What Happens To My Pension When I Move Abroad?
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:
What happens to your pensions when you leave the UK
Questions to ask your UK pension providers
Reasons to consider transferring your pension pots
Considerations when taking international financial advice
A frequently asked question from British Expats around the world is what happens to their UK private pensions when they move abroad.
In this article, we will answer everything you need to know about your UK pensions as a non-UK resident.
What Happens To Your Pension If You Leave The UK?
In short, absolutely nothing happens. Your UK pension will remain exactly the same.
The pension pot will remain invested, even when you're not a resident in the UK. There are however a few considerations that you will need to bear in mind:
If you previously had an FCA regulated financial adviser in the UK, they will not be able to continue to advise you (unless they have licensing in other countries).
Post Brexit, the vast majority of UK providers will no longer allow for full-flexible access draw-down for non-UK residents.
This means you may not be able to access your pension benefits as and when you wish to as a non-UK resident.
Always check with your provider when you move as to what income benefits will be available to you as an Expat.
UK Private Pension Transfer Abroad
If for whatever reason your UK provider (Aegon, Aviva, Standard Life, Scottish Widows) cannot give you full retirement options as a UK Expat, we would strongly suggest considering transferring your UK pension to a more appropriate and specialist expat pension provider.
There are 2 options available, each with their own unique benefits.
01 International SIPP
For the vast majority of individuals, the International SIPP, or non-resident SIPP represents the best choice. You can learn more about the International SIPP, as well as which is the best international SIPP here.
In short, transferring your private pensions to an International SIPP would provide the following benefits:
Fully FCA regulated and protected by the Financial Services Compensation Scheme
Ability to have flexible access draw-down
Invest in multi-currency (GBP, USD, EUR)
Low cost and portable, wherever you retire
02 Overseas Pension Schemes | QROPS
In more specialist cases, a QROPS may be the best solution for you, given the potential inheritance tax benefits of these types of pension plans. A QROPS account provides the following:
No UK income tax deducted at source (all proceeds paid out gross)
Wide range of investment choices
Multi-currency options
Inheritance tax benefits in certain scenarios
Note, whilst a QROPS may be suitable, they are typically much more expensive than International SIPP accounts and do not fall under UK regulation, meaning you have less financial protection.
Specialist Expat Pension Advice
Retiring abroad is complicated, with cross-border financial planning coming with various challenges.
The Wealth Genesis is fully regulated and independent, with our advice team providing flat-fee, commission free advice to British nationals around the world.
To understand how we can help secure your retirement abroad, schedule a free initial consultation with our team using the diary link below.
