10
Expat Pensions & Investments
Expat Pensions & Investments
Introduction Over the course of your working life you may have had the opportunity to work outside the UK, maybe in more than one country. You may have experienced different cultures and possibly even found a place that has captivated you to such an extent that you have decided to build your life there. Or perhaps you are a foreign national that lived and worked in the United Kingdom with a private UK pension scheme, and have decided to return home. Or maybe you’re just planning your retirement in the sun. Whatever your unique personal circumstances maybe you should consider the benefits of transferring your UK pension to a more tax efficient structure.
Where will you retire?
How much will you need in income?
What tax will you pay on pensions? Are you clear on the options available to you in respect of your UK pension assets?
Would you like to be in a position to make an informed decision?
Please note the UK State Pension CANNOT be transferred.
Leaving Your Pension in the UK Now that you have left the UK, you should be considering the options available to you in respect of your pension assets left behind in the UK. You have three options:
• Do nothing. Leave the pension funds in the UK
• Transfer to an HMRC Recognised Overseas Pension Scheme (ROPS) - formerly known as a QROPS
• Transfer to an International SIPP (Self Invested Personal Pension) The following may apply to you and your pension IF you leave the funds in the UK:
• Income Tax up to 45%
• Beneficiaries may not receive the full value of your fund after your death
• Subject to Lifetime Allowance (LTA)* assessment—any savings in excess of the LTA limit will face an additional tax of between 25% and 55%
• Subject to ongoing and fast paced changes in UK Pension legislation, and tax rules
• Funds are generally held in GBP creating a potential future currency risk
• 84% of UK Defined Benefit (Final Salary) schemes are underfunded leading to a number of high profile closures
• No/Limited control of investments
• Restricted growth options and capital protection * The Lifetime Allowance in the UK is currently £1.055 million.
Key Reasons to Transfer Your UK Pension
• Pay less income tax—your pension funds in the UK could be taxed up to 45%
• 100% of your pension fund will be passed to your beneficiaries
• Increased PCLS (Pension Commencement Lump Sum) availability—up to 30%
• Access to your pension at 55 years of age
• If you are transferring into a ROPS, a crystallisation event takes place at the point
of transfer, meaning that the lifetime allowance rules will not apply thereafter
• 84% of UK final salary schemes are underfunded, so your pension fund could
become insolvent and end up in the Pension Protection Fund with reducd
benefits
• Flexibility of Income
• Eliminate Exchange Rate Risk
• Control of investment and growth potential
• Consolidation of schemes under one roof
What is an International Self-Invested Personal Pension (SIPP)? A SIPP is simply a UK government recognised personal pension scheme, which can offer greater investment freedom and control. If you are living abroad, the International version may provide more scope in respect of currency flexibility and investment options. Your SIPP can receive transfers from UK registered schemes and Recognised Overseas Pension Schemes. Please note that UK State Pension benefits cannot be transferred. Your SIPP will remain in the UK and as such will fall under UK regulations and the potential implications of any future tax and pension law changes Your SIPP can convert to a ROPS at any point if your circumstances change.
Who are International SIPPs for? A SIPP is available even if you are a non UK resident (however tax relief will not be provided at source when you are non-UK resident).
What is a ROPS? A ROPS is a Recognised Overseas Pension Scheme and may be relevant to you if you are resident in the EEA (defined as the EU plus Norway, Liechtenstein and Iceland) and intend to remain resident in the EEA for 5 full years after your pension transfer. A Recognised Overseas Pension Scheme is a pension plan that is recognized under UK HMRC rules to accept transfers from UK Pension Schemes. The pension benefits you have built up are your assets for your future financial security. If you move abroad, or are thinking of moving abroad, you have the option to transfer them to another pension scheme, which could be based abroad.
Who are ROPS for? Anyone with a UK personal and/or occupational pension scheme with at least £100,000+ invested and who has either left or, is planning to leave the UK in the next 12 months and living in the EEA and will continue to do so for the next 5 years. If you fall into the above category you have the opportunity to maximise the growth and income potential of your pension, rather than be limited to the restrictions of a UK pension scheme and the lifetime allowance. Please note that UK State Pension benefits cannot be transferred.
