Which Pension Is Right For You?
Transfer Your UK Pension With Confidence
If you’re an expat with a UK pension scheme, it’s worthwhile exploring your options. You could transfer your funds into a Self Invested Personal Pension (SIPP) or a Qualifying Recognised Overseas Pension Scheme (QROPS).
We’ve made them both simple to understand in our glossary:
What Is A SIPP?
Basically, it’s a DIY pension. You’re in control of what and where you invest, with a small number of limitations. It’s a very flexible option, but it does come with responsibility.
Because you’re in charge, you need to become aware of wise investment choices, or of course, you could build a relationship with someone who can offer you objective advice on good investments for you when it comes to your retirement plan.
Investments that can be held in a SIPP include:
✓ Gifts & Corporate Bonds
✓ Investment Trusts
✓ Commercial Property
✓ Unit Trusts
✓ Open Ended Investment Companies
✓ Exchange Traded Funds
What Is A QROPS?
Essentially, a QROPS (Qualifying Recognised Overseas Pension Scheme) is an overseas retirement scheme. It’s recognised by HMRC as meeting standards and conditions equivalent to a UK pension. This means that as a British expat with a UK registered pension, you can transfer it offshore.
The scheme remains under UK pension rules for at least 5 tax full years of you being a non-resident. At this point, a QROPS gains more flexibility.
Key benefits of a QROPS:
✓ Tax efficiency
✓ Single vs multiple pensions
✓ Investment choices