If like a growing number of Brits, you have moved to another country seeking a new life in a warmer climate with a more relaxed lifestyle you may have a pension that is still in the UK. Many expats are unaware that they could be getting more from their UK pensions by transferring them to a Qualifying Recognised Pension Scheme (QROPS).
Transferring your UK pension to a QROPS can offer many financial and tax advantages for expats, to understand how you could benefit from transferring your UK pension to a QROPS it is advisable to seek advice from an independent financial adviser.
If you are an expat living away from the UK and are looking for independent pension advice, the financial advisers we recommend are experienced in pension planning and regularly work with expat clients to advise them on effective pension strategies and transferring their UK pensions to a QROPS.
Our recommended financial advisers will work with you to determine whether transferring your UK pension to a QROPS could be beneficial and will provide pension advice that is tailored to you and your unique circumstances.
Benefits of transferring your UK pension to a QROPS
The benefits you will receive from transferring your UK pension to a QROPS will vary depending on your unique circumstances. Working with a financial adviser with experience in expat pension advice and in particular QROPS advice will help you determine how you could benefit from transferring your UK pension to a QROPS, but could include:
Larger tax-free lump sum
A QROPS could offer a greater tax-free lump sum, you could take up to 30% tax-free cash with a QROPS compared to 25% from a UK based pension. For example, if you have a pension fund of £200,000 in a QROPS your tax-free lump sum could be £60,000 compared to just £50,000 if your pension remains in the UK.
Exchange rates no longer affect your pension income
If you transfer your UK pension to a QROPS, your pension will be paid in your local currency rather than in Sterling if you leave your pension in the UK. This means that your pension income will no longer be affected by unfavourable exchange rates and will give you more money for your retirement.
Simpler to manage
Consolidating two or more pensions into a single QROPS can make it easier and simpler to manage your pension fund and keep track of its performance. It will also reduce time spent on administration and paperwork. This could also help cut the costs of managing your pension funds, freeing up more income for your retirement.
If you have or are thinking of moving overseas you may be considering your options with regards to your pension and whether a QROPS UK pension transfer is the most effective solution for you.
Seeking advice from a QROPS pension specialist will help you to gain a clearer understanding of the different options available and ensure that the most effective retirement planning strategies are in place for your personal circumstances.
At PensionAdvice.org we can help you find a FCA registered financial adviser for independent QROPS pension advice across the UK. The financial advisers we recommend offer bespoke financial advice on QROPS UK pension transfers for British expats.