It is important to note that new rules coming into force next April will prevent those with pensions in unfunded public schemes, known as defined benefit (DB) schemes usually held by people who have worked in the military, the police, NHS workers and teachers, from transferring their pension overseas. The upshot of this means that anyone with savings in one of these schemes –– will find themselves at the mercy of exchange rates when it comes to how much they will get from their pension payments.
If you are serious about retirement abroad and hold a DB pension you still have time before April to move it to a Qualifying Recognised Overseas Pension Scheme (Qrops). Qrops have obvious tax benefits, when you transfer them to a lower tax environment; they ensure your pension is paid in the currency of the country you live in, which removes currency risk. Exchange rate fluctuations are probably the greatest concern for those retiring abroad on a fixed pension amount.
Other types of pension are unaffected; if you want to live abroad so if you are in a defined contribution scheme, personal pension or self-invested personal pension (Sipp) for example, you are free to transfer your pension to a Qrops. Enable’s IFA’s of Bishop’s Stortford can help you look at how to make the most of your money and fulfill your retirement dreams
Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE
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