Flat Fee UK Pension Transfer To France
LEARNING OBJECTIVES
We’re passionate about providing quality, relevant and up-to-date retirement advice to British Expats in France.
IN THIS ARTICLE, YOU WILL LEARN THE FOLLOWING:
How to transfer your UK pensions to France for a flat fee
The main benefits and pitfalls when making a UK pension transfer
The transfer process and how it differs depending on the solution
What is the best pension plan for French residents
The Wealth Genesis is an EU regulated pension and wealth management specialist for British expats living in France.
Fully independent, we are not linked to any investment provider, fund manager, or product, acting solely on suitability and our client's best interests.
We charge a flat fee of £3,000 to transfer or consolidate one or more UK pensions. Together with our 0.85% ongoing management fee, we have simplified the charging structure to ensure total transparency and achieve the best possible outcome for you and your investments.
All our advice team are UK and French-qualified to ensure you receive expert cross boarder advice as a British expat living in France.
How to Transfer Pension From UK to France
When deciding to transfer pension funds from the UK to France, the first stage is to confirm your type of pension. There are two categories; defined contribution and defined benefit. Each holds different characteristics and as such, can provide different benefits for your overall retirement strategy.
01 Defined Contribution Pension Scheme
This covers money purchase schemes, SIPP's Self Invested Personal Pensions, and some workplace pension schemes.
They are the more common scheme held by former UK residents and the type of pension scheme most people are familiar with. Your employer and/or just you will have made contributions that have received tax relief.
Your money is then invested into the financial markets including stocks, bonds, and alternatives. The value of your pension will increase or decrease in line with the investments held within your defined contribution scheme.
Although there is no legal requirement to seek financial advice when moving from a DC plan, we strongly suggest that you do.
The laws governing UK pensions are fluid and the process is becoming more complex, especially when your residency differs from that of the pension scheme administrator.
Transfers take 1- 3 months depending on your existing scheme and the type of pension arrangement you are transferring to.
02 Defined Benefit Scheme
Also known as final salary pension schemes, these schemes will pay guaranteed inflation-linked income for life upon retirement. They can also provide spouse and other dependents income if you die, albeit at a maximum rate of 50%.
If you want to move your pension plan, you must get advice from a pension transfer specialist authorised by the FCA.
For the majority of defined benefit pension members, transferring out of your scheme is not the best option.
A DB pension transfer will take 3 - 7 months.
Pension Transfer Options After I Move To France
Previously, you could transfer your UK pension pot to a PERP Plan D'Epargne Retraite Populaire. However, the UK Government no longer recognises French pensions as a like-for-like product.
As such, they removed them from the approved list. The British Government will only permit transfers to schemes that emulate that of a UK scheme. This includes both UK pension schemes and overseas pension schemes known as QROPS.
01 QROPS Qualifying Recognised Overseas Pension Scheme
As stated, there are no longer any French QROPS but you can still open a QROPS as a French resident.
The optimal solutions are based out of Malta, which thanks to its tax treaty with France, allows you to receive pension income free of Maltese tax. Income tax and social tax (if you don't hold an S1 form) will be due in France.
A QROPS offers numerous advantages such as exemption from inheritance tax, disconnection from the UK system, the ability to invest and withdraw in euros, flexible access to your pension fund, and consequently, tax-efficient drawdown.
They are however far more expensive than the alternative of an International SIPP and you lose the protection of the UK regulators such as FCA Financial Conduct Authority and FSCS Financial Services Compensation Scheme.
Furthermore, if you leave France or the EEA (European Economic Area) in the future, there are specific criteria you must follow.
02 International SIPP
An International SIPP provides the best of both worlds by being a UK pension created for non-UK residents. As such, you gain flexible access, can consolidate one or more schemes, invest in euros, and receive pension income exempt from UK tax (via an NT code) whilst retaining the robust protection of the UK regulators.
As it is a UK-registered pension scheme, it is also fully compliant should you return to the UK.
You can see our review of our preferred International SIPP Provider, here.
Expat Financial Advice France
To discuss your position and understand how we can assist with your pension management requirements, contact us below.
We provide financial advice for expats in France encompassing pension transfer and management, tax-advantaged investment accounts such as Assurance Vies', and holistic financial planning.
FAQs
-
There are many international SIPP providers in the market, you can find a comparison including fees and other key areas here.
-
You can continue to receive your state pension upon changing your country of residence. You can find more information on this here.
-
UK pensions are taxed in line with French income tax bandS which can be found here.
-
Yes, you can subject to your existing scheme allow you too. Schemes that don't allow flexible access would require a full encashment. This can create significant tax liabilities. Defined Benefit schemes will automatically enroll you into their income drawdown rather than allow a transfer to take place after taking PCLS.
If you live in the UK and haven't moved to France, you can benefit from this tax-free money.
