Transferring a Pension

What is the process for transferring a UK pension?

When it comes to your pension there are three main options:

  • Leave it invested in the UK
  • Transfer it to an International SIPP (Self Invested Personal Pension)
  • Transfer it to a HMRC approved QROPS (Qualifying Recognised Overseas Pension Scheme)

Identifying the most suitable option is a service we offer at no cost or obligation to you.

We always recommend to anyone considering a UK pension transfer that they seek independent financial advice before making a final decision.  Your pension may be the most valuable asset you own so make sure you protect it by doing as much research into the advantages and disadvantages of a pension transfer as possible before signing on the dotted line.  We are happy to chat about your situation and answer any questions you may have about pension transfers.

If it is recommended that you leave your pension in the UK, then it will not have cost you anything to establish that this is your best option.

However, if you are advised that a transfer to either an International SIPP or a QROPS is your best option, then your adviser will recommend the most suitable company for you to transfer your pension to. The adviser will also recommend suitable funds to invest into your pension that meet your attitude to investment risk. This ranges from very cautious through to adventurous. It is important to point out that we only ever recommend fully regulated funds

We will arrange the transfer on your behalf.  If you want to take some or all of the benefits now, your adviser will arrange for them to be paid directly into your bank.

The fees for this service are paid by the pension companies or pension trustees, so you will not have to make a personal payment.  The fees will be explained to you before you make your decision.

What are the benefits of transferring your pension to a SIPP or QROPS

Of course, they will depend on the type of pension you have and everyone’s circumstances are different but here are the main benefits of transferring your UK pension(s):

  • Benefits available from age 55
  • Hold the funds in your local currency
  • The benefits paid in your local currency
  • Zero tax on death regardless of age (avoiding UK tax after age 75)
  • Flexibility in choosing how and when to take benefits
  • Pension funds outside the UK will not be subject to any future UK Pension changes or political risk
  • Funds remain outside the estate for Inheritance Tax
  • Assists with any intention to seek domicile outside the UK
  • For QROP’s then subsequent growth is free of the Lifetime Allowance Tax of 55% for funds in excess of £1,073,000