UK Expat Pension Reviews plays the leading role in delivering exceptional service in reviewing client’s pensions. We offer individual advice which is tailored to each individual as we understand that every circumstance is different. Our relationship based advice service wit our pension review process means that we are committed to helping you to manage your pension in a way that’s best for you and your retirement plans.
If you have a UK pension plan and are leaving the UK for a short period of time you may be likely to stop or halt your pension while you are away from the UK. UK Expat Pension Reviews has been formed to help UK expats with their retirement and pension needs and help them find their way through the maze of pension rules and what you can and cannot do. Its of paramount importance that the decision you make is the correct decision from the start as this can have a profound effect on the likely value of your pension on retirement should the incorrect decision be made. These Pension Transfer Benefits can make all the difference butween retiring happy with a great pension pot or retiring with an under valued pension pot meaning a lower standard of living.
There are two types of pensions available at to UK based onshore residents and these are Defined Benefit or better known as a Final Salary scheme. The second type is a Defined Contribution scheme which is a self-contributory scheme which is sometimes termed a Self-Invested Personal Pension Plan (SIPP). The former is what used to be considered a gold plated pension scheme as your employer invested contributions in to a pension for you and then upon your retirement you would receive a pension amount until you pass away. The latter is where you would take out a pension scheme and contribute your own money and your company would match this amount to a certain limit and then on retirement you would have your pensionable pot of money to buy an annuity. In light of the recent pension changes in 2015 no UK pension holders have to purchase an annuity scheme if they don’t want to anymore and there are a number of options available to them.
In 2006 Britain’s pension framework was overhauled and to simplify the transfer of a pension the Qualified Recognized Overseas Pension was created. This was done to comply with an EU directive in order to allow people to take their pensions to where they to retire if that are overseas and not in the UK.
These days too many companies offer ROPS without considering the other options available to the client of which currently there are 3 options.
The charges and costs of your current pension provider and the funds it is held in are competitive and do not warrant changing.
The charges in your current pension plan are expensive which will have the effect of reducing your pension pot value. Cheaper options are available enabling your pension pot to grow faster and better offering increased funds for your retirement.
You have established that you are not retiring to the UK or you are going to be offshore from the UK for 5 years or more. A Recognized Overseas Pension Scheme is a stronger alternative to keeping a UK pension. We will describe the benefits in the next section.
How long are you going to be away from the UK?
How long have you been away from the UK for already?
Where will you be retiring to?
Many current British Pension Schemes are in deficit and are unable to pay Defined Benefit (Final Salary) schemes as they are not funded sufficiently. If a company goes bust or is unable to pay the pension the scheme is then passed over to the Pension Protection Fund. This is not funded by the government but takes over the assets of the pensions and then charges a levy each year and the aim is to invest these monies to hopefully fund each person in the fund when needed. It remains to be seen whether the PPF can invest the funds wisely enough and only the future will tell.
One of the most important aspects of the investment recommendations should be matched against the clients risk profile to ensure that the investment fulfills and achieves the client’s retirement objectives. We will do this via a full financial fact find so we can determine the risk profile and establish a clear investment plan.
The main qualifying rule is that you have been offshore for 5 years and you intend to retire abroad. You can still transfer into a ROPS even if you haven’t been offshore for 5 years but you can’t claim the benefits until you have and reach the age of 55.
We can advise and assist UK Expatriates with a Recognised Overseas Pension Scheme transfer in the following countries Australia, New Zealand, United Arab Emirates, Bahrain, Spain, Italy, Greece, Portugal, United States of America, Canada, South Africa, Brazil, Mexico, Russia, India, Pakistan, France, Monaco, Germany, Switzerland, Yemen, Saudi Arabia, Panama, Costa Rica, Hong Kong, Macau, Belize, Indonesia, Japan, South Korea, Singapore, Taipei, Taiwan, Malaysia, Laos, Cambodia, Mongolia, Myanmar, Thailand, Phillipines, China and Vietnam.
Remember that in order for the ROPS transfer to be worthwhile the below 3 factors need to be addressed with a yes.
Our consultants take the time to understand your particular financial objectives. They will work with you to develop an individually tailored plan for individuals or for companies.