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

UK Pension Advice

MANAGE YOUR UK PENSIONS BETTER

 

The UK pension landscape has changed dramatically in the last ten years. Laws have been introduced that allow you more freedom and control over your retirement.

Generous transfer values are on offer from final salary schemes and defined contribution schemes can be fully accessed earlier. There are also greater freedoms  to consolidate multiple schemes and self-manage investments.

Furthermore, the way pensions are taxed on death compared to other assets might encourage you to view your pension as something to benefit future generations rather than fund your retirement.

With the increase in freedom and possibilities comes a need to take sound advice. We have years of experience dealing with UK and overseas schemes and can help you find the best solution according to your needs.

SIPP

A self-invested personal pension is a great way to achieve a pension and investment that you can control. SIPPs are increasingly popular amongst people who want to consolidate several schemes and improve the overall management of the portfolio.

International SIPPs exist for people who live abroad but want to keep their pension in the UK and regulated by the FCA.

QROPS

Qualified Recognised Overseas Pension Schemes are beneficial for people who want to transfer their pension away from the UK. There are many reasons why this could be the best option for a pension.

The benefits are similar to that of a SIPP but removing it from the UK has the potential to mitigate taxes (subject to where you are resident) and ensure that growth above the lifetime allowance is not subject to additional tax.

DEFINED BENEFIT TRANSFERS

Final salary pensions (otherwise known as defined benefits) were once seen as ‘gold-plated’ and the surest way to guarantee yourself a consistent income in retirement.

In recent years thousands of people have decided to transfer their pensions for a generous transfer value and have more control over their own pension.

There are several reasons why transferring your defined benefit pension could be the right thing to do. Transferring cannot be done without specialist advice that we can provide.

QROPS MYTH #1 – Your pension is at risk if you leave it in the UK

What risks? Brexit? Tax? Schemes going bust? What risks have you been told about? The only risk is believing someone who is giving you advice that is biased in their favour. If someone is going to profit from helping you to transfer your pension overseas then you need...

QROPS MYTH #2 – You need an insurance bond

When it comes to QROPS there are a few ways of administering the investments – although most people are only ever presented with one option. As the QROPS trustees are not set up to provide this service (they merely provide the legal structure and fulfil normal trustee...

QROPS MYTH #3 – Your UK scheme is going to go bust

It’s true that there have been many high profile defined benefit pensions that have gone bust in recent years. The fundamental principle of the way that defined benefit pensions are structured can indeed sound like a risk. A defined benefit pension will promise to pay...

QROPS MYTH #4 – You’ll be able to access your pension sooner if you transfer it

This is not such a common myth nowadays but in the early days of QROPS there were many advisors going around the world ‘pension busting’ and either helping people to access their pension sooner by either transferring to a jurisdiction that allowed access from a...

QROPS MYTH #5 – QROPS are ‘approved by HMRC’

HMRC do not approve anything! It is not their function. Their purpose, as stated on the website https://www.gov.uk/government/organisations/hm-revenue-customs is: “We are the UK’s tax, payments and customs authority, and we have a vital purpose: we collect the money...

QROPS MYTH #6 – You need to keep a large proportion in cash

Any investment portfolio should always contain a small proportion of cash but by small we mean around 2-3%. If your pension has a cash account of somewhere around 10% then you might want to question whether this money really exists. Consider it this way, pensions are...

QROPS MYTH #7 – Structured notes are suitable investments

A consequence of transferring your pension away from the UK opens you to the risk that your funds will be placed into investments that would not be allowed if it was still under the watch of the UK’s Financial Conduct Authority. There have been many cases of clients...

QROPS MYTH #8 – If you leave your pensions in the UK you’ll have to pay income tax

We often hear the argument that Malta is a superior home for your pension as it has double taxation agreements (DTAs) with numerous countries meaning that regardless of where you retire you won’t pay tax at source but only in Malta. It is certainly true that pensions...

QROPS MYTH #9 – Brexit will affect your pension

Let’s look at this realistically. If you’re an expat in Spain, for example, and the UK leaves the EU do you really think that your UK-based pension provider will be unable to make a payment to you now that you are not an EU resident? Is this not already the case for...

What happens to my QROPS if I move back to the UK?

If you have left the UK and been advised to transfer your pension to a Qualifying Recognised Overseas Pension Scheme (QROPS) but now intend to return to the UK then you need to consider how this pension will now be treated. While many expats and professionals who have...

QROPS MYTH #9 – Brexit will affect your pension

Let’s look at this realistically. If you’re an expat in Spain, for example, and the UK leaves the EU do you really think that your UK-based pension provider will be unable to make a payment to you now that you are not an EU resident? Is this not already the case for...

QROPS MYTH #7 – Structured notes are suitable investments

A consequence of transferring your pension away from the UK opens you to the risk that your funds will be placed into investments that would not be allowed if it was still under the watch of the UK’s Financial Conduct Authority. There have been many cases of clients...

QROPS MYTH #6 – You need to keep a large proportion in cash

Any investment portfolio should always contain a small proportion of cash but by small we mean around 2-3%. If your pension has a cash account of somewhere around 10% then you might want to question whether this money really exists. Consider it this way, pensions are...

QROPS MYTH #5 – QROPS are ‘approved by HMRC’

HMRC do not approve anything! It is not their function. Their purpose, as stated on the website https://www.gov.uk/government/organisations/hm-revenue-customs is: “We are the UK’s tax, payments and customs authority, and we have a vital purpose: we collect the money...

FREE UK Pension Consultation

We’ve helped countless expats and international professionals with their UK pensions. Through a free consultation we can help you to understand several key matters:

  • The general landscape with regards to UK and international  pension legislation.
  • How Brexit could impact your UK pensions.
  • The terms and conditions that apply to your current scheme.
  • The solvency of your final salary scheme provider.
  • The tax implications for you in your  intended country of  retirement.
  • The pros and cons of final salary schemes.
  • The likely transfer value of a final salary scheme.
  • How to manage your pensions as part of a wider financial plan that considers income in retirement and inheritance for your loved ones.
  • What you can and can’t do by transferring your pension to a SIPP or QROPS.

2 + 15 =