Published On: Fri, May 1st, 2020

Overseas Pensions: A Quick Guide

Did you know that most Brits don’t see the UK as being their ultimate retirement destination? The UK makes sure that citizens have plenty of choice when it comes to spending their retirement in another country and this is great, but you do need to put the work in so that you can take your pension pot to another country.

photo/ screenshot YouTube

Retiring Abroad

The ROPS scheme, or Recognised Overseas Pension Scheme is what HMRC recognises as being suitable. It’s how a lot of pensions in the UK operate. The main advantage to ROPS is that the UK pension saver can actually transfer their pension to a scheme without having to pay the rate of 40% tax. This has of course, made ROPS very desirable indeed. In 2008, HMRC had an incident that ultimately meant that some were removed from the QROPs list. 122 pension holders were then forced to pay 55% to HMRC in charges if they wanted to transfer to a scheme that was not recognised. If you use ROPS then this will give you the chance to transfer your savings overseas and you can also enjoy the benefits of the scheme as well. The scheme will pay into a bank account of your choosing when you arrive at your new destination. If you need some help with this, then TailorMade Pensions are a stand-out choice.

The main thing that you have to remember here is that you can still get a UK pension when you happen to retire abroad, but you will not get an annual increase. This is of course, unless you live in the European Economic Area or even a country that has a specific agreement with the UK.

Returning to the UK

British citizens can carry on paying into a UK pension scheme when they are abroad. Savers who are in the UK can receive pension tax relief based on any contributions they make. This is not ensured if you are contributing from another country. Any contribution you do make might be weakened by currency exchange fees or even rates. If you do want to transfer an overseas pension to a UK pension scheme, then you have to make sure that your scheme is QPROPS. When you do, you can then make sure that you are not going to be getting an unauthorised payment charge and you can also feel confident knowing that you are going to be making the most out of the money that you have. If you want to find out more about what qualifies your scheme or if you need some additional help with your pension, then you can check out the HMRC website. If you are thinking about retiring or if you want to take up residence in another country, then you can consult with a financial manager. When you do, they can then give you the support you need, and they can also talk you through anything you might need to know as well.

Author: Mildred Austria

Finding the Right Credit Broker for You

4 Tips for Running a Successful Membership Site

On the DISPATCH: Headlines  Local  Opinion

Subscribe to Weekly Newsletter

* indicates required

About the Author

- Outside contributors to the Dispatch are always welcome to offer their unique voices, contradictory opinions or presentation of information not included on the site.

Leave a comment

XHTML: You can use these html tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>



The Global Dispatch Facebook page- click here

Movie News Facebook page - click here

Television News Facebook page - click here

Weird News Facebook page - click here