Pension Choices – Pensions in the UK and Pensions Abroad

To one enjoying the bloom of youth, many years away from retiring, planning one’s pension may well be the last thing on one’s mind; but Guardian Wealth Management know from much work in the field that there’s no such thing as too soon. Whether you’re thinking about a British pension or a pension abroad, establishing the right pension plan for you before it’s too late is the only route to healthy finances in later life.
You earn your way through physical – or mental – graft; and you want to enjoy a good lifestyle on what you take home each month; but what are your plans for when you retire? You are possibly making payments for a pension in conjunction with your employers, or you may have looked into other private pension schemes. Regardless of your mindset, the sooner you start investing money into your retirement, the more you will be able to enjoy your time after work.
British Pensions in Brief
In the current society, we have come to expect that there is a state benefit scheme that will supply some small measure of support in our old age – but if you don’t want your quality of later life determined by the state, then maybe now is the time to consult a financial advisor about other types of a pension in the UK.
If financial management is of concern to you, don’t waste another minute before looking into setting up a British pension for yourself, to give you as much time as possible to invest in your post-retirement years.
Within the UK, one option is an occupational pension. These are put in place through your public or private sector employer, and can be both contributing and non-contributing; with employers not uncommonly matching employees contributions.
Alternatively, you could set up a personal pension, wherein an individual makes their provision through either as a single, sizeable deposit or in smaller, regular ones. These plans are invested on your behalf by the provider – usually a bank, building society or insurance company.
A third pension plan available in the UK is the Self Invested Personal Pension Scheme (SIPPS), which allows a wider range of investment choices such as property, unit trusts and shares.
Overseas Pensions – Considering QROPS
If you are looking for an alternative to a British pension and if you’re also looking at emigration, then the option is open to you to investigate moving your pensions abroad. Transferring your pension abroad could prove to be the better investment, with additional benefits that would give you a far better standard of living in your later years.
An overseas pension may not be the right step for you and will entirely depend on your individual circumstances. As with any financial investment, if you are thinking about reinvesting your pension overseas, you should take no action before you have all the latest information from a reputable financial advisor who has previously invested in whichever scheme you have in mind.
Perhaps one of the better options to consider is a Qualifying Recognised Overseas Pension Scheme, often simply referred to as a QROPS. If you want to move your pension abroad, a QROPS offers several benefits, including more investment flexibility, reduced tax, improved inheritance for your family, the choice of which country’s currency you would like to withdraw your pension funds as and additionally there is no necessity to take an annuity, as is compulsory with a pension plan in the UK.
To enable the transfer of your pension abroad and into a QROPS however, you must be sure that you will be living overseas for minimally 5 years (as anything less will incur severe tax penalties on your return). A state pension is non-transferrable, it must be a private, personal, stakeholder or occupational pension for this system to work. Guardian Wealth Management only advise clients to transfer occupational pension when our in depth calculation and analysis show this is appropriate advice.
Guardian Wealth Management has professional financial advisors situated worldwide, each with specific expertise in handling British pensions and clients who wish to transfer their pensions abroad and into a QROPS. We have a team devoted to pension transfer, all with FSA-recognised qualifications in this field; and we cannot stress firmly enough that all clients review the bona fides of self-styled ’pension specialists’. If, however, you would like to consult us for professional pension advice or even on non-pension-related monetary affairs, contact our financial advisors now.