Transfer Aviva Pension as a Non-UK Resident
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 Aviva pensions work abroad
The process of transferring your Aviva pension pot
The best retirement options for Expats
Important questions to ask your provider
If you no longer live in the UK and have an Aviva pension, you have likely considered transferring to a more suitable scheme.
Transferring a pension from Aviva for a non-UK resident involves several steps and considerations. It's important to note that pension regulations and tax implications can vary depending on the country of residence and the specific pension scheme.
Aviva Pension Schemes for UK Residents
As one of the largest life insurance and pension providers in the UK, Aviva has many types of pensions. These include old legacy workplace pension schemes which fall under defined contribution and contract pensions.
If you were a member of a Group Personal Pension (GPP) your pension pot will have been built up with the help of your employer.
Another option is your company pension scheme was set up on a master trust, such as the Aviva Master Trust. The difference mainly relates to tax relief when making contributions and how the scheme is operated.
Or perhaps you have a SIPP Self Invested Personal Pension which you manage directly.
These are all UK Pension Plans that can be moved to a better suited scheme when leaving the UK.
Aviva Pension Transfer for Expats
If you plan to return to the UK in the short term, such as 1 - 2 years, it is usually best to leave your pension pot where it is. However, if you are no longer a resident in the UK, and intend to stay overseas for the foreseeable future and/or retire, a transfer should be considered.
The starting point is your individual circumstances such as country of residency, income requirements, and objectives for the pension funds.
You also need to confirm what you can and can't do with your existing Aviva Pension Policy. Below are some of the questions to consider before coming to any decision:
Can I make withdrawals?
Do I have access to full flexible access draw-down?
How is your money currently invested?
Is it in line with your needs as an expat living abroad?
Aviva Pension Transfer Overseas
If your existing pension savings are not positioned to cater to your requirements, one option is to transfer to an overseas pension scheme. Known as QROPS Qualifying Recognised Overseas Pension Schemes, this involves removing your pension from the UK.
All QROPS are recognised by HMRC and subject to you residing in the European Economic Area, the transfer can be made without the application of an Overseas Transfer Charge OTC.
Benefits of a QROPS include the removal from UK inheritance Tax, the ability to invest and withdraw in multicurrency, ongoing management via a regulated financial adviser, pension withdrawals without tax being held back at source, and greater investment options.
Note that a QROPS is expensive, both to setup and on an ongoing basis. Furthermore, you are removing your pension from UK regulation which in turn, protects your pension provider and investments.
Transfer Aviva Pension to International SIPP
An alternative option is an International SIPP. A UK SIPP that's been created for non UK residents.
This can offer you the benefits of an offshore product such as ongoing management, mitigation of currency risk, flexible access and greater investment options.
However, it is still authorised and regulated by the FCA, Financial Services Compensation Scheme FSCS and Pensions Regulator. In short, you retain the same level of protection as you have with your Aviva scheme.
For withdrawals as a Non UK resident, via an NT code, you can receive the money gross of UK tax and pay accordingly in your country of residence. Note a tax treaty between the two countries is required.
Furthermore, should you return to the UK, it is compliant and withdrawals can be made via the PAYE system.
How To Transfer Aviva Pension as an Expat
Step one is to speak to a qualified expat financial adviser. At The Wealth Genesis, we assist clients with their overall financial planning requirements upon relocating from the UK.
This includes pensions, investments such as locally compliant solutions, IHT planning, Wills and Estates and more.
Via our Discovery Meeting, we get to truly understand your needs before implementing a strategy to meet them.
This could be transferring your pension to a more suitable option or simply changing the fund allocation to better meet your income requirements. With our quarterly catchups, we can ensure your investments stay aligned with your ever-changing goals.
As a whole of market adviser, we are not tied to one product provider or solution. By not using generic risk-graded portfolios we keep the costs down and ensure the priority is the performance of your portfolio in the best product available.
The whole process for a pension transfer will take 2-4 months which we will guide you through step by step.
To understand how our expert advice team can help with your retirement plans overseas, use the button below to schedule a free consultation.
FAQs
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Aviva does not charge to transfer to your scheme out of their policy
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We charge a flat fee of £3000 for transferring one or consolidating many pensions.
For ongoing management including quarterly reviews and any required adjustments, we charge 0.85% -
Yes, you can transfer to an International SIPP or QROPS as expat abroad or another UK pension provider if still in the UK
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