What’s Right for You? Whether the solution for you is a ROPS or an International SIPP will be determined by your individual scenario and country of residence. Knowing what your options are, and what the potential benefits could be for you, is absolutely key. Now that you live abroad, you will need to understand your tax position. Are you worried about how much of your retirement funds will be passed to your beneficiaries? Do you simply need to understand the current position regarding your pension assets? Now that you have taken the crucial first step of contacting us, these will all be some of the possible questions that we can provide, and help you understand, the answers to.
What Happens Next?
You complete a pension information
request form and we will send it to
your pension provider.
UK pension provider will respond to
Forth Capital and you, with full
financial details of your pension and
the transfer value.
Your Forth Capital Adviser will help
you with Investment Choices and
arrange Quarterly Reports
Your Forth Capital Adviser will
prepare an in depth report for you
detailing your options.
If you decide that a transfer is right for
you, Forth Capital will help arrange all
the required paperwork to set up the
Investments.
Initial discussion to assess your
objectives with a Forth Capital Adviser
Forth Capital and UK Pension Transfers
Forth Capital (Europe) Limited is regulated by the Central Bank of Ireland as an insurance intermediary registered under the European Communities (Insurance Mediation) Regulations, 2005 under Regulatory Number C133357 and is currently authorised to provide advice in Ireland and passported to provide advice in the United Kingdom, France, Spain and Portugal. Forth Capital can provide advice in other EU countries as required. Forth Capital (Europe) Limited is a member of PIBA (Professional Insurance Brokers Association) in Ireland. PIBA is the largest Broker representative body in Ireland and currently has a membership of approximately 890 Brokerage firms. Forth Capital is also a member of the Federation of European Independent Financial Advisers (FEIFA). The Federation is not available to all IFA companies. By only admitting members following a rigorous vetting and due diligence procedure, FEIFA provides consumers with an independent assessment of the regulatory and legal status of its Member companies.
Being expatriates ourselves, we understand your requirements better than anyone. That is why we conduct all meetings in the English language and ensure that all documentation and correspondence is in English. We are dedicated to servicing our clients’ best interests and are arguably the leading company of our type offering wealth management solutions to the International Investor. For further information on the company and the areas with which we can assist, please visit our website at www.forthcapital.com.
Forth Capital (Genève) Sàrl is authorised by FINMA as an insurance intermediary and regulated under Swiss law by OAR-G, the self-regulation body in Geneva. OAR-G is a reference for professional standards and ethics and also sets rules for the fight against money laundering. OAR-G was established by the manager of the Groupement Suisse des Conseils en Gestion Indépendants (GSCGI) and the Groupement Patronal Corporatif des Gérants de Fortune de Genève (GPCGFG).
Forth Capital (HK) Ltd is a member of the Hong Kong Confederation of Insurance Brokers (HKCIB). The HKCIB is a body of insurance brokers, approved by the Office of the Commissioner of Insurance to implement self-regulation of insurance brokers in Hong Kong under the Hong Kong Insurance Companies Ordinance.
Forth Capital (Australia) Pty Ltd with ABN 38 627 432 875 is a corporate authorised representative ("CAR") of Shartru Wealth Management operating in Australia under AFSL: 422409
Forth Capital’s UK Pension Transfer Service There are a number of options available to those who wish to take advantage of their overseas status. However, sufficient due diligence and care must be taken when considering where to invest your pension once it has been transferred. If you wish to speak to a Forth Capital UK Pension Transfer specialist, you will receive impartial advice with no obligation on your part, and confidentiality is always assured. They will also give you the best advice for your unique situation and not just tell you about the benefits, but also any potential pitfalls you should consider regarding pension transfers. As well as advising on pension transfers, our advising team are equipped to help you review all areas of your financial plans and achieve your financial goals. This makes us the perfect choice for you to discuss your needs. About Forth Capital Forth Capital is a privately owned wealth management business providing service to a global clientele. Our aim is to provide top-tier investment products and superior advice to the International investor. Being 100% independent, Forth Capital is able to recommend the very best investment instruments from the world’s leading banks, fund managers and investment houses. This enables us to design and provide the finest instruments for our clients’ needs, and to tailor investment solutions to the individual financial goals of each client.
Forth Capital Genève
Boulevard des Philosophes 26,
1205 Genève, Switzerland
Telephone: +41 22 311 1441
Fax: +41 22 311 1442
Forth Capital Hong Kong
1001 Ovest Building
77 Wing Lok Street
Sheung Wan, Hong Kong
Telephone: +852 3589 5510
Forth Capital Tax Advisers Ltd.
