The decisions you make planning for retirement will have a lasting impact on your future financial wellbeing.
Getting these decisions right is crucial to ensuring you enjoy the retirement you have worked so hard to achieve.
But working out what is right for you can seem daunting at times.
You may worry about running out of money, tax, passing on wealth to the next generation, not to mention your investments, and whether they’re too risky – or not generating the return you expect.
As an expat, you may also consider whether you would be better off transferring your pension into a SIPP or a QROPS, and how currencies and tax will impact your income.
Understanding the rules means you don’t have to break them:
- There is no advantage, due to the high costs, of anyone utilising a QROPS to access funds of £30,000 or less, other than in exceptional circumstances
- Often, advisers overseas utilising a QROPS for small funds is not for the clients benefit, but purely for commission and earnings reasons for the ‘adviser’
- Prudent use of encashment in different tax years could result in very low or no-tax being paid utilising the new UFPLS regime in the UK
- Death taxes removed for everybody under 75 – no 45%, nor 55% tax, for Beneficiaries
- Only 10% of QROP cases where using an insurance or investment bond (from companies such as RL360, Old Mutual International, Friends Provident International, Generali International, or Hansard International) is actually justified, rather than an alternative and cheaper WRAP or platform
- Be aware that charges on an insurance or investment bond are based on the original investment amount as a minimum. This means when you extract part of your pension, your bond charges do not reduce, thus making them a higher percentage of the investment and SEVERELY impacting on future growth
- Avoid holding alternative, esoteric investments and structured notes in your pension. These promise an attractive headline return but more often than not fail to deliver, and can put your entire initial investment at significant risk, whilst still paying your adviser an upfront commission
Why pay tax that you do not have to? – and increase your flexibility for taking tax free cash
Depending on your status, along with future living plans, we can answer your queries and provide qualified and expert advice, without any further obligation from you. The key here is that one size does not fit all.
However, anyone with a UK pension scheme who now lives overseas as an expat, or is planning to leave the UK, can now receive advice from qualified experts that will avoid them breaking the law and have the UK HMRC pursuing them for tax penalties of 55% or more.
AVOID HUGE HIDDEN COMMISSIONS: We will conduct business at minimal cost to you
If you do not require advice, or if you have received advice and want to save money then we are able to conduct your business at minimal cost to yourself, and with no hidden commissions.
For a professional, no obligation review of your existing retirement provisions, complete your details below and speak to one of the team today: