How Advisory Firms Can Help With Expat Pension Transfer?

You have many things to worry about when moving abroad, but your pension should not be one of them. Working with an expat pension transfer specialist will make the process simpler and less stressful. Get in touch with a financial and pension advisory firm that has many years of extensive experience in helping their clients such as yourself make informed decisions on the best course of action to take. They can make a formal recommendation, whether you have an occupational or personal pension, a final salary or benefit, a SSAS or SIPP, or an unfunded scheme, and whether it comes with a guaranteed annuity rate, safeguarded rights, or enhancement.

The expat pension transfer expert will look into all sides of your financial situation and determine if the transfer is best for you. Their service usually starts with a complimentary initial investigation, so you do not have to worry about paying them anything until you agree to hire them to help you with your pension transfer. If you do decide to work with them, you can have access to a decisive and clear solution on what you should do with your pension. They will help build your confidence in their skills and ability to make the transfer successful and stress-free, with their impartial advice that is backed by nationwide compliance and technical support. This way, you can focus on other important aspects of your move, while leaving the guesswork to specialists.

An expat pension transfer ensures a seamless and simpler process, as the specialists can serve as your one-stop source for experts who can also enact the advice on your part. They will do their research on your pension schemes while considering your unique circumstances and objectives for retirement. A comprehensive report on the situation of your pension will be delivered to you, and it will cover analysis, the review of your schemes, recommendations, and reasoning behind their advice.

Everything You Need to Know About Transferring UK Pension to Canada

UK pension transfers for UK expats planning to live in Canada used to go through what is known as QROPS or Qualifying Recognised Overseas Pension Scheme (which later on became Canadian ROPS or Recognised Overseas Pension Scheme) or through another scheme set up in a different QROPS jurisdiction like Malta. Early in 2017, however, all Canadian QROPS were taken out of the ROPS list from HMRC, making UK pension transfer to Canada a lot trickier than it used to be.  It is no longer possible to transfer UK pension to a domiciled scheme in Canada, pension transfers have to go through a different path these days, that is the SIPP or International Self Invested Personal Pension, which is a lot similar in structure to a QROPS, where pension is established under a trust, except that it remains a UK scheme, which means your funds are not subject to the 25% overseas transfer charge as QROPS funds are.

If you are contemplating a UK pension transfer to Canada, it pays knowing what your options are so you can choose the best approach that can help you make the most out of your hard-earned retirement fund. An in International SIPP allows you to enjoy all the benefits of a Self-Invested Personal Pension without having to physically move your funds to your destination country. International SIPPs can provide very similar benefits as Recognised Overseas Pension Schemes, but with greater flexibility in many aspects such as in terms of how it can be invested.

When you choose to make a UK pension transfer to Canada through an international SIPP, you afford great advantages like the option to hold pension investments in dollars if you wish to do so. An SIPP also provides the flexibility in terms of lump sum and pension income withdrawals as well as the freedom from annuity or scheme pension from your existing UK scheme once transferred..

UK Pension for Expats: Why is it Needed?

Retiring abroad? It is possible to transfer UK pension for expats and move your pension pot to where you want to spend the rest of your retirement age. UK retirees with defined contribution pension can either move their pension abroad or leave it in the UK and take their money from abroad. Some choose to mix these options together, leaving one of their multiple pensions in the UK and then moving another abroad.

Pension providers in the UK do not typically pay money from a pensioner’s pot straight into an overseas account. If they do, charges may apply, depending on the provider. An alternative to this is asking your pension provider to deposit the pension into a bank account in the UK so you can withdraw the money using your debit card from elsewhere in the world or transfer the money into an account abroad. These, however, might still be subject to exchange rates and bank charges, so always check rates with banks and providers.

Moving UK pension for expats is also possible if you don’t want the trouble of multiple money transfers. To do this, however, you need to transfer your pension into a qualified pension scheme that meet the UK standards. Just the same, transferring your pension pot abroad will likely change the about that you will get upon retiring. Be sure to consult with your provider about these details whenever moving UK pension for expats.

Depending on your country of residence, you may have to pay tax (UK tax and tax in your country of residence) on your pension, unless the country you are living in has double taxation agreement, which will shield you from being taxed twice. Transferring your UK pension abroad can be a complex task to tackle on your own, which is why it pays seeking the aid of financial experts to help you smoothen out the process.

Blog Source URL: https://www.prismxpat.co.uk/blog/uk-pension-for-expats-why-is-it-needed/

QROPS UK Pension Transfers: Important Things You Should Know

QROPS, or the Qualifying Recognised Overseas Pension Scheme is one of the options available for expatriates, who are looking for their UK pension to be transferred overseas. A transfer to a QROPS can provide more flexibility and efficiency in tax planning as well as benefits related to currency hedging.

QROPS pension schemes which are recognized by the HMRC accept transfers of UK registered pension funds. This scheme allows those expats who have pension funds within the UK to transfer these across the borders, usually without any tax liability. A main condition to avoid excess taxation is that the QROPS is located within the European Union/ EEA for EU/EEA residents.

Once a transfer to a QROPS is undertaken, the transfer of the funds is measured against the Benefit Crystallisation Event 8 (BCE 8) for pension Lifetime Allowance (‘LTA’) purposes. The LTA from 6 April 2019 is £1.055m, increasing with inflation on an annual UK tax year basis thereafter. From the point that the transfer has completed, the QROPS funds are outside the UK’s LTA.  These funds, once invested post transfer, can hence grow according to your investment risk profile, without the risk of 25% - 55% taxes being levied otherwise through exceeding the UK pension LTA over time.

There are several other advantages of the QROPS scheme, such as flexible access to the funds, investment opportunities and many more. Contact an experienced investment specialist before planning your transfer of pension funds across the borders.

Blog Source URL: https://www.prismxpat.co.uk/blog/qrops-uk-pension-transfers-important-things-you-should-know/