Zurich Pension Transfer For Non-UK Residents
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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 Zurich pension
Key considerations for non-UK residents
Your pension transfer options as an Expat
Zurich Pension transfer charges
Zurich Pensions UK is part of the Zurich Insurance Group, headquartered in Zurich Switzerland, and listed on the Swiss Exchange.
Historically, they have been one of the main workplace pension providers in the United Kingdom. As such, many expats leave the UK and retain membership in a Zurich Pension scheme.
If you have left the UK and hold a Zurich pension, this article details the options available and the process involved if wanting to transfer.
Zurich Pension Plan
Unlike most current-day pension policies, the Zurich pension plan does not usually allow flexible access. Flexible Access Drawdown (FAD) was introduced in April 2015. This allows members of the pension scheme to access their pension from age 55, whether it's a lump sum, a regular income, or a mix of both.
Members can access 25% tax-free (in the UK), with the remainder falling in line with income tax bandings.
The majority of Zurich plans however only allow a single lump sum withdrawal. This means encashing the full pension value in one go. This can result in a significant and unnecessary tax liability.
If your plan number starts with P, ’and includes BC, BD, BE, BG, BH, or PBE, you should be able to take several lump sums. But for all other plans, you need to transfer to another provider.
Can I Transfer My Zurich Pension?
Yes, depending on your country of residence, you have two options.
QROPS Qualifying Recognised Overseas Pension Scheme. If you reside within the EEA European Economic Area, an overseas pension scheme is one solution. This is classified as any pension scheme held outside the UK that meets HMRC criteria.
Benefits include; gaining flexible access, removing your pension from UK inheritance tax, greater investment options, the ability to invest and withdraw in all major currencies, and receiving pension income free of withholding tax.
If however, you live outside the EEA, an Overseas Transfer Charge OTC of 25% will be applied. As a result, only under certain circumstances would this type of transfer be the most suitable option.
International SIPP Self Invested Personal Pension. This is a UK pension that has been created for non-UK residents. Unlike a QROPS, your pension fund does not leave the UK and as such retains the robust protection and regulation of the Financial Conduct Authority FCA, Financial Services Compensation Schemes FSCS, and Pensions Regulator.
By utlising an offshore investment platform (Jersey) within the international SIPP, you can maintain the majority of QROPS benefits (excluding IHT) at a fraction of the cost, and retain greater safety and security of your funds.
You can withdraw your pension income gross of UK taxes by obtaining an NT code subject to your country of residence having a tax treaty with the UK.
Zurich Pension Transfer Charges
There should be no applicable fees from Zurich for transferring your pension. For older schemes that hold 'with profits' funds, there can be a market value reduction based on any guaranteed returns stated.
Note that the financial advisory firm you work with will have its own set of advice fees.
Zurich IPP (International Pension Plan)
The Zurich International Pension Plan is not a UK pension. It is a life insurance investment product and as such, operated by Zurich International Life Limited.
Whilst it can provide a valuable alternative for the transient expat employee, it does not meet HMRC pension criteria. You therefore can't transfer or consolidate them into an International SIPP or QROPS.
International Financial Advice
The Wealth Genesis is a cross-border pension specialist for expats globally.
Whether you require advice solely on pension transfers or have more extensive financial planning needs for your long-term retirement objectives, we can help in all aspects.
Transferring your pension is an important financial decision and should not be made without careful consideration. Contact us below to discuss your position and options with a qualified independent financial adviser.
FAQs
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The Wealth Genesis charges a flat £3000 advice fee to transfer one or more pensions to a new provider. We also charge 0.85% ongoing management fee.
More information on our fees and how we work with our clients can be found here.
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Yes, to transfer out of your Zurich scheme, the correct forms will need to be completed. However, Zurich is on Origo, the safe and secure online payment system for UK pension transfers. This significantly simplifies the process. For a QROPS, as the pension is leaving the UK, far more forms require completing.
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+44 0370 333 1500
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You can log into your Zurich plan here.
