choices you make, need to account for your total wealth.
With your pensions, investment accounts, and cash, working as part of a coordinated strategy.
Not individual accounts with sporadic investment choices around growth or income.
What pension transfer options do expats have?
Self Invested Personal Pensions (SIPP)
A SIPP is a UK-based pension scheme, suitable for both UK residents and non-residents, seeking investment flexibility.
A SIPP can help you access to a broad range of investments, including:
- Mutual Funds & Exchange Traded Funds
- UK and overseas company shares
- Real Estate Investment Trusts
- Fixed Interest Securities
- Investment Trusts
They’re a great solution for expats who want to choose not only how their pension is invested, but also how and when they spend it.
Most SIPPs allow you a choice of options to access your funds from age 55 (57 from 2028), including:
- A 25% tax-free lump sum.
- Flexi-Access or Capped Drawdown.
- UFPLS
Qualifying Recognised Overseas Pension Schemes (QROPS)
A QROPS is a scheme that meets standard set by HMRC, allowing UK expats to move their pensions to another country.
These are most suited to expats who intend to retire overseas permanently. QROPS benefits include:
- The ability to receive pension payments in most major currencies.
- Easy mitigation of double taxation for many countries, with your pension being taxed locally.
- Higher pension tax-free cash allowances than the UK (up to 30%).
- Depending on the jurisdiction, your scheme may offer Flexi-Access Drawdown or only Capped Drawdown.
- Relief from UK Inheritance Tax on pension assets.
Recent changes to the UK Overseas Transfer Charge means you’ll pay a 25% tax charge, if you transfer to a QROPS based in a different country to the one you live in.
Explore your options with financial modelling
As well as evaluating the investment choices, fees and access options of your existing pensions – we believe it’s important you understand how they fit into your bigger picture.
We’ll explore scenarios, not only about transferring or consolidating your pensions – but also different spending scenarios, and whether your wider wealth is optimally working for you.
Our Process
01
A no-obligation initial meeting designed for mutual awareness
02
Understanding your ideal future
03
Exploring how your wealth can best support you
04
Aligning your finances with the future you want
05
Continued support to keep things on-track
Arrange your initial consultation today
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