Benefits of an International SIPP
Within this article, we will focus on just the benefits and any disadvantages of an International SIPP. You can find information on a number of related International SIPP articles below.
International SIPP Comparison – How do they differ?
Novia Global International SIPP
What is an International SIPP – 7 Key questions on the International SIPP
What does a pension transfer cost?
Key Benefits of an International SIPP
Flexible Access – Access your pension pot from age 55. This can be a regular income or on an ad hoc basis.
Management – Allow an ongoing strategy to be implemented via a regulated independent financial adviser in your jurisdiction
Tax Relief – As the SIPP is based in the UK it stills qualifies for tax relief should you return
Extensive Investment Options – Invest in a huge array of assets from direct FTSE 100 company shares to commercial property, government securities, mutual funds and ETF’s
Multi-Currency – Mitigate currency risk by investing and withdrawing in all major currencies. Furthermore, currency conversion can take place all within the SIPP.
Low Cost – Starting from £0 setup and as low as £180 per annum. Up to 7 times cheaper than a QROPS
Safety & Protection – Retains the robust regulation of the Financial Conduct Authority and Financial Services Compensation Scheme
UK Compliant – As held in the UK and regulated by the FCA the SIPP is fully UK complaint. As such, no need to alter anything if returning to the UK
Portability – you can transfer out of the SIPP should your position change and a different product become more suitable
Consolidation – Consolidate 2 or more pension pots allowing one single strategy to be implemented and reducing the overall cost
Receive payments gross of UK Tax – via an NT code and dependant on dual tax treaties in place you can receive your pension payments gross of UK tax
Disadvantages of an International SIPP
Loss of Investment – If self investing there is always the risk of substantial losses. Utilising an adviser to assist with portfolio allocation if recommended
Lifetime Allowance Limit (LTA)– Additional taxes will be levied over the current LTA of £1.073m of up to 55%.
Hidden Costs – Is your adviser fee-based or commission-based? A full breakdown of the difference including case studies can be found here.
Unnecessary Costs – If you are only living outside of the UK for a short period of time and a return is imminent (i.e 1 – 2 years). It makes no sense to incur the cost of transferring existing pensions and you are better off dealing with it upon your return.
The information contained herein is for informational purposes only which is subject to change and should not be relied upon. You should seek advice from a professional adviser before embarking on any financial planning activity.