Expat SIPP | Consolidate Your UK Pensions Abroad
LEARNING OBJECTIVES
We’re passionate about providing relevant, high quality and up-to-date financial information to Expats around the world.
IN THIS ARTICLE, YOU WILL LEARN THE FOLLOWING:
How the Expat SIPP works
Why you should consider transferring your UK pensions abroad
Reasons to leave your pensions in the UK
How much it costs to transfer your UK pensions to an International SIPP
This article will explore the world of Expat SIPPs (Self-Invested Personal Pensions) and how they can help to secure your international retirement outside of the UK.
We will examine how these versatile pension schemes offer expatriates a flexible and tax-efficient means of saving for retirement while living abroad.
The International SIPP | What Is It?
The International SIPP is essentially a UK based pension built for Expat retirees.
The majority of UK pension providers will no longer provide full retirement benefits to non-UK residents.
As such, the International SIPP has become the retirement vehicle of choice for Expats around the world. By transferring UK pensions to an International SIPP, an individual can regain control of their pension pots and benefit from the following tailor-made features:
Full flexible access draw-down in retirement.
Multi currency investment options.
25% tax-free cash (pension commencement lump sum) and income payments to any international bank account.
Wide, unrestricted investment choice including ETFs, Mutual Funds, and Alternatives.
Low-cost pension wrapper for consolidating multiple retirement pots.
Which Is The Best SIPP for Expats?
There are around a dozen offshore SIPP providers to choose from. At the time of writing, we would currently recommend the Novia Global SIPP. This option is the lowest cost pension provider on the market, and gives investors access to a UK regulated investment platform to manage and monitor their investment accounts.
To learn more about the Novia Global International SIPP, see our comprehensive product review.
Do I Need To Transfer My Pensions If I No Longer Live In The UK?
The answer to the above depends entirely on your UK pension provider and your country of residence.
If your provider states any of the following, you should consider transferring your pension fund to an International SIPP account:
We cannot facilitate flexible draw-down as you are non-UK resident.
We can only pay our your pension as a one-off lump sum.
You have to purchase an annuity from us, or transfer your pension elsewhere.
We cannot pay retirement benefits to international bank accounts.
We do not offer multi-currency.
All of the above choices are sub-optimal for retirement planning, and will result in less flexibility and tax-efficiency as you navigate life abroad.
If your provider is willing to offer all of the above benefits to you outside of the UK, then there is no pressing need to transfer your UK pensions.
How Much Does It Cost To Transfer My UK Pensions Abroad?
There are 2 separate costs to consider when looking to move your UK pensions to an International SIPP.
The first and most important are adviser fees. Expat Financial Advisers will typically charge between 1% and 5% of the value of your pensions to transfer these accounts. They will also charge an ongoing fee, usually between 1% and 1.25% per annum.
The Wealth Genesis is the first International Financial Adviser to charge the same zero commission flat-fee, regardless of the value of the pensions in question. We also charge an industry leading low annual management fee of 0.85% per annum, which means less drag on your pension portfolio over the long term.
The second component of fees to consider are the SIPP trustee and investment platform fees. The annual cost of an International SIPP varies between £216 and £600 per annum.
Investment platform fees should never exceed 0.50%.
Be sure to consult with various advisers before proceeding with a recommendation to give yourself a better idea of the landscape and options available.
Expat Financial Advice with The Wealth Genesis
The Wealth Genesis is an entirely independent advice firm that is not tied to any product, provider or investment.
This means our only priority is delivering the best outcomes for our clients, reflected in our verified reviews.
We start our advice process with a 'Discovery' meeting, where we get to know you and understand your goals for retirement. We then conduct thorough research on your existing provisions, before providing a bespoke Wealth Planning Report.
We believe every client has their own unique set of circumstances, priorities and challenges.
As such, we do not use model portfolios or off-the-shelf solutions to the mass market, but instead individualised wealth strategies, tailored to each and every client.
International wealth management is complicated, and we encourage Expats to speak to different firms to gauge their position, as well as conducting thorough due-diligence on the adviser they are establishing a relationship with.
To get started with us, simply follow the button below to schedule an initial consultation.
Key Questions To Ask an Adviser
To assist you with the due-diligence process, below are the main questions you should ask any financial adviser before working with them:
How much do you charge, to the pound and pence?
Are there any hidden fees or other charges that haven't been listed?
Are you being paid to sell or recommend any product or provider to me?
Can I leave at any time and at zero cost?
If not, are there lock-ins or exit penalties, and if so why?
Are you regulated, and who by?
What qualifications do you hold to advise me on my UK retirement funds?
