Looking to retire abroad? Here’s what happens to your pension
Many of us dream of moving abroad when we retire. But to make retiring abroad a reality, it’s important to plan early for the financial implications moving overseas may have on your pension. Jamie Smith-Thompson, managing director at pension advice specialist Portafina, answers some of the most frequently asked questions and the preparations you should make to your pension before any big move.
Can I access my UK pension
from abroad? If you are setting up home abroad and you have a private pension or money purchase scheme, your savings will be available to you as they would in the UK. If you have a final salary scheme it will depend on scheme rules as to when you take your money and whether you can take it from 55. You can either leave your pension pot in the UK and access it from abroad, or you can move the pot to the country you are living in.
Do I need a separate oversees
bank account? Pension schemes will not pay your funds into an overseas account. So, if you need to transfer your money from a UK bank account you should factor in the impact transfer fees and exchange
rate variations will have on the money you receive.
Can I move my pension tax-free? If
you have contributed to an
occupational (defined contribution or final salary) or private UK pension, you can move it to an offshore pension pot tax-free. The scheme you are transferring to would need to be recognised by HMRC and is called a
Qualifying Recognised Overseas
Pension Scheme. QROPS benefits from zero taxation at source, reduced tax liability and more options when it comes to passing on your wealth. Be aware this only applies to EEA countries and as Brexit looms, this opportunity may not always be available. Tax treatment also depends on your own individual circumstances and may be subject to change.
Can I receive the UK state
pension? Yes, just like a personal, private or company pension. The issue is with pension increases which are related to inflation in the UK. You would only receive future increases if you were living in: • The UK for 6 months a year or more • The European Economic Area (EEA) • Switzerland • A country that has a social security agreement with the UK that allows for pension increases
Will Pension freedoms still be
available to me? Fundamentally, yes, they will be if you leave your pension pot in the UK, but you may be more restricted for choice.
This is because not all
pension schemes allow you to access all the options available. So, to access benefits such as pension release or flexi-access drawdown, you would need to transfer your pension pot to an appropriate UK pension scheme. It is likely if you are living abroad you would not have a choice of packages or schemes to choose from. So, if you are looking to do this, it might be worth considering your options before you go.
What should I check before moving abroad?
There is no doubt that getting your financial affairs in order will be top of your list and a main player here of course is your pension. It’s always a
good idea to keep a keen on eye on how well your pension is performing – especially if you are thinking of relocating abroad sometime in the future. Don’t leave your annual updates from your pension provider on the back burner - check out the growth of your policy and whether the features are still in line with your needs as you consider your new lifestyle.
Whilst some UK advisors can advise across the continent, most either can’t or choose not to. It is almost certainly more straight-forward to track down a financial adviser who understands the rules and regulations of UK pensions while still resident in this country.
therefore follows that reviewing your pension before relocating must be a good idea. If you are still living in the UK and would like a review of your pension, Portafina can offer you advice with no obligation.
www.portafina.co.uk
WIN A PAIR OF TICKETS TO SEE ‘WAR HORSE’ AT THE BRISTOL HIPPODROME 18 October - 11 November 2017 :
www.atgtickets.com/venues/bristol-hippodrome/
War Horse, which has been seen by over seven million people worldwide, completed its record-breaking eight year London run at the New London Theatre on 12 March 2016. It has won 25 awards including the Tony Award for Best Play on Broadway. Directed by Marianne Elliott and Tom Morris, Nick Stafford’s adaptation of Michael Morpurgo’s remarkable story of courage, loyalty and friendship, about a young boy called Albert and his horse Joey, set against the backdrop of the First World War is the most successful play in the National Theatre’s history. It features ground-breaking puppetry work by South Africa’s Handspring Puppet Company, which brings breathing, galloping horses to live on stage. War Horse received its world premiere on 9 October 2007 at the National Theatre, where it played for two seasons before opening at the New London Theatre in March 2009. Since then, War Horse has been seen in 97 cities in 10 countries, including productions on Broadway, in Toronto and Berlin, with touring productions in the UK and Ireland, North America, the Netherlands, Belgium and China. The tour of War Horse coincides with the Centenary commemorations of the end of the First World War and follows the production’s sold-out tour of the UK and Ireland in 2013-2014. War Horse will be appearing at the Bristol Hippodrome from 18 October until 11 November, the Cardiff & South Wales Advertiser have two pair of tickets to be won for the Wednesday 25 October, 7.30pm production. For your chance to win, answer the question correctly and send the coupon to: Cardiff & South Wales Advertiser, War Horse Competition, Mackintosh House, 136 Newport Road, Cardiff. CF24 1DJ. Alternatively, enter online, visit:
www.cardiffandsouthwalesadvertiser.com Entry close Thursday 12 October 2017. Normal Cardiff & South Wales Advertiser competiton rules apply.
In how many cities has War Horse been seen? ......................................................................................................................... Name ................................................................................................................................................................................................................ ............................................................................................................................................................................................................................ Address ............................................................................................................................................................................................................. Post Code .................................................... Telephone .................................................................................................................................
Email .................................................................................................................................................................................................................. CD: 12/10/17
Published by Hot Press Publications, Mackintosh House, 136 Newport Road, Cardiff. CF24 1DJ. Tel: 029 2030 3900 e-mail:
cardiff.advertiser@
virgin.net
www.cardiffandsouthwalesadvertiser.com
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