What happens to my pension if I move abroad?
Moving abroad is an exciting step, particularly if you are moving for a happy, sunny, peaceful retirement. However, one of the more stressful aspects of making a big move abroad is sorting out your financials. Exchange rates, purchasing a home in your chosen destination and opening a new bank account can all be tricky business, particularly if there is a language barrier between your native tongue and that of the locals in your new region. Of course, there is also the subject of your pension. In this blog you will find advice on how to manage your pension if you move abroad.
Seek Financial Advice in Your New Country
Of course, knowing where you are moving to before you begin researching UK pension transfers to that country is a must. Once it is confirmed where you are moving, you can begin to seek financial advice from a professional in that area. It would be best if you asked your bank for advice, too, about a pension transfer. To keep your money safe, you should consider all options and explore every detail of your new pension scheme overseas before you transfer your pension into the hands of a new organisation.
Once you arrive at the destination you are moving to, you should set up a meeting in the new bank you have chosen. You may need to organise an interpreter, which many overseas banks offer. This way, you can cover all bases and meet with the organisation before you make any financial transactions.
Explore Keeping Your Pension In A UK Pension Scheme
There is always the option of leaving your money in a UK-based pension scheme. Even if you move abroad, this is possible under certain conditions. If your pension provider offers the best interest and is a trust asset for you, you should meet with them to explore this option before you make your move abroad.
This could, however, limit your tax relief options. Depending on whether you are still paying into your pension or if you are already retired, your tax relief options will change; if you are still paying into your pension and do so from abroad into a UK scheme, this could negate any tax relief you received. Make sure to research and confirm all taxation information before you proceed with your move.
The Term QROPS
Get to know the term QROPS before you move to your new location. Qualifying Recognised Overseas Pension Scheme is the term which defines whether a pension scheme offered outside the UK qualifies under the regulations and conditions necessary to keep your pension safe. In order to legally and safely transfer your pension overseas, the scheme into which you transfer will need to be a QROPS. A QROPS will provide insurance and legitimate, legal transfer when paying into or taking money from your pension.
Moving abroad is so exciting; discussing your pension is less so. Nevertheless, make sure to follow this guide before moving your pension abroad.