Are you leaving your retirement planning behind? Discover how Expat Overseas Pension Transfers can align your pension with your new life abroad.
In this 2026 guide, we explore the critical tax rules, currency benefits, and investment trade-offs for UK, US, and Swiss expats.
Learn when to transfer, and when to stay put.
When people move abroad, pensions are rarely top of the priority list. The focus is usually on the move itself, settling in, work, lifestyle, or family.
Retirement planning often gets left behind, even though pensions may be one of the largest financial assets an expat will ever have.
Over time, many expats realise their pension arrangements are still based in the country they left, while their life, tax position, and future plans are somewhere else entirely. This is often when questions around Expat Overseas Pension Transfers begin to surface.
Understanding what an overseas pension transfer actually means, and whether it is appropriate for your situation, can bring clarity and confidence to long-term planning.
Most pension systems are designed with one assumption in mind: that you will retire in the same country where the pension was created. Tax relief, growth rules, access ages, and income options are all built around domestic rules.
Once you move abroad, that assumption no longer applies.
You may now be resident in a different country, subject to a new tax system, and planning for retirement somewhere else. As a result, a pension that once worked well may no longer be aligned with your current life.
This does not automatically mean something is wrong. But it does mean your pension deserves a proper review.
An overseas pension transfer is the process of moving pension benefits from one country’s pension system into a structure based in another jurisdiction.
People often explore this option to bring their retirement planning closer to where they live now, or where they expect to retire in the future.
For UK expats, this may involve overseas pension schemes designed for non-residents.
For American expats, the situation is more complex due to the way the US taxes its citizens worldwide.
In all cases, transferring a pension is a significant decision with long-term consequences. Before we delve deeper, it is important to define the structures often used in these transfers:
QROPS (Qualifying Recognised Overseas Pension Scheme): An overseas pension scheme that meets HMRC standards, allowing you to transfer a UK pension out of the UK tax net. Read more about QROPS here.
International SIPP (Self-Invested Personal Pension): A UK-based pension vehicle designed for non-residents, offering multi-currency flexibility (GBP, USD, EUR) while remaining under UK regulation. Find out more about SIPPs here.
Swiss Vested Benefits: The account where your Swiss workplace pension (Pillar 2) must be moved if you leave your employer permanently. View more about Pillar 2 in Switzerland.
There is no single reason why someone looks at an overseas pension transfer. Common reasons include wanting to simplify finances, align income with the country of residence, manage currency exposure, or gain greater flexibility over how retirement funds are accessed.
Others are motivated by tax planning, estate considerations, or a desire to consolidate multiple pensions into one place.
These reasons are understandable. But they are not guarantees that a transfer is the right answer.
Tax is often the biggest factor in overseas pension decisions. Different countries treat pensions very differently. A transfer that appears sensible on the surface can create unexpected tax exposure if the rules are not fully understood.
Local tax rules in your country of residence also matter.
Pension income may be taxed differently once you become resident, regardless of where the pension is based.
This is why pension decisions should never be made in isolation or without understanding how multiple tax systems interact.
One of the most critical aspects often overlooked is the shift in liability. An overseas pension transfer often means taking on more responsibility for investment decisions. Returns may depend more heavily on market performance and asset allocation.
This can suit people who are comfortable with investment risk and ongoing reviews. It may not suit those who prefer predictability and simplicity.
Understanding your own comfort level is just as important as understanding the technical rules.
Some pensions include valuable features that are easy to overlook. These may include guaranteed income (such as in Final Salary schemes), inflation-linked increases, or survivor benefits.
Once a pension is transferred, these features are often lost permanently.
There is no universal right answer, only what is appropriate for your circumstances.
Do you still have questions about Expat Overseas Pension Transfers?
At PCC Wealth, we operate across borders, and we see distinct challenges depending on where your pension originates.
American expats face unique challenges when it comes to pensions. The United States taxes its citizens based on citizenship, not residency. This means US citizens remain subject to US tax reporting wherever they live.
Foreign pension arrangements can create additional complexity. Reporting requirements can be extensive, and certain investment structures may be taxed unfavourably under US rules.
Because of this, pension transfers that may work well for non-US expats can be unsuitable for Americans unless carefully planned.
For UK nationals living in the EU, the landscape has shifted.
