Are You Pension Ready If Planning to Move Abroad?
Thousand of people immigrate to different countries each and every year, but what happens to your pension? Before you jump on a plane and start your new life in a completely different country, you may want to take a closer look to how it is going to impact your pension along with any taxes payable.
The majority of people will possibly have two pensions. The first is their British state pension and the other is a pension done through their work. Anyone who currently qualifies for a UK state pension can make to any EU country and is protected by the current triple lock. In addition t this, there are seventeen other countries that in agreement with the UK offer an annual increase. Countries such as South Africa and Australia, Canada and New Zealand are all frozen right now at the same rate.
Right now if you decide to draw your state pension in South Africa for example, you will only receive £159.55 and that is for life with no increases, so this is something you definitely want to bear in mind when choosing a new country to live if you don't want to remain in Britain or you have been offered a job opportunity outside of the UK.
So what are your options as a UK expat? PWS Dubai advises that QROPS is the most popular option and very similar to the UK personal pension or SUPP. Currently there are approximately one hundred and ten thousand UK expats that have moved in excess of £8.8 billion into QROPS pensions, according to HM Revenue & Customs.
The reason is that these offshore pensions provide an improved investment option along with tax benefits that expats can enjoy. Where the QROPS is hosted is a very important consideration with twenty nine financial centers offering in excess of one thousand schemes, so it's imperative to secure a financial advisor who can provide you with unbiased recommendations to ensure you enjoy your retirement moving forward.
It is important to note that you cannot transport any public sector or civil pensions at this time.
Get Professional Advice
If you are in the process of moving to another country don't go into QROPS blindly, advises PWS Dubai, ensure that you take professional pension advice at all times. With professional financial advice you can make sound investment choices when it comes to your pension, saving you on tax and ensuring that it benefits you when it's time to stop working and enjoying your later years.