Royal London Pension Transfer For Expats
LEARNING OBJECTIVES
We’re passionate about providing high quality, relevant and up-to-date retirement advice to British Expats around the world.
IN THIS ARTICLE, YOU WILL LEARN THE FOLLOWING:
How to transfer your Royal London Pension
Key considerations for non-UK residents
Your pension transfer options as an Expat
Royal London Pension transfer charges
Transferring a Royal London pension as an expatriate can be a complex process with several factors to consider. This guide aims to provide an overview of the key considerations, process, and options available.
Royal London Pensions
Royal London is one of the largest mutual life, pensions, and investment companies in the UK, providing a range of financial products and services, including pensions. Their pension offerings cater to individuals, businesses, and employers, offering options such as workplace pensions, personal pensions, and retirement income solutions.
Can I Transfer My Royal London Pension?
In short, yes you can, however before considering a transfer it's important to understand your Royal London pension policy. This includes the type of pension held such as personal pension, workplace pension, or defined benefit scheme. This confirms if it qualifies as a defined contribution scheme or has benefits and guarantees attached to it.
Other questions to look at include;
Do you have flexible access to your pension pot or is it capped draw-down only?
How is your retirement money currently invested and does that align with your position and forthcoming requirements?
Are there any penalties or fees for transferring out?
Can you receive ongoing management of the investments?
Royal London Pension Transfer For Non-UK Residents
If your Royal London pension doesn't cater to your needs then a transfer is the next step. As an expat living outside the UK, additional aspects should be taken into account to cater to your requirements.
Some of the key factors and requirements include:
01 Flexible Access Draw-down
Can you withdraw your pension income in any form you require such as monthly draw-down, ad hoc lump sums, or a combination of the two.
02 Tax implications
Depending in your country of residence you need to take into account both the tax implications of transfer as well as the income tax bands that will be applied on withdrawals.
If there's no tax agreement between your country of living and the country of your new pension plan, tax will be deducted at source.
03 Currency Risk
Having a large part of your retirement provisions in a currency you do not spend in opens up significant currency risk. Being able to invest and withdraw in your local currency mitigates this risk.
04 Regulatory considerations
How well protected is your pension scheme and investments within the new arrangement? If you wish to transfer overseas schemes, what regulatory requirements need to be adhered to?
05 Professional Advice
Transferring a pension is a significant financial decision that can have long-term implications. It's important to seek professional advice from qualified financial advisers who specialise in international pensions.
Pension Transfer Options
Depending on your country of residence, priorities, and objectives, there are two options to consider.
International SIPP. A UK pension that's been specifically created for a non-UK resident. Unlike a QROPS, with an international SIPP your pension plan does not leave the UK. This means you retain the protection of the UK regulators including the Financial Conduct Authority FCA, Financial Services Compensation Scheme FSCS, and Pensions regulator.
At the same time, you gain access to a specialist offshore product which includes flexible access, mitigation of currency risk, low fees (5 times less than a QROPS), and wider investment choice.
By obtaining an NT code you can receive your money free of UK tax subject to your country of residence having a tax treaty with the UK.
QROPS Qualifying Recognised Overseas Pension Scheme. This is a type of overseas pension scheme that meets certain requirements set by HM Revenue & Customs (HMRC). It allows you to remove your pension funds from the UK. However, if you are not resident within the European Economic Area EEA an overseas transfer charge OTC of 25% will be applied.
The QROPS must also report to HMRC for 10 years and under several circumstances can result in a significant tax bill. The key benefit that an international SIPP does not provide is the removal from the UK with regard to inheritance tax.
Royal London Pension Transfer Charges
Royal London does not charge to transfer your pension however there may be exit penalties when leaving their schemes.
Royal London Pension Transfer Fees
Whilst Royal London does not charge to transfer your pension, the advisory firm you work with will have their own set of fees. These vary greatly in both initial advice and ongoing fees.
Fees from both the advisory firm and product providers are the main drag on performance. Always be 100% sure of the fees associated with your transfer and on an ongoing basis.
We charge a flat fee for all our clients ensuring no conflicts of interest and greater investment performance.
Further details about our straightforward pricing model and our approach to client collaboration can be accessed here.
International Financial Advice
The Wealth Genesis is a cross-border pension transfer expert assisting expats globally. Through our discovery meeting a financial adviser can assess the suitability of a transfer based on your individual circumstances, retirement goals, and tax considerations.
Rather than using generic one size fits all solutions, we put together bespoke portfolios specific to your retirement needs.
Contact us using the button or diary below to speak to a financial adviser regarding your pension benefits and requirements.
FAQs
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This will depend on your current Royal London pension policy. You can take either 25% or 30% from an international SIPP or QROPS respectively. However, note that this is tax-free in the UK and unlikely to be so in your new country of residence.
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If you have a defined benefit pension scheme and the value is over £30,000, a certain process needs to be adhered to. It is still possible depending on your position, the value and other criteria. More information on transferring your final salary scheme can be found here.
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This will depend on your objectives. Do you require income generation, capital preservation, or growth to pass on to your beneficiaries in the event of death. We would build our investment strategy around your requirements and objectives.
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This depends on your Royal London policy and the receiving scheme. Royal London does use the secure pension payment system, Origo.
As such, if you are transferring to another UK pension scheme such as an International SIPP it may not be required. -
Our preferred solution for most clients is the Novia Global UK SIPP. You can find a comparison of the best international SIPP providers here.
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We charge a flat-fee of £3,000, regardless of the value of your UK pensions.
We charge an industry leading 0.85% per annum for our management.
