SJP Pension Transfer For Non-UK Residents
St. James’s Place (SJP) are one of the UK’s most established wealth management companies, renowned for offering financial advice and a wide range of pension products. With thousands of clients, they provide tailored solutions to help individuals plan for a comfortable retirement.
St James’s Place Pensions
SJP have become one of the leading pension providers in the UK, offering schemes to suit various needs and circumstances. However, if you're planning to retire abroad, it’s crucial to reassess your options, as circumstances and regulations may impact the tax efficiency of your SJP pension, as well as your access to financial advice.
Can I Transfer My SJP Pension Abroad?
Retiring abroad can be an exciting adventure, but it also requires careful financial planning. Managing your pension is a critical part of this process, especially since SJP may face licensing restrictions in your new country of residence.
Financial services are heavily regulated, and SJP may not be authorised to provide pension support or advice in your new home country. Any restrictions could leave you needing alternative solutions for managing your retirement savings effectively. You may need to seek advice from experts who are fully regulated and specialised in expat finances and cross-border financial management.
Additionally, leaving your pension in the UK once you relocate abroad could expose you to currency risk. Every time you convert pension payments from GBP to your local currency, fluctuations in exchange rates risk negatively impacting your income.
Transferring SJP Pension To QROPS
Whilst In the past a QROPS (Qualifying Recognised Overseas Pension Scheme) was a viable option for many UK expats moving abroad, this is no longer the case.
With the introduction of the Overseas Transfer Charge, which imposes a 25% tax on pension transfers unless you live in the same country as the QROPS provider, most expats are now restricted from using this product.
QROPS providers are typically based in Malta or Gibraltar, so unless you’re relocating there, transferring to a QROPS will mean losing a staggering one quarter of your retirement savings- something most expats simply cannot afford.
The International SIPP (Expat SIPP)
An International SIPP (Self-Invested Personal Pension) is often the most suitable option for non-UK residents. This UK-based pension scheme is designed specifically for expats and offers many benefits:
UK Regulatory Protection
With an International SIPP, your pension will remain under the oversight of UK regulators, such as the Financial Conduct Authority (FCA) and the Financial Services Compensation Scheme (FSCS).
Reduced Currency Risk
The International SIPP offers strategies to mitigate the impact of currency fluctuations and the ability to hold funds in multiple currencies.
Investment Opportunities
With a broad range of investment options, you can grow your retirement savings over time.
Tax-Efficient Withdrawals
If your new country of residence has a Double Taxation Treaty with the UK, you may benefit from gross withdrawals using an NT code, avoiding UK tax. Local tax laws will then determine how your pension income is taxed in your new location.
The Wealth Genesis: How To Apply for an NT Code
Transfer Pension from SJP
If you are relocating abroad and want to explore the option of transferring your SJP pension, the first step is to seek advice from a financial adviser specialised in expat financial planning. They can help you address any concerns and clarify your objectives and motivation for the transfer. They can also help you determine if a pension transfer is the right choice for you and help guide you through alternative options - such as locally compliant investment solutions - if you decide that a transfer is not necessary.
A skilled adviser will guide you to the best decision based on your unique circumstances, risk tolerance and financial goals.
Expat Financial Advisers
At The Wealth Genesis, our team of independent financial advisers specialise in helping British expats worldwide. With no ties to specific providers or investment managers, we offer tailored solutions with transparent and fair fees.
Whether you need assistance with your pension, investment portfolio or estate planning or tax efficient strategies, we’re here to help you grow and protect your wealth.
Book a free discovery call today using the diary below to see how we can help guide you towards a financially secure future.
