Seeking warmer climates, cheaper cost of living and a more relaxed lifestyle, when Brits make the decision to relocate to another country, many have the intention of it being a permanent move. However, for some this is not always the case and unforeseen circumstances can see some expats deciding to move back to the UK for career progression, to be closer to family or for health reasons.
Those relocating abroad often transfer their UK pensions to a Qualifying Recognised Overseas Pension Scheme (QROPS) to benefit from reduced tax liability, increased flexibility of pension income and greater tax efficiency. But, when moving back to the UK many are left wondering what they can do with their QROPS.
If you have moved overseas and are thinking of moving back to the UK you may be left wondering what happens to your QROPS in the UK and whether you can transfer your QROPS back to a UK pension scheme.
Seeking advice from an independent financial adviser will help you to gain a clearer understanding of the different options available regarding your pension and QROPS in the UK and will ensure that the most effective retirement planning strategies are in place for your personal circumstances.
While QROPS can be left as they are in the country you have been living and where they were set up, it may not be the most effective solution and transferring your QROPS to a UK based pension scheme may be more beneficial.
Transferring your QROPS in the UK
If you are thinking of transferring your QROPS back to the UK, two of the most effective solutions you may want to consider are transferring your QROPS to a UK workplace pension scheme or to a Self Invested Personal Pension (SIPP). To be eligible for these types of pension scheme you would need to be working when you return to the UK and should seek independent financial advice to ensure you are making the most effective decision for your personal circumstances.
Transferring your QROPS to a SIPP may offer cost efficiencies over leaving your QROP in its country of origin. Typically, QROPS have greater running costs than a SIPP, transferring a QROPS to a SIPP is usually straightforward and involves making an application to the scheme trustees of your QROPS to request permission to make the transfer.
If you are planning to or have already moved back to the UK and are looking for advice on QROPS in the UK, we can help you find the right pension adviser to help you plan for your future and provide a good level of income for your retirement. It is always recommended to seek advice before transferring your QROPS in the UK to ensure you are aware of the benefits of each option and any exit fees that may be applicable.
The financial advisers we recommend are experienced in retirement planning and regularly work with their clients to provide support and guidance on all aspects of pension advice including advice on QROPS in the UK and what options are available should you move back to the UK.
At Pensionadvice.org we can help you find a registered financial adviser for QROPS in the UK. All of the financial advisers we recommend offer bespoke financial advice that is tailored to your unique personal circumstances.