A UK pension transfer involves moving your pension benefits from one pension scheme to another, often from a UK-based scheme to an alternative structure that may be more aligned with your current circumstances and long-term retirement goals.
“If you hold a UK pension and are now living overseas, transferring your UK pension to a more tax efficient solution is one option that you must consider.”
For international workers or expatriates with UK pension rights, a transfer may offer potential advantages such as broader investment options, consolidation of pension pots, or changes in how benefits are accessed. However, such decisions are complex and should be made only after receiving regulated financial advice.
Transferring a pension is a significant financial decision. It may be worth considering if your current pension arrangement no longer aligns with your needs, risk appetite, or country of residence. Here are a few reasons why someone might explore a transfer:
If your current pension offers attractive guarantees, such as a defined benefit with inflation-linked income, you may choose to leave it untouched. Retaining your pension in the UK may also provide access to certain protections (e.g., PPF or Financial Services Compensation Scheme), depending on your provider and scheme type.
If you're seeking more investment flexibility, want to consolidate pension pots, or are concerned about future legislative changes, transferring your pension may be worth exploring.
Two structures commonly considered by international clients are Self-Invested Personal Pensions, and Qualifying Recognised Overseas Pension Schemes.
A Self-Invested Personal Pension (SIPP) is a UK-registered pension that offers a wider range of investment options than typical workplace pension schemes. It may allow greater flexibility in accessing funds and give you the ability to tailor your portfolio to your needs.
Key features:
Please note: Not all pensions are eligible for transfer, and not all individuals will benefit from a SIPP structure. Suitability must be assessed on a case-by-case basis. You can read more about SIPPs by clicking here.
A Qualifying Recognised Overseas Pension Scheme (QROPS) is an overseas pension plan that meets HMRC conditions for receiving UK pension transfers. These structures are typically considered by individuals who have left the UK permanently and wish to hold their pension outside the UK.
Potential features (depending on the jurisdiction):
It’s important to note that:
To learn more about the pros and cons of QROPS, click here.
If your pension pot is valued over £30,000, UK legislation requires that you seek regulated financial advice before transferring your UK pension. This rule applies to transfers out of any pension schemes holding safeguarded benefits. Additionally, the advice must come from a pension transfer specialist who holds the necessary permissions to give such advice.
However, regardless of pot size, transferring a pension is a significant financial decision. Factors like currency exposure, investment management, withdrawal flexibility, and inheritance planning should all be carefully considered with the support of a suitably qualified adviser.
Our advisers work closely with the Skybound Wealth Pension Support team, headed by Carla Smart who holds the AF3 pension planning qualification to help assess your current pension and its suitability for transfer. Our approach includes:
We believe in informed decision-making and offer a structured review process to ensure any recommendation is in your best interest.
We know that making a decision on whether a UK pension transfer is the right option for you can be daunting, which is why our team of experienced UK pension transfer specialists work in tandem with your financial adviser, and are always on hand to help answer your burning questions surrounding UK pension transfers.
You can reach us directly by calling us between the hours of 8:30am and 5pm at each of our respective offices and we will immediately assist you.
