Transfer Personal Pension to International SIPP
If you have a UK personal pension and no longer live in the United Kingdom, an International SIPP can offer several benefits.
This article aims to define an international SIPP, the benefits for expats living abroad, and the process for transferring.
What Is A Personal Pension?
A personal pension or a SIPP, Self Invested Personal Pension is a UK pension that allows you to select the provider, arrange for contributions, and choose the investments.
They offer greater flexibility with regard to investment options, taking income, and gaining control of your pension scheme.
Some of the main providers for residents in UK include Hargreaves Landsdowne, AJ Bell, Transact, PensionBee and Fidelity.
What Is An International SIPP?
An International SIPP or iSIPP is a UK personal pension specifically created for non-UK residents. It will allow you to easily consolidate and transfer the benefits accrued in UK pensions and overseas pension schemes.
Benefits Of An International SIPP
The key benefits of an International include;
Flexible access:
Access your pension plan from age 55 (57 from 2028) in any way you please including regular, ad hoc or a combination of the two. This enables tax efficient drawdown allowing you to not go into unnecessary tax brackets if not required.
Wider Investment Choice:
Invest in a wide array of investments from ETFS, to mutual funds and individual shares.
Multi-currency Investments:
Mitigate currency risk but Investing in all major currencies including USD, Euro and AUS $.
Low Cost:
Up to 5 times cheaper than a qualifying recognised overseas pension scheme QROPS.
Safety and Protection:
Retain the regulation and protection of the UK regulations including FCA Financial Conduct Authority, Pensions Regulator, and FSCS Financial Services Compensation Scheme.
Consolidation:
Consolidate two or more pension pots, reducing cost and enabling an overall investment strategy to be implemented.
Receive income withdrawals gross of UK Tax:
Via an NT code, draw down your pension free of UK tax subject to your country of residence having a double tax treaty with the UK.
Greater control of your investments:
Control how and where your money is invested to ensure it aligns with your risk tolerance and goals.
Best International SIPP
There are many SIPP providers on the market, and choosing the right one depends on factors such as cost, service, functionality, investment choice, and reputation. You can find a comparison of the current offering including fees, here.
International SIPP vs QROPS
A QROPS Qualifying Recognised Overseas Pension Scheme is an HMRC-recognised overseas pension that allows you to remove your pension from the UK. The main benefits are related to IHT in the UK and being able to receive your pension income in Euros. Further information on QROPS can be found here.
How to Transfer A Personal Pension To International SIPP?
The process for transferring your personal pension to an International SIPP is reasonably straightforward. However, pension scams are rife and it's important to understand the costs involved, how your pension will be invested and the process is done in a timely and cost-efficient manner.
The first step should be to speak to a regulated expat financial adviser. They can answer any questions, confirm an international SIPP is the best option for your circumstances, and explain the associated costs.
It may also be prudent to speak to MoneyHelper, the free and impartial government organisation to assist with UK pensions.
Cross Border Financial Advice
The Wealth Genesis is a multi-jurisdictional cross-border pension expert. We help clients globally with their expat financial planning needs. Transferring your pension is an important financial decision for which you should receive professional regulated advice.
We provide transparent, independent advice bespoke to your needs. Our simple charging structure removes any conflict of interest allowing us to build long-term relationships with our clients.
Contact us today using the button or calendar below to discuss your UK pension transfer requirements and see how we can help you.
