Expat Retirees Need to Check the Pension Legislation Changes

Expat Retirees Need to Check the Pension Legislation ChangesBrits planning to retire overseas must start to familiarise themselves with the pension changes due to kick in on 6th April 2015, according to industry analysts.

A lack of knowledge could result in thousands of pounds being wasted, with the pension freedoms actually having the potential to be used advantageously as they are extended from the UK into the Qualifying Recognised Overseas Pension Schemes market.

The number of expats wishing to retire away from the UK continues to grow, and it is this group who are exposed to more potential financial complications and difficulties when it comes to their UK pensions.

As of April, any schemes left in the UK public sector defined benefit sector will be banned from transfer, while at the same time if it is not transferred to an overseas scheme which works with their choice of destination, the funds could be subjected to the uncertainty of currency fluctuations as well as taxed on the way out of the UK and the way into the overseas bank account.

Two QROPS Jurisdictions Make the Changes

Two of the jurisdictions seemingly inherently aware of the importance QROPS plays to their economies and the lives of expatriates, are Malta and Guernsey.

Both jurisdictions have been quick to reform their legislation to allow mirrored flexibility to their overseas pension schemes. Although a few finer points are still to be ironed out, expats with British pensions who live overseas will be able to transfer their savings into one of either Malta or Guernsey and be granted 100% access as of April, at a far lower rate of tax (the exact rate depends on where they reside).

The benefits of a QROPS transfer are extensive, but vary from client to client. It is suggested that UK pension holders familiarise themselves with all the changes due for introduction in April to ensure they are able to take advantage of the benefits that could be on offer.

To speak to a QROPS expert about the benefits of a transfer or the implications of the pension reforms, contact us here.

About John Cassidy

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