Understanding the UK Pension Transfer Process

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Understanding the UK Pension Transfer Process
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• Our pensions are one of the most crucial
  financial investments we make and are there to
  provide a safe, comfortable and secure retirement
  enjoying all the things we love!
• However, the world of pension transfers can seem
  complicated, with multiple different types of
  scheme with varying pros and cons.
• Many Chase Buchanan clients come to us for help
  managing a combination of pensions, to find the
  best way to combine or utilize them these can
  include
• Private pension plans
• Personal Self Invested Pension
• Overseas pension provisions
• Restructuring pensions for expats
• Auto-enrolment pensions
• Employer pension schemes
• Government pensions
• Lets walk through how pension transfers work,
  what your options are, and how using a financial
  adviser can maximize your income streams
  throughout your retirement.

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Pension Transfers Explained

• Your pension works like any investment you make
  payments into the scheme, which is invested
  depending on the type of plan, and the level of
  selected risk exposure.
• Pension transfers are a way of directing your
  pension fund to a different product, investment
  plan or provider. This is an excellent way of
  managing your retirement budget, having control
  over how and where it is invested, or
  consolidating multiple plans into one, easy to
  access, scheme.

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Reasons to Transfer your Pension

• There are many different scenarios in which it
  may be beneficial to transfer your pension both
  from a financial, and a security point of view!
  These include
• Consolidating multiple pension plans for better
  growth.
• Opting for a pensions provider who offers the
  investment potential you would like.
• Reducing your fees.
• Choosing pension investment plans with higher
  income.
• Revising your risk exposure.
• Relocating your pension scheme to another country
  if you live, or are moving abroad.
• Making the pension tax efficient in your country
  of residence.
• Making your pension easier to access and manage.

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The key to successfully managing your pension is
to work with an experienced financial adviser.

• With so many options available, the crucial
  factors are
• What you want to achieve from your pension
  funds.
• Structuring your pension around your plans.

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Pension Transfer Options
One of the top reasons to use a wealth management
consultant to transfer your pension is that you
plan to move abroad or are already an expat
living overseas from your country of origin. If
you are considering transferring your pension, a
pensions adviser will talk to you about your
plans, and what sort of UK pension for expat
structure would best suit you.
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• This includes consideration of lots of factors
• Where you plan to live when you retire.
• What plans you currently have, and whether there
  are any restrictions on moving those plans (such
  as exit fees).
• Your tax status, and how changes to your pension
  scheme will impact you.
• What sort of risk exposure your investment funds
  have, and what level of risk you feel comfortable
  with?
• Plans for the future, and whether you have any
  purchases, costs or investment plans that will
  require the release of a lump sum of cash.
• When you wish to retire.
• It is essential to work through these questions
  to draw up a comprehensive understanding of your
  financial position and aspirations.
• Once your adviser knows what you wish to achieve,
  they can get to work planning and strategizing to
  put your pension funds to work!

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Benefits of Pension Transfers for Expats
If you live overseas from your country of origin
or plan to retire abroad, then your pension
planning is an important consideration. One
strategy to think about is a ROPS a Recognized
Overseas Pension Scheme well explain this in a
little more detail below. The primary benefit
to choosing such a scheme is that expats have the
option of choosing to release a lump sum, without
any tax liability. There are also further tax
efficiencies available, which can make your
retirement more comfortable and maximize the
returns from your retirement savings. For
example, by having pension payments taxed through
your local jurisdiction, you can save a
significant amount of tax even as much as 35
and above! This all depends on the tax
regulations in your country of origin, and where
you plan to live during your retirement years, so
consulting with an expert financial adviser is
essential to get this structure right.
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SIPPS vs ROPS

• These schemes are some of the most popular
  choices for expat pension transfers and have
  lots of benefits to compare!
• SIPPS stands for Self-Invested Personal Pensions
• ROPS stands for Recognized Overseas Pension
  Schemes
• A SIPP, in a nutshell, is where your financial
  adviser manages your retirement fund on your
  behalf and collects a tax rebate against the
  value of your funds in exchange for putting
  certain restrictions on your pension.
• These can be tailored to your requirements and
  circumstances for example you might decide not
  to access your pension until you reach a certain
  age. In the meantime, your fund is invested
  according to your risk profile and will continue
  growing in value until you would like to start
  drawing down your pension.
• ROPS are a form of international occupational
  pension plan, which can accept transfers of funds
  from UK pension schemes. This sort of scheme
  carries significant taxation benefits including
  the potential to draw lump sums and options to
  save on tax liabilities by choosing to pay tax at
  the local rates.
• Which scheme is right for you will depend on your
  circumstances, your pension schemes, and your
  plans for the future so it is essential to work
  with a wealth management expert who can advise on
  the best solution.

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Expert Advice in the Changing Retirement Landscape
Pensions are personal, and one of the most
crucial forms of investment most of us will make
in our lifetimes. With continually changing
legislation and regulations, it is crucial to
consult a financial adviser who understands the
regulatory framework and can evaluate the pros
and cons of each type of pension transfer for
you. Particularly when it comes to international
pension schemes, you need to understand the tax
rules, what they will mean to your revenue
streams, and whether your plans will make one
option more advantageous than another. For
example, if you plan to relocate to another
country during your retirement, or wish to return
to your country of origin at some point, this
will be a deciding factor in ensuring you make
the most of your retirement funds.   Chase
Buchanan are established pensions and investment
experts, who structure bespoke retirement plans
to ensure every client receives specific advice
about the best way to invest for their
retirement. For access to our extensive
expertise, and clear guidance about the different
pension transfers and what they could mean for
your retirement get in touch today. You can
also request our free Pension Planning guide to
help you navigate the waters of pension transfers
and retirement planning with confidence!
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