Expat Wealth Management and Self Invested Personal Pensions
There are many expat pension options available, and not all of them will suit you. We can offer expat pension advice from one of our experts to better navigate the often complex world of expat pensions. Our advisors will help you make the best choice for your pension plan, tailored to your specific situation, whether you’re beginning your career or about to draw an income from your pension.
Pension schemes are essentially wrappers which follow a set of rules and contain one or more investment funds. Pensions come in a range of shapes and sizes including (but not limited to) Defined Benefit Schemes, State Funded, Self Invested Personal Pension, Final Salary Schemes and Qualifying Recognised Overseas Pension Scheme – with QROPS being specifically for people who no longer live in the UK.
Pensions carry certain tax advantages over traditional savings, but also follow the specific guidelines set by HMRC as to how they can be used. A SIPP is no exception.
One of the main tax advantages of pensions is that the money which is paid in can be done so before income tax is taken off, meaning that if you wanted to pay £100 into a pension scheme and you were a basic rate tax payer, in real terms it would only cost you £80 as the remaining £20 would, in essence, be paid by the government. The higher the rate of tax you pay, the less it costs to pay into a pension scheme.
Funds held in a pension are typically available once the holder of the pension reaches 55 years old, but can sometimes depend on the type of scheme. Once you decide you wish to take funds from your pension, you are able to take it in lump sum(s) – where the first 25% of each lump sum is tax free, or as an income over a regular period.
Any money drawn from a pension is considered as income, and is taxed as such. Therefore, whenever you take money from a pension, you should seek advice beforehand to ensure that you are doing it in the most tax efficient way.
We help expats based overseas with a range of expat wealth management, retirement planning, financial planning, investment portfolio reviews, and investment services to help them plan for their retirement. We offer individual wealth management and financial planning advice which is personally prepared to each individual as we understand that every persons circumstances are different. We advise on Investment Funds and Pension Funds Transfers into (QROP’s) Qualified Recognized Overseas Pension Schemes and (SIPP’s) Self Invested Personal Pensions. We also help clients with Expat Mortgage’s and all types of Insurance such asLife Insurance and Medical Insurance. We also have links with UK property developers so if you are looking to create a new property portfolio of UK Investment Property without returning to the UK we can be of help. Our developers have new build off plan property or existing built properties available for our clients.
Investment Funds and Portfolio Reviews
As a pension transfer specialist our main focus area is helping UK Expatriates to review their pension funds and investment portfolios to see if it may be worthwhile to switch them around to better performing funds after they have performed a pension transfer. If you haven’t yet transferred your UK pension thats fine we can guide you through the pension review process to see if its worth while also. The Pension Transfer Benefits can make all the difference between retiring happy with a great pension pot or retiring with an under valued pension pot meaning a lower standard of living.
The investment funds can be held in various tax wrappers such as:
S.I.P.P – Self Invested Personal Pension
How Can We Help Our Clients – 3 OPTIONS AVAILABLE
1: LEAVE YOUR INVESTMENT FUNDS AS THEY ARE.
The charges and costs of your current fund provider and the investment wrapper it is held in are competitive and do not warrant changing so there is no need to change any of the funds around. This rarely happens as investment portfolio funds are like individual stocks in that they only perform a certain amount of time before they need to be changed to suit the current market conditions.
2: CHANGE INVESTMENT FUNDS – High OR Expensive Charges
The charges in your current pension plan are high or expensive which will have the effect of reducing your pension pot value. We can help you choose from an existing pre-selected portfolio of funds dependent on your attitude to risk which will help your retirement pot to grow faster and offering increased funds for your retirement. The selected funds for your pension may not be growing at present or may be left dormant so the funds are not producing good returns. As above investment funds are similar to single stocks in that they may not always perform so switching funds regularly is vital to keeping the pension fund performance optimal and growing.
3: Re-balance Portfolio Or Change Whole Portfolio
Re-balancing involves selling a of any mutual funds, ETF’s or stocks that have not performed well. We take these funds and reinvest elsewhere to help keep the portfolio on track to achieve its pre-determined objectives.
Investment is cyclical in nature and asset types (shares, bonds etc.) come in and out of favor as do investment styles (high yield shares have historically performed well in tougher market environments but have lagged in periods of explosive market performance).
A portfolio that is not re-balanced risks having maximum exposure to a style or area of investment just before it falls out of favor and minimum exposure just before it comes back into favor. Regular re-balancing helps investors to take advantage of the ebb and flow of investment fashion. Given the low cost of re balancing it makes sense to keep portfolios in line with the investors’ chosen mix of assets and associated risks.
Pre Selected Portfolio’s
We have existing relationships with some of the best portfolio managers in the asset management industry that are constantly evolving their portfolio selections and keep them at optimal performance to keep client portfolios performing their best.
Using our automated software we can transfer clients into pre-defined and prepared portfolios with the minimal of fuss.
Growth Portfolios – For Younger Investors
- Conservative Growth Investment Portfolio.
- Balanced Growth Investment Portfolio.
- Adventurous Growth Investment Portfolio.
Income Portfolios – For Older Investors or Retired Individuals
- Conservative Income Investment Portfolio.
- Balanced Income Investment Portfolio.
- Adventurous Income Investment Portfolio.
We can improve your investment returns by help helping you :
- Paying less fees
- Remove surrender or early access penalties
- Align your asset allocation to your risk profile
- Utilize Discretionary Management
- Use properly regulated funds and ETF’s
- Ensure your structure is tax optimized for retirement.
How can I keep track of my investments After An Expat Pension Review?
We help clients keep track of their portfolios with the following: