Expat Pension Transfer News

Latest 10 news items tagged Pension Transfer

23 Apr at 6 PM 2014

Should expats be wary of cashing in their pensions under the new rules

Experts are warning that UK retirees living overseas may face tax implications if they choose to cash in their defined contribution pension pots. The new rules outlined in the chancellor’s 14 March Budget speech appeared to offer enhanced flexibility, but the finer details have yet to be worked out. Although the present rules as regards forced annuity purchases are to be scrapped and savers will be allowed to withdraw the total amount or opt for flexible pension drawdowns, cash taken from the pot will be liable for tax in the year...
22 Apr at 6 PM 2014

UK Consumer Panel fears risks for savers after budget annuity shock

When the Consumer Panel published its damning report on annuity sales at the end of last year, no-one expected reform to arrive as early as the March 2014 budget. However, now that the dust is beginning to settle, the Panel is concerned over risks for consumers at home and abroad once the market is flooded with new, flexible financial products. The panel’s chairwoman, Sue Lewis, argues that providers of annuities will be searching for other ways to claw back the millions in lost income resulting from the Chancellor’s action....
21 Apr at 6 PM 2014

Public sector pension QROPS transfers under fire

Public sector workers and civil servants are being warned by pension experts that they may be barred from transferring their pension pots to a QROPS. UK chancellor George Osborne has already stated that different pension rules may be introduced for pension savers working in the public service sector and the civil service. The plan may prove to be part of the controversial pension shake-up announced in his 14 March budget speech. The chancellor’s exact words on the subject were that, having carefully considered the issue, the...
18 Apr at 6 PM 2014

When is a third country QROPS the best expat choice

Since 2006, expats planning to emigrate and those already living abroad can transfer their pension pot in to a QROPS, with pension savers allowed to base their investment outside the UK. As long as the product provider has complied with HM Revenue and Customs’ regulations, savers can base their QROPS in a choice of worldwide financial jurisdictions. Once the transfer has been made, and the member has resided overseas for five years, the fund follows its base country’s legislation, rather than the UK’s. As a result, QROPS...
17 Apr at 6 PM 2014

Strong pound boosts expat spending power in South Africa, Turkey and Thailand

As the pound strengthens along with the recovery in the UK, a newly-introduced online currency index will help travellers and expats to select the countries with the most favourable rates. Fluctuating currency rates are an endless worry for most expats on UK pensions or with investments paying interest in sterling. Over the last year, the winners have been those living in South Africa, Turkey and Thailand, with the strong pound and weakness of local currencies granting them between 20 and 30 per cent more spending power. In...
15 Apr at 6 PM 2014

FCA warns insurers to treat clients fairly on pensions advice

In yet another move to protect savers at home and abroad from mis-sold investments, the FCA has warned insurers, IFAs and pension providers against disadvantaging clients when advising on the recent changes in annuity law. The regulator is to issue a set of guidelines telling pension providers and financial advice firms how to handle customers who wish to cash in their pension pots. According to the FCA, if the guidelines are not followed, sanctions or fines will be imposed. A spokesperson for the regulator said that providers and...
10 Apr at 6 PM 2014

Good news on tax for savers reversing annuity decisions

Following the shake-up of pensions announced in the UK’s 2014 budget speech, many thousands of savers who changed their minds about annuitising as a result have voiced their concerns about tax penalties. The good news that a number of product providers have extended their cooling- off periods, giving savers time to get professional advice, has now been followed by the even better news that Her Majesty’s Revenue and Customs will not demand tax penalties from those who have reversed thier decisions.The radical budget changes, due...
8 Apr at 6 PM 2014

Fight for unfrozen expat pensions attracts international support

Following David Cameron’s somewhat half-hearted and decidedly unofficial support for unfreezing 5,600,000 British state pensions paid to expats overseas, the word seems to finally be spreading. Leading overseas pension provider Pryce Warner International has thrown its hat into the fray, stating that the British pension system is flawed in its bias towards over half a million retirees living in 120 countries without UK reciprocal arrangements. The firm’s director of operations, David Retikin, believes that retirees are being...
4 Apr at 6 PM 2014

Osborne to go ahead with taxing expat pensions

After a brief mention in George Osborne’s recent 2014 Budget speech of a plan to tax expat pensions spurred concerns in many migration destinations, it seems taxing those not considered resident or domiciled in the UK is on the cards. The Chancellor is now making it clear that expats must decide whether they are out or in the UK’s tax systems. They cannot, he said, expect to rely on the British government for favours concerning financial matters. A consultation aimed at examining the possibility of scrapping personal tax...
3 Apr at 6 PM 2014

Expats to lose out on new top up pension scheme

Over half a million UK state pensioners living in 150 world countries will get a worse deal than their UK-based counterparts if they buy into the government’s top-up pension plan. Those retiring before 6 April 2014 will be unable to take advantage of the higher state pension of £155 per week payable from April 2006. Instead, they will be able to buy up to an extra £25 per week by giving the government £890 for each £1 weekly increase. However, the 46 per cent of all expat pensioners living in countries where the state pension...