Aegon Pension Plan Transfer For Non-UK Residents
LEARNING OBJECTIVES
We’re passionate about providing high quality, relevant and up-to-date retirement information to British Expats around the world.
IN THIS ARTICLE, YOU WILL LEARN THE FOLLOWING:
How an Aegon pension works overseas
What the transfer process looks like
The best retirement accounts for British Expats
Important considerations when taking regulated advice
This article is intended for British expats who hold pension plans with Aegon.
Aegon has over 4 million customers in the UK and provides over 9000 employers with workplace pension schemes. As a result of being one of the major pension providers in the UK, thousands of expats still hold Aegon pension schemes.
In this article, we will assess the options available to you and cover key areas to consider.
Aegon Pension Scheme
If you live overseas and hold an Aegon pension plan, transferring out to a more suitable arrangement can be achieved both simply and securely.
Before proceeding, it's important to understand if a transfer is necessary. This will depend on both your Aegon pension policy and your requirements.
Newer Aegon company pensions will provide access to your pension, however it may not be in the manner you require. There can also be limited input regarding the fund allocation creating problems for your overall retirement planning strategy.
Aegon Pension Transfer
Upon deciding you want to transfer out of your Aegon scheme, there are two options available.
01 QROPS Qualifying Recognised Overseas Pension Scheme
This covers any pension scheme outside of the UK that is recognised by HMRC. For those residents within the European Economic Area EEA, a Maltese based solution is likely to suit best.
Malta has established tax treaties with more than 70 countries, enabling you to obtain pension gross of tax, and then declare it in your home country. For individuals living outside the EEA, a 25% Overseas Transfer Charge (OTC) will be imposed.
Moving your pension offshore is the more complex option with specific criteria needing to be met. It also brings in additional tax considerations. Whilst it can be done, it is rarely the most suitable solution.
02 International SIPP
A UK SIPP (Self Invested Personal Pension) built for non UK residents. In this instance, your pension pot doesn't leave the UK. This means that wherever your country of residence, this is a non taxable event.
By utilising an offshore investment platform within the SIPP, you retain the robust regulation and protection of the UK regulator, whilst gaining the benefits of an offshore investment product.
These include;
Flexi access draw-down - Control how often and when you make withdrawals. Be it regular income or ad-hoc amounts.
Tax efficient draw-down - By controlling the amount and timing of withdrawals, you can ensure you do not go into higher income tax brackets.
Receive income gross of UK tax - Subject to the country you live in having a tax treaty with the UK, by obtaining an NT code you can receive all pension income free of UK tax.
Ongoing management of your retirement savings - Work with a financial adviser who can manage your investments in line with your risk level and objectives.
Mitigate currency risk - Invest and withdraw in all major currencies
Wider investment choice - Gain access to an extensive range of multi-currency funds including low cost index trackers, mutual funds, listed shares, and Positive Impact ranges.
You can find an article assessing the best international SIPP providers here.
Aegon Pension Transfer Fees
There are no pension transfer fees or charges from Aegon. The only fees incurred can be dealing fees for dis-investing and banking charges for transferring money.
Nonetheless, the financial advisory firm you work with will charge a fee. Both International SIPP and QROPS providers will also have their setup and ongoing fees.
Aegon Red Flag Issues
Following the introduction of Government legislation in 2021 to combat pension fraud, new measures were introduced to help safeguard members from pension scams. This involves a traffic light system of green, amber and red flags.
Whilst the logic makes sense, and protecting pension savings must be a priority, this has resulted in several complaints for Aegon related to the refusal/red-flagging of pension transfers.
We have assisted many clients in this area so please get in touch if you are having difficulty. There is a process to follow involving scheduling a safeguarding appointment with Moneyhelper.
Expat Financial Advice
The Wealth Genesis is a specialist cross-border financial advisory firm. We help expats throughout the world with their financial planning needs. Via our Discovery meeting, we understand your individual circumstances and requirements. We can then advise on the best solution including pension scheme and investment allocation.
If you've encountered issues transferring your Aegon pension or want to discuss your pension fund as part of your overall retirement planning, contact us using the button below.
FAQs
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We charge a flat fee of £3000 and an ongoing management fee of 0.85%.
More information can be found here.
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Yes, with both an International SIPP and a QROPS, you can consolidate 2 or more UK pension schemes.
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Only under exceptional circumstances such as ill health. You would need to speak to Aegon directly on the matter.
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Yes, you will be able to withdraw your pension. Whether you have flexible access or need to encash the full amount will depend on the policy. You would need to contact Aegon to confirm the position.
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You can contact Aegon on +44 (0)3456 100 072
