+44 203 290 6685 info@valiant-wealth.com

EU Residents in search of solutions to receive payments from UK pensions amid bank account closures.

As has been widely reported, a number of UK banks have announced that they will be closing the accounts of their EU resident clients by the end of 2020 as a result of Brexit.

Plenty of Brits living abroad maintain a UK bank account for expenses when they visit or credit card services. One of the more serious repercussions for many is that some UK pension providers will not pay pension payments into non-UK bank accounts.

The closure of UK bank accounts for EEA residents has been prompted by the end of passporting rights of UK financial services firms, which allowed UK firms to easily provide advice and services across the bloc as an EU member. It is still unclear if financial services firms will be able to operate in the same or similar way from 2021, but some firms are making the commercial decision now to close their accounts held by individuals resident in the EEA countries.

This has left a number of people scrabbling to open an alternative UK bank account with many finding that it is simply not possible without being UK resident.

Moneysavingexpert.com have put together a list of the banks and their latest positions on this:

Using an online payment service may be an option, however these companies are also making changes in preparation for the end of passporting in 2020. UK based payment service Revolut are an example. They could previously provide non UK residents with a UK type account with a sort code and account number which is the requirement of many pension companies to make payments.

However, in light of the changing regulatory environment Revolut are transferring all accounts for non-UK residents to their Lithuanian subsidiary, which will result in a change of account details and once completed may again not be acceptable to many UK pension providers.

There is however a solution to this problem: using an International SIPP. This type of SIPP allows non-UK residents to transfer or consolidate their UK pensions into a UK based SIPP which is specifically designed for non UK residents. This type of pension not only allows payments to banks in the country of residence of the client, but are also multi-currency allowing the pension to be invested and drawn in the primary currency of the individual.

In the past a problem with SIPPs open to non-UK residents were that they were expensive but now there are low cost options available making them comparable in cost to standard SIPPs available to UK residents.

If you’re concerned about receiving your UK pension as an EU-resident then please get in touch via the form below.

 

FINANCIAL ADVICE FOR EXPATS IN ITALY

How to Invest Tax Efficiently in Italy

Using tax wrappers to structure your investments in a tax efficient manner as a resident of Italy Italy is commonly regarded as high-tax jurisdiction which makes it important to look for tax efficient ways to manage your financial planning.  One popular solution for...

Do UN employees need a Supplementary Pension?

We think not, which is not to say that UN employees do not need to save for retirement but the question should be what is the most suitable way for a UN employee to save for retirement? This article expands on one of the points we made in our previous article titled...

Private Pensions in Italy – The Second Pillar

Pensions in Italy, as with many things, are dominated by the state. The state is the primary provider for people in their retirement and the pension system (known as The First Pillar) is funded by social security contributions made by workers and employers. When...

RAISING STANDARDS IN FINANCIAL ADVICE FOR EXPATS

Valiant Wealth are setting new standards in independent financial advice for international people and expats resident in Italy. This article was originally published by Italian Insider – an English language newspaper and website for expats in Italy.

The ‘Greta Thunberg Effect’ and The Rise of ESG Investing

By Adam Smith As you have probably heard Greta Thunberg had quite a 2019 which resulted in her being named the 2019 Time person of the year. The level of attention she has brought to the climate crisis is quite astonishing especially considering she was 16 years old...

Move to Italy and enjoy ‘La Dolce Vita’ on tax!

Why Italy should be your first choice escape route Whether you’re a middle-aged professional with an established career, an entrepreneur or just starting out in the world of work, Italy should be top of your list thanks to favourable new tax regimes. Italy offers a...

The Age of the Italian Tax Incentive

From a tax perspective there has probably never been a better time to move to Italy, in modern history at least. In recent years Italy has been following Portugal and Cyprus’s lead and attempting to attract new residents made up of retirees, high net worth individuals...

Substitutive Tax Regime Attracts Wealthy Foreign Citizens to Italy

In 2017 Italy Finance Law introduced a flat rate of tax of €100,000 aimed at attracting high net worth foreigners to reside in Italy. The law states that new residents will pay only a flat lump sum tax of €100,000 in place of normal income tax. As with any new...

How Much Do I Need to Save for Retirement?

Have you given thought to what the sunset years of your life will look like? If your dream is have the freedom to travel and have fun then you might need to take a good hard look at your financial situation today.   It all starts by asking yourself a few simple...

QUESTIONS TO ASK A FINANCIAL ADVISOR

This article delves into questions you should be asking your financial advisor. Whether you’re about to start speaking to an advisor or you are already working with one, it is absolutely imperative that they can provide satisfactory answers to these questions. We’ve...

UNDERSTANDING INPS

What is INPS in Italy? The National Institute of Social Security ( INPS ) is the main social security institution of the Italian public pension system, in which all public or private employees must be enrolled and most of the self-employed workers who do not have...

HEALTH INSURANCE FOR EXPATS IN ITALY

We are often asked about health insurance in Italy, in some cases from people moving to Italy who have heard about the need for health cover in order to gain residence status and others who are concerned about the level of care they may receive if they are taken ill...

Get in touch for a FREE consultation

We firmly believe that your location in the world should not be a barrier to receiving fair, independent and transparent financial advice that you can trust.

We work with clients across the globe and can offer you a FREE initial consultation wherever you are.

It all starts by getting in touch!

Simply complete the contact form and someone will be in touch for an informal chat to discuss how we can help.