Pension Options – British Pensions and Pensions Abroad

To an individual a long way from retirement, it might seem like it’s far too early to start thinking about a pension; but Guardian Wealth Management know from many years in the business that too late is often truer than too soon. Whether you’re looking at a pension here, within the UK, or a pension abroad, putting your financial affairs in order before it’s too late is the only guarantee of financial security for the future.
You earn your way through physical – or mental – graft; and you want to enjoy a good lifestyle on your paycheck; 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. Whatever your thoughts, the earlier you start saving towards your retirement, the better your life will be after employment.
UK Pensions in Brief
In the current society, we have come to expect that the State will provide a basic pension that will supply some small measure of support after retirement – but if greater financial freedom appeals to you, then you might want to consider talking to a financial advisor about the options open to you concerning British pensions.
If your financial wellbeing is a priority, get advice about British pensions immediately, to give you as much time as possible to invest in your golden years.
One type of British pension scheme is an occupational pension. These are established through your public or private sector employer, and exist in differing formats: contributing and non-contributing; with employers regularly contributing equivalent to employees contributions.
Alternatively, you could set up a personal pension, wherein an individual sets finance aside personally through either regular payment or lump sum. 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), whereby any number of financial options are open to the individual such as property, unit trusts and shares.
Pensions Abroad – 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 may be a very wise financial move, with additional benefits that could provide you and your loved ones with a brighter future.
Transferring pensions abroad isn’t right for everyone and will entirely depend on your current life situation. As with a British pension, if you are thinking about reinvesting your pension overseas, you should take no action before you have availed yourself of all current pertinent information from a reputable financial advisor with more than just a passing familiarity with the pension scheme you’re considering.
One great alternative to a British pension is a Qualifying Recognised Overseas Pension Scheme, often simply referred to as a QROPS. If you have decided moving your pension abroad is the right path for you to follow, a QROPS offers some distinct gains, including more investment flexibility, lower taxation rates, better inheritance benefits for your loved ones, the ability to take your pension funds in the currency of your choice and there is the added benefit of not needing to take an annuity, as is compulsory with a pension plan in the UK.
For this option to be feasible however, your overseas residence must be for a minimum of five 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 to be transferrable into a QROPS. 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 a proven track record of addressing British pensions and clients who feel a better investment for them is to remove their pension from the mainland and invest it in a QROPS. We have dedicated pension transfer specialists, all with FSA-recognised qualifications in this field; and we strongly advise all clients to check the credentials of self-styled ’pension specialists’. If you would like to benefit from our quality pension advice or indeed, if you need assistance or guidance in any financial matter, contact our financial advisors now.