Retirement Planning

Take a moment and imagine that you can create your own retirement investment plan that is exempt from:

The Essential Guide to UK Overseas Pension Schemes

What overseas pension options are available?

There are several different types of overseas pension schemes available - including ROPS (or QROPS), QNUPS and even a SIPP.

If you have a UK pension and want to take full advantage of its potential a ROPS (or Recognised Overseas Pensions Scheme), may be the best option for you.

HM Revenue & Customs (HMRC) allows UK pensions to be transferred into a number of officially approved overseas schemes. It’s mainly used by expatriates, as it can have tax benefits and allows them to take complete control of their retirement money.

It’s easy to get a no obligation transfer valuation so you can get a view of how much your pension is worth and how it might benefit you by transferring to a recognised scheme.

Why transfer your UK pension overseas?

Simply put, overseas schemes often benefit from lower tax and are protected from inheritance tax. Larger tax free lump sums are also an attractive factor.

Many people choose them because the entire pension fund can be passed to beneficiaries - tax free.

Generally, overseas pensions transfers give people more control and flexibility with access to their funds anywhere in the world.

Consolidation

If you have several pension plans, each will be charging you trustee and other fees, a QROPS enables you to bring them all into one pot, making monitoring easier, and reducing overall fees.

LTA: Life Time Allowance

Pensions are subject to tax over a certain value – currently that allowance is £1m. However, when you transfer your pension to a recognised overseas scheme future growth of your fund above the UK lifetime allowance will not be subject to the excess tax charge.

This is often known as a ‘benefit crystallisation event’ or BCE and makes overseas pensions particularly attractive for those with assets valued near to or over the LTA amount.

Reconnect with your pension

You may have accumulated a significant fund or have a company with a defined benefit scheme which is offering attractive multiples if you transfer out its scheme. This is an opportunity for you to realise that value with a pension transfer and take control of your wealth in one place.

And once you've transferred your UK pension it will be free from future UK legislation changes. Furthermore, at the age of 55 you can withdraw your pension income in the currency of your choice with no FX costs.

Also, there is no requirement to take an annuity at any stage, thus enabling any unused monies to be passed to your beneficiaries.

Who can take out a ROPS scheme?

If you have worked in the UK, and contributed to a company or a private pension scheme, and are now no longer resident or are planning to leave the UK, you can apply for a ROPS

Getting the right advice

To get the best deal an experienced adviser is recommended to deal with ROPS (or a QROPS) as knowing the legislation in the country of residence of the client and the ROPS provider is essential.

What to do next?

If you have a UK pension fund or have already transferred to a QROPS it may be worth getting a fresh valuation to understand what it could be worth both now and in the future. You can take complete control of your money

Need to find a lost UK Pension?

Use this handy UK Government website link below to reconnect with your lost UK pension. Just add the required information including your National Insurance Number and you should be able to locate any forgotten UK pensions.

https://www.findpensioncontacts.service.gov.uk/

To find out more about how we can help you, simply leave your details and one of our advisors will arrange a time to talk or visit you.