Transferring Your UK Pensions Overseas
Did you know there’s £29.9 billion in unclaimed pensions? If you’re living abroad, don’t lose track of your UK pensions. Keep tabs on them to ensure you’re not missing out on what you’ve earned. This page explores your pension options as a UK Expat, simple!
Making the most of your pensions when living overseas
If your life’s journey takes you outside the UK, you might consider bringing your pension along. As an Expat, you will likely have the option to transfer your pension into a Qualifying Recognised Overseas Pension Scheme (QROPS), a Qualifying Non-UK Pension Scheme (QNUPS) or a Self-Invested Personal Pension (SIPP):
QROPS
Tailored for those who have traded their UK address for an international one, QROPS schemes are acknowledged by Her Late Majesty’s Revenue and Customs (HMRC) and offer
A wider spectrum of investment opportunities with more choices.
Potentially lower tax rates which could make a noticeable difference to your retirement pot.
Protection from fluctuating exchange rates that are affecting your retirement income.
The option of merging various UK pensions into a single, manageable pot.
Potentially lower tax rates which could make a noticeable difference to your retirement pot.
Protection from fluctuating exchange rates that are affecting your retirement income.
The option of merging various UK pensions into a single, manageable pot.
QNUPS
Alongside QROPS, Qualifying Non-UK Pension Schemes (QNUPS) are another option for expatriates. QNUPS are not limited by the same contribution and benefit limits as UK pensions, offering
IHT and Estate Planning advantages. Assets held in a QNUPS may be outside your estate for Inheritance Tax purposes.
The flexibility to contribute to your pension pot after you've reached your UK Lifetime Allowance.
The opportunity to invest in a broader range of assets, including residential property, which is typically not possible with UK pensions.
The flexibility to contribute to your pension pot after you've reached your UK Lifetime Allowance.
The opportunity to invest in a broader range of assets, including residential property, which is typically not possible with UK pensions.
SIPPs - Self-Invested Personal Pensions
For those who prefer to maintain a degree of control over their retirement funds, SIPPs offer
Personal Control: meaning you call the shots when it comes to your investment choices.
Investment Versatility: access to a wide variety of investment types, from stocks and shares to commercial property.
Less Tax: as contributions are subject to UK tax relief, up to certain limits.
Flexibility: SIPPs are suitable for both residents and non-residents of the UK, allowing for international management of your funds.
Investment Versatility: access to a wide variety of investment types, from stocks and shares to commercial property.
Less Tax: as contributions are subject to UK tax relief, up to certain limits.
Flexibility: SIPPs are suitable for both residents and non-residents of the UK, allowing for international management of your funds.
We understand that as a UK Expat, your financial well-being remains a priority no matter the distance from home. Hopefully you have a better understanding of QROPS, QNUPS, and SIPPs – empowering you to make steps in the right direction. From experience, choosing the right pension is about finding that balance between the new horizons you’re exploring today, and the financial roots you’ve established through your hard work and years of service.
The world is vast, and we want your retirement possibilities to be just as expansive. While you undoubtedly embrace the adventure of living abroad, take comfort in knowing that with the right pension plan in place, you’re always protected – no matter the global chaos around you!