Kemp House, 152 City Road
London, EC1V 2NX
United Kingdom
Tel: +44 203 815 8015
This material is for information purposes only and does not contain (and should not be con-
strued as containing) investment advice or an investment recommendation, or, an offer of or
solicitation for, a transaction in any financial instrument. Always seek independent financial
advice before investing in any product. The information provided and contained in this brochure
are believed to reliable, but is subject to change without notice and Forth Capital makes no rep-
resentation as to the completeness or accuracy of the information or of any opinions expressed.
Forth Capital Europe Limited
77 Sir John Rogerson’s Quay
Dublin D02 HE09
Ireland
Tel: +353 1 640 1984
Fax: +353 1 662 0365
Forth Capital Genève
Boulevard des Philosophes 26,
1205 Genève, Switzerland
Telephone: +41 22 311 1441
Fax: +41 22 311 1442
Forth Capital Hong Kong
1001 Ovest Building
77 Wing Lok Street
Sheung Wan, Hong Kong
Telephone: +852 5589 5510
Forth Capital Tax Advisers Ltd.
Kemp House, 152 City Road
London, EC1V 2NX
United Kingdom
Tel: +44 203 815 8015
This material is for information purposes only and does not contain (and should not be con-
strued as containing) investment advice or an investment recommendation, or, an offer of or
solicitation for, a transaction in any financial instrument. Always seek independent financial
advice before investing in any product. The information provided and contained in this brochure
are believed to reliable, but is subject to change without notice and Forth Capital makes no rep-
resentation as to the completeness or accuracy of the information or of any opinions expressed.
Forth Capital Europe Limited
77 Sir John Rogerson’s Quay
Dublin D02 HE09
Ireland
Tel: +353 1 640 1984
Fax: +353 1 662 0365
This material is for information purposes only and does not contain (and should not be con-
strued as containing) investment advice or an investment recommendation, or, an offer of or
solicitation for, a transaction in any financial instrument. Always seek independent financial
advice before investing in any product. The information provided and contained in this brochure
are believed to reliable, but is subject to change without notice and Forth Capital makes no rep-
resentation as to the completeness or accuracy of the information or of any opinions expressed.
Forth Capital Genève
Boulevard des Philosophes 26,
1205 Genève, Switzerland
Telephone: +41 22 311 1441
Fax: +41 22 311 1442
Forth Capital Hong Kong
1001 Ovest Building
77 Wing Lok Street
Sheung Wan, Hong Kong
Telephone: +852 3589 5510
Forth Capital Tax Advisers Ltd.
Kemp House, 152 City Road
London, EC1V 2NX
United Kingdom
Tel: +44 203 815 8015
Forth Capital Europe Limited
77 Sir John Rogerson’s Quay
Dublin D02 HE09
Ireland
Tel: +353 1 640 1984
Fax: +353 1 662 0365
Forth Capital (Genève) Sàrl
35-37 ave Giuseppe Motta
1202 Genève
Switzerland
Telephone: +41 22 311 1441
Forth Capital Hong Kong Ltd
23 Floor, Island Beverley
1 Great George Street
Causeway Bay, Hong Kong
Tel: +852 3589 5510
Forth Capital Tax Advisers Ltd
Kemp House, 152 City Road
London, EC1V 2NX
United Kingdom
Tel: +44 203 815 8015
This material is for information purposes only and does not contain (and should not be construed as containing) investment advice or an
investment recommendation, or, an offer of or solicitation for, a transaction in any financial instrument. Always seek independent
financial advice before investing in any product. The information provided and contained in this brochure are believed to reliable, but is
subject to change without notice and Forth Capital makes no representation as to the completeness or accuracy of the information or of
any opinions expressed.
United States
20th Floor, 14 Wall Street
Financial District, New York
NY 10005, United States
Tel: +1 212 618 1987
Forth Capital (Europe) Limited
Suite 1345, 26 Upper Pembroke St.
Dublin 2, D02 X361
Ireland
Tel: +353 1 640 1984
Australia
Level 32, 200 George St
Syndey
NSW 2000, Australia
Tel: +61 2 8277 4115
Dubai
AG Tower, Cluster I
Jumeirah Lakes Towers, 392683
Dubai, United Arab Emirates
Tel: +971 55 103 5891
Email: [email protected]
