Should you move your British Pension Plan(s) to Canada?

A free independent guide from Pension to Canada

Moving to Canada is a huge life change – and there are lots of things to sort out in what can be a frantic period be-fore you move: where am I going to live? Where are my children going to go to school? What are we going to do for a living? How are we going to move our belongings?

Pension to Canada Transferring your UK pension to Canada made simple

There are some money issues that most people consider: We think to transfer our bank accounts, we try to get good exchange rates for money transfers but have you thought about your pension? Probably not, because after all it is sitting in a pension plan (or several different pension plans) just idling away waiting for you to retire. But did you know you can transfer your UK pensions to Canada? There are many things to consider when transferring any pension so good financial advice from people who fully understand UK pensions should always be sought.

Can anyone move any pension to Canada?

Any Canadian permanent resident or citizen can move any UK company or private pension to Canada as long as you have not drawn benefits from it already. Your pension benefits can only be transferred to a plan which is recognized by HMRC as a qualifying recognized overseas pension scheme (QROPS). A financial institution must apply to have QROPS status. Currently 30 Canadian institutions have QROPS status. Pension to Canada have independent registered financial advisors in Canada who are able to recommend the best QROPS for you.

Why move my UK pension to Canada?

When you transfer your pension to Canada 30% can be

invested into an Registered Retirement Savings Plan

(RRSP). You have full access to funds held in an RRSP

at any time and any age.*

1. Access

*Any money withdrawn is generally subject to withholding tax. The amount depends on the

amount withdrawn and there are different percentages for Quebec.

Please contact us to understand your personal situation.

As a Canadian resident, it is likely you will need Canadian

Dollars in retirement, transferring your pension to Canada

will protect you from changes in the currency markets.

2. Reduce Currency Mark Risk

You may have more than one pension plan in the UK.

When you transfer them they can all go into the same

Registered Retirement Savings Plan (RRSP) and Locked

In Retirement Account (LIRA), which will simplify keeping

track of your personal finances and make it easier for you

to plan for your future

3. Organization and Planning

“The very best performing pension fund could produce

more than three times the income of the worst performing

one. The really bad news is that your pension fund is

more likely to be amongst the bad than the good.”

UK Observer, Sunday 23rd October 2005

By moving your pension to Canada you can benefit from

independent financial advice to ensure your retirement

provisions are working efficiently

4. Investment Advice

The Canadian pension system is very different to the UK

and can offer substantial advantages on death. In Canada

your surviving spouse receives 100% of your retirement

fund and if there is no surviving spouse, your children or

other beneficiaries receive the full after-tax value. In the

UK death benefits vary and depend on the type of pension

you have.

5. Protect your family

Considerations ahead of a transfer

UK Pensions are complex and the rules and regulations

are subject to constant change (the most recent

regulatory changes were implemented as recently as 6th

April 2011)

The nuances of UK pensions are easy to overlook. It is

important to get the right advice to ensure the transfer is

in your best interest.

Pensions to Canada always produce an advice report

before transferring your pension.

Pensions to Canada allocate you a specific UK-based

advisor with an Advanced-level UK Pension

qualification

What about tax?

Their are no tax implications on either the UK or Canada

side associated with your UK pension transfer. Pension to

Canada can connect you or whoever completes your tax

return with a specialist to help with your tax return the year

you complete your transfer.

Withholding tax may be payable when you draw benefits

from your Registered Retirement Savings Plan (RRSP)

and special care needs to be taken if you have been

resident in Canada less than 5 years. Contact us for a

free consultation to understand your personal situation.

Can I continue to make retirement contributions?

You can continue to make contributions to your Regis-

tered Retirement Savings Plan as long as you stay within

your “contribution room.”

Your UK pension transfer does not use up any of your

contribution room.

The Canadian Revenue Agency have information on

current contribution room limits.

To find out if transferring your UK pension is right for you

or to find out more about your personal circumstances

contact Pension to Canada today.

Pension to Canda e: info@pensiontocanada.com t: 1-800-670-8172 w: www.pensiontocanada.com

Legal disclaimer

The information contained within this document is of a general nature and cannot be relied upon

as, nor be a substitute for professional advice. The benefits and information vary according to

residency and domicile. No liability will or can be accepted fro any consequences arising from

any transactions embarked upon in connection with this information. Nor is the information con-

tained in this document a solicitation to enter into such an arrangement, or does it constitute in-

vestment or financial advice. Pension and investment rules can be complex and you should al-

ways seek professional advice before entering into any such agreement.