If you plan to retire abroad, especially if you have a flexible pension scheme, it’s important to have your finances in place in order to live comfortably. Being able to access your pension with ease is crucial. If you are planning to transfer your pension overseas, you may wish to look into the most cost-effective way by speaking with a financial adviser who specialises in pension transfers.
Thanks to the UK pension industry doing its spring cleaning, British nationals moving abroad can transfer their pensions to an overseas scheme that meets specific criteria set out by HM Revenue and Customs (HMRC). HMRC refers to this scheme as a QROPS. This scheme coupled well with recovery efforts in the wake of the 2008 financial crisis, a time when governments the world over started to recognize the need for protecting the hard-earned investments of individuals.
Since the launch of QROPS in 2006 until the end of the 2017–2018 tax year, more than £10.7 billion was sent in approx. 123,000 transfers, at an average of £898 million per year. To qualify as a QROPS, a pension scheme must meet various requirements set out by British law. For example, funds in qualifying schemes must only be accessible beyond the age of 55, unless there are special circumstances.
Not all overseas schemes meet the criteria set by the British government, however. On its website, HMRC publishes an updated list of qualifying countries and specific schemes that have QROPS status. And they update this list twice each month. Use caution and be wary of fake schemes advertised online. Always seek expert financial guidance, and never act based on unsolicited contact – no matter how attractive it may seem.
If you are EU based and are seeking advice regarding your own private pension, please get in touch. A member of our administrative team will get back to you and book a preferred appointment time that works within your schedule. This appointment is a confidential conversation between you and us – which will help us better understand your situation. The meeting is complimentary – and you have no obligation to go further after the meeting is over. Alternatively, you can complete our online contact form (below).
The expatriates we speak with often find that their wealth is suspended between two cultures. A financial expert advises you about how to deal with all your financial planning concerns, such as Wills, estate planning, inheritance tax, retirement planning, and pensions.
Do not leave things to chance. It can be a difficult process without the right expertise, and you could be missing out on some prime investment years if you wait.
