Trying to plan for your retirement can be challenging at the best of times. There are so many things you need to take into consideration. Consider market volatility and the uncertainty surrounding the future value of your pension pot. But also evaluate the suitability of various investment options within your pension fund to meet your specific needs. And then there’s also tax implications to think about and how these will affect your income in the future.
If you live overseas you need to take additional considerations into account. If you cease to be a UK resident, pension providers frequently refuse to permit drawdown, insisting instead on the complete cashing in of the scheme and the receipt of the entire amount as a lump sum. This approach not only lacks tax efficiency in handling your pension but also halts the investment of your money. Consequently, your savings cease to grow, and they fail to generate the necessary income for your retirement.
An international SIPP can provide the answer to a lot of these issues. But what is it exactly?
What is an international SIPP?
An International SIPP is a FCA-regulated and approved scheme that gives you flexible access to your pension, wherever you are. It works in exactly the same way as a UK SIPP does. It means you can tailor your investments with access to a wide range of ETFs, mutual funds and bonds so that your pension meets your needs in retirement.
Whether you’re working abroad, building your own business, or enjoying retirement, the ISIPP gives you full control over your UK pension.
What are the advantages?
- Easily consolidate all your previous schemes into one manageable and accessible SIPP, streamlining your financial management for the long term.
- Enjoy flexible income options: make withdrawals monthly, quarterly, bi-annually, annually, or whenever needed.
- Diversify your holdings across multiple currencies to mitigate the risks associated with fluctuating currency rates.
- Ensure full portability; if plans change and you return to the UK, effortlessly transfer your scheme into a UK SIPP.
- Benefit from gross roll-up: let your funds grow tax-free until you’re prepared to start drawing your income.
What should I do next?
Although transferring a pension is a relatively straightforward process, it is crucial to execute it correctly.
Here at Harrison Brook, our team of expat advisers stands ready to guide you through the process and address any questions you have.
If you live abroad and need access to a UK pension scheme, please get in touch with us here so we can discuss your unique requirements.
