LIVING IN ITALY, WITH A PENSION IN THE UK?
UK Pension Transfer Advice for Expatriates in Italy
Why considering a transfer to a SIPP or QROPS might be worthwhile!
- 100% Access to your fund & Flexibility
- A time of Generous transfer values
- Tax efficiency
- Pass on 100% to your loved ones
- Avoid currency risks/fluctuations
- Avoid Scheme Deficits
See below for how to take control of your pension money and -
Join the millions of people worldwide who have decided to transfer their UK pensions to SIPP's or QROPS for the following reasons:
Flexibility & Full Access !!
Most UK pensions must follow rules and regulations which limit access by capping lump sums and regular withdrawal amounts. The transfer of your pension assets to a SIPP, or QROPS in some cases, enables 100% access to your pension fund (normally subject to a minimum age of 55).
Choose to take greater lump sums, and higher levels of income via Sipp’s and QROPS. Take your entire fund in one go, or take cash as you wish and maintain a pension plan in place. The options are yours.
In 2015, George Osborne brought about his ‘pension freedoms’ of which a key attraction for most was the ability to access their entire pension. However, many Defined Contribution UK schemes are simply unable to entertain 'flexible drawdown', and do not have to adhere to it and as a result, most pension assets are still tied up for gradual withdrawals over time), whilst Defined Benefit (final salary) schemes don’t allow for flexible drawdown/full access at all (perhaps except in the case of serious illness).
Take care of your loved ones …
SIPP’s and QROPS allow for you to pass on 100% of your pension to your loved ones. Surprisingly, the majority of UK pensions only allow partial assets to be passed on – typically between 50% - 70% of remaining fund value to the surviving spouse, and 0% to non-dependent children.
The reality of this means that should you be within most types of UK pension then you are unlikely to utilise the full value of your pension fund within your lifetime due to restrictions on specified lump sums and income. And then upon your death, only a portion of what’s left will go to your loved ones.
What about the full value of this money that is rightfully yours ?!!
A transfer of your UK pension to a SIPP or QROPS ensures that the full value of your pension fund is yours, and you have control over where, and to whom, the money goes.
Call us today …………. Take control of your money, protect what’s yours!
Don’t let your pension slip away!!
Unfortunately, many UK Defined Benefit (Final salary) pension schemes are in deficit. This means a reduction in your pension.
Deficits are commonplace within final salary schemes, many of which are unlikely to be replenished.
One way to protect against future deficits is to transfer your pension assets into a SIPP or QROPS. Many pensioners worldwide have decided to cash-in their UK Defined Benefit pensions while they still can!
Clarity and consolidation of multiple schemes
Should you possess multiple pension schemes, consolidation of these into one plan offers key benefits. Many of our clients have accumulated their pension assets via different schemes as they have changed employers during their careers.
Consolidation of one’s overall pensions into one scheme may offer clarity, decreased overall charges, and ease of administration.
The transfer of accumulated pension assets into the likes of a SIPP or QROPS will also offer associated benefits illustrated on this page, and could present a very worthwhile solution for those living in Italy.
The Perfect time to act … but don’t delay
If you possess a UK Defined Benefit (final salary) pension, you may currently receive a very generous transfer value. The Pensions Regulator has referred to many DB scheme transfer values as “too generous”.
Defined Benefit (final salary) pensions have traditionally been considered valuable due to the so-called ‘guarantee of an income for life” and one should always consider a transfer very carefully.
However, should transferring-out be among your considerations, then you may want to act fairly quickly to try and secure a generous transfer value from your current scheme. Indeed, industry experts believe that such generous offers in Defined Benefit transfer values will not last much longer, and we have already seen some schemes have already stop members’ transfers altogether.
Don’t overpay in taxes!
For many of us living outside of the UK, in places such as Italy, the reality of holding a UK pension and what it means in terms of taxation is rather un-clear at times. UK pension schemes must take income tax on your pension income at source. However, there may possibly be ways in which you could reduce your overall tax liabilities...…..
Get in touch today to learn about becoming tax-efficient!
Avoid the risk of currency fluctuations
The majority of UK pension schemes can only be valued in GBP. However, if residing outside of the UK, in Italy for example, would you like to hold Euro, as well as other currencies perhaps such as USD?
The ability for your pension fund to hold multiple currencies can be of particular advantage if retiring abroad, or if you are looking to utilise your pension money outside of the UK, and is a key consideration for those residing in Europe as well as many other parts of the world.
We often see clients residing in Italy elect to diversify their pension fund/s across multiple currencies such as Euro and USD (whilst also holding some pound sterling perhaps).
Are there any risks in transferring my pension?
UK pension assets may only be transferred to alternative schemes within the UK, or to those which have 'recognised and approved' status. The likes of SIPP's and QROPS are both effective, and popular, solutions for many of us as opposed to keeping our pension monies in rigid personal-based, or employer-based, schemes.
More information on QROPS and SIPP's may be found on our 'UK Pension Transfer' page.
Or simply, get in touch today, for more information.
Visit our UK pension transfer page for the following:
- A case study with the step-by-step process of a pension transfer
- Definition of a SIPP
- Definition of a QROPS
- After transfer of my pension, how would my fund be invested?
- At what age may I transfer my UK pension/s?
And other useful FAQ (Frequently asked Questions).
Get in touch today!
Specialty Advice Ltd, is committed to helping protect the public from pension scams.
Always consider the transfer of your pension very carefully, and make sure that you understand all implications of transferring, including the associated costs, along with any potential risks.
Ensure that you are making an informed decision.
Proud members of the PFS:
"acting with the highest ethical standards and integrity" and "acting in the best interests of each and every client"