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Everything you need to know before you move your pension
Transferring a British pension to another jurisdiction outside the UK through a QROPS was something many companies traditionally advised clients to pursue.
However, the tax treatment of such transfers for US persons has always been unclear, and changes in 2017 to the UK Finance Act introduced a 25% ‘exit tax’ for various types of QROPS transfers. These include the scenario where the Trustee and individual are in different countries.
Since there are no QROPS Trustees in the USA, this means that a US resident making a QROPS transfer would be liable for the overseas transfer charge.
Due to this charge and the potential for US tax liabilities, we do not advise clients to consider transferring their pension outside of the UK through a QROPS.
All personal pensions and most Defined Benefit pensions are portable. So almost everyone has the option of transferring their pension to a registered scheme, without reducing the size of their pension pot.
In other words, if and when you decide to move your pension elsewhere, all the money in your fund moves with it.
Some of the alternative options may be more appropriate to you than others. There are no restrictions on the number of different pension schemes that you can open. However, there are limits on the total amount of money you can contribute to them.
The 2017 Finance Act and several subsequent regulations have affected people holding British pensions and living abroad. They have limited the pension choices available and increased the costs of accessing advice.
It is impossible to know if and when further changes may have been made. We therefore recommend clients to seek professional advice now so they can make an informed decision in their best interests.
Usually provided by an insurance company; investment options are restricted to collective funds such as unit trusts and OEICs.
Similar to a personal pension but with lower charges and accepts relatively small and irregular contributions.
Self Invested Personal Pensions are specifically for individuals who want a wider choice of asset classes and investment options than a standard personal pension offers.
A Small Self Administered Scheme is similar to a SIPP, but intended primarily for company directors and/or senior staff.
Overseas pension transfers are complex they require careful consideration and expert advice.
You should (with the help of a qualified adviser) explore the full range of options available to you to establish the most suitable pension solution for your personal and individual circumstances.
Not only do our experts hold the high-level UK Pension Transfer and Planning Advice accreditation but they are also licensed and qualified to give investment advice in the USA.
Never underestimate the value of regulated advice!
Everything you need to know before you move your pension
UK workplace or private pension funds are now mostly defined contribution schemes. Their value determined by the investment decisions you made and are subject to the global market fluctuations.
Depending on the situation and your needs, you may want to move your pension from one provider to another. Reasons such as moving abroad, currency risk, getting a new job or the wish to take advantage of the pension freedoms available from private pensions could lead you to decide to transfer your pension.
If you have a UK-based pension and are considering your options with how to manage it better while you reside in the United States, Archway Private Wealth has the right solution for you.
If you have a defined benefit or defined contribution pension worth more than £30,000, you are obliged to get financial advice before transferring. Deciding whether to make any changes to your UK pension is a big decision. However, based on individual circumstances and goals, you can significantly increase the money available to spend in retirement.
Combine most or all of your pension pots into one, depending on your age and needs
We help pension savings holders to enjoy their pension savings in a way that best suits them
We ensure you are making the most of your pension pot and pension tax efficiencies for your remaining savings
Choose a flexible investment plan across a wide range of funds to suit your financial goals
Every client’s journey is different, which is why we don’t believe in a one size fits all approach. Our bespoke service is tailored specifically to you, your needs and your circumstances. To give you a better understanding of our process, we have outlined a general client journey below.