Following the October 2024 Budget, the 25% Overseas Transfer Charge (OTC) now applies to transfers to EEA-based QROPS unless you are resident in the same country as the scheme.
This means the “International SIPP” has become a vital tool. It allows you to keep the pension in the UK jurisdiction (avoiding the 25% tax) but hold the assets in Euros or US Dollars, effectively managing currency risk without needing to utilise a QROPS.
If you are leaving Switzerland, your Pillar 2 (occupational pension) must move to a Vested Benefits account. If you are moving to a non-EU country, you can often withdraw the full capital.
If you are moving to an EU country, the “mandatory” portion is often locked, but the “extra-mandatory” portion is accessible.
Strategic planning here can save significant withholding taxes depending on which Swiss canton holds your Vested Benefits foundation.
To help you visualise the decision, here is a breakdown of the trade-offs involved in Expat Overseas Pension Transfers:
Feature | Keeping Pension Where It Is | Transferring (SIPP / QROPS / Vested Benefits) |
Currency Risk | High. Income is paid in original currency (e.g., GBP) while you spend in another (e.g., EUR). | Low. You can denominate the fund in your spending currency (EUR/USD). |
Tax Efficiency | Variable. You may face emergency tax at source or double taxation issues. | High. Designed to fit your new tax residency (e.g., usually gross payment). |
Guarantees | High. (If Defined Benefit) Guaranteed income for life. | Low. Investment risk is transferred to you; value can go down as well as up. |
Succession | Rigid. Often dies with you or pays a reduced spouse pension. | Flexible. Residual fund can often be passed to heirs tax-efficiently. |
Responsibility | Low. The scheme manages the investments. | High. You (and your adviser) manage the investments. |
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An overseas transfer may be worth considering if you are settled abroad long-term, understand the trade-offs involved, and have a clear picture of how the transfer fits into both current and future residency.
It should always be approached as part of a wider financial plan, not as a standalone decision.
In many cases, the best decision is to leave a pension where it is. This may be true if the pension offers valuable guarantees, remains tax efficient, or if future plans are uncertain.
Choosing not to transfer is still a strategic decision and often a sensible one.
Consider “Mark,” a UK national moving to France.
Mark has a £300,000 pension in the UK. He plans to retire in France permanently.
Scenario A (No Action): Mark leaves the pension in the UK. When he retires, he draws GBP. If the Pound weakens against the Euro, his spending power in France drops.
Scenario B (Transfer): Mark moves his pension to an International SIPP. He converts the cash to Euros inside the pension. He now invests in Euro-denominated funds. When he draws income, it is already in Euros, removing the currency stress. He also ensures his beneficiary nomination is set up to suit French succession rules.
No.
Generally, state pensions (like the UK State Pension or US Social Security) cannot be transferred as a capital lump sum. They are income benefits.
However, you can usually have them paid directly into your overseas bank account.
No.
As mentioned, new rules often make the International SIPP a more cost-effective and tax-efficient route for many, particularly those in the EU who do not want to trigger the Overseas Transfer Charge.
You cand find out more about why this is in our article: RIP QROPS! Changes to QROPS Regulations Since The UK Budget 2024 – What You Need To Know
If you have transferred your pension and then return home, you can usually transfer it back or leave it where it is.
However, if you accessed benefits flexibly while abroad, you might face restrictions on how much you can contribute to pensions in the future (e.g., the Money Purchase Annual Allowance in the UK).
We provide the cross-border expertise to analyse the tax, currency, and investment implications of your specific move, ensuring you don’t make an irreversible mistake.
Pensions do not exist in isolation. Residency status, other income, investments, property, currency exposure, and estate planning all play a role in determining what makes sense.
A proper review looks at the full picture, not just the pension itself.
At PCC Wealth, we specialise in this holistic approach.
Whether you are dealing with UK regulations, Swiss Pillar 2 rules, or the complexities of US expat taxation, we can help you navigate the noise.
Would you like to discuss your specific situation?
Contact PCC Wealth today for an initial consultation regarding your Expat Overseas Pension Transfer.
UK State Pension update for EU residents
From April 2026, the rules around voluntary National Insurance contributions for people living outside the UK are changing.
If you live in the EU and expect to rely on the UK State Pension, it may be worth reviewing your position while current options remain available.
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