UK Pension Planning

Is Your UK Pension Working For You..?

Pension planning and saving for your retirement is a critical part of financial planning. A UK pension can be a highly effective and tax-efficient vehicle to save and invest towards your retirement. Even if you are no longer based in the UK and are unsure as to whether you’re likely to return, it’s important that you seek professional advice to maximise the benefits of your UK pensions.

UK Pensions

QROPS – Qualified Recognised Overseas Pension Scheme

UK Pensions

What is a QROPS?

A Qualified Recognised Overseas Pension Scheme (QROPS) allowing you to transfer your UK pension rights into it and is recognised by Her Majesty’s Revenue & Customs (HMRC).

Who can take advantage of a QROPS solution?

A QROPS can be suitable for those who have left the UK or intend to leave in the short-term and do not intend on returning. It is very common for most UK expats to remain outside of the UK with a large number choosing to retire in Spain.

Is a QROPS the right solution for you?

This is a question that you are best to ask your Adviser. There are a number of considerations to take into consideration and given both the potential benefits and pitfalls you are best to seek professional advice. A QROPS is not the right solution for everyone so ensure that your Adviser clearly goes over the pros, cons and any costs that will be incurred. This will ensure that you can make a fully educated decision.

SIPP – Self-Invested Personal Pension

What is a SIPP?

A Self-Invested Personal Pension (SIPP) is a UK government approved pension scheme in which the investment decisions are made by the individual. This is also approved by Her Majesty’s Revenue and Customs (HMRC). There are generally also tax rebates on contributions made but it’s important to clarify this with your accountant or a qualified tax professional.

UK Pensions

What can you invest in via a SIPP?

Investment decisions regarding what assets are purchased, sold and held are made by the individuals, subject to the trustees of the SIPP. The assets that can be held must be approved by HMRC and some of the common investment choices include:

  • Equities

  • Futures and options

  • Unit trusts and Investment trusts

  • Derivatives

  • Gold bullion

It is important to recognise that your pension funds are for your retirement, so unless you are experienced in investment portfolio management, it is recommended that you work with an experienced Fee-Based Financial Adviser to assist in making these decisions and monitoring your investments.

Is a SIPP right for you?

A SIPP can be a worthwhile strategy for some, however this is certainly not the case for all. It is therefore important that you seek professional advice if you are considering this route.

Ensure Your UK Pension is Working for You

It’s important that your UK pension is aligned with your overall investment strategy and isn’t left sitting dormant. Book your no-obligation meeting with me to discuss how we can assist to put your UK pension to work for you.

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