Have you moved away from the UK on a permanent basis but left your pension behind? In that case, it could be that you are feeling a little bit out of control by now. Yes, your UK pension provider may be sending you regular updates on your UK pension, but could you be doing something to increase the value of your UK pension?
Pensioners in the UK have cashed in almost £10 billion since the new pension freedom was launched in 2015. It seems that many UK residents are taking control of their pensions, and you should as well. My personal situation is rather complicated as I worked in the US for a long time, but I also had a UK pension plan. The fact is that it felt rather “faraway”, and I was concerned how a Brexit would affect my pension.
My main concern was that I could not pay into my UK private pension, and I was considering options on how I could possible make the most of it by moving it to Spain. The question is, do you need a financial adviser to help you. As we know, they want a slice of the pie, and that may even reduce the value of your pension.
Savings Plan or Expat Pension
I looked at my UK pension as a savings plan, and I often thought that I would be better of controlling it. In fact, there are many approved pensions plan in various parts of the world which would allow you to transfer your pension directly into them. The good news is that it could have tax benefits if you are still below pension age like myself. It could mean that any future contributions would be looked at favorably by your local tax office. Speak to your local bank, and they may be able to help you without charging you a penny.
Offshore Expat Pension
Of course, there are expat offshore pensions plan which may benefit you. We often think of the banking giants as HSBC being the best ones but that many not be true for all of us. They were able to help me, but only because my private UK pension was with them in the first place.
We all have different financial circumstances, and it is important to acknowledge that. Find out the current value of your private UK pension, and then start looking around the Internet. There are a number of smaller offshore banks that might be able to help you. While you are on their sites, check out their savings rates as well. You may be pleasantly surprised.
What Are the Benefits of an Expat Pension Plan?
You may be able to receive your pension is another currency. We can all agree that the next ten years or so, will be a volatile time for foreign exchange rates when it comes to Sterling. It might be better to see if you can transfer your pensions pot to another major currency.
Lower Retirement Age
Lowering your retirement age to 55 + plus is something a lot of companies talk about. I am not sure that is a good idea. If you are already living abroad and managing your finances without having to resort to this measure, it is better to leave the money invested.
Tax Free Pension Deal
You may be able to get a tax free deal. Yes, that could sound tempting but it only really applies in the vast majority of cases if you want to claim on your pension.
How to Contribute to Your Pension
Something that a lot of financial advisers do not discuss with you, is the fact that you may want to carry on contributing. If you are working abroad and find the right home for your pension, there is no reason why you should not be able to do that.
Perhaps you should take control of your pension and make the most of your retirement income